Annual Social Report 2009

Ministry of labour, Social Protection and Family of The Republic of Moldova

ANNUAL social REPORT 2009

Chisinau • 2010 1 Annual Social Report 2009

2 Annual Social Report 2009

Foreword

The year 2009 marked a decade since the reform of social protection system started. It is a good possibility to assess the performances of reforms implemented during this period and to identify the problems met by the system during the ascension to social democracy consolidation. The social reforms initiated by the end of ‘90s, were deeply marked by the tough effects of transition period, emphasised predominantly on the poverty and inequality reduction, representing a mean of intervention and person state support in the complex of problems generated by the revealed social realities. In parallel with the reconsideration of social protection system, a range of activities were undertaken with the purpose to consolidate social cohesion and integrated treatment of such problems as: (i) gender inequality in the society; (ii) discrimination, and (iii) domestic violence. During this period, the most important reforms were implemented in the field of labour market, such as: (i) adoption of the new Labour Code; (ii) development of mid-term strategic measures on employment; (iii) establishment of labour insurance system; (iv) development of reformed vision of salary system etc. Since 2000, the Ministry of Labour, Social Protection and Family develops the Annual Social Report, which represents the main monitoring instrument of development dynamics and impact of sectorial policies: (i) labour market policies, (ii) social protection policies: social insurance and work, (iii) policies of prevention and fight with adverse social effects (human traffic, domestic violence, abandon and institutionalisation etc.). The Annual Social Report may be seen as a relevant information source for sectorial subdivisions, administrative state structures, scholars, donor community and the members of civil society active in the social field, and comes to outline the main problems of policies implementation during the last decade, as well the mid- term trends, simultaneously, presents proposals and recommendations for certain situations. For the contribution to 2009 Social Report development, I would like to express my sincere thanks to all specialists of Ministry subdivisions and structures that implement social protection policies, and to our partners from non-governmental sector, and I do hope that this report would contribute to a better understanding of reforms promoted by the Ministry and could offer comprehensive answers for many social problems.

Valentina BULIGA, Minister of Labour, Social Protection and Family

3 Annual Social Report 2009 CONTENTS

Foreword...... 3 List of abbreviations ...... 10 Introduction ...... 11

1. DYNAMICS OF SOCIAL–ECONOMIC INDICATORS ...... 12 1.1. Social-economic development...... 12 1.2. Dynamics of demographic variables...... 14

2. LABOUR MARKET IN THE REPUBLIC OF MOLDOVA...... 20 2.1. Employment...... 20 2.2. Unemployment...... 24 2.3. Labour market policies...... 26 2.3.1. Services of dismissal preliminary notice...... 26 2.3.2. Management of vacancies...... 26 2.3.3. Labour mediation...... 27 2.3.4. Public works...... 29 2.3.5. Professional information and counselling...... 30 2.3.6. Professional orientation and training...... 30 2.4. Passive measures of social protection of unemployed...... 31 2.5. Labour force migration...... 32 2.5.1. Immigration in the Republic of Moldova of foreign citizens and stateless persons ...... 33 2.5.2. Emigration of citizens of the Republic of Moldova for working purposes abroad ...... 33 2.5.3. Policies promoted in the field of labour migration...... 35 2.6. Personnel professional formation and their placement in the labour market ...... 37 2.7. Salary policies...... 48 2.8. Conclusions. Recommendations...... 52

3. SOCIAL INSURANCE ...... 54 3.1. Public system of state social insurance. General aspects...... 54 3.2. Analysis of social insurance pensions system...... 54 3.2.1. Demographic context...... 54 3.2.2. Dynamics of the number of pensioners...... 55 3.2.3. Analysis of social insurance contributions...... 58 3.2.4. Pensions of agricultural employees...... 59 3.2.5. Analysis of social insurance pension quantum...... 59 3.3. State social insurance pensions...... 61 3.3.1. Age pensions...... 61 3.3.2. Disability pension...... 62 3.3.3. Survivors pensions...... 63 3.3.4. Pensions for some categories of citizens...... 63 3.4. Social insurance allowances ...... 64 3.4.1. Allowance for temporary incapacity of work ...... 65 3.4.2. Maternity allowances...... 66 3.4.3. Unique birth allowance ...... 66 3.4.4. Monthly allowance for child care until 3 years ...... 67 3.4.5. Monthly allowance for sick child care...... 67 3.4.6. Aid in case of death...... 68 3.5. Insurance in case of accidents at work and professional diseases...... 68

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3.5.1. Allowance for temporary work incapacity...... 69 3.5.2. Disability allowance...... 69 3.5.3. Allowance in case of death...... 70 3.6. State social insurance budget ...... 70 3.7. Bilateral agreements in the field of social insurance...... 74 3.8. Conclusions. Recommendations...... 75

4. SOCIAL ASSISTANCE ...... 77 4.1. Payment of social assistance...... 77 4.1.1. State social allowances for some categories of citizens...... 77 4.1.2. Allowances for care...... 81 4.1.3. Allowance in case of death...... 83 4.1.4. Nominative compensations...... 83 4.1.5. State monthly allowances ...... 86 4.1.6. Compensations to participants at the liquidation of Cernobyl accident...... 87 4.1.7. Compensations instead of treatment tickets of war participants...... 89 4.1.8. State nominal monthly allowance...... 89 4.1.9. Social aid...... 91 4.1.10. Material aids ...... 94 4.2. Impact of social payments on poverty and social exclusion...... 96 4.2.1. Disposable income and social payments...... 96 4.2.2. Efficiency and effectiveness of social assistance programs...... 97 4.2.3. Impact of social payments on beneficiaries...... 101 4.3. Social services ...... 102 4.3.1. Primary social services...... 103 4.3.2. Specialised social institutions...... 108 4.3.3. Residential protection services...... 112 4.3.4. Services of recovery/rehabilitation and balneo/sanatorial treatment...... 115 4.4. Conclusions. Recommendations ...... 116

5. FAMILY AND CHILDREN PROTECTION...... 118 5.1. Payments for family and children...... 118 5.2. Children poverty...... 121 5.3. Social services provided to family and children...... 129 5.3.1. Primary social services...... 130 5.3.2. Specialised social services...... 131 5.3.3. High specialisation social services...... 135 5.4. Repatriation of children identified without parental guardianship from outside the country...... 136 5.5. Children summer rest...... 137 5.6. Conclusions. Recommendations...... 138

6. GENDER EQUALITY. PREVENTION AND FIGHTING HUMAN TRAFFICK AND VIOLENCE...... 140 6.1. Gender equality...... 140 6.2. Prevention and elimination of gender based violence, including domestic violence...... 150 6.3. Social policy of prevention and fight with human traffic...... 155 6.4. Conclusions. Recommendations ...... 159

7. SOCIAL PROTECTION OF PERSONS WITH DISABILITIES ...... 161 7.1. Current statistics...... 161 7.2. Social protection...... 164

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7.2.1. Social payments...... 164 7.2.2. Social services...... 165 7.3. Vitality medical expertise ...... 166 7.3.1. Primary disability...... 166 7.3.2. Repeated disability...... 168 7.3.3. Permanent disability...... 168 7.3.4. Partial and total disability...... 169 7.4. Social inclusion...... 169 7.4.1. Children social inclusion...... 170 7.4.2. Employment of persons with disabilities ...... 170 7.5. Conclusions. Recommendations...... 171

TABLES

Table 1.1. Main macroeconomic indicators, 2000-2009 ...... 13 Table 2.1. Economically active population and population employed in economy, 2001-2009...... 21 Table 2.2. Number of registered unemployed and unemployment rate by sex, 1998-2009...... 24 Table 2.3. Dynamics of dismissal preliminary notice services, 2007-2009...... 26 Table 2.4. Labour mediation services, 2007-2009...... 29 Table 2.5. Job fairs, 2007-2009...... 29 Table 2.6. Professional training of unemployed, 2007-2009...... 30 Table 2.7. Beneficiaries of professional integration or reintegration, 2007-2009...... 32 Table 2.8. Migrant workers by sex, area, age group, marital status and education level...... 34 Table 2.9. Distribution of migrant workers by economic activity, destination country and sex ...... 35 Table 2.10. Remittances from abroad by natural persons (resident and non-resident) through Moldovan banks, 2008-2009...... 36 Table 2.11. Distribution of higher education students by sex...... 39 Table 2.12. Higher education students by study programs, and forms of ownership, at the beginning of study years 2008/2009 – 2009/2010 ...... 39 Table 2.13. Distribution of college pupils by subject groups and sex...... 40 Table 2.14. Distribution of pupils of secondary vocational education by subject groups and sex...... 41 Table 2.15. Implementation by line central bodies of admission plan for higher, secondary specialised and secondary vocational education in 2009 ...... 43 Table 2.16. Dynamics of number of graduates professional formation institutions and their placement in the labour market, 2001-2009, persons...... 46 Table 2.17. Dynamics of income from remunerated activity, 2005-2009...... 48 Table 2.18. Dynamics of average salaries of real sector employees, 2005-2009 ...... 49 Table 2.19. Salary size according September 2009 survey...... 50 Table 2.20. Dynamics of salaries in the public sector, 2005-2009...... 51 Table 3.1. Dynamics of number of beneficiaries of pensions and allowances, 2004-2010, thousand persons...... 55 Table 3.2. Ratio between the economically active/employed population and pensioners, 2004-2009...... 56 Table 3.3. Number of pensions (pensioners) by categories, as of 1 of January of 2005-2010...... 56 Table 3.4. Number of newly established pensions, 2004-2009...... 57 Table 3.5. Tariffs of state social insurance contributions, 2005-2009...... 58 Table 3.6. Dynamics of replacement rates in 2004-2009...... 59 Table 3.7. Dynamics of subsistence minimum and average age pension, 2005-2009...... 60 Table 3.8. Dynamics of pension quantum, as of 01.01 of 2005-2010...... 60 Table 3.9. Contribution period necessary to set the disability pension, according insured person age...... 62 Table 3.10. Expenses for allowances of temporary work incapacity, 2007-2009...... 66 Table 3.11. Dynamics of expenses for the protection of families with children during 2005-2009, insured persons...... 67 Table 3.12. Actual expenses for the payment of aid in case of death in 2004-2009...... 68 Table 3.13. Dynamics of expenses for the payment of disability allowances, 2003-2009...... 70

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Table 3.14. Execution of State Social Insurance Budget, 2003-2009...... 71 Table 3.15. Incomes collected in the state social insurance budget for 2008-2009...... 72 Table 3.16. Expenses financed from state social insurance budget in 2008-2009...... 72 Table 3.17. Expenses from the State Budget, 2008-2009...... 73 Table 4.1. Dynamics of number of beneficiaries of state social allowances, their quantum and monthly set amounts, 2000-2009...... 79 Table 4.2. Dynamics of number of beneficiaries of allowances for care, 2002-2009...... 82 Table 4.3. Dynamics of expenses for the payment of allowance for care...... 82 Table 4.4. Death allowance for uninsured persons for 2009...... 83 Table 4.5. Dynamics of expenses and average sizes of nominative compensations by categories...... 85 Table 4.6. Number of beneficiaries and expenses for the payment of state social monthly allowances, 2008 – 2009...... 87 Table 4.7. Payments to participants at the liquidation of consequences of Cernobyl accident, 2008 -2009...... 88 Table 4.8. Compensation instead of treatment tickets to people with disabilities from was, 2007-2009...... 89 Table 4.9. State nominal allowances for special merits for the state, 2008-2009...... 90 Table 4.10. Distribution of social aid requests...... 92 Table 4.11. Average amount of social aid per household, Lei...... 93 Table 4.12. Amount transferred for the payment of social aid, 2009...... 93 Table 4.13. Number of material aids and amounts given to solicitors, 2009...... 94 Table 4.14. The incidence of payments on households and their members, % , 2009...... 97 Table 4.15. Incidence and cost of social aid program, 2009...... 102 Table 4.16. Capacity and personnel of social residential institutions...... 114 Table 5.2. Dynamics of monthly allowance quantum during 2001-2009, Lei...... 119 Table 5.3. Number of beneficiaries of monthly allowances for child care, 2008-2009...... 119 Table 5.4. Number of beneficiaries and average quantum of state social allowances, 2000-2009...... 120 Table 5.5. Impact of allowances for children on children poverty, 2009 %...... 129 Table 5.6. International adoption in 2009...... 132 Table 5.7. Quanta of allowances for children from the service of professional parental assistance...... 132 Table 5.7. Maintenance expenses in residential institutions for children, 2009 ...... 136 Table 5.8. The maximum cost of one day in summer rest camps for children and teenagers, Lei...... 137 Table 6.1. Human traffic cases, assisted and prevented, 2006-2009...... 158 Table 7.1. Dynamics of population and number of persons with disabilities, 2005-2009...... 161 Table 7.2. Application and classification of persons with disabilities in disability degree, 2005-2009...... 166 Table 7.3. The distribution of value share of primary disability degree, 2008-2009...... 167 Table 7.4. Repeated classification of persons with disabilities, 2005-2009...... 168 Table 7.5. Distribution of value share of correspondence degrees to repeated disability degree, 2008-2009...... 168 Table 7.6. Classification of persons with disabilities in permanent disability degree, 2005-2009...... 169 Table 7.7. Number of persons classified to rehabilitated, partially and totally disability degree, 2005-2009...... 169 Table 7.8. Employment of persons with disabilities, 2007-2009 ...... 171

FIGURES

Figure 1.1. Population ageing by area Share of population of 65+years Over 89 years...... 15 Figure 1.2. Dynamics of life expectancy indicator by age groups...... 16 Figure 1.3. Birth rate by areas...... 16 Figure 1.4. Dynamics of children mortality...... 17 Figure 1.5. Structure of divorces according marriage duration...... 18 Figure 1.6. Population of 15 years and over, working or seeking for work abroad, annual mean...... 19 Figure 2.1. Distribution of persons employed in economy, 2001-2009, % ...... 22 Figure 2.2. Economically inactive population by sex and age, thousand persons...... 22 Figure 2.3. Registered unemployment by area...... 25 Figure 2.4. Number of registered unemployed persons, placed during 2009, by age groups, persons...... 25

