Social and Economic Impact Assessment of the COVID-19 Pandemic on Vulnerable Groups and Economic Sectors in the Republic of Moldova

Social and Economic Impact Assessment of the COVID-19 Pandemic on Vulnerable Groups and Economic Sectors in the Republic of Moldova Impact Assessment Report November 2020 Social and Economic Impact Assessment of the COVID-19 pandemic on vulnerable groups and economic sectors in the Republic of Moldova Impact Assessment Report November 2020 Social and Economic Impact Assessment of the COVID-19 pandemic on vulnerable groups UNDP and economic sectors in the Republic of Moldova UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and planet. This Socio-Economic Impact Assessment was produced with the financial and technical assistance of UNDP and UNFPA Moldova and with support from the State Chancellery of the Republic of Moldova. The analytical part was commissioned to PwC. The content of this publication is the sole re- sponsibility of the author and does not necessary represent the views of the UNDP and UNFPA. The data used for the analysis cover the period from May to October 2020. Copyright: UNDP Moldova, 2020 3 Social and Economic Impact Assessment of the COVID-19 pandemic on vulnerable groups UNDP and economic sectors in the Republic of Moldova Foreword The Republic of Moldova is going through a difficult period, characterized by multiple challenges. The coronavi- rus pandemic, currently faced by the entire humankind, has shown that the old means and approaches are inef- fective, forcing us to reinvent how to deal with an unprecedented threat that does not take into account national borders, race or social status. The multiple vulnerabilities, both of the population and of the economy as a whole, have been revealed by the pandemic. The health and education sys- tems have been put in the situation to identify prompt interventions to quickly adapt to the new conditions and ensure their functionality. In such circum- stances, the public authorities have committed to identify solutions that are appropriate to the situation, which requires combining the efforts of all actors to develop effective partnerships. In this regard, we appreciate the openness shown and the significant input of the UN agencies as well as their rapid and extremely valuable support. This Report on the assessment of the socioeconomic impact on the most vulnerable groups of the population and on SMEs in the Republic of Moldova is a useful tool and a significant support in the process of capacity assessment, community mobilization policy-making and, not in the least, communication on the COVID-19 pandemic response measures. The review of the pandemic crisis impact is accompanied by a set of policy recommendations targeting both the interventions in response to the negative effects of the pandemic and the post-COVID-19 social and economic recovery support measures. Overcoming the challenges faced by the society today as well as ensuring a speedy recovery can only be possible under the conditions of a joint effort of all authorities, the business, and the society as a whole. In this connection, we appreciate the fruitful cooperation of all ministries and the National Bureau of Statistics with its research team in providing the data and information necessary for the preparation of this Report. We are also par- ticularly proud that this Report is evidence-based, or uses several sources of evidence, including evidence that is used for the first time. We express our gratitude to the UN agencies for their continuous and valuable expertise in the development of the Republic of Moldova, including in accelerating the implementation of the Sustainable Development Goals. We encourage the public authorities to use the Report in their policy-making process, expressing our confidence that it will equally serve as a basis for new dialogues with the development partners, local communities, the private sector and social innovators, to coagulate efforts and multiply the positive effects thanks to the implementation of recovery measures. Liliana IACONI, Secretary General of the Government 4 Social and Economic Impact Assessment of the COVID-19 pandemic on vulnerable groups UNDP and economic sectors in the Republic of Moldova The Republic of Moldova is facing one of the biggest and most complex development challenges in its recent his- tory, an unprecedented public health and socio-economic crisis that affects all people living in the country. The COVID-19 crisis is a test of resilience and capacity to cope with multiple emergencies as well as a test on the capa- bility to turn the crisis into opportunities to build forward better and recover. In the last decade or so, the country has made an important progress towards the achievement of multiple Sustainable Development Goals, in terms of re- ducing poverty, improving access to services, supporting inclusion of vulnerable groups among others. Even before the crisis, there were several areas that required accelerated efforts. The COVID-19 crisis hit at the most inop- portune moment, when multiple vulnerabilities of the country compounded with a severe drought affecting the agricultural sector, triggering an economic slowdown. Furthermore, the economic growth from the pre-crisis period has disproportionately benefitted the urban settlements and bigger cities, while rural areas continued to have fewer social and economic opportunities and poorer access to basic social services, including in areas of health, education, access to water and sanitation. The current crisis is equally an opportunity for change. But such change can- not be achieved by a single actor, and requires collaborative approaches, a genuine engagement with citizens and the private sector, a re-thinking of the development paradigm and exploration of the few next areas of opportunity for development. Emerging opportunities are around us. From the digitalization and modern- ization of the public services and businesses, to new engagement to shape the future of skills and modern education system in Moldova, greening the economy, implementing the elements of good governance, accelerating the fight against corruption to engaging with citizens around building a future they want for this country. The Socio-Economic Impact of COVID-19 on most vulnerable groups and economic sectors conducted during the period end-May – beginning of October 2020 is a comprehensive service for the Government and partners shedding light on the consequences and impact of the crisis and proposing tactical and medium-term policy and programmatic options for recovery and resilience. It provides ‘food for thought’ and has already ignited several multi-stakeholder policy dialogues and debates, underlying the potential and ambition for recovery, but also the enthusiasm for building new partnerships for development and coagulating efforts to overcome the multiple COVID-19 induced challenges. I trust that this Assessment Report will inspire and encourage actors across all sectors and support collaboratives efforts to overcome COVID-19 crisis and build forward better, stronger and greener. Dima Al-Khatib UNDP Resident Representative 5 Social and Economic Impact Assessment of the COVID-19 pandemic on vulnerable groups UNDP and economic sectors in the Republic of Moldova COVID-19 pandemic has put our lives at risks, exacerbat- ed vulnerabilities and imposed us to go through unprecedented times. In 2020, we had to re-think our lives and shape a new course for the future. COVID-19 emphasized the persistent gaps that remained unaddressed for far too long and the urgent need to close them. It also pushed back our efforts for achieving the Sustainable Develop- ment Goals. However, as long as it escalated the challenges in many ways, this pandemic also revealed plenty of opportunities. For example, it emphasized on the great potential of young people to innovate and act as agents of change and proved to us once again that young people can be part of the solution and help the country overcoming the pandemic and building back better. During this unprecedented Covid-19 virus pandemic, more than ever unity, solidarity and mutual aid demonstrated to be vital values at the heart of the deci- sions of citizens, civil society and institutions. In a country like Moldova, which is facing rapid demographic changes and ageing of the population, exploring these inner values and creating bridges between generations to build solidarity and mutual support, can be a long term solution. There is no easy fix in overcoming the pandemic and building back better, but it is in the power of Moldovan people to overcome it united across different ages, regions and sectors. Building bridges between generations – intergen- erational solidarity – blended with strong collaboration between different sectors can make the difference in the lives that we may save and in the wellbeing of the most in need. And it is up to each of us in making this difference. Our own actions are making a difference. Young people who are there for older persons in the community to ease their social isolation and provide emotional support during this pandemic is making a difference. Collaboration between different sectors in overcoming what has become more than a health emergency is making a difference. Identifying who are the most vulnerable people as a result of this pandemic and working with them to empower and enable them to become a central ele- ment of our society is making a difference. Working jointly with all partners – Government, civil society, private sector in swiftly adapting and re-thinking on how we are delivering for the most in need is making the difference. The assessment report on the Socio-Economic Impact of COVID-19 is the main tool to guide our joint efforts. It provides an overview on the most vulnerable groups during the COVID-19 pandemic and identifies ways how we all should respond to it.

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