In the process of completion The representatives of the Ministry of Reintegration have regularly participated at the round tables, seminars, conferences organised by the NGOs on the transnistrian problem.
The Ministry of Reintegration is actively cooperating with the non - governmental sector in order to promoted the democratic norms and standards in the transnistrian region, usually by organising round tables, conferences, seminars, trainings and other measures according to the actions set in the chapter 2.2 of the European Union/Moldova Action Plan on involving the civil society in the process of the settlement of the Transnistrian conflict.
The Ministry of Reintegration is supporting the efforts of the civil society on both sides of the Dniester, that aim for the democratisation and creation of necessary conditions for reintegration of the Republic of Moldova.
With the assistance and support of the Ministry of Reintegration seminars and trainings were organised for the NGOs from the both sides of the Dniester on the methods of collaboration with the foreign donors. The representatives of the Ministry of Reintegration participated at the session of the Council Group of Donors where a presentation was made on the priorities for assistance to the civil society in the context of settlement of the transnistrian conflict and the necessities of the NGOs from the transnistrian region.
The Ministry of Reintegration is organising consultations with the relevant NGOs within the framework of development of the sectorial policies, projects and plans, strategies and legal acts on different aspects of settlement of the Transnistrian problem.
The subjects related to the settlement of the transnistrian conflict was discussed in the summer school organised by the Association for Foreign Policy (23-30th of August), that gathered representatives of youth and non-governmental organisations from the both sides of the Dniester, and hosted as experts the Deputy Minister of Reintegration Ion Stavila, Alexandru Flenchea, Head of the Information and Analysis Direction in the Ministry of Reintegration.
The representatives of the local public administration, NGOs, private sector, as well as from other sectors of the civil society from the both sides of the Dniester were involved in the public consultations for developing the National Development Plan for 2008 – 2001. A public event for the discussion and debate of the chapter 2 “Settlement of the transnistrian conflict and reintegration of the country” of the draft strategy of NDP was organised; the suggestions gathered during this debate on the priorities for the 2 chapter, were taken into account in the process of finalisation of the text of the draft strategy.
On 5th of September a meeting with the Head of the International Migration Organisation in Moldova, Mr. Martin Wyss, took place, during which the perspectives for collaboration between the central public authorities and the civil society were discussed, as well as the specialised institutions from the UN system, with the objective to improve the social situation of the population from the both sides of the Dniester and, specifically for the process of settlement of the transnistrian conflict.
The Ministry of Reintegration organised, with the assistance of the Association for Foreign Policy, an informal meeting, where representatives of the mass media and NGOs “Promo-Lex”, “Helsinki Committee for Human Rights Protection”, “the Institute for Social Initiatives Development Viitorul”, “and European Institute for Public Policies” etc, have participated. During this event, the NDP and the implementation of the EU/Moldova Action Plan was discussed as well as other aspects of the settlement of the transnistrian conflict.
The Ministry of Reintegration fulfilled a number of actions in order to launch the activity of the Moldovan-British Centre for Professional Reconvertion of the Military, created by the technical University from Moldova with the support of the British Embassy in Chisinau. One of the main objectives of the centre is the professional reconvertion of the military personnel from the paramilitary formations of the transnistrian region, as a result of the multiple requests made by the military personnel that are in reserve. This objective is part of the process for demilitarisation and social and economic rehabilitation of the transnistrian region. At the present moment consultations are carried out with the EU institutions and the member states in order to launch the project for professional reconvertion of the military personnel from the paramilitary formations of the transnistrian region.
The Ministry of Reintegration in collaboration with the Parliament of Republic of Moldova, made a series of consultations with the foreign donors and as a result the NGOs from Moldova, including from the transnistrian region, that activate in the field of development and promotion of democratic institutions on the left side of the Dniester river, of civic education and of the social integration of the persons from the transnistrian region, are benefiting from the assistance provided by a number of donors, namely: the OSCE Mission in Moldova, DFID, the US Embassy, the SOROS Foundation, UNDP Moldova, National Democratic Institute (NDI), Friedrich Ebert Foundation, The European Centre for Minority Problems (ECMI), Ministry of Foreign Affairs of the Czech Republic (TRANS) and other.
The Ministry of Reintegration is continuously monitoring the situation in the Moldovan schools from the transnistrian region, were the study process is being made in the Latin graphic.