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Figure 2.5. Structure of registered unemployed by education level...... 26 Figure 2.6. Number of registered and job placed unemployed persons, 2008-2009...... 27 Figure 2.7. Jobs supply and demand at the end-year, 2007-2009...... 27 Figure 2.8. Identification of vacancies...... 28 Figure 2.9. Number of unemployed that benefited of unemployment aid, 2007-2009...... 31 Figure 2.10. Categories of beneficiaries of unemployment aid, 2008-2009...... 31 Figure 2.11. Average size of unemployment aid, 2007-2009...... 32 Figure 2.12. Distribution of migrants by economic activities...... 34 Figure 2.13. Dynamics of the number of pupils and students in higher, secondary specialised and secondary vocational education, 1997-2009, thousand persons...... 38 Figure 2.14. Structure of enrolled students at basic subject groups (excluding Cycle II), study years 2008/2009 – 2009/2010...... 42 Figure 2.15. Admission structure in secondary vocational education for the years of study 2008-2009 and 2009-2010 by subject groups...... 44 Figure 2.16. Dynamics of students and pupils admission at higher, secondary specialised (colleges) and secondary vocational education in 1990-2009, thousand persons...... 45 Figure 2.17. Dynamics of placement in the labour market of higher day education graduates, 2001-2009...... 47 Figure 3.1. Population distribution by age groups, areas and sex, as of 01.01.2010...... 55 Figure 3.2. Quantum of average pensions by categories, as of 01.01.2010, Lei...... 64 Figure 3.3. Implementation of state social insurance budget, 2002-2009...... 73 Figure 4.1. Dynamics of average quantum of social allowances for 2000-2009...... 78 Figure 4.2. Dynamics of number of beneficiaries of state social allowances and total monthly expenses for them...... 80 Figure 4.3. Dynamics of number of beneficiaries of state social allowances, by categories and stages...... 81 Figure 4.4. Dynamics of monthly expenses for the payment of state social allowances, by stages...... 81 Figure 4.5. Dynamics of quantum of allowance for care, 2002-2009...... 83 Figure 4.6. Dynamics of increase of number of beneficiaries of nominative compensations and expenses for their payment...... 84 Figure 4.7. The share of beneficiaries of nominative compensations by categories...... 86 Figure 4.8. Dynamics of number of beneficiaries of state monthly allowances, 2001-2009...... 87 Figure 4.9. Dynamics of number of beneficiaries of state nominal monthly allowances, 2004-2009...... 90 Figure 4.10. Dynamics of the average number of material aids provided during 2001-2008, Lei...... 95 Figure 4.11. Total disposable income, monthly averages per person, Lei...... 96 Figure 4.12. Share of social payments in disposable income of households by area of residence...... 96 Figure 4.13. Beneficiaries of social payments, 2009...... 98 Figure 4.14. Households coverage with social payments, %, 2009...... 98 Figure 4.15. Distribution of recipient households by quintiles, %, 2009...... 99 Figure 4.16. Distribution of payments (monetary amounts) by quintiles, %, 2009...... 99 Figure 4.17. Distribution of households receiving allowances for children, by quintiles, %, 2009...... 100 Figure 4.18. Distribution of allowances for children (monetary amounts) by quintiles, %, 2009...... 100 Figure 4.19. Distribution of households receiving nominative compensations, by quintiles, %, 2009...... 101 Figure 4.20. Distribution of nominative compensations (monetary amounts) by quintiles, %, 2009...... 101 Figure 4.21. The impact of some social payments on beneficiaries, %, 2009...... 101 Figure 4.22. The impact of allowances for children on beneficiaries, %, 2009...... 101 Figure 4.23. Social homecare services, 2002-2009...... 104 Figure 4.24. Dynamics of the number of social aid canteens, 2002-2009...... 105 Figure 4.25. The service of community social assistance...... 106 Figure 4.26. Types of centres providing social services for adult persons and adults with disabilities...... 109 Figure 4.27. Number of social centres and beneficiaries/monthly...... 109 Figure 4.28. Creation of social centres for adults and persons with disabilities...... 110 Figure 4.29. Distribution of social centres by area...... 110 Figure 4.30. Number of approved staff units, by types of social centres...... 111 Figure 4.31. Financing of social centres/asylums...... 111 Figure 4.32. Capacity of residential institutions for adults...... 113 Figure 4.33. The relation between the expenses for one person accommodation in residential institutions...... 113 Figure 5.1. Dynamics of unique allowance at child birth, 2005-2009...... 118

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Figure 5.2. Distribution of households with children by the number of children and areas, 2009...... 121 Figure 5.3. Distribution of households with children by type of household and areas, 2009...... 121 Figure 5.4. Distribution of households with children by quintiles and areas, 2009...... 122 Figure 5.5. Average size of households with children by the type of household and quintiles, 2009...... 122 Figure 5.6. Structure of households with migrants by the number of children and type of household, 2006- 2009 ...... 123 Figure 5.7. Distribution of households with children by presence of migrants and quintiles, 2009...... 123 Figure 5.8. Average income of households with children by the number of children and type of household, 2009...... 124 Figure 5.9. Structure of social payments according the type of household with children, 2009...... 125 Figure 5.10. Structure of social payments by types, according the type of household with children, 2009...... 125 Figure 5.11. Rate of absolute and extreme poverty, 2006-2009...... 126 Figure 5.12. Children poverty rate by areas, 2006-2008...... 126 Figure 5.13. Absolute poverty rate by the number of children in household and type of household, 2009...... 127 Figure 5.14. Absolute poverty rate for children by parents’ occupational status, 2009...... 127 Figure 5.15. Distribution of children by the presence of parents, 2009, %...... 128 Figure 5.16. Children poverty rate according the presence of parents, 2009, %...... 128 Figure 5.17. Share of social payments in total disposable income of households with children, by quintiles, 2009...... 128 Figure 5.18. Share of households that benefit of social payments, by quintiles, 2009...... 129 Figure 5.19. Social centres for families with children and children in difficult situation...... 130 Figure 5.20. Distribution of day care centres by categories of beneficiaries ...... 131 Figure 5.21. Distribution of mixed centres by categories of beneficiaries ...... 131 Figure 5.22. Distribution of temporary shelters provided for families and children, by categories of beneficiaries...... 134 Figure 5.23. Social centres for children and young persons with disabilities...... 134 Figure 7.1. Share of number of persons with disabilities in total number of population, 2007...... 162 Figure 7.2. Share of categories of persons with disabilities in 2009, %...... 162 Figure 7.3. Dynamics of the number of persons with disabilities, 2005-2009...... 163 Figure 7.4. Structure by disability degrees of persons with disabilities, 2005-2009 ...... 163

ANNEXES

Annex 1. Main indicators of labour force market (2001-2009)...... 175 Annex 2. Dynamics of the Admission Plan 2007-2009 in higher, secondary specialised and secondary vocational education (persons)...... 176 Annex 3. Dynamics of matriculation of students and pupils in the higher, secondary specialised and secondary vocational education, 1997-2009...... 177 Annex 4. Dynamics of students’ admission to higher education, subject groups, 1997-2009...... 178 Annex 5. Admission to secondary vocational education, by subject groups, 2007-2009...... 179 Annex 6. Total number of pensioners and the average pension quantum...... 180 Annex 7. Newly established pensions and the average pension quantum...... 183 Annex 8. Households’ disposable income, 2006-2009...... 185 Annex 9. Efficiency of social payments targeting, 2009...... 186 Annex 10. Impact of payments on persons living in recipient households, 2009...... 187 Annex 11. Households’ profile, potentially eligible for social aid ...... 188 Annex 12. Number of persons with disabilities, by categories, 2008-2009...... 189 Annex 13. Compensations for the trips in urban, suburban and interurban transport, 2009...... 190 Annex 14. Compensation of transport expenses of persons with disabilities of skeletal system (compensation quantum – 400 Lei)...... 191 Annex 15. Primary disability, 2008-2009, persons...... 192 Annex 16. Distribution of people with primary disability by nosologic forms, age, and disability degree, 2009, persons...... 193 Annex 17. Repeated disability, 2008-2009, persons...... 194

9 Annual Social Report 2009

LIST OF ABBREVIATIONS:

NEA – National Employment Agency LPA – Local Public Authority SSIB – State Social Insurance Budget ILO – International Labour Office NBS – National Bureau of Statistics SB – State Budget HBS – Household Budget Survey CE – Council of Europe CEDAW – Convention on the Elimination of All Forms of Discrimination against Women NHSI – National House of Social Insurance RCVME – Republican Council of Vitality Medical Expertise CIS – Commonwealth of Independent States FISM – Social Investment Fund of Moldova RFPSS – Republican Fund of Population Social Support ILO – International Labour Organisation ME – Ministry of Economy MLSPF – Ministry of Labour, Social Protection and Family MDG – Millennium Development Goals IMO – International Migration Organization WHO – World Health Organisation NGO – Non-Governmental Organisations UN – United Nations OSCE – Organization for Insurance and Cooperation in Europe GDP – Gross Domestic Product UNDP – United Nations Development Program NRS – National Reference System USA – United States of America SIDA – Swedish International Development Agency EU – European Union UNFPA – United Nations Fund for Population UNICEF – United Nations Children Fund UNIFEM – United Nations Development Fund for Women GMMI – Guaranteed minimum monthly income

10 Annual Social Report 2009

IntroducTION

The reform of the system of social protection started by the end of 90’s of the last century, being im- pulsed hard by the effects of Russian economic crisis from 1998, which led to the rapid growth of unemployment, decrease of salary incomes in line with inflation and diminishing of financial capacity of social protection system. From the perspective of population life quality, this period can be characterised by obvious population pauperization, beginning of migration processes and appearance of social-related effects generated by this, such as: (i) human trafficking; (ii) increase of number of under supervised, abandoned or institutionalised children; and (iii) increase of request for institutionalisation etc. Taking into account these conditions, the reform of social protection system was imminent. The adoption of the Strategy of pension system reform of the Republic of Moldova (Parliament Decision Nr. 141-XIV from 23.09.1998), the Law on State Social Insurance Pensions (nr.156-XIV from 14.10.1998) and the Strategy of reform of social assistance system (Parliament Decision Nr. 416-XIV from 28.05.1999) established the bases and divided the national system of social protection in two interdependent areas (social insurance and social assistance). This served outlining the legislative framework provided to regulate every area separately. A series of activities with the purpose to consolidate the social cohesion and integrated approach of such problems as: (i) gender inequality in society; (ii) discrimination and (iii) domestic violence were initiated in parallel with the reform of social assistance system. The reform of social assistance system conditioned the development of a system to assess and monitor this area, able to measure and reflect the occurring problems. Since 2000, the Ministry of Labour, So- cial Protection and Family develops the Annual Social Report, which comes to outline the main problems in the process of social policies implementation, the mid-term trends and proposes a series of recommendations to overcome certain situations. The Report is an important instrument to monitor the social situation in the country during a year, simultaneously offering a retrospective of the previous years. The Report is a useful work instrument and is addressed to a large auditorium interested in population social protection problems. The specialists of the Ministry of Labour Social Protection and Family, National Employment Agency, Republican Fund for Population Social Support, Republican Council of Vitality Medical Expertise, and the Republican Centre of Experimental Prosthesis, Orthopaedics and Rehabilitation contributed to the development of Annual Social Report 2009. The specialists of National House of Social Insurance and Sections/ Divisions of family social assistance and protection provided the necessary data. The Consultants in So- cial Policies Mrs. Viorica Craievschi-Toarta and Mrs. Maria Vremis had a substantial contribution as well. Annual Social Report 2009 comprises seven chapters and represents an analysis of the situation in the national system of social protection conditioned by the social-political and economic changes that occurred during the first decade of XXI century. The first chapter reflects the indicators of social-economic development and the dynamics of demographic variables of the Republic of Moldova in 2009. Chapter two presents the employment policies according new functional responsibilities attributed to the Ministry (Government Decision Nr.691 from 17.11.2009). Chapter three reveals the monitorisation results of the system of social insurance. Chapter four analyses the effectiveness and efficiency of the system of social assistance from the perspective of access, expenses and impact on poverty and social exclusion. Chapter five reflects family and child social protection policies, in particular the segments on child repatriation and adoption. Chapter six presents a retrospective of social policies in the field of gender equality, prevention and eradication of domestic violence and human trafficking. Chapter seven analyses the social protection problems of people with disabilities.

11 Annual Social Report 2009 1. DYNAMICS OF SOCIAL-ECONOMIC INDICATORS

1.1. Social-economic development

In 2009, the social-economic development of the Republic of Moldova was marked by the global financial crisis and the recession of main economic powers on external area. A decrease trend was registered for the industrial and agricultural output, investments, external trade, freighted goods and budgetary incomes. The results of activity of national economy for 2009 are presented as follows (without the data of enterprises and organizations from the left part of river Nistru and municipality Bender)*. In 2009, Gross Domestic Product (GDP) decreased significantly according preliminary data, reaching the nominal value of 60043 million Lei, current market prices. In comparable terms, the GDP registered a real decrease rate of 6,5% in comparison with 2008. A significant decrease was registered in constructions, manufacturing, agriculture and transport and communications. Generally, the GDP decrease was conditioned by the reduction of external demand for the manufacturing goods produced in Moldova, the decrease of amount of remittances from abroad and negative perspectives on the country economic development. In 2009, manufacturing enterprises of all forms of ownership had a production valued at 23266,6 million Lei, current prices. The volume indices of industrial output represented 77,8% in comparison to 2008 (comparable prices). The decrease of industrial output was determined by the output reduction in the enterprises in comparison with 2008, as follows: mining and quarrying – with 32,1%, manufacturing industry – 24,3%, energy sector – with 1,5%, what caused the decrease of total output, with 0,6%, 21,4% and 0,2% accordingly. According estimations, the agricultural production obtained by all types of households reached 13242 million Lei, in current prices, thus constituting 90,1% (in comparable prices) in comparison to 2008. The decrease of agricultural production was determined by the decrease of plant production with 17,4%, simultaneously, the animal production registered an increase of 11,8% in comparison to 2008. During the reference period, fixed capital investments from all financing sources constituted 10818,9 million Lei, of which 5856,4 million Lei were construction-assembly works, or accordingly, 65,1% and 64,5% in comparison with the previous year 2008. The exploitation of dwellings constituted 71,7%. The volume of transported goods by railway, road, river and air transport reached 7901,8 thousand tonnes or 47,8% of the total volume registered in 2008, the turnover of goods constituted 2782,7 million tone-km or 57,2% in comparison with the previous year. In 2009, the retail trade by trade units constituted 19925,1 million Lei or 95,6% (comparable prices) in comparison with the previous year. The value of services provided to population by officially registered units was 12261,7 million Lei, thus, in comparable prices, it marked an increase of 2,6% in comparison with 2008. In 2009, the export of goods counted 1297,7 million USD, which is lower with 18,4% to the level registered in 2008. The import of goods reached up to 3278,3 million USD or 66,9% of the volume of 2008. Trade balance resulted with a deficit of 1980,6 million USD, or 1327,0 million USD (- 40,1%) lower than the previous year. According preliminary data, in 2009, the average monthly salary of a employee in the national economy constituted 2748 Lei or, with 8,7% more than the previous year. A salary in the budgetary sector constituted 2406 Lei, while in the public sector – 2946 Lei, that is an increase with 22,8% and 4,3% accordingly. According the data of the National Employment Agency, the number of officially registered unemployed, as of 1 January 2010 constituted approximately 38,7 thousand persons. The number of unemployed defined according ILO criteria, constituted 76 thousand persons in the III Quarter of 2009.

* NBS information

12 Annual Social Report 2009

In December 2009, consumer price indices represented 100,4% in comparison to December 2008, while the annual average of 2009 in comparison to the previous year – 100,0% (consumer price indices in December 2008 in comparison to December 2007 reached 107,3%, and the annual average of 2008 in comparison to 2007 – 112,7%). The following table presents the main macroeconomic indicators that characterises social-economic development of the Republic of Moldova for the period 2000-2009.

