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Evaluation for the European Commission EUROPEAN COMMISSION’S SUPPORT TO THE REPUBLIC OF MOLDOVA COUNTRY LEVEL EVALUATION Final Synthesis Report November 2007 Evaluation for the European Commission This evaluation is commissioned by: the Evaluation Unit common to: EuropeAid Co-operation Office, Directorate-General for Development and Directorate-General for External Relations This evaluation has been carried out by: EGEval II EEIG under the responsibility of PARTICIP GmbH Core Expert Team: Dr. Landis MacKellar (Team Leader, Health Sector), Dr. Alexandru Murzac (Economic Development, SME), Libor Grošpic (Civil Society, Internal/External Affairs), Dr. Manfred Metz (Food Security Programme), Corneliu Busuioc (Environment) and Solon Ardittis (Justice and Home Affairs). The evaluation is managed by the Evaluation Unit which also chairs the Reference Group The opinions expressed in this document represent the authors’ points of view which are not necessarily shared by the European Commission or by the authorities of the countries concerned. Status and versions of the document Vers. Date Status Feedback from/ Date Reference 1 01.06.2007 1st Draft Markku Miettinen (RG chair) 2 03.09.2007 2nd Draft Markku Miettinen (RG chair) 3 05.11.2007 Final Version Markku Miettinen (RG chair) i Table of Contents LIST OF ACRONYMS..............................................................................................................V 1. EXECUTIVE SUMMARY .................................................................................................. 9 1.1. Purpose of the evaluation .......................................................................................... 9 1.2. Analysis and main findings......................................................................................... 9 1.3. Overall Conclusions ................................................................................................. 10 1.4. Overall recommendations ........................................................................................ 11 2. FINDINGS, CONCLUSIONS AND ANSWERS TO EVALUATION QUESTIONS........... 13 2.1. Overview of Evaluation Questions ........................................................................... 13 2.2. EQ (J) Justice and Home Affairs.............................................................................. 15 2.3. EQ (N) - NGOs and Civil Society ............................................................................. 32 2.4. EQ (S) - SMEs and Rural Development................................................................... 42 2.5. EQ (E) - Trade and Economy................................................................................... 48 2.6. EQ(F) – FSP ............................................................................................................ 56 2.7. EQ (H) - Health ........................................................................................................ 71 2.8. EQ(X) – Environment............................................................................................... 78 2.9. EQ (T)-Transnistria .................................................................................................. 84 2.10. EQ (R) –Relevance and Coherence ........................................................................ 88 2.11. EQ(C) – Coordination and Complementarity ........................................................... 94 3. SECTOR-SPECIFIC RECOMMENDATIONS................................................................. 99 3.1. EQ (J) - Justice and Home Affairs............................................................................ 99 3.2. EQ (N) – NGOs and Civil Society .......................................................................... 102 3.3. EQ(S) - SMEs and rural development.................................................................... 103 3.4. EQ (E) – Trade and economic links ....................................................................... 104 3.5. EQ (F) – Food Security Programme (FSP)............................................................ 105 3.6. EQ(H) – Health ...................................................................................................... 106 3.7. EQ(X) – Environment............................................................................................. 108 3.8. EQ (T) – Transnistria.............................................................................................. 108 3.9. EQ (R) – Relevance and Coherence ..................................................................... 109 3.10. EQ (C) – Coordination and Complementarity ........................................................ 110 OVERALL ASSESSMENT OF THE EC CO-OPERATION STRATEGY, CONCLUSIONS AND RECOMMENDATIONS ........................................................................................ 112 3.11. Global Evaluation of the EC strategy ..................................................................... 112 3.12. Conclusions ........................................................................................................... 114 3.13. Overall Recommendations..................................................................................... 116 European Commission EGEval II – under the leadership of PARTICIP GmbH Country Level Evaluation Moldova Final Synthesis Report ii Tables Table 1 - Ten Evaluation Questions (EQs) ............................................................................ 14 Table 2 - Drug Seizures in 2002-2004 ................................................................................... 24 Table 3 - Corruption perception Index in Moldova ................................................................. 27 Table 4 - The analysis of enterprise operation results during the period 2002-2004............. 46 Table 5 - The analysis of enterprise operation results during the period 2002-2004............. 46 Table 6 - Geographical structure of Moldovan trade, US$ mil., 2000-2006........................... 48 Table 7 - Trade Relation Moldova-EU, 2002-2006 (thousand US$) ...................................... 49 Table 8 - Foreign direct investments, 2000-2005. ................................................................. 51 Table 9 - Foreign direct investments by countries, 2006 (60% of total are covered by EU- 25) ....................................................................................................................... 51 Table 10 - Sector allocations /disbursements of FSPs 2000 – 2006 ..................................... 56 Table 11 - GoM Social Assistance Budgets and EC FSP Contributions (tranches) 2000- 2006 .................................................................................................................... 57 Table 12 - GoM Social Assistance Budgets and EC FSP Contributions (tranches) 2000- 2006 .................................................................................................................... 58 Table 13 - Poverty Indicators ................................................................................................. 61 Table 14 - Poverty rates in urban and rural areas, 2003-2005 .............................................. 61 Table 15 - Typical features of households suffering from extreme poverty, 2005 ................. 62 Table 16 - Distribution of recipients and amounts of child benefits by household income groups (quintiles) of households with children of 0- 15 years, % ........................ 63 Table 17 - Impact of child benefits on household poverty, 2004 - 2005, % ........................... 64 Table 18 - EC Supported Social Sector Projects (TACIS and NGO Co-financing) 2000 - 2006 .................................................................................................................... 66 Table 19 (Annex 1) - The Evaluation Process in Five Stages .........................................- 123 - Table 20 (Annex 1) - SWOT Analysis ..............................................................................- 124 - Table 21(Annex 1) – SWOT Institutional and Administrative Reform ..............................- 125 - Table 22(Annex 1) - SWOT Economic Development ......................................................- 125 - Table 23 (Annex 1) - SWOT Social Consequences of Transition....................................- 126 - Table 24 (Annex 1) - Selected internationally comparable indicators..............................- 126 - Table 25 (Annex 1) - Main macroeconomic indicators of Moldova in 2000-2005 ............- 128 - Table 26(Annex 1) – Common Principles and Objectives of European Consensus on Development .................................................................................................- 137 - Table 27(Annex 1) - Tacis Priority Areas .........................................................................- 139 - Table 28(Annex 1) - Co-operation under the PCA...........................................................- 141 - Table 29(Annex 1) - CSP/NIP 2002-2006........................................................................- 142 - Table 30(Annex 1) - CSP/NIP 2004-2006........................................................................- 142 - Table 31(Annex 1) – FSP in Figures................................................................................- 144 - Table 32(Annex 1) - Tacis Regional Strategy priority areas ............................................- 145 - Table 33(Annex 1) - EC assistance to Moldova, 1991-2006 ...........................................- 147 - European Commission EGEval II – under the leadership
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