The Ministry of Reintegration, in collaboration with the central public administration, is maintaining the issues of observance of the children rights in the Moldovan schools from transnistrian region of the Republic of Moldova in the agenda of the Ministers’ Committee of the Council of Europe, as well as in the Permanent Council of the OSCE in Vienna. At the same time, the problem of the Moldovan schools from the transnistrian region was discussed during the visits made in the Republic of Moldova by the heads of the permanent delegations of the OSCE member states, as well as of the Reporters for Moldova of the Parliamentary Assembly of the Council of Europe. These organisations were informed about the aboven mentioned problems.
The Ministry of Reintegration, in order to settle the problems of the Moldovaan schools from the transnistrian region participated to six meetings of the experts group in the field of education from the Republic of Moldova and from the transnistrian region, where the following subjects were discussed:
- The problem of retrocession of the study block of the Theoretical Lyceum “Evrica” from Ribnita, built from the money of the state budget of Moldova (about 11 million lei);
- During the meeting with the representatives of the city of Ribnita administration and of the Metallurgic Factory from Ribnita a temporary measure was discussed for concluding a rent contract of the nursery school, that belongs to the factory. - The necessity to repair this nursery school was also discussed.
- The method to insure the Lyceum “Stefan cel Mare” from Grigoropol with the location in the Grigoropol city.
- The Ministry of Reintegration cooperated with the NGO “Promo-Lex” and the Helsinki Committee for Protection of Human Rights on the issues related to the books addressed to the lyceum “Lucian Blaga” from Tiraspol and the abuses committed by the force structures of the transnistrians on the transportation of the materials for construction of the church in Corjova village.
In the Ministry for Education and Youth, an work group was created having as member the representatives from the ministry and from the universities of the Republic of Moldova, which in collaboration with the National Bureau for TEMPUS projects will provide necessary assistance to the higher education institutions from the transnistrian region for the development of the documents for the registration of the institutions according to the standards and practices of the Republic of Moldova and the European Union. This information was sent to the administration from the transnistrian region.
On the initiative of the Ministry of Reintegration and of the local authorities from the Causani district, with the support of the UNICEF, the opening of the Young Resources Regional Centre on the basis of an ex-school from the village of Copanca was made, that will ensure the access of young people and pupils from Copanca village to the resources like information, education, tolerance and good understanding, professional orientation and vocational development, good and healthy way of living, prevention of human trafficking, organisation of the free time according to the needs and interests.
For the fulfilment of the Decision of the ECHR in the case of „Ilaşcu and others v. Republic of Moldova and Russian Federation”, issued on the 8 of July 2004, the Ministry of Reintegration, in the limits of its attributions, sent, on the request of the representative of Government of the Republic of Moldova to the ECHR, detailed information on the actions made by the Ministry of Reintegration for ensuring the unconditional execution of the ECHR Decision and the freedom of the detainees T. Petrov-Popa and A. Ivanţoc. In this context, the letters requesting immediate execution of the ECHR Decision and freedom of the T. Petrov-Popa and A. Ivanţoc, in order to ensure the observance of the human rights and the fundamental freedoms, were addressed to V.Litcai, the representative of the politic problems in the process for settlement of the transnistrian conflict. At the same time, the letters with the call to contribute to the execution of the ECHR Decision were addressed to the representatives of Ukraine, Russian Federation and international organisations that are in Republic of Moldova.
The Ministry of Reintegration developed and proposed to the Government the adoption of the Action Plan on the support of the population in the transnistrian region of the Republic of Moldova. It is foreseen that the mechanism for implementation of the measures from the Plan will be applied with the participation of the representatives from the transnistrian region of the Republic of Moldova, within the working group of experts in the economic area, including the representatives of the business community and NGOs. According to the Order of the Government, an working group was created, that was mobilised in the districts of Anenii Noi, Cauşeni and Dubăsari, in order to evaluate and make an analysis of the economic and social situation from these localities. On the basis of the information and suggestions made by the mayors of the localities, the Ministry of Reintegration, developed a Plan of actions for solving the social and economic problems of the localities that are in the Security Zone: Anenii Noi, Căuşeni and Dubăsari.
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MoR
2.3 Economic and social reform and development
Improve Welfare
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Implementation of significant measures to address poverty, notably by improving targeting and effectiveness of social assistance
1. Adopt and progress in implementation of the Economic Growth and Poverty Reduction Strategy Paper (EGPRSP), identifying short term and long term priorities, endorsed by international donors based on the three pillars of poverty reduction identified in the I-PRSP of 2002; in particular implement relevant requirements on Poverty Alleviation and on Social safety net agreed within the framework of the EU Food Security Programme.