Table 1.1. Main macroeconomic indicators, 2000-2009 2000 2005 2006 2007 2008 2009* Gross Domestic Product, mio. Lei 16020 37652 44754 53430 62922 60043 in % to the previous year 102,1 107,5 104,8 103,0 107,8 93,5 Volume of industrial output1, mio. Lei 8167,7 20770,2 22370,7 26173,5 29988,4 23266,6 in % to the previous year 107,7 107,0 95,2 98,7 101,5 77,8 Agricultural production, mio. lei 8268 12688 13734 12825 16503 13242 in % to the previous year 96,7 100,8 98,9 76,9 132,1 90,1 Fixed capital investment from all financing sources, mio. Lei 1759,3 7796,5 11012,3 15180,5 18123,1 10818,9 in % to the previous year 85,0 121,4 124,0 120,7 101,7 65,1 Including construction-assembly works 755,6 3913,4 5908,3 8423,6 10212,6 5856,4 in % to the previous year 72,0 124,3 126,0 119,3 98,6 64,5 Exploitation of dwellings (total area) from all financing 213,8 461,1 579,0 558,0 678,9 446,9 sources, thousand m2 in % to the previous year 75,4 134,2 125,6 96,3 121,7 71,7 Turnover of goods accomplished by transport enterprises – 1977,1 4263,6 5206,52 4891,72 4868,72 2782,72 total, mio. tonnes-km in % to the previous year 131,0 102,1 115,8 94,02 99,52 57,22 Of which: Railway 1513,2 3052,9 3673,2 3120,.2 2872,7 1055,0 in % to the previous year 127,1 101,6 120,3 84,9 92,1 36,7 Road 459,7 1209,2 1531,42 1769,62 1994,02 1726,02 in % to the previous year 145,6 103,5 104,5 115,62 112,72 86,62 Goods transported by transport enterprises – total, thou- 10227,0 15236,4 15483,72 16982,62 16537,22 7901,82 sand tonnes in % to the previous year 112,2 93,3 96,7 109,72 97,42 47,82 of which: railway 8213,8 11704,1 11092,5 11846,8 11006,2 4412,4 in % to the previous year 124,2 87,9 94,8 106,8 92,9 40,1 road 1981,0 3419,7 4248,72 4968,32 5328,22 3306,62 in % to the previous year 79,8 118,0 102,4 116,92 107,22 62,12 Retail trade by trade units – total, mio Lei 3193,7 11030,8 13620,7 16866,6 21387,2 19925,1 in % to the previous year 100,6 113,9 110,1 110,3 112,2 95,6 Stock of goods in trade enterprises (end-year), mio Lei 434,7 2021,1 2685,1 3740,9 4781,1 5219,5 in % to the previous year 83,6 126,3 114,2 120,2 120,3 109,4 Paid services provided to population by officially regis- 2246,8 6663,6 8029,0 9616,4 11046,0 12261,7 tered units – total, mio. Lei in % to the previous year 104,3 108,6 104,9 104,2 98,8 102,6 Export, mio USD 471,5 1091,3 1051,6 1341,7 1591,2 1297,7 in % to the previous year 101,7 110,8 96,4 127,6 118,6 81,6 Import, mio USD 776,4 2292,3 2693,2 3689,5 4898,8 3278,3 in % to the previous year 132,4 129,6 117,5 137,0 132,8 66,9 Trade balance deficit, mio USD -304,9 -1201,0 -1641,6 -2347,8 -3307,6 -1980,6 in % to the previous year 248,1 153,3 136,7 143,0 140,9 59,9

13 Annual Social Report 2009

2000 2005 2006 2007 2008 2009* Average monthly salary of a employee in the national 407,9 1318,7 1697,1 2065,0 2529,7 2748,4 economy, Lei in % to the previous year 133,9 119,5 128,7 121,7 122,5 108,7 Real salary of a employee, % in % to the previous year 102,3 106,8 114,2 108,4 108,7 108,7 Number of officially registered unemployed (end-year), 28,9 21,7 20,4 18,9 17,8 38,7 thousand persons in % to the previous year 82,7 103,3 93,7 92,8 94,4 216,9 Consumer Price Indices, in % to the previous year 131,2 111,9 112,7 112,3 112,7 100,0 of which: Food-stuff products 136,5 113,7 109,1 111,0 115,6 94,4 Non food-stuff products 122,1 112,3 116,4 113,1 108,3 99,7 Services 127,5 107,8 114,7 114,3 116,5 108,2 * Preliminary data 1 The indicator includes the production output calculated for individual enterprises 2 Including the data on enterprises with other economic activities, which perform road freight transport and use 10 and more own or rented trucks

1.2. Dynamics of demographic variables

The demographic situation of the Republic of Moldova was deeply and constantly deteriorated starting with the first half of 90’s in the framework of political, economic, and social changes generated by the social and economic transition. This process of predominantly negative significant demographic changes is specific for all countries of West and South-Eastern Europe, not only for Moldova. The current pattern of demographic transition of the Republic of Moldova is confirmed by the official statistics with data on the processes of structural reform and dynamics of main vital statistics variables. It is considered that the demographic transition refers to low birth and mortality rates, and to age structure, family and migration etc. trends as well. Thus, the demographic development of our country is manifested by a phenomenon of “demographic decline”; the number of population is in continuous decrease due to negative natural growth and migration. The unfavourable aspect of population fertility, external migration and general mortality led to the mechanisms that influenced the number decrease and deterioration of population age structure. Simultaneously, the decrease of birth rate caused a misbalance of population age structure and intensified the process of demographic ageing. Statistics for 2009 indicate that the number of resident population as of 01.01.2010 represented 3563,7 thousand persons, with 3,8 thousand less in comparison with the beginning of the 2009 and with 80,4 thousand persons less during the last 10 years, thus confirming the pattern of demographic degra- dation. 51,9% are women and 41,4% represent urban population of the total population, which is in decrease in comparison with the situation at the beginning of 2000 when women represented 52,1%, and urban population – 41,5%.

Population age structure Population age structure is characterised by a process of demographic ageing, mainly due to the decrease of birth rate, which determined the absolute and relative reduction of young population. It is noticed a decrease of share of young population (0-14 years) from 23,8% to 16,7% (-270,3 thousand persons) and an increase of share of elder population (65 years and over) from 9,4% to 10,1% (+19,1 thousand persons), including 85 years and over – from 0,45% to 0,69% (+9 thousand persons) in comparison to the situation at 1 January 2000. A wave of significant ageing is estimated to happen starting

14 Annual Social Report 2009 with 2014, when the share of persons of 0-14 years will equal to the one of persons of 60 years and over in the population age structure. The demographic prognosis of the Academy of Science of Moldova specifies that after 2015 the first variable will have a constant decrease while the second – a constant increase until 2050. Thus, according the most pessimistic scenarios of the prognosis, the elder population will represent 16,2% of the total population, and until 2050 it will reach a share of 30,3%, simultaneously, the share of children will decrease significantly until 11,8% and of the population of working age (15 – 59 years) – until 57,9%1. In 2009, the coefficient of population age- Figure 1.1. Population ageing by area Share of ing (number of persons aged 60 years and over population of 65+years Over 89 years per 100 inhabitants) constituted 14,0, in increase with 0,3 p.p. in comparison with 2008 (13,7), and it registered an increase of 0,4 p.p. (13,6) in comparison with 2000. It is to be mentioned that a population is classified as old when the value of this indicator is 12,0 and more according Bojio- Garnier scale. The phenomenon of population ageing registers significant differences in what concerning its level and dynamics in territorial aspect or by Ponderea populaţiei geographic-economic areas, the share of elder în vîrstă de 60 + ani Sub 12% population varying from 10,4% (Centre) up to 12,1-14%

24,9% (North). 14,1-16% The territorial-administrative units are classi- 16,1-19% fied in 5 groups taking into account the current Mai mult de 19% population ageing tendencies and the dynamics of this phenomenon: 1. Territorial–administrative units with relatively young population; elder population represents less than 12% in population structure – Ialoveni, Chisinau, and Criuleni; 2. Territorial-administrative units where Source: ASM (2009) based on the 2004 Population Census the share of elder population is between data 12,1-14%. This group comprises 17 units from the Centre and South, including the city of Balti, TAU Gagauzia, counties: Cantemir, Straseni, Anenii Noi, Basarabeasca, Cahul, Dubasari, Nisporeni, Cimislia, Hincesti, Telenesti, Leova, Orhei, Causeni, Ungheni, Stefan Vodă; 3. Territorial-administrative units with the share of elder population of 14,1-16%. This group comprises counties Calarasi, Singerei, Rezina, and Taraclia; 4. Territorial-administrative units with the share of elder population of 16,1-19%: Soldanesti, Falesti, Soroca, Floresti, and Glodeni; 5. Territorial-administrative units where the share of elder population exceeds 19,1%. This group comprises 6 Northern counties: Ocnita, Drochia, Riscani, Edinet, Briceni, and Donduseni. The analysis of population ageing phenomenon by areas has a significant relevance, hence, knowing these aspects are relevant in the development of national and local socio-economic policies dealing with the use of human resources, production sector request for labour force, development of social protection system and ensuring its sustainability.

1 ASM (2009). Population ageing in the Republic of Moldova: economic and social consequences . http://www.unfpa.md/images/stories/ publicati/imbatrinireapopulatieirm_book_color_out.pdf

15 Annual Social Report 2009

Life expectancy at birth In 2009, life expectancy at birth constituted 69.3 years; 73.4 years for women and 65,3 years for men. It is to be mentioned that since 2000 the indicator of life expectancy at birth is in continuous increase, a difference of 1.7 years being registered in 2009. Life expectancy of women is higher than for men with 8.1 years, situation caused by higher infant mortality rates of boys and higher premature mortality rates of men. However, the reality shows that the difference between life expectancy for women and men at the age of 60 represents in average 3 years. (Figure 1.2.) The differences between the life expectancy Figure 1.2. Dynamics of life expectancy indicator by age groups values for women and men reveal obvious dispari- ties in gender issues in our country. These differ- 80 73.2 73.4 71.7 71.6 72.2 70 ences are comparable with the Romanian ones 64.5 64.5 64.6 65.6 65.3 58.4 58.6 58.4 59.3 59.1 60 and are much lower than the Ukrainian. High dif- 51.4 51 50.9 51.7 51.5 50 ferences between life expectancy values for men 44.6 44.3 s 43.7 43.3 43.8 37.4 37.5 37.8 and women are less characteristic for the countries year 40 36.9 36.7

29.8 29.3 29.8 30.6 30.8 30 with a high human development, such as Iceland, 24.7 24.2 24.2 25 25.7

20 17.6 17.1 17.6 18.3 18.2 where it represents only 3,2 years or Norway with 14.5 14 14.4 15.1 15

10 a difference of 4,9 years. However, this indicator

0 for Moldova is 10 years lower than the average for MenWomen MenWomen MenWomen MenWomen MenWomen 2001 2003 2006 2008 2009 EU countries, and approximately 1,5 years higher 2 0 15 30 45 60 + than the average for CIS countries . Source: NBS and MH Average life duration is higher with 3,5 years for the inhabitants of urban area. During the last years, the main factor that determined the variation of life expectancy at birth was the decrease of infant mortality rate and mortality rate of children under 5 years (which reflects the quality of healthy life of corresponding sub-populations). The revision of calculation method according WHO criteria was another factor that influenced these indicators. This fact led to the adjustment of MDG objectives so as to correspond at maximum to global framework requirements. It is to be mentioned that such organization as WHO, UN, EU and OECD consider these indicators to be of primary importance in monitoring the dynamics of social exclusion in relation with the quality of healthy life. However, these indicators are considered of secondary relevance in the frame of economic and social protection policies, due to the fact that life expectancy varies during whole life at a cyclic interval, depending on multiple factors such as: work conditions, living and nutrition quality, and other harmful factors.

Birth rate In 2009, the dynamics of demographic pro- Figure 1.3. Birth rate by areas cesses reveals a decrease of the population mor- 14 tality (from 4,3 thousand in 2000 to 1,3 thousand 12 11.8 12.4 persons in 2009) and an increase in the fertil- 11.5 11.4 10 11.4 10.8 9.7 10.1 ity rate – the highest value of this indicator was 9.4 9.2 8 8.4 8.25 reached – due to more generations of 80’s of the 6 previous century. 4 In 2009, the number of live-births represented 2 40803 persons, which is higher with 1785 (4,6%) 0 in comparison to 2008 and 3864 children (10,5%) 2000 2002 2004 2006 2008 2009 higher in comparison to 2000. In 2009, the birth urban rural rate was 11,4 (10,9 in 2008), while in 2000 it repre- Source: NBS sented 10,2 live-births per 1000 inhabitants. The

2 NBS and WHO data for 2009.

16 Annual Social Report 2009 summary birth rate is 40% lower than the level necessary for simple demographic reproduction trough sequence of generations despite the fact that the number of births increased during the last 2 years. Birth rate in rural areas is higher than in urban and represented 12,4‰ and, accordingly, 10,1‰ (in urban areas) in comparison to 11,8‰ and, accordingly, 9,7‰ in 2008, while in 2000 it represented 11,4‰ and 8,4‰ (Figure 1.3.). In 2009, rather high birth rates were registered in particular for localities from TAU Gagauzia (14‰), and counties Criuleni (13,6‰) and Ialoveni (13,6‰). The lowest birth rates were registered in counties Basarabeasca, Cimislia, and Ocnita – 9,4‰ each. In 2009 the number of non-marital children constituted 9351 of the total number of live-births (22,9%), which is in increase with 0,6 p.p. in comparison with the previous year (8700 or 22,3%) and 2,5 p.p. higher than in 2000 when it represented 7567 (20,4%). It is to be mentioned the increase of extra marital birth level both in urban and rural areas.

