Poverty in rural localities and external shocks will be the main areas tackled by Moldovan Government in cooperation with World Bank

The ascending poverty in the rural localities and the problem of external shocks, especially those related to the problem of natural gases and wine production, as well as the quality of economic growth will constitute the key-issues on which the Government of the Republic of Moldova will base within the cooperation with World Bank (WB). This declaration was made by the WB manager in Moldova, Edward Brown, within the evaluation meeting of the WB projects portfolio. According to the quoted source, the portfolio of projects financed by WB in Moldova is one of the most significant in the region, taking into consideration there are no problematic or risk projects. Among the most important progresses of the Republic of Moldova in the last years, Brown mentioned the vigorous economic growth, good macroeconomic management, reduction of the external debt and the new Poverty Reduction and Growth Facility (PRGF) program of the International Monetary Fund. Even in this situation, according to the WB representative there are some worries especially related to the durability of the projects, as well as the monitoring, evaluation and management of their implementation. Brown considers that these problems are not a result of the lack of will, but lack of capacities. At the same time, according to the WB official, the economic growth continues to be influenced by consumption and nourished by foreign remittances. As well big disparity between annuities is observed, and the improvement of agriculture continues to be insignificant. According to the same sources, although poverty reduction process continues, the proofs show that in the last two years the poverty increased in the rural localities, and the high prices for energetic resources generate serious problems for the whole economy. According to the minister of Economy and Commerce, Valeriu Lazar, the issue of sustainable ensuring of projects is caused by the insufficient wages of the public servants, but also by the bad management of the unities implementing the projects. According to him, another problem found in the process of carrying out the projects is the elaboration and implementation of the projects exit strategy. In the future, the minister proposes to elaborate these strategies not at the end of the projects, but at the beginning. Among the achievements obtained within the WB financing project, Lazar emphasized the implementation of the customs system informational program SECUDA, RISP I project, investment fund for health and the drinking water supply program. As regards to the project in the energetic field, the minister mentioned that it obtained several achievements, but being one of the most important areas for the economy of the country, it must be adjusted to the new necessities. In the last 14 years, World Bank implemented in the Republic of Moldova 68 projects worth 600 million USD. At the moment, the total engagement of WB constitutes 174.4 million USD.