Performed
In December 2004, Parliament of the Republic of Moldova approved the Strategy for Economic Growth and Poverty Reduction (EGPRSP 2004 – 2006)
In order to extend EGPRSP for 2007, was approved the GD nr. 1433 from 19th of December 2006, thru ought which were approved the modifications to the Annex 5 „Monitoring Indicators of the EGPRSP implementation”, Annex 6 „Policy matrix/Action plan” and Annex nr.7 „Indicative costs of the priority actions foreseen in EGPRSP” all of them being updated in accordance with 2007 priorities.
In order to ensure the continuity of the reforms implementation, was initiated elaboration of a new document of strategic planning for mid – term „National Development Plan” of the Republic of Moldova for the period 2008 – 2011 (NDP). In accordance with the governmental decision nr. 1495 form 28.12.2007, the draft NDP was elaborated, in which were included the main direction for development of the socio – economic sector. On 26.06.2007 was organized the National Forum thru which was lunched the public debate on NDP, the purpose of this action was consultation with civil society in order to optimize the NDP. During this event there were organized workshops with members of Civil society as in Chisinau as in rayons.
Also, in order to impove the national system for social assistance, was elaborated and adopted by Moldovan Government a draft law on modifying and amending the Law nr. 499 from 14.09.1999, on Social allowances for some categories of citizens.
Meanwhile, at the beginning of 2007, was elaborated and presented to the Government for approval the draft Governmental Decision on „amending the annex 1 to the GD nr. 761 from 31st of July 2000” in order to implement the paragraph 5 of the 7th Article of the law regarding Social Protection of some categories of the population, nr. 933 – XIV from 14.04.2000, duet o the increase of the price of the natural gas.
MET
MoH
(18)
Redirect public expenditure to significantly address child poverty and to increase primary school enrolment.
1. Implementation of the relevant requirements on Poverty Alleviation and on Social safety net agreed within the framework of the EU Food Security Programme.
On27th of October 2005, thru GD nr. 1117 was approved the “Conception on improving the system of social protection” and the action plan for reforming the system of social allowances, from a system on category of the persons to a system based on evaluation of the average global income expreses on family/member.
Arising from the provisions of the Conception regarding imporvement of the social asistance sistem and the Plan of actions on methods of payment of the social allowences, by the Government was decided to start implementent a new sistem of social allowences in 4 rayons in Moldova (Orhei, Leova, Soroca, and Riscani sector Chisinau City). With in this pilot project, in the February- Ocrober 2006 priod were tested 27713 persons that benefit from social alowences.
Basing on the results obtained in this project and recomandations of the European experts, was elaborated and aproved by the Government the National Program for improving the system of social allowences for the period 2007-2009, thru which is intended to identify the weakness of the current system, to settle new objectives in reforming it, the actions to be taken to improve the system, also the results expected and monitoring indicators.
Were elaborated two legislative acts:
- draft law on social assistance and the Draft regulation on methods of establishement and payment of the social assistance – which provides that the social allowencws will be offered to the beneficiaries depending on the global income expressed on family/person, also were introduced filters like presence of a car, arable land. At the moment the mentioned documents are on examination.
Implementations of the social service
In order to strengthen the primary sector of social assistance were operated amendments to the Law regarding social assistance, by introduciong in it the obligation to hire in the local mayor’s offices the employee that will deal with social issues. At the 5th of September 2007, there hired 551 social experts with in the mayor’s offices.
In order to strengthen the system of the alternatives of institutionalizations were elaborated the minimal standards for quality of the education, socialization and care of the children from temporary placement Centres. At the moment in Moldova are working 21 hospices for 481 old peoples, 64 socila rehabilitation centres for 2964 children and adults in risk situations, 91 dinning halls for 4043 social vulnerable persons.
Thruought the Republican fund for population assertion, annulay are payed material help to the families with children from the most social dizatvantaged categories.
In cooperation with Swiss Directorate for development and Cooperation, in summer 2005 was arranged for 320 (112 children with physical disbilities) children from social vulnerable familie a vacation in summer camps in Republic of Moldova. In 2007 was arranged a vacation for 80 children forom social vulnerable families in Trogen, Swiss.
Thru GD nr. 346 from 23.03.2005 was amended the Regulation that provides the settlement and amount of social allowences for familie wth children, was increased the monthly allowance for child care to an age of 1,5 years for insured persons, and 3 years for uninsured persons. Also, by GD nr. 194 from 21st of February 2007 eas increased the unique allowance for child birth as for insured as for uninsured persons.