Mortality In 2009, the number of deaths constituted 42138 persons, which is 190 persons (0,5%) more in comparison with the previous year, and 914 persons more than in 2000. The general mortality rate constituted 11,8 deaths per 1000 inhabitants, at the same level as in 2008, and in increase in comparison to 2000, when the mortality indicator was of 11,3 deaths per 1.000 persons. This indicator placed Moldova at the level of South-Eastern European countries, however, it is higher than in the countries of European Union where the average mortality rate is 9,7 cases per 1.000 inhabitants3. A discrepancy between the general mortality rates by areas persists: 9,0 deaths were registered for urban area, and 13,8 deaths per 1.000 persons – in rural area. The lowest mortality rates are registered for municipalities Chisinau and Balti, and for the counties Ialoveni and Cahul. The highest mortality rates were registered for the counties Donduseni, Soldanesti, Riscani, Briceni, Edinet and Glodeni. In general, the structure of mortality by death classes did not change: analogical to previous years, the majority of deaths (56,1%) are caused by circulatory system diseases, followed by tumours (13,6%), the diseases of digestive system (9,8%), accidents, poisoning and trauma (8,2%), and diseases of respiratory system (5,5%). Men mortality classified by causes of death differs of the one for women; it is 3,1 times higher in case of accidents, poisoning and trauma, 2,7 times higher in case of infectious and parasitic diseases, 1,8 times higher in case of diseases of respiratory system and 1,2 times higher in case of tumours. A “femi- Figure 1.4. Dynamics of children mortality nine over mortality” was registered only in case of 25.0 diseases of circulatory system (1,3 times). 22.5 22.4 20.0 In 2009, the number of infant deaths (chil- 17.5 18.3 17.8 15.0 15.4 dren under 1 year) represented 493 cases in com- 14.7 14.0 14.4 parison with 681 cases in 2000. The rate of infant 12.5 12.2 11.8 12.2 12.1 10.0 11.9 mortality represented 12,1 deaths per 1000 live- 7.5 Per 1000 live-births births, which is in decrease with 6,6 p.p. in com- 5.0 parison with 2000 when it constituted 18,3 deaths 2.5 per 1000 live-births. Simultaneously, a significant 0.0 2000 2002 2004 2006 2008 2009 decrease of rate of mortality of children under 5 years was registered; in 2009 it represented 11,9 Infant mortality deaths per 1000 live-births, the difference with Mortality of children under 5 years the previous year is 2,5 p.p, while in comparison Source: NBS and MS with 2000 it represents 10,5 p.p. (Figure 1.4)

3 MH (2010). 2009 Activity Report

17 Annual Social Report 2009

Divorces and marriages In 2009, 26,8 thousand marriages were registered what is 0,4% more in comparison with 2008. Thus, 7,5 marriages are registered per 1000 inhabitants, fact that indicates the increase of rate of marriages 1,5 points in comparison to 2000 level. The majority of persons married in 2009 belong to 20-24 years age group (35,9 % men and 48,3 % women). Average age at the first marriage represented 26 years for men and 23 years for women. Marriages by areas and spouses age are presented as follows: women under 20 years registered 18,9% of total marriages in rural area, while in urban – 7,8%. In 2009, of the total number of registered marriages, 81,9% men and 84,3% women were single persons. The share of divorced persons that remarried represented 17,2% men and 14,1% women, and the share of widowed persons that remarried represented 0,8 % and 1,6% accordingly. In 2009, the number of divorces pronounced Figure 1.5. Structure of divorces according marriage by Court Decision constituted 11,9 thousand (5,7% duration less than in 2008), in average, it represents 3,3 di- 100% 14.2 90% 16.7 19.5 19.7 20.1 19.5 vorces per 1000 inhabitants, which is 0,6 points 80% 11.8 higher than divorce rate in 2000. 12.6 13.4 12.9 13.5 13.8 70% The indicator dynamics reveal an increase in the 17.6 60% 19.7 number of divorces with marriage duration less than 19.9 18.3 15.6 14.9 50% 5 years and 20 and over years. (Figure 1.5.) In 2009,

40% 30.4 20.4 19.6 20.9 30,9% of total divorces intervened after a marriage 27.0 22.0 30% less than 5 years, followed by the divorces after 20 20% 24.0 26.5 27.4 and more years of marriage (19,5%), 5-9 years (20,9%), 21.7 21.0 19.7 10% 10-14 years (14,9%). Average marriage duration that 5.5 0% 4.3 3.0 4.7 4.7 3.6 ended with a divorce represented 11 years. 2000 2002 2004 2006 2008 2009 28,4% of divorces were in the couples with Under 1 year 1-4 5-9 10-14 15-19 20 years and over children, and 4666 children were affected by these Source: NBS divorces.

Migration The demographic situation is influenced significantly by the phenomenon of external migration, which is characteristic mostly for young and adult persons, fact that contributes to demographic ageing. In 2009, more persons emigrated from Moldova than immigrated. Gender differences are significant, in other words, more women emigrate; the majority share belong to women in the total number of immi- grants, as well. During 2009, 6663 persons left the country for a permanent residence abroad, in 2008 – 6988 persons, and in 2000 – 9128 persons. The most active migration connections are with Ukraine and Russia (2952 and 1866 emigrants accordingly). 899 citizens of the Republic of Moldova chose US for permanent residence, 278 – Israel, and 264 – Germany. A part of emigration from the country is compensated by the repatriation of originated from Moldo- va and by immigration. In 2009, 2222 persons did repatriate in the country. Majority of them came from Russia and Ukraine, 46,5% and 36,5% accordingly. During 2009, 2010 migrants came in Moldova, of which 182 persons got the permanent residence permit and 1828 persons – fixed term residence permit. They are characterised by purpose as follows: for study – 25,6%, for work – 29,4%, and family immigration – 45,1%. According Labour Force Survey data, organised by the National Bureau of Statistics (Figure 1.6.), the situation at 1 January 2010 is the following: 294,9 thousand inactive persons of 15 years and over were declared left abroad for work, of which – 185,8 thousand men and 109,1 thousand women in comparison with 309,7 thousand in 2008 (201,5 thousand men and 108,2 thousand women). For comparison, 138,3 thousand persons, including 93,1 thousand men and 45,2 thousand women were declared left abroad. In 2009, 250,3 thousand are from the age groups of 20-49 years compared with 268 thousand in 2008.

18 Annual Social Report 2009

At 24.01.2009, 697296 persons were regis- Figure 1.6. Population of 15 years and over, working or tered as departed abroad for various periods of seeking for work abroad, annual mean residence according the data of the Ministry of 250 230.8

Information Technologies and Communications. 197.8 201.5 A number of 108767 (+8254) persons left for a pe- 200 185.8 riod from 1 to 2 years, 62504 (-372) persons – for 160.9 150 a period from 2 to 3 years and 101208 (+26947) 114.4 112.3 108.3 109.1 93.1 persons – for more than 3 years this is the situa- 100 tion at the end of 2009 (compared to the begin- 70.3 45.2 ning of 2009). 50 At the end of 2009, 683631 persons that left 0 the country are from the age group of 15-64 years 2000 2002 2004 2006 2008 2009 (the highest share of working age) or 26573 more persons than at the beginning of 2009, including men women those 93649 persons absent for more than 3 years Source: NBS which is 24457 persons more than at the beginning of 2009. In this context, it is relevant to mention that 101886 (105458–in 2008) children of 6/7-18 years remained without parental guardianship, including 35092 (34491- in 2008) without the guardianship of both parents which work abroad, according the situation as of 01.12.2009.

19 Annual Social Report 2009 2. LABOUR MARKET IN THE REPUBLIC OF MOLDOVA

The Moldovan labour market faces significant modifications both in the population employment structure and at the level of behavioural attitudes of human factor in the conditions of global economic crisis. All these have a direct impact on the following phenomena: unemployment, informal employment, migration, frequent flows in changing the work places caused by insufficient work remuneration and intensification of depopulation of rural areas, and active population ageing etc. Inevitably, these aspects influence highly the main indicators of labour market. Labour market is in a process of continuous formation and strengthen permanently measures of social protection, ensuring the persons seeking for a job with equal and just services, thus becoming a component part of national policies, strategies and programs, such as: (i) National Strategy on Employment Policies for 2007-20154; (ii) National Development Strategy for 2008-20115; (iii) The Program of Economic Stabilization and Recovery of the Republic of Moldova for 2009-20116; and (iv) Government Activity Pro- gram for 2009-2013 “European Integration: Freedom, Democracy, Welfare”. This chapter has the purpose to reveal the most important aspects of labour market policies and development characteristics, system of social protection of persons in the labour market, results obtained during 2009, and dynamics of labour market indicators, existing problems and possible methods of their solution.

2.1. Employment

According the data of statistical survey on population households – Labour Force Survey – in 2009, economically active population represented 1265,3 thousand persons, with a light decrease in comparison with the previous year of 2,9%, and with 21,7% in comparison to 2001. 51,3% of total active population were men and 48,7% – women. 52,9% of From economic perspective the economically active active population lives in rural area and 47,1% – in population comprises all persons of 15 years and urban. over, which provide labour force available for the Rate of activity of population of 15 years and production of goods and services during the refer- over constituted 42,8% in 2009, which is lower with ence period, including employees and unemployed. 1,5 p.p. in comparison to 2008 (when the global economic crisis began) and 14,4 p.p. less in comparison to 2001 (when the economic recovery of the country started). Higher values were registered for men – 46,2% in comparison with women – 39,7%. The rate of activity was higher for urban population (47,4%), in comparison with the rural population (39,3%). In 2009, population employed in economy Employed population comprises all persons of 15 constituted 1184,4 thousand persons, which is in years and over, which during the 7 weekdays before decrease (-5,3%) in comparison to 2008, and to 2001 reference week, from Monday to Sunday inclusive- (-21%) as well. 50,5% of the total employed popula- ly, performed regularly or occasionally an econom- tion were men, and 49,5% – women. ic activity, producing goods or services, even for an In 2009, employment rate was 40,0% this is hour, with the purpose to get incomes in form of lower (-2,5%) compared to the previous year (42,5%) salary, payment in kind or other benefits, even if and lower (-13,7 p.p.) compared to 2001. they were not received during that week. 43,6% of total employment rate was in urban area and 37,4% in rural according residence area. The highest employment rate (60,0%) was registered for the age group of 45-54 years. During the last years, the dynamics of above-mentioned indicators reveal a decreasing trend of the value of these indicators. (Table 2.1.)

4 Government Decision Nr.605 from 31.05.2007 5 Law Nr.295-XVI from 21.12.2007 6 Government Decision Nr.790 from 01.12.2009

20 Annual Social Report 2009

Table 2.1. Economically active population and population employed in economy, 2001-2009

Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009

Population , total, thousand persons 3635,1 3627,8 3618,3 3607,4 3600,4 3589,9 3581,1 3572,7 3567,5 Economically active population, 1616,6 1615,0 1473,6 1432,5 1422,3 1357,1 1313,8 1302,8 1265,3 thousand persons Rate of activity, in % 57,9 57,2 51,6 49,7 49,0 46,3 44,8 44,3 42,8

Employment, thousand persons 1499,0 1505,1 1356,5 1316,0 1318,7 1257,3 1247,2 1251,0 1184,4

Rate of employment, in % 53,7 53,3 47,5 45,7 45,4 42,9 42,5 42,5 40,0

Source: NBS

Structure of employed population by age groups reveals the following figures: the share of young persons (15-24 years) constituted 10,2%, adults (25-54 years) – 73,7% and aged 55 years and over – 16,1%; these indicators are comparatively stable in comparison to 2008. It is necessary to mention that the rate of activity remains higher in urban area (47,4%) compared to rural area (39,3%), the difference is 8,1 p.p.. The rate of employment of young persons (15-24 years) in rural area is 3,5 p.p lower in comparison with the urban area, of adult population – with 16,6 p.p., and lower with 2,0 p.p.7 for the population of 55 years and over. Following this situation, we can reveal the fact that the urban area continues to offer more employment possibilities than the rural area despite the economic crisis that affected the entire economic dimension of the country. According the education level the picture did not change as compared to the previous year, persons with secondary and secondary vocational education have 45,9% vs. 45,7% in 2008, higher education – 21,9% vs. 20,4% in 2008, secondary specialised -16,4% vs. 16,5% in 2008, and gymnasium – 15,0% vs. 16,2% in 2008. Majority of persons with higher education (three from four) work in urban area, of which women represent more than half (54,3%). The analysis of employed population by economic activities of national economy reveals that 28,2% of total employed population work in the agricultural sector, which is in decrease with 2,9% as compared to 2008. 71,8% were employed in the non-agricultural sector, of which 13,1% – in industry. During 2001-2009, a decrease trend of persons employed in agriculture is outlined, from 51,0% in 2001 to 28,2% in 2009. Proportional to this discrepancy, an employment “transfer” to services is attested (hotels, trade, transport, constructions, medicine and education), registering annual increases from 38,0% in 2001 to 58,7% in 2009. The employment in industry remains relatively stable, from 12,1% in 2003 until 13,1% in 2009. (Figure 2.1.) According the distribution by forms of ownership – 67,0% of population was employed in private ownership units and 27,8% – in public units; the private sector is predominant in agriculture (98,1%), constructions (95,7%), trade (94,4%), hotels (79,1%), and manufacturing industry (73,3%). In 2009, the employees represent 70,6% compared to 68,0% in 2008, and own account workers – 25,9% in 2009 compared to 28,7% in 2008 of the total employed population according occupational status. 7,2% of total employment were top managers and high level clerks in public administration and social-economic units. The number of men was 1,6 higher than the number of women, the same situation was in 2008. Spe- cialists with high level qualification constituted 13,6%, of which approximately 2/3 were women. An analysis by groups of activities reveals that workers with no qualification are predominant (23,9 %), followed by employees in services, trade and similar (14,3%).

7 Calculations made by the authors based on NBS data (2010). Labour force in the Republic of Moldova – employment and unemployment, 2009. http://www.statistica.md/newsview.php?l=ro&id=2933&idc=168 .

21 Annual Social Report 2009

Figure 2.1. Distribution of persons employed in economy, 2001-2009, %

% 100% 11 11.4 12.1 12.3 12.1 12.8 12.7 13.1 13.1

80% 38 38.6 44.9 47.2 47.2 60% 53.6 54.6 57.7 58.7

40%

51 50 20% 43 40.5 40.7 33.6 32.8 31.1 28.2

0% 2001 2002 2003 2004 2005 20062007 2008 2009

Agriculture Services Industry

Source: NBS

The structure of employed population by type of production unit reveals that 937,4 thousand persons or 79,2% were employed in the formal sector, in the informal sector – 138,8 thousand persons or 11,7%, in population households – 108,2 thousand persons or 9,1% of the total persons employed in economy. The structure of employed population by job type shows that 829 thousand persons or 70,0% had a formal job. Number of persons with an informal job constituted 355,4 thousand persons or 30% and it decreased with 8,8% in comparison with 2008 (389,6 thousand persons). In conditions of economic crisis, the majority of *Underemployment – persons that have a job, enterprises and organisations did not fire employees however, the hours worked effectively in all activi- in order to avoid some social conflicts, but they used ties were under an established threshold (40 hours), some forms of underemployment*, thus prevent- and they would like to have a supplementary activ- ing the rapid growth of unemployment number. In ity and are available to start working during the 2009, the number of underemployed persons con- next two weeks. stituted 92,7 thousand, which represents 7,8% of total employment, increasing with 6,0 thousand. The phenomenon of underemployment is more frequent in rural area (67,5%). Economically inactive population cover all persons, regardless age, which did not work at least one hour and were unemployed during the reference period. In 2009, it constituted 57,2%, exceeding the previous year level with 1,5%. (Figure 2.2.)

Figure 2.2. Economically inactive population by sex and age, thousand persons

Inactive population, thousand persons

2500

2000

Inactive population, 1500 thousand persons

1000

500 2002 2003 2004 2005 20062007 2008 2009

Source: NBS

22 Annual Social Report 2009

1000 1800

900 1600

800 1400 700 1200 600 1000 500 800 400

thousand persons 600 thousand persons 300 200 400 100 200 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Men Women Total

600

500

400

300

thousand persons 200

100

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

15-24 years 25-34 years 35-44 years 45-54 years 55 years and over

During the last 10 years, the dynamics of levels of inactivity shares by sex is higher for women. Thus, in 2000, the difference between the levels of inactivity for women and men represented approximately 15,8%; by 2009 situation improved and the difference between these values reduced to 10,8%. In particular, this decrease is caused by the increase of level of inactivity among men, which is 2,5 p.p. higher in comparison with 2000. It is to be mentioned that the level of inactivity in the Republic of Moldova has some specific fea- tures, connected, first of all, with age, in other words, the younger or closer to pension age the person is a higher inactivity level it has. In 2009, the highest inactivity shares were registered for young persons (15- 24 years) – 31% and for elder persons (55 years and over) – 31,8%. The share of inactivity among adults of 25-34 years and of 45-54 years represented 13,8% and 12,3,%8 accordingly.

8 Calculations of the authors based on the NBS data.

23 Annual Social Report 2009

2.2. Unemployment

The period of economic crisis passed by the Republic of Moldova, accompanied by economic recession increased the misbalance between labour force supply and demand and decreased the number of employed in the national economy, thus in 2009, major unemployed records and overheating of unemployment phenomenon were registered. The dynamics of unemployment rates develop differently, according the social-economic situation of the country. For example, the period of 1998-2006, an increase trend of unemployment number main- tained, exceeding much over 100 thousand persons; the peak was in 1999, when 187,2 thousand persons were registered. These figures reached minimal values of 66,7 thousand persons and 51,7 thousand persons accordingly by 2007-2008, as a result of implementation of various social and economic policies. In 2009 the number of unemployment increases again and it constitutes 81,0 thousand persons. (Table 2.2.)

Table 2.2. Number of registered unemployed and unemployment rate by sex, 1998-2009

Number of Indicators/ unemployed, Unemploy- Men Women Men Women years thousand ment rate, % persons. (ILO)

1999 187,2 113,6 73,6 11,1 13,3 8,9 2000 140,1 80,6 59,5 8,5 9,7 7,2 2001 117,7 70,1 47,6 7,3 8,7 5,9 2002 109,9 64,4 45,4 6,8 8,1 5,5 2003 117,1 69,9 47,2 7,9 9,60 6,4 2004 116,5 70,1 46,4 8,1 10,0 6,3 2005 103,7 59,8 43,9 7,3 8,7 6,0 2006 100,0 61,7 38,2 7,4 8,9 5,7 2007 66,7 41,5 25,2 5,1 6,3 3,9 2008 51,7 30,0 21,8 4,0 4,6 3,4 2009 81,0 50,8 30,2 6,4 7,8 4,9 Source: NBS

The increase of unemployed registered in the labour market from the beginning of the year is caused by more factors, such as, reduction of jobs number and staff dismissal as a result of economic crisis, lack of properly paid jobs etc. According the data of the National Bureau of Statistics, in 2009, the number of unemployed was 81,0 thousand, in increase with 30,7 thousand in comparison with the previous year. The unemployment affects more men – 50,8 thousand persons (62,7%) than women – 30,2 thousand persons (37,3%). In territorial aspect, a higher unemployment share have the urban inhabitants – 58,6% in comparison to the rural inhabitants – 41,4%. In 2009, at the country level, the unemployment rate (ratio of ILO unemployed to active population) registered the value of 6,4%, which is 2,4 p.p. more in comparison with the previous year. Significant discrepancies were registered between the unemployment rate for men (7,8%) and women (4,9%), and by areas: urban – 8,0% in comparison to the rural – 5,0%. Average unemployment duration was of 14 months, in comparison with 16 months in 2008. The share of long duration unemployment (1 year and over) represented 27,9%. 16,3% of them were young persons of 15-24 years. 14,3% was the share of very long duration unemployment (24 months and over). Approximately 40% of unemployed declared themselves as head of the household.

24 Annual Social Report 2009

Unemployment registered by the National Employment Agency and its territorial structures During 2009, NEA registered 79241 unemployed persons, in comparison to 46230 persons in 2008. According the situation at 1 of January 2010, 38676 persons were registered by the employment agencies, in comparison to 17833 unemployed as of 1 of January 2009. In territorial aspect, a higher share has the rural inhabitants – 60%. (Figure 2.3.)

Figure 2.3. Registered unemployment by area

Urban inhabitants 40%

Rural inhabitants 60%

Source: NEA

According NEA, the highest number of unemployed persons is registered for the age group of 30- 49 years – 45,7% and 16-24 years – 22,4% accordingly, in structural aspect, by the age group of registered unemployed. A light decrease was registered for the age group of 25-29 years thus indicating 15,8%. This age group comprises persons with high education level, graduates of higher education and secondary vocational institutions, what confirms a higher capacity and possibility to have a better job. (Figure 2.4.)

Figure 2.4. Number of registered unemployed persons, placed during 2009, by age groups, persons

40000 36232 35000

30000

25000

20000 17715

15000 12524 12770

10000 7040 4877 5000 2339 2745

0 16-24 years 25-29 years 30-49 years 50-65 years

Registered Job placed

Source: NEA

By the end of 2009, from the viewpoint of unemployment distribution by education level, we can reveal that 35,6% were persons with primary and secondary education, 24,3% – persons secondary vocational education, 22,4% – persons with secondary general education, 9,2% – persons with higher education and 8,8% are the persons with general and specialised education. Thus, we can conclude that the persons seeking a job have a low education level. Persons with a higher education level appeal less at the agency, they have a higher degree and capacity to get a job. (Figure 2.5.)

25 Annual Social Report 2009

Figure 2.5. Structure of registered unemployed by education level

9.2% Primary and lower secondary 8.8% 35.6% Secondary and secondary specialised

Secondary vocational

24.3% Lower Secondary vocational

22.4% Higher

Source: NEA

2.3. Labour market policies

2.3.1. Services of dismissal preliminary notice As an unemployment prevention measure, the services of dismissal with preliminary notice represent activities of informing persons seeking for a job on the legal provision of the social protection, facilitation of labour market integration, provision of services of professional training and placement. During 2009, the number of persons that were preliminarily noticed and the number of persons that were dismissed increased. (Table 2.3)

Table 2.3. Dynamics of dismissal preliminary notice services, 2007-2009 Economic units Number of em- Number of that presented ployees prelimi- beneficiaries of Dismissed per- Job placed in Beneficiaries of Years information on narily noticed dismissal pre- sons registered labour market, unemployment staff dismissal, of dismissal, liminary notice at NEA, pers. pers. aid, pers. units. persons. services, pers. 2007 320 1769 216 3287 1229 1665 2008 496 6090 1236 3556 1064 1651 2009 628 7306 1119 6821 1058 3686 Source: NEA

2.3.2. Management of vacancies The significant decrease of the number of vacancies occurred during 2009, as a consequence of social-economic situation. NEA territorial structures cooperated with public administration bodies in order to diminish unemployment effects and to find easier the vacancies. In this context, 6,7 thousand economic units were visited, and 4,9 thousand economic units presented vacant job offers. In total, 27,1 thousand vacancies were managed, what is 55,3% to the previous year. As a result, 17001 persons were placed in the labour market. (Figure 2.6.) In 2009, according NEA and its territorial structures database, more frequently, employers request the following professions for the persons with higher and secondary specialised education: (i) branch physicians and therapists; (ii) medical nurses; (iii) insurance agents, managers; (iv) electricians; (v) engineers in various fields; (vi) teachers. The most requested professions for persons with secondary vocational and secondary general education were: (i) tailor in clothing industry; (ii) tailor in light industry; (iii) foodstuff and non-foodstuff vendors; (iv) locksmiths in various fields; (v) drivers; (vi) fitter-electricians; (vii) pastry chefs; (viii) waiter-bartenders.

26 Annual Social Report 2009

Figure 2.6. Number of registered and job placed unemployed persons, 2008-2009

90000 79241 80000 70000

60000 52264 Vacancies 50000 46232 Unemployed 40000 Job placed 27473 thousands persons 30000 22185 20000 17001 10000 0 2008 2009

Source: NEA

During 2009, the situation on the labour market was tensioned: the number of unemployed persons registered at NEA and its territorial structures increased, simultaneously, the number of vacancies decreased. Approximately 17833 unemployed competed for 5374 jobs at the beginning of 2009, while 38676 unemployed pretended for 1337 jobs at the beginning of 2010. By the end of 2009, 1337 jobs were not filled or 4037 places less in comparison to the corresponding period of 2008. (Figure 2.7.)

Figure 2.7. Jobs supply and demand at the end-year, 2007-2009

40000 38676 35000 30000 25000 18898 17833 20000 Unemployed 15000 10000 8069 Vacancies 5374 5000 1337 0 2007 2008 2009

Source: NEA

2.3.3. Labour mediation One of the services of implementation of employment opportunities is provided by the Law Nr. 102- XV from 13.03.2003 on employment and unemployed social protection, as well, one of the basic NEA activities is labour mediation – the activity which establishes cooperation relations between employers and persons seeking for jobs, in order to establish some labour connections. Employment agencies provide free mediation services for the persons seeking for jobs, namely: • information on the vacancies and employment conditions by publishing advertisements, or announcements, organisation of job fairs; • electronic mediation – IT use for automatic placement of job offers and demands in the correspondence;

27 Annual Social Report 2009

• preliminary selection of candidates corresponding to job requirements according candidate education, attitudes and interests. The labour mediation activity sets the correspondence between the vacancies declared by employers and registered in the NEA databases with primary professional formation, work experience in this profession and abilities of job seekers. During 2009, 105,5 thousand persons (visited the territorial agencies in average 3 times) benefited of labour mediation services of which 88,9 thousand persons were unemployed (in 2008 – 56,6 thousand persons). As a result of labour mediation, 17,0 thousand unemployed of those 79,2 registered unemployed were job placed. 4,4 thousand individual mediation plans were developed in order to increase unemployed responsibility on the situation created and to increase the chances to integrate or reintegrate in the labour market. The key phase in labour mediation was to undertake the information on vacancies from employers. In 2009, NEA registered 27103 vacancies what is 21880 places less than in 2008 (48983 places) using various screening forms and techniques. Communication with employers (written, telephone, or fax etc.) was the most frequent method NEA used for the identification of vacancies, thus, 15055 thousand vacancies were registered or 56,0% in comparison to 2008 when 29873 (61,0%) thousand vacancies were registered. Employers presented 7926 thousand or (29,2%) vacancies at NEA, and 4122 thousand (15,2%) were presented at the employers venue. (Figure 2.8.) The majority of vacancies are provided for workers – 20391 thousand or 75,2% and – 6712 thousand or 24,8% – to clerks. More than a half of them belong to public sector – 54,1%, private sector – 31,0%, other forms – 14,8%

Figure 2.8. Identification of vacancies

29% Visits to employer venue 15% 56% Announcements from employers Presented by employers at NEA

Source: NEA

In addition to those 15 self-information points opened during 2008, in 2009, 5 NEA territorial agencies of Drochia, Ocnita, Floresti, Ialoveni and Calarasi were provided with IT equipment and connected to a central database in order to implement electronic mediation (collection of systematised and automated data according supply and demand of jobs, accessed through IT equipment). This offer to job seekers advanced possibilities to find jobs, and to employers – more opportunities to find the right candidate. Thus, the quality of NEA and its territorial units services provided to job seekers, economic units, and social partners and to other organisations and institutions improved since the IT equipment was implemented. As a result, 6877 electronic mediation and 6074 telephonic mediation services were provided. In 2009, the Information Centre on Labour Market opened with the financial assistance of Moldovan- Swedish project „Support for Public Employment Service of the Republic of Moldova” in the frame of NEA territorial unit, in order to improve the information activity of citizens of Chisinau municipality. The Information Centre provides services based on self-information and auto-employment principle and is equipped with 3 automated search points (12 computers, telephone cabins, and information stands). Analogical centres for labour market information activated in municipality Balti and town Cahul, this gave possibility to job seekers – students and other persons interested to get acknowledged with the demand and supply on the labour market, economic units from the territory, employment conditions for available vacancies, and to get legal information on the legislative provisions on employment.

28 Annual Social Report 2009

The following performances were achieved through the services provided by territorial agencies. (Table 2.4.)

Table 2.4. Labour mediation services, 2007-2009 2007 2008 2009 Registered unemployed 48396 46230 79241 Placed in the labour market 23367 22185 17001 Beneficiaries of mediation services 69978 67121 105488 Electronic mediation services 626 2034 6877 Telephone services 5558 7546 6074 Organisation of information workshops 368 431 371 Registered vacancies 48340 48983 27103 Information of population and economic units on the labour market 1314 1329 683 (radio, TV, mass-media) Source: NEA

Labour mediation activity was supported by the organisation of job fairs – an active measure that gives possibility to job seekers and job providers to meet directly and to negotiate on employment. Dur- ing 2009, 45 job fairs were organised in all counties, including in the framework of exhibition “Made in Moldova”. 413 economic units attended the fairs and presented 5508 vacancies. As a result, 1444 persons were employed. (Table 2.5.)

Table 2.5. Job fairs, 2007-2009 2007 2008 2009 Organised job fairs 71 81 45 Number of economic units attending the fairs 777 936 413 Number of vacancies presented by economic units 12501 15981 5508 Number of persons seeking job, attending the fair 13375 14267 6424 Number of persons hired during the fairs 2529 3182 1444 Placement% from the total number of attending persons 18,9 22 22,5 Source: NEA

2.3.4. Public works Organisation of public works and the procedure of unemployed use for the public works is regulated by the application of provisions of article 22 of the din Law Nr. 102-XV from 13.03.2003, Government De- cision Nr. 1121 from 14.10.2004 on the procedure of approval of unemployed in public works, as well of the article 78 of the Law Nr. 436 from 28.12.2006 on the Local Public Administration. Unemployed can be involved in public works by: public services of infrastructure repair and maintenance, greening activities, activities of children, sick, old or people with disabilities home care etc. An allowance equal to 30% of the average salary for economy, for the previous years is paid to unemployed involved in public works. National Employment Agency and its territorial agencies support local public administration by im- plementing the programs of unemployed use for public works. In 2009, public works were organised in 344 economic units. Thus, 2,4 thousand unemployed (in 2008 – 3,1 thousand unemployed) were temporary employed. 99,6% of them benefited of monthly allowance. Majority of unemployed preferred to be involved in public services (98,7%) rather than home care services.

29 Annual Social Report 2009

Most unemployed were involved in public works in the counties Cahul, Floresti, Glodeni, Soroca, TAU Gagauzia and municipality Chisinau.

2.3.5. Professional information and counselling Professional information and counselling is a set of services provided free of charge to job seekers and have the purpose to: • supply information on the labour market and jobs dynamics; • assess and self-evaluate the person with the purpose of professional integration or reintegration; • develop ability and self confidence to have the possibility to make decision on own career; • train on job searching methods and techniques. Professional counselling is a method to ensure career training applying job searching methods, and a possibility to ensure a psychological support to discouraged persons, with the purpose to rise their self-confidence. During 2009, 31,1 thousand persons benefited of services of professional information and counselling, 3,4 thousand of them were placed in the labour market. The most persons that benefited of this services were of 16-19years (51,1%). 73,2% were registered unemployed of the total number of beneficiaries of professional information and counselling. Self-information and provision of individual counselling services offered in the frame of labour clubs organised by agencies suppose information on labour market, setting the educational “route”, personal- ity assessment and self-assessment. Thus, 26,3 thousand persons, of which 56,3% – women, benefited of individual consultations. The Labour Club organised 329 meetings attended by 4060 persons, of which 1055 were registered for professional formation courses and 555 were placed in the labour market. 247 training workshops on training in job search techniques were attended by 4044 unemployed, 480 of which integrated in the labour market.

2.3.6. Professional orientation and training NEA and its territorial structures have the role to increase integration and reintegration chances of job seekers, thus, the professional training is an active measure in the labour market. In 2009, NEA organised professional training programs for 4,1 thousand persons with the purpose of unemployed professional formation according economic units requirements and personnel needs in the labour market and as an instrument of unemployment counteraction and increase of professional mobility. Young persons, predominantly women (71,2%) of 16-29 years constitute more than half (72,0%) of beneficiaries. Approxi- mately 4.5 thousand persons graduated these courses. 72,3% got primary professional training, 20,0% graduated requalification courses and 7,7% attended training courses, in result, this gave the possibility to place easier in the labour market. (Table 2.6.)