In accordace with the law nr. 363 – XVI from 23.12.2005 was increased with 30% the social allowences for the invalid persons from childhood and invalid children till 16 years old. Also the law 106 – XVI from 20.04.2007 provides the increase of the allowences form careing the invalid persons.
According to the GD 181 from 17.02.2006, as a pilot project there were transferred the management of the 3 rehabilitation centres from local public authorities to the MSPFC, with pte purpose to test the new social services and elaborate the minimal standads for social care, for futhre development.
In order to develop the social services at a higher level for the famili and child, was approved the GD nr.450 from 28th of April 2006, and the annex to it “Minimal quality standards for care, education and socialization of the Children from Temporary Placement Centres.
At the final stage of development are the amendments to the Family Codex of Moldvoa, the the chapter that regulates the level of responsability of the parents towards the children, the ways of identificationa and securization of the children without parental care, also the provisions that expend the options for palcing the children in the centrs for care and education.
MoH
2. Develop community based child protection measures in particular in the countryside in collaboration with local governments
MoH
MoLPA
3. Rationalise child benefits and improve effectiveness of assistance to families in
Need
MoH
4. Remove factors limiting access to education for poor families’ children and
improve their access to primary and secondary education, in particular in the country side.
MoH
MoED
Sustain growth, consolidate public finance, and address the issue of public debt
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Strengthen economic growth and make it sustainable over the medium term.
1. As a vital step toward sustained economic growth, enhance macroeconomic stability through a sound monetary policy aimed, i.a., at containing inflation and a
fiscal policy aimed, i.a., at achieving debt sustainability.
Fiscal Policy By the Government Decision no.756 of 2nd of July 2007, the Government approved the Medium Term Expenditure Framework (MFEF) for the years 2008 – 2010, inclusively the objectives of the fiscal policy and policies for fiscal administration as a component part of this.
Budgetary Sector
Suggestions for delimitation of the competences of the local authorities of the first and second level, which were taken into account in the new draft of the law on local public finances. The draft law on local public finances, developed in the context of the administrative and fiscal decentralisation process, was sent to examination and review to the central and local public institutions (scr. No.02/2-17 of 10 May 2007). At the same time, the draft law was presented for the comments of the Council of Europe Experts.
State debt
In march 2007 in the favour of the National Bank of Moldova was paid the integral sum foreseen in the law on state budget for the year 2007 – of 118.8 million lei. Hereby, the Government debt to the National Bank of Moldova at the situation from the 30th of June 2007 constituted 1 973, 4 million lei.
Starting the year 2007 State bonds were sold with floating interest with a circulation term of 2 years in the amount of 55,1 million lei, inclusively the month of June with 6,3 million lei.
With the objective of reducing the level of inflation will be immediately implemented the following policies:
(a) The anti – inflation monetary policy, that foresees adequate volumes for the national economy’s situation for the monetary mass, credits in the economy and cash in circulation;
(b) The budgetary fiscal anti-inflation policy, where through the optimal proportions for money flows will be obtained, state controls, inclusively through maintaining the budgetary surplus (prime);
(c) anti-inflation policy through out:
- correlation of the rhythms of medium salary grow in the economy with the rhythms of the growth of the labour productivity in the national economy,
- applying transitory financial instruments from a consumption market to a market of accumulations,
- pensions’ indexing with the planned rhythms of annual growth of the medium salaries in the economy and the inflation rate.
In the period of January-June 2007, the National Bank of Moldova, promoted a monetary and currency policy adequate to the economic situation of the state, oriented to the achievement of the main objective - ensuring and maintain the stability of the prices. The strategy of the National Bank is to use the monetary base as an operational objective and to use the monetary mass as an intermediary objective of the monetary policy.
In the period of January-June 2007, the monetary base increased to 6.14 per cent or with 399.69 million lei as to the 29th of December 2006, constituting 6911,99 million lei. As a result the total value of money in circulation increased with 275.78 million lei (5, 36 per cent) and the total bank reserves increased with 123.97 million lei (9.07 per cent). The monetary base in the administrated period was influenced in a significant way by the: procurement of foreign currency (86.2 million US dollars) and sterilisation operations (total of 10372.50 million lei).