Table 2.6. Professional training of unemployed, 2007-2009 Activities 2007 2008 2009 Registered 4381 4753 4100 Graduated the courses 4616 4382 4453 Employed after graduation 3425 3143 2987 Attended professional trainings at the beginning of year 2428 2046 2250 Source: NEA

In 2009, 2987 persons or 67,0% of which 2146 (48,2%) women were placed in labour market after graduation. Pastry chef, hairdresser, accountant, operator, vehicle mechanic, plasterer, and electrician were the professions most required by both unemployed and economic units.

30 Annual Social Report 2009

2.4. Passive measures of social protection of unemployed

Passive measures of social protection of unemployed involve material support of job seeking persons by providing an unemployment aid, regulated by the Law on employment and social protection of job seeking persons9. Unemployment allowance, its size and payment period are settled individually for every unemployed person, according conditions of lose of previous work, and contribution period of the person. In 2009, 9031 persons benefited of unemployment allowance of the total number of registered unemployed (79241) at the territorial agencies, or approximately twice more in comparison with the same period of 2008. (Figure 2.9.)

Figure 2.9. Number of unemployed that benefited of unemployment aid, 2007-2009

90000 79241 80000 70000 60000 48396 50000 46230 persons 40000 30000 20000 9031 10000 4945 4823 0 2007 20082009

Total unemployment Beneficiaries of unemployment aid

Source: NEA

Persons dismissed as a result of staff dismissal and liquidation of units (40,8%) represent the highest share in the total number of unemployed which are eligible for unemployment aid, simultaneously, this category registers an increase of 2035 persons in comparison to the same period of the same year. The number of persons that resigned, actively were seeking a job, were registered as unemployed for at least 3 months increased with 1581 in comparison to the same period of the previous year. (Figure 2.10.)

Figure 2.10. Categories of beneficiaries of unemployment aid, 2008-2009

3686 Dismissed persons 3177 1566 2009 105 Fired persons 156 341 Persons dismissed due to expiry of individual work contract

1651 Persons that do not correspond 1569 to position or provide work 1042 2008 57 Persons dismissed by major force 141 363 Other categories

01000 2000 3000 4000

Source: NEA

9 Law Nr.102-XV from 13.03.2003

31 Annual Social Report 2009

Figure 2.11. Average size of unemployment aid, In 2009, the average size of unemployment aid con- 2007-2009 stituted 854,83 Lei, with 193,25 Lei or 29,2% more than in 2008 (and 1,6 times more than in 2007). (Figure 2.11) 1000 The allowance for professional integration and reintegration is a component part of the implemen- 800 tation of passive measures of social protection of 854,83 unemployed, with the purpose of a material aid for 600 some vulnerable categories of unemployed, unin- 661,58 sured in case of unemployment risk. 78,5% represent the persons in the expired child 400 549,49 care leaves and constitute the maximum share of the total number of beneficiaries of professional integra- 200 tion and reintegration: persons released from detention or social rehabilitation establishments represent 9,8%; persons which could not find a job after the 0 military service or transfer in reserve represent 9,2%; 2007 2008 2009 persons with expired disability (I and II degree) period represent 1,2%; victims of human traffic – 0,4% Average size of unemployment aid (lei) and the persons with an expired leave for care of a disabled family member represent 0,5 %. (Table 2.7.)

Table 2.7. Beneficiaries of professional integration or reintegration, 2007-2009 Categories of beneficiaries of professional (re)integration, persons 2007 2008 2009 Total 3398 3610 4009 Expired disability (I and II) period 103 (3,0%) 57 (1,6%) 50 (1,2%) Expired child care leave 2795 (82,3%) 2956 (82,0%) 3148 (78,5%) Expired leave for care of a disabled family member 30 (0,9%) 17 (0,5%) 22 (0,5%) Reserve after military service 213 (6,2%) 211 (5,9%) 370 (9,2%) Released from detention or social rehabilitation establishments 203 (6,0%) 333 (9,2%) 392 (9,8%) Victims of human traffic 40 (1,2%) 22 (0,6%) 18 (0,4%) Special status 15 (0,4%) 5 (0,1%) 9 (0,2%) Source: NEA

The unemployment aid and the allowance for professional integration and reintegration are given starting with the 8th day request registration at the Agency.

2.5. Labour force migration

According national legislation, labour migration means voluntary movement of citizens of the Re- public of Moldova abroad, as well, the voluntary arrival of foreign citizens or stateless persons on the territory of the Republic of Moldova, with the purpose to undertake some temporary work activities. In this context, a clear distinction between emigrant and immigrant workers is made. Thus, the emigrant worker is defined as citizen of the Republic of Moldova, with the temporary residence abroad, who moved voluntary in other country in order to undertake a temporary work activity. An immigrant worker is the foreign citizen or the stateless person authorised to have a temporary work activity on the territory of the Republic of Moldova10.

10 Law Nr.180-XVI from 10.07.2008 On labour migration.

32 Annual Social Report 2009

2.5.1. Immigration of foreign citizens and stateless persons in the Republic of Moldova According the provisions of 13th article of the above-mentioned Law, foreign citizens and stateless persons can be hired in the labour market in the limit of immigration share for employment purposes, established by the Government. The National Agency of Employment is the institution responsible to give and/or extend the permission to work, and entitled 575 foreign citizens, including 490 persons in the frame of immigration share and 85 persons extra, as well extended the right for work to 541 foreign citizens.

2.5.2. Emigration of Republic Moldova citizens abroad for work The data of 2009 Labour Force Survey in households reveal 318,3 thousand persons declared abroad for work or seeking for a job. At the survey moment, 72,4 thousand of them (22,7%) were on the territory of the Republic of Moldova (returned definitively or for a certain period of time), as a result of global economic crisis that affected labour market in the destination countries. The breakdown by sex reflects that majority of migrant workers were men (66%), and according breakdown by areas, a higher share is kept by rural area with 67,5%, or 35 p.p. more in comparison with the urban area. Majority of migrated persons are married, the highest shares are identified for the persons of 25-34 years (27,8%) and 35-44 years (27%). Educational level plays an important role on the capacity to earn incomes, outrunning poverty situations and formation of migration tendencies. In this context, it is relevant to mention the importance of parents’ education which influence on the formation of children values and attitudes on the opportunities given by the education; the speciality literature define it as „intergenerational exclusion”. Thus, according 2009 HBS ad-hoc module on social exclusion, a two times higher risk to leave abroad for work and early quit of education system persists in the families with one or two parents departed abroad for work. This trend is higher in the households with members of family with general or vocational education, the registered differences constitute approximately 17,6 p.p. for both parents. In case of higher education migrants, this difference is approximately 9,3 p.p. for departed mothers and 31,3 p.p. – for fathers, this situation confirms once again the mother relevant role in the children education and formation of their life attitudes11. These trends are confirmed by the statistical data, which reflect a higher share of migrants with vocational and general education (high school) in comparison with migrants with higher and secondary specialised education. According NBS data, in 2009, the total number of migrants was distributed as follows: 29,7% – professional education, 27,3% – high school or secondary education, and 20,2% – gymnasium education. For comparison, the persons with secondary specialised education and higher education represented only 13,6 and 8,9% accordingly. (Table 2.8.) The organised surveys reveal the average period a migrant worker was abroad of 2,1 years, women stay more than men (2,3 years compared to 2 years). A similar situation is registered for the persons of rural and urban area. Labour migration from Moldova is oriented to two destination regions: CIS – 61,4% predominantly Russian Federation and West Europe, in particular Italy – destination country for 19,4% of the total number of persons migrating to EU. Other relevant destinations are Greece, Portugal, Spain, Israel and Turkey. Considerable emigration to Russian Federation is caused by entry without visas, language knowledge, and relatively low expenses for trip and hiring. 28,8% of the total number of migrants work in EU, taking into account the difficult access on the labour markets due to visa requirements and high expenses.

11 Authors; analysis based on the data of Annex Nr.4 of the UNDP/UNIFEM/NBS report „Multiple approaches of social exclusion in the Repu- blic of Moldova. Theoretic and analytical aspects” (2010)

33 Annual Social Report 2009

Table 2.8. Migrant workers by sex, area, age group, marital status and education level Men 66% Women 34% Urban area 32,5% Rural area 67,5% Age groups, years: 15-24 21,2% 25-34 27,8% 35-44 27,0% 45-54 21,2% Average age of migrant worker 35 years Marital status Single 31,0% Married 61,3% Widowed 2,4% Divorced 5.3% Education level: higher 8,9% Secondary specialised 13,6% Secondary vocational 29,7% High school, general secondary 27,3% gymnasium 20,2% primary 0,4% Source: NBS

The main reason that influences migration is the lack of jobs, predominantly in the rural area, the low salary level and the increase of expenses for the daily consumption. Most frequently, this is the purpose to earn money to purchase real estate (dwelling, house) or mobile goods (vehicle, agricultural trucks). Persons without education, unemployed, and socially vulnerable persons prefer to go to Russian Federation and Ukraine to work in particular in constructions. Persons with education, with a better financial situation and less family responsibilities prefer to go to EU (migration determined by the search of new opportunities). Simultaneously, sex based differences of job preferences are noticed. Thus, Moldovan migrants work in the following sectors, according sex: men predominantly in construction – 95%, industry – 68,6% and agriculture – 75%, while women prefer to work predominantly in the house keeping or social care – 96%, trade – 63,6% and industry – 31.4%. (Figure 2.12)

Figure 2.12. Distribution of migrants by economic activities

100% 5.0% 31.4% 25.0% 80% 63.6% 60% 96.0% 95.0% 40% 68.6% 75.0%

20% 36.4%

0% 4.0% Constructions Housekeeping, Trade Plants Agriculture social care and factories

Men Women

Source: NBS

34 Annual Social Report 2009

The same situation is noticed when analysing the destination countries and activities preferred by men and women. (Table 2.9)

Table 2.9. Distribution of migrant workers by economic activity, destination country and sex thousand persons Hosting country Economic activity EU countries Russian Federation Rest of world Men Women Men Women Men Women Agriculture, forestry and fishing 4,8 0,0 1,1 0,0 0,0 0,0 Industry 2,3 1,8 6,7 4,1 1,4 0,0 Constructions 25,8 0,0 117,4 12,7 8,2 0,0 Trade 3,1 1,0 12,2 15,4 2,1 1,6 Hotels and restaurants 0,0 2,6 0,0 3,4 0,0 0,0 Transport and communications 2,2 0,0 7,1 0,0 0,0 - Services in private households 1,0 41,7 2,0 4,1 0,0 12,0 Other activities 1,6 0,0 2,8 1,7 0,0 0,0

The intentions to return in Moldova of migrant workers depend on the country where they work and level of integration in the hosting country. Thus, a quarter of them (24.1%) did not decide yet when to return in the country, 22,5% intend to return in 3-5 years, 18,3% – after one-two years, 17,3% – less than one year. 4,6% or 14,5 thousand persons of the total number of migrants declared that returned in Mol- dova and do not intend to leave in the future. The organised surveys show that only 13% of migrants have plans for permanent residence abroad. The return intentions depend on the destination country, as well. Thus, very few migrants to CIS countries intend to settle for permanent residence abroad. This situation is caused mainly by the seasonal character of migration and by the fact that many migrants, for example, in Russian Federation, faced severe problems abroad, such as conflicts with local authorities and with employers due to unremunerated work. In Europe, the main problems for Moldovan are linguistic barriers and integration problems As usual, those that do not intend to return have higher education and come from urban areas.

2.5.3. Policies promoted in the field of labour migration Development and consolidation of bilateral and multilateral cooperation with destination countries and migrant workers The Republic of Moldova signed bilateral agreements in the field of labour and labour migration with Russian Federation, Italy, Ukraine, Belarus and Azerbaijan in order to regulate labour migration and increase the protection degree of persons working abroad. Simultaneously, the Republic of Moldova takes part in the implementation of line international instruments, such as: ILO Conventions on migration with work purposes and on national employment agencies. European Convention on the legal status of migrant workers and the Agreement on cooperation in the field of labour migration and social protection of migrant workers to CIS. An efficient regulation and coordination mechanism of migration process at the national and bilateral level between the Republic of Moldova and European Union is the Partnership of Mobility, which has the purpose to ensure the migration legal character, to improve migration impact on development, as well, promotion of return policies in the context of respect of human rights. The Project “Consolidation of Moldova capacity to manage the labour market and return of migrants in the framework of Partnership of Mobility with European Union” is implemented in the frame of Partnership of Mobility. The Project basic objective is to facilitate reintegration in the labour market of persons that return voluntary or forced from EU and assistance provision to Moldovan migrants for a better use of

35 Annual Social Report 2009 capacities and resources gained during migration experience for their own benefit and for the development of Moldova. During 2009, a Labour Market Analysis was organised and developed the labour market prognosis for Moldova in order to implement the Action Plan on stimulation of return of Moldovan migrant workers from abroad (approved by the Government Decision Nr. 1133 from 09.10.2008) with the Project support. Simultaneously, the development of information system on labour market continued and the Centre of Labour Market and Appeal Centre were opened. Job fairs and a series of consolidation activities of relations with employers were organised in the frame of centres. As well, these two information instruments were promoted by various advertisement materials and brochures in the framework of the Project. In November 2009, a job fair for Moldovan from Germany was organised in Berlin with the support of the Project. The Moldovan Diaspora in Germany, the Embassy of the Republic of Moldova in Germany, Public Employment Service of Germany and NEA were involved in the organisation and implementation of this event. Eight companies from Moldova offered various possibilities to hire participants, in financially favourable conditions, with salaries between 500€ and 1200€.

Creation of economic opportunities in the country by promotion of remittances investment in own business In 2009, the total volume of monetary transfers from abroad organised through Moldovan banks, from natural persons represented 1182 mio. USD, what represents 21,9% in relation to GDP. These figures decreased with 28,8% in comparison with 2008. According the Balance of Payments, the volume of remittances registered the amount of 1198,6 mio. USD (36,6% less in comparison with 2008), or 22% in relation to GDP.