The monetary mass M2 (money in circulation + deposits in MDL + the instruments of the monetary market) increased with 13.98 per cent in the respective period, constituting 14230.63 million lei on 29th of June 2007. The monetary mass M3 registered an increase of 13.05 per cent in comparison with 29th of December 2006, numbering at 22110.04 million lei on 29th of June 2007.
The deposits registered an increase by 15.70 per cent, constituting 16657.60 million lei, inclusively: deposits in lei – 8778.19 million lei (an increase of 19.85 per cent); deposits in foreign currency – 7879.41 million lei (an increase of 11.40 per cent) and these hold the heft of 47.30 per cent from the total deposits (comparing to 49.13 per cent on 29th of December 2006). During the administered period the volume of credits in the economy signed an increase of 2703.76 million lei (or 19.64 per cent) in comparison with 29th of December 2006, constituting 16471.56 million lei.
The inflation rate for the period of January-June 2007 constituted 3.9 per cent, inclusively at the food stuff products – 3.2 per, non food staff products – 4.0 per cent and services – 3.5 per cent.
Performing currency interventions in case of need of reducing the excessive fluctuations of the currency rate.
During the period of January – June 2007, the National Bank of Moldova, maintained floating the regime of the currency rate. The currency policy was oriented towards the non admission of excessive floats of the official nominal rate of the national currency in reference with the US dollar, consolidation of the international currency reserves and continues service of the foreign debt of the country.
The official nominal rate of the national currency in reference to the US dollar during the reporting period increased by 4.9 per cent from 12.9050 lei for one US dollar on 31st of December 2006 to 12.2706 lei for one US dollar on 30th of June 2007.
The medium exchange rate of the national currency in reference with the US dollar in the reporting period constituted 12.6006 lei for one US dollar, comparing to the 13.0197 lei for one US dollar in the same period of the year 2006.
During the period of January-June 2007, for reducing the excessive fluctuations of the exchange rate of the national currency in reference with the US dollar, NBM intervened on the internal currency market by using purchasing and selling operations of the US dollar in a gross amount of 82.6 million US dollars.
The gross offer of currency from physical persons for the period of January-June 2007 constituted 691.3 million USD, increasing with 31.4 per cent in comparison with the same period of the year 2006.
During the period of January-June 2007 the currency reserve increased with 103.2 million US dollars from 775.3 million USD at the end of December 2006 up to 878.5 million USD at the end of June 2007.
The real effective cost of the national currency (calculated in comparison with December 2000 taking into consideration the level of the inflation in the commercial partner countries and the modification of the monthly medium exchange rate) in May 2007 constituted 95.6% registering an increase with 4.1 per cent comparing to December 2006 (91.5%)
Using market instruments in order to administrate the liquidity of the bank system Taking into consideration the dynamics of the inflation, the monetary and macroeconomic indicators, the Administration Council of the NBM, in its session of 12th of April 2007, decided to decrease by a per cent point the base rate of the National bank, rate used in the re-financing of the commercial banks through REPO operations of purchase for a period of 2 months of state securities, establishing it to annual 13.5 per cent.
At the same time the interest rates for the following instruments from the rate corridor were established:
Overnight credits in amount of 17.0 per cent annual (decreasing in one per cent point)
Overnight deposits accepted by NBM in an amount of 2.0 per cent annual.
Performing, in the 1st half of 2007, adequate control, through market operations over liquidity, to the conditions of the monetary market contributed to fulfilment of the monetary policy of NBM. The increase of the firmed monetary control in this period asserted the NBM in using the practice of massive sterilization of the liquidity surplus, fact that aimed at strengthening of the capacities of the monetary authorities to set the inflationist anticipations.
The main instruments applied for the extraction of liquidities from the bank system in the analysed period was the NBM certificates and the withdrawal of deposits from the authorised banks. Starting April NBM performs absorption of liquidities only trough issuing certificates with expiration dates of 7, 14 and 28 days.
The total of the liquidities extracted by the end of fist half of 2007 constituted 1888.6 million lei, with an increase of 700.3 million lei when comparing with December 2006.
The medium measured rate of interest for the sterilisation operations in the reporting period decreased from 14.18 per cent per year in January 2007 to 13.23 per cent per year in June 2007.
Gradual decrees of the mandatory reserves norm. Taking into account the conditions of the internal currency market and the evolution of the inflation level, the mandatory reserve norm for the first half of 2007, was maintained in continuation at 10 per cent from the attracted means.
MoET
MoFin
NBM
2. In this context, an early
agreement on a new programme of reforms with the IFIs is key to securing policy credibility and to open access to concessional external assistance, including by the EU.