Table 2.10. Remittances from abroad by natural persons (resident and non-resident) through Moldovan banks, 2008-2009 Information: Data according Balance Total entries in the banking system of Payments, Incomes and Transfers (inputs) In relation to In relation to mio. USD mio. USD 2009/2008, GDP, % GDP, % % 2008 2009 2008 2009 2008 2009 2008 2009 January 89.7 64.3 71.7 February 104.6 70.4 67.4 March 126.4 91.0 72.0 I Quarter 320.7 225.7 70.4 27.8 18.5 394.0 217.4 34.2 17.8 April 156.4 89.8 57.4 May 131.3 89.8 68.4 June 147.5 109.5 74.2 II Quarter 435.2 289.0 66.4 27.9 21.7 485.5 299.0 31.1 22.5 I Semester 755.9 514.7 68.1 28.1 20.1 879.5 516.3 32.6 20.2 July 180.8 113.4 62.7 August 166.3 103.5 62.2 September 159.4 114.6 71.9 III Quarter 506.5 331.5 65.5 27.1 22.8 549.1 328.5 29.4 22.7 9 months 1262.4 846.3 67.0 26.3 21.1 1428.5 844.9 29.7 21.1 October 141.3 111.5 78.9 November 112.8 102.2 90.6 December 143.7 122.1 85.0 IV Quarter 397.8 335.8 84.4 26.1 24.1 459.5 352.7 30.2 25.3 Total 1660.2 1182.0 71.2 27.4 21.9 1888.1 1198.6 31.2 22.0 Source: NBM, NBS

36 Annual Social Report 2009

It is necessary to mention that the growth rhythm of inputs from abroad began to decrease in the IV Quarter of 2008. Thus, in the IV Quarter, the total inputs volume registered 397,8 mio. USD in decrease with 21,5% in comparison with the III quarter of 2008. The quarterly data for 2009 confirm this situation, registering significant decrease in the I, II and III quarters in comparison to the same periods of the previous year. Thus, the input volume decreased continuously as the economic crisis intensified in the countries of Central Europe, and in 2009 it reached the level of 2007. In 2009, the total monetary transfers constituted 1198 mio. USD, in decrease with 36,6% in comparison with 2008. According organised surveys, in average, Moldovans send home approximately 56,4% of their income. The lowest income part comes from France, Germany, and Benelux countries – only 41,1%, and the highest – those working in CIS countries – 74,8%. The income part sent at home depends on such factors as: migrants’ family size, education level, migrant age. Migrants spend in average 25% of their income for living expenses (dwelling, nutrition, etc) in the destination country. Men – approximately 28,1% and women – 21,2%. The draft of PARE 1+1 Program was prepared in order to invest remittances in the development of rural area and the creation of new enterprises. It provides the implication of human and financial resources of Moldovan emigrants for economic development of the Republic of Moldova. In this context, a 50% grant is given in addition to the migrant contribution, but not exceeding 200 thousand Lei. Consultancy, entrepreneurial training and information activities are provided if needed. The Program is intended for a period of 24 months and supposes the launch of 500 businesses (250 businesses yearly). Simultaneously, in 2009, the Organisation for the Development of Small and Medium Enterprises (ODIMM) consulted 1440 persons on the launching and development opportunities of own businesses, and provided methodological support to 71 natural persons in order to attract remittances for the development of small (family) farms. Simultaneously, 5,0 million Lei were allocated for the stimulation of purchase of breeding animals from the subvention fund. As well, 10,0 million Lei were provided for the technologic renovation of cattle farms. The State Program of support and development of Small and medium enterprises for 2009-2011 was developed and implemented taking into account the improvement of investment opportunities and relevance of remittances for the economy of the Republic of Moldova.

2.6. Personnel professional formation of and their employment in the labour market

The legislative framework of the regulation of professional formation of personnel, the development of professional formation system according labour market needs is: – Law on Education Nr.547-XIII from 21.07.1995, art. 40 d) which stipulates that public authorities approve the plan (state order) for personnel training in institutions of secondary vocational, secondary specialised and higher education; – Law Nr.1070-XIV from 22.06.2000 on the approval of Nomenclature of Specialities for personnel training in higher and secondary specialised education institutions” (art.2), which provides that the share of personnel trained in private education institutions is decided by the Government; – Law nr.142-XVI din 07.07.2005 on the approval of Nomenclature of fields of professional training and specialists for personnel recruitment in higher education institutions, cycle I, (art.3), the Government is responsible to coordinate the share of personnel training on a contract with the payment of a tuition fee, in private and state higher education institutions. Based on the above-mentioned law, the Government regulates the matriculation process regardless type of institution and financing, in order to make more efficient the specialists training for economic activities, to ensure proportionality between personnel production and job offers in the country, to avoid

37 Annual Social Report 2009 staff surplus and the difficulties occurring at the graduates hiring, as well, to create and ensure competitive education conditions. The state regulation of matriculation in colleges and institutions of secondary vocational education is performed with the purpose to set a ratio of employed population by education level: clerks and managers; specialists; workers, of which approximately 65% need study in the secondary vocational institutions. From the perspective of implementation of state policies on professional formation of personnel needed for the country economy in the system of higher, secondary vocational and secondary specialised education, annually, the Government approves the matriculation plans for corresponding institutions, for specialities and crafts, from state budget or tuition fee, taking into account the number of graduates in secondary education institutions of the corresponding year, the demographic trends and labour market situation.

Students and pupils quota According the National Bureau of Statistics data on the activity of higher education institutions at the beginning of 2009-2010, 99,1 thousand students were involved in professional training in higher education of 33 higher education institutions (19 – public and 14 – non- public), (except the II cycle) – with 9,6% less in comparison with the previous year, with the majority part of students (71,2%) involved in the day education. 32,2 thousand pupils studied in 47 colleges (41 – public and 6 – non-public) of the secondary specialised education, or with 1,3% pupils less than in 2008. The network of secondary vocational institutions comprises 75 units (73 – public and 2 – non- public), including 23 schools of trades (of which – 2 non- public) and 52 vocational schools, where 22,2 thousand pupils were studying, or 8,7% less in comparison with the previous year.

Figure 2.13. Dynamics of the number of pupils and students in higher, secondary specialised and secondary vocational education, 1997-2009, thousand persons

140 128 126.1 122.9 114.5 120 109.6 104 99.1 100 95 86.4 79.1 80 65.6 60

40 32.8 32.7 31.3 32.7 32.2 22.8 27.1 30.2 22.8 23 22.6 23.6 25 23.7 24.5 24.3 22.2 19.9 17 18.7 22.7 20 15.2

0 1997 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Higher Secondary specialised Secondary vocational

Source: NBS

80,8 thousand persons (or 81,5% of the total number of students of this level) studied in public institutions of higher education, in decrease with 7,8 thousand persons or 8,8% in comparison to the study year 2008-2009. Number of students of non-public institutions constituted 18,3 thousand persons, or 2,7 thousand persons less (-12,7%) in comparison to the previous year. Simultaneously, 26,6 thousand students or 26,8% of the total number studied from the state budget, in decrease with 1,3 thousand persons (4,6%) in comparison to study year 2008-2009, while 72,5 thousand students or 73,2% of the total number studied on a tuition fee basis.

38 Annual Social Report 2009

The majority of higher education students (including II cycle) studied the following subject groups (Table 2.11.) Social and economic science and law – 36,1%; Engineering, processing technologies, architecture and constructions – 20% and Education – 13,9%. The other subject groups had the number of students varying from 2% up to 4,9%: Humanities and arts – 4,5%; Science – 3,7%; Agriculture – 2%; Health – 3,7% and Services – 4,9%. Women were predominant in the total number of higher education students and represented 62015 persons or 56,4%, however, their share reduced with 1,4 p. p. in comparison to study year 2008-2009.

Table 2.11. Distribution of higher education students by sex Share in total Number of students number, % Fundamental subject groups including: Total Men Women Men Women Total 109892 47877 62015 43,6 56,4 Education 15302 3553 11749 23,2 76,8 Humanities and arts 4928 1394 3534 28,3 71,7 Social and economic sciences and law 39699 14665 25034 36,9 63,1 Sciences 4046 2056 1990 50,8 49,2 Engineering, processing technologies, architecture and constructions 22002 15771 6231 71,7 28,3 Agriculture 2216 1650 566 74,5 25,5 Health 4106 1152 2954 28,1 71,9 Services 5417 3093 2324 57,1 42,9 Source: NBS

Women preferred the following subject groups: Social and economic sciences and law – 63,1% of the total number of students on this field; Education – 76,8%; Health – 71,9%; and Humanities and arts – 71,7%. Women preferred less agricultural specialities; only 25,5% of women studied there, (the share of men represented 74,5%) and engineering specialities (28,3% women, and 71,7 – men). Also, the share of men was predominant in the following subject groups: Science (50,8%) and Services (57,1%). Distribu- tion of higher education students by study programs is presented as follows: 84,1% of the total number of students were enrolled in licensed higher education, 9,8% – Master studies, 1,1% – integrated higher education, 3,7% – higher medical and pharmaceutical studies and 1,3% were in the last year of preBolo- gna higher education studies.

Table 2.12. Higher education students by study programs, and forms of ownership, at the beginning of study years 2008/2009 – 2009/2010 2008/2009 2009/2010 of which in institutions: of which in institutions: Total Non- public Total Non- Public students public students public – total total budget – total total budget Licensed higher education (Cycle I) 94445 18072 76373 23994 92422 17669 74753 23140 Master higher education (Cycle II) 5242 824 4418 1538 10767 1334 9433 3951 Integrated higher education 1035 72 963 287 1188 89 1099 334 Medical and pharmaceutical higher 4157 - 4157 3030 4106 - 4106 3101 education PreBologna higher education 9986 2828 7158 586 1409 544 865 38 Source: NBS

39 Annual Social Report 2009

At the beginning of study year 2009-2010, 32249 pupils studied in colleges (meaning 56,3% of the total number of pupils), of which – 14101 men (43,7%), and 18148 – women.(Table 2.13.) Less students study Economy – 14,3% of the total number of pupils, followed by Medicine – 13,2%; Pedagogy – 8,1%; and Services – 6,7% etc. Girls are predominant in some subject groups, including profile specialities: Pedagogy – 93,2%; Administrative science – 86%; Social assistance – 84,4%; Medicine – 82,5%; Pharmacy – 87,1%, and Economy – 73,6%. A lower women share was registered for Physical education and sport – 33,6%; Informatics – 37,3%, Electronics and communications – 31,2%, and Military – 16,5%, where men are predominant.

Table 2.13. Distribution of college pupils by subject groups and sex Number of pupils Share in total number, % Subject group including: Total Men Women Men Women Total 32249 14101 18148 43,7 56,3 Law 326 142 184 43,6 56,4 Administrative science 221 31 190 14,0 86,0 Pedagogy 2605 177 2428 6,8 93,2 Social assistance 693 108 585 15,6 84,4 Physical education and sport 247 164 83 66,4 33,6 Music 898 456 442 50,8 49,2 Medicine 4269 747 3522 17,5 82,5 Pharmacy 581 75 506 12,9 87,1 Economy 4619 1219 3400 26,4 73,6 Informatics 1839 1153 686 62,7 37,3 Electro-mechanics and energetics 878 855 23 97,4 2,6 Mechanics 1513 1435 78 94,8 5,2 Transport 2588 2410 178 93,1 6,9 Electronics and communications 1102 758 344 68,8 31,2 Information system and computers 1044 658 386 63,0 37,0 Technology of food processing industry 950 393 557 41,4 58,6 Technology of light industry 978 243 735 24,8 75,2 Constructions 1532 1344 188 87,7 12,3 Agriculture 602 425 177 70,6 29,4 Services 2172 270 1902 12,4 87,6 Military 97 81 16 83,5 16,5 Source: NBS

Also, the share of men is higher for the following subject groups: Electro-mechanics and electro-energetics – 97,4%, Mechanics – 94,8%, Transport – 93,1%, and Constructions – 87,7%; the share of women for these subjects is very reduced and varies from 2,6% to 12,3%. At the beginning of study year 2009-2010, 22161 pupils studied in the secondary vocational education institutions. (Table 2.14.) Predominantly, secondary vocational institutions produce qualified workers for Services, where 24,2% of the total number of pupils study; Construction – 23,8%, Industry – 14,9%, Transport – 10,3%, and Agriculture and Telecommunications – 8,6% each etc. This education level is preferred by men, which represented 68,4% of the total number of pupils enrolled at the beginning of study year 2009-2010. Hence, women are predominant for professions of the following subject groups: Services – 68,3%; Foodstuff industry – 70,4%; Light industry – 95,6% and telecommunications – 60,5%.

40 Annual Social Report 2009

Simultaneously, only 4,9% of women studied the agricultural professions; 0,4% – in Industry (electro mechanics, welders, adjusters, locksmiths etc.), in transport – 1,2%, and only boys study the professions of wood processing industry.

Table 2.14. Distribution of pupils of secondary vocational education by subject groups and sex Study Subject group Share of women,% Total Women TOTAL 22161 6996 31,6 Services 5359 3660 68,3 Agriculture 1899 94 4,9 Constructions 5269 466 8,8 Industry 3307 13 0,4 Handicraft 83 4 4,8 Printing industry 50 23 46,0 Food industry 1138 801 70,4 Wood processing industry 80 - - Light industry 780 746 95,6 Transport 2274 27 1,2 Telecommunications 1897 1147 60,5 Source: NBS

Admission of pupils and students to vocational studies According the Decision Nr.359 from 20.05.2009 „On admission plans in 2009 to licensed higher education (Cycle I) and Masters (Cycle II), secondary specialised education and secondary vocational education and admission prognosis for 2010-2014”, the Government approved the admission of 46815 persons for vocational studies, of which 27875 persons (59,5%) – with budget financing and 18940 persons (40,5%) – paying tuition fees, including: – Higher education Cycle I – 19425 persons, of which 37,4% with budget financing and 62,6% – paying tuition fee; – Master studies (Cycle II) – 2470 persons with budget financing; – Secondary specialised education (colleges) – 11920 persons (49,8% – persons with budget financing and 50,8% – paying tuition fees); – Secondary vocational – 13000 persons. Effectively, in 2009, 49919 persons, of which 27734 persons (55,6%) with budget financing şi 22185 persons (44,4%) paying tuition fees were enrolled for studies. 1. 21243 students, with 1818 persons or 9,4% exceeding the plan were enrolled in the higher education, I Cycle, due to matriculation of a surplus of 2030 students (16,7%) paying tuition fees. Except, the fields of „Science” and „Agriculture”, the over plan matriculation occurred for all fundamental subject groups, in particular for Social and economic sciences and law – 1435 persons over the plan (4370 persons). Simultaneously, 212 or 2,9% budget places were not occupied. As a result, the share of students matriculated in the field of Engineering, technologies, architecture, and constructions increased with 4,4 p.p.; Humanities and arts –1 p.p.; Services – 0,9 p.p.; Agriculture – 0,2 p.p. However, the share of students matriculated in the following fields decreased: Education – 3 p.p.; Natural science and exact science – 1,4 p.p.; Social economic science and law – 1,3 p.p.; Health – 0,8 p.p. in comparison to the study year 2008-09.

41 Annual Social Report 2009

Figure 2.14. Structure of enrolled students at basic subject groups (excluding Cycle II), study years 2008/2009 – 2009/2010

17 Education 20 7.2 Humanities and arts 6.2

27.3 Social economic sciences and law 28.6 8 Natural, real sciences 9.4 27.7 Industry, technologies, architecture, constructions 23.3 3.1 Agriculture 2.9

3.3 Health care 4.1 6.4 Services 5.5

0 5 10 15 20 25 30 35 2008/09 2009/10

Source: NBS

2. During the study year 2009-2010, 5832 persons, including – 2462 persons from budget financing, basically, the level approved by the Government – 2470 persons, were enrolled in the higher education institutions, Cycle II (Master). 3370 persons paying tuition fees were enrolled – their matriculation is not regulated by Government Decision. An increase of 11,4% of master studies admissions was registered in comparison to the previous year. 87,6% of the total Master matriculated students were admitted in public institutions and 12,4% – in non-public. Practically, every second Master student benefited of budget financing in public institutions. 3. 9454 pupils were enrolled in secondary specialised education (colleges), 2466 persons (-20,7%) lower the plan established for 11920 persons. From the total number, 5613 persons were enrolled from budget financing, and 322 (5,4%) places were not occupied. Only 3841 pupils paying tuition fees were admitted, what is 2144 persons (-35,8%) lower than approved plan (5985 persons). 92% of the total number of pupils was enrolled in the public institutions. Structure of admissions by subject groups reveal more significant shares for the following fields: Economy (14,3% of total admitted); Medicine (9,1%); Transport (8,2%); Services (6,6%); Pedagogy (6,5%); Constructions (5,7%); Mechanics (5,2%); Informatics and information systems and computers (5,0% each); Electronics and communications (4,4%) etc. In the frame of these fields, significant shares of pupils paying tuition fees were registered for: Services (78,1% of total pupils enrolled for this field); Informatics (68,7%) and Transports (67,2%). 4. 13390 pupils or 390 persons (3%) exceeding the plan (13000 persons) were admitted in the secondary vocational institutions. 12601 pupils benefited of budget financing, or 401 pupils (3,3%) over the established plan of 12200 persons; however, 12,6% less in comparison with the previous year of study, due to the reform of secondary vocational institutions, planned by the Ministry of Education for 2009.

42 Annual Social Report 2009

Table 2.15. Implementation by line central bodies of admission plan for higher, secondary specialised and secondary vocational education in 2009 2009 Planed De facto Deviation (+,-) Ttpe of studies/Ministry Including Including Plan Total Tuition Total Tuition Total Tuition Budget Budget Budget fee fee fee Admissions – total 46815 27875 18940 49919 27734 22185 3104 -141 3245 1. Higher education-Cycle I 19425 7270 12155 21243 7058 14185 1818 -212 2030 a) Public institutions 17005 7270 9735 17607 7058 10549 602 -212 814 Ministry of Education 14000 5405 8595 14643 5223 9420 643 -182 825 Ministry of Agriculture and Food 1435 560 875 1433 558 875 -2 -2 Industry Ministry of Health 700 550 150 710 560 150 10 10 Ministry of Culture 355 240 115 344 240 104 Ministry of Internal Affairs 215 215 240 240 Ministry of Defence 150 150 150 150 Academy of Science 150 150 87 87 -63 -63 b) Non-public institutions 2420 2420 3636 3636 1216 1216 Share, %: – Public institutions 87,5 100,0 80,1 82,9 100,0 74,4 2. Higher education -Cycle II 2470 2470 5832 2462 3370 3362 -8 3370 3. Secondary specialised education 11920 5935 5985 9454 5613 3841 -2466 -322 -2144 a) Public institutions 11010 5935 5075 8690 5613 3077 -2320 -322 -1998 Ministry of Education 8255 3845 4410 6206 3632 2574 -2049 -213 -1836 Ministry of Agriculture and Food 1180 870 310 1038 849 189 -142 -21 -121 Industry Ministry of Health 1150 900 250 1064 814 250 -86 -86 Ministry of Culture 375 270 105 332 268 64 -43 -2 -41 Border Guard Services 50 50 50 50 b) Non-public institutions 910 910 764 764 -146 -146 Share, %: – Public institutions 92,4 100 84,8 91,9 4. Secondary vocational education 13000 12200 800 13390 12601 789 390 401 -11 a) Public institutions 12700 12200 500 13259 12601 658 559 401 158 b) Non-public institutions 300 300 131 131 -169 -169 Share, %: – Public institutions 97,7 100 62,5 99,0 100 83,4 Source: NBS

The number of enrolled pupils is distributed by types of institutions as follows: 18,4% – in schools of trades and 81,6% – in vocational schools. 73,8% is the share of pupils from rural area to total number of enrolled pupils. The structure of enrolled pupils by specialities modified in comparison with year of study 2008- 2009. In particular, the share of pupils admitted at Services decreased (-7,5 pp) and increased the share of pupils enrolled in the following areas: Constructions (4,4 pp), Agriculture (3,6 pp) and Industry of metal processing and manufacture of machinery (3,3 pp). The admission structure by subject groups reveals the most significant shares which are registered for some specialities necessary on the labour market, namely: – Plasterer (9,5% from total enrolled); – Locksmith in vehicle repair (7,8%); – Cook (6,0%);

43 Annual Social Report 2009

– Tailor (5,8%); – Welder electrician-assembler (5,5%); – PC operator (5,4%); – Tractor-operator-machinist in agricultural production (5,1%); – Carpenter (4,9%); – – Tailor in clothing industry (4,3%); – Bricklayer (3,2%); – Electrician assembler at the repair and maintenance of electrical equipment; Welder electrician of manually welding and Tile Facing worker ( 3,1% each) etc.

Figure 2.15. Admission structure in secondary vocational education for the years of study 2008-2009 and 2009-2010 by subject groups

Telecommunications 6,6 6,6

9,4 Transport 11,4

4,6 Light Industry 6,4

0,2 Wood processing industry 0,3

Food industry 6,2 5,3

0,6 Printing industry 0,9

Handicraft 0,3 0,4

Industry 15,8 12,5

26,9 Construction 22,5

10,0 Agriculture 6,4

19,4 Services 26,9

0510 15 20 25 30

2008 2009

Source: NBS

The admission analysis in comparison with the previous years reveals that in 2009, higher education institutions enrolled twice more students in comparison with 1990. Simultaneously, the Government regulation of admission with the purpose of personnel training sufficient for the labour market needs and to avoid the surplus of specialists for some specialities led to a 38% reduction of admissions in 2009 in comparison with 2005, when the highest number of students enrolled for higher education was registered – 34553 persons.

44 Annual Social Report 2009

As a result of state regulation of admission process at higher education with the purpose to make connection between labour market needs and personnel training, such specialities as economics, foreign languages, international relations, political science and law reduced with 5,2% the number of enrolled students in comparison to the previous year, and it constituted 5725 persons, this share in the total number of admissions reduced up to 26,1% in comparison with 27,8% – the share registered in 2007 and the share of 50,2% registered in 2005. Since 1990, a decrease trend of the number of enrolled pupils in secondary specialised education institutions (colleges) was registered. For example, the number of pupils enrolled in 2009 (9454 persons) reduced with 29,4% in comparison to 1990; with 11,9% in comparison with enrolment registered de facto in 2005 (10734 pupils) and 11,7% in comparison to the previous year. In 2009, 40,2% less pupils were enrolled in comparison with 1990; and 13,2% less in comparison with 2005 and 12,6% in comparison with 2008.

Figure 2.16. Dynamics of students and pupils admission at higher, secondary specialised (colleges) and secondary vocational education in 1990-2009, thousand persons

35 34,6

31,9 30,1 30

25,9 24,7 25 23,8 23,9 22,4 21,2 20 18,4 17,7 16,7 16,7 16 16,2 15,1 15,6 15,4 15,5 15,3 15 13,4 13,4

10,6 10,6 10,7 10,7 9,9 9,9 10,1 10 9,4 7,8

5,3 5,5 5

0 1990 1995 2000 2001 2003 2004 2005 2006 2007 2008 2009

Higher Colleges Secondary vocational

Source: NBS

Graduation and placement in the labour market The mechanism of regulation of placement of young specialists in the labour market with higher and secondary (colleges) education was approved by the Government Decision Nr.923 from 04.09.2001 „On the placement of graduates of higher and secondary specialised state institutions in the labour market” with further modifications. Contracts on the teaching and placement in the labour market after graduation according state needs and according appointment were signed with the students and pupils ma-

45 Annual Social Report 2009 triculated in the I year of study (day education) in order to determine young specialists that studied in the budget financed groups of higher and secondary specialised education institutions to start working according appointment. According Government Decision Nr. 1396 from 24.11.2003 „On training resident doctors and pharmacists and placement of young specialists in the labour market”, starting with the year of study 2003-2004, the training of doctors and pharmacists in the frame of postgraduate studies, with financing from the state budget, is performed exclusively based on individual contract signed with the Ministry of Health. Also, according current legislative and normative documents, the graduates are presented a range of facilities at the hiring in the labour market, in particular in rural areas. According statistical data, in 2002-2006, approximately 56-59% of the total number of graduates with higher education were graduates of such specialities as economics, international relations, law and foreign languages. In 2008, according statistical data, 29,6 thousand persons, of which 15,4 thousand persons (52%) – economic specialities, graduated licensed higher education.

Table 2.16. Dynamics of number of graduates professional formation institutions and their placement in the labour market, 2001-2009, persons 2009 to, % 2001 2002 2003 2004 2005 2006 2007 2008 2009 2001 2008 Graduates of higher education 12496 14531 15296 15330 17415 16984 19972 29614 26611 89,9 213,0 institutions, Cycle I Including day education 8998 9706 10862 10623 12050 11458 13263 22288 15264 68,5 169,6 Of which placed in the labour 1325 1352 1641 1257 1244 1560 1230 2273 2292 100,8 173,0 market Their share in total number, % 14,7 13,9 15,1 11,8 10,3 13,6 9,3 10,2 15,0 Including with budget 21,8 23,4 17,8 21,4 23 39,8 19,6 19,6 23,6 financing,% Secondary specialised 6602 5087 4280 3514 4906 3789 6433 6619 7075 106,9 107,2 (Colleges) Including day education 5909 4557 3869 3066 4535 3189 6073 6149 6650 108,1 112,5 Of which placed in the labour 1284 1190 1245 1122 1710 1391 2266 3050 3117 102,2 242,8 market Their share in total number, % 21,7 26,1 32,2 36,6 37,7 43,6 37,3 49,6 46,9 Secondary vocational 15448 14927 15514 14693 11274 14486 12916 12993 12854 98,9 83,2 Of which placed in the labour 8427 8334 9219 8236 7268 8910 8221 9059 8277 91,4 98,2 market Their share in total number, % 54,6 55,8 59,4 56,1 64,5 61,5 63,6 69,7 64,4 Source: NBS

In 2009, the number of graduates of higher education institutions represented 26,6 thousand persons, or 3,0 thousand (10,1%) less than during the previous year of study. 13 thousand persons or approximately 50% of them graduated economic (9 thousand persons.) and law specialities (4 thousand persons). In 2009, the number of graduates of colleges represented 7,1 thousand persons, with 6,9% more in comparison to the previous year. The graduates of state colleges represented 92,1%. Majority of pupils graduated day courses (94,0%). Women represented 55,6% in the total number of graduates of the secondary specialised education. Specialists with diploma in the following fields registered more significant shares in the total number of graduates of colleges: Economy (16,5%), Medicine (15,8%), Pedagogy (9,0%), Transport (8,9%), Infor- matics (5,3%), and Constructions and Services (4,6% each).

46 Annual Social Report 2009

In 2009, the number of graduates of secondary vocational institutions represented 12,8 thousand persons, with a light decrease in comparison to the previous year (1,1%). From the total number of graduates, 15,8% got the qualification of Cook; 10,1% – locksmith in the repair of vehicles; 7,8% – plasterer; 6,5% – welder electrician-assembler; 5,0% – PC Operator; tailor and carpenter – 4,1% each; Tractor operator-machinist in agricultural production – 3,3%; tile facing worker – 2,6%, and brick layer – 2,4% etc. According available statistical information, the placement in labour market of 2009 graduates is extremely reduced, in particular for higher education graduates, due to the lack corresponding jobs with a proper remuneration, and due to the surplus of graduates of higher education institutions, in particular, taking into account the fact that during the last years, 50% of graduates had a diploma in economics or law. For example, in 2001 only 14,7% of higher education day graduates were appointed after graduation (21,8% of them – graduates that studied from budget financing); in 2005 – even less – 10,3% of the total (23% – from the budget); in 2008 – 10,2% of the total (19,6% – from the budget) and in 2009, accordingly – 15,0%, including 23,6% of graduates that studied from state financing, in particular pedagogues, physicians and militaries.

Figure 2.17. Dynamics of placement in the labour market of higher day education graduates, 2001-2009 Share, %

25000 16 15,1 15 14,7 13,9 14 13,6 20000 11,8 12

10,3 10,2 10 15000 9,3

8 22288 Persons 10000 6 15264 13263 12050 4 10862 10623 11458 5000 8998 9706 2273 2292 2 1325 1352 1641 1257 1244 1560 1230

0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 year

Day education graduates Job placed graduates Share of job placed graduates

Source: NBS

In 2001, this indicator for colleges represented 21,7%, afterwards, a trend of increase of the number of hired graduates of colleges, thus by 2005 it reached the level of 37,7%; in 2006 – 43,6%, and in 2009 – 46,9%. During 2001-2009, approximately 55-70% of graduates of secondary vocational education were placed in the labour market, including: in 2005- 54,6%; 2006 – 64,5%, in 2008 – 69,7% and in 2009 – 64,4%. In the created situation, a part of young specialists either fill the unemployment rows or are hired in activities that do not correspond to their profession.

47 Annual Social Report 2009

Simultaneously, the current statistical information is incomplete, because it is collected based on the reports on the activity of education institutions at the beginning of corresponding year of study, when a comprehensive information on hiring of young specialists, only 2 months after graduation is not available and the employers are not obliged to inform the corresponding education institutions on the hire of young specialists.

2.7. Salary policies

The salary is the main source of income for the satisfaction of vital needs of employees and their families and an efficient work stimulation method. Thus, in 2005-2009, the income from population remunerated activity is characterised by the following data:

Table 2.17. Dynamics of income from remunerated activity, 2005-2009 2005 2006 2007 2008 2009 Average monthly disposable income per person, lei 568,6 839,6 1018,7 1188,6 1166,1 including: the income from remunerated activity, % 43,7 41,6 41,4 42,9 43,5 Source: NBS

Salary policy in 2009 emphasised on strengthening the normative and legislative framework in order to improve and liberalise the remuneration system of employees in the national economy, and insure a continuous growth of salaries of all employees.

Real sector of national economy At the beginning of 2009, the modification of (operated by the Law Nr. 242-XVI from 20.11.2008) the Law on Salaries of the Labour Code boarded the rights of social partners in tariff regulation and legalised the non-tariff systems of remuneration as differentiation of employees salaries, oriented towards final results of production and financial activity of the unit. A minimal guaranteed salary in the real sector was established by the state in order to protect the employees with low remuneration, which is the minimum compulsory value of work remuneration for provided work in the real sector, guaranteed by the state. Once established, this indicator is further re- examined on an annual basis according summary annual increase of Consumer Price Indices and growth rate of work productivity at the national level. Simultaneously, in 2009, negotiation and setting of the minimum guaranteed quantum of the salary in the real sector was not possible due to economic-financial crisis of the country, thus the minimum salary for the I category of qualification remained at the level of 2007- 900 Lei per month. The growth rhythms of the average salary by economic activities in the real sector of economy decreased due the crisis that affected the real sector. Thus, in 2009, the average salary of a employee in the real sector of economy represented 2944,4 Lei or only 3,7 % more in comparison with 2008 (an increase of 23,6% was registered in 2008 in comparison with 2007). The dynamics of average salaries of real sector employees is reflected in the following table.

48 Annual Social Report 2009

Table 2.18. Dynamics of average salaries of real sector employees, 2005-2009 2005 2006 2007 2008 2009 Nominal average salary of a employee in the national 1318,7 1697,1 2065,0 2529,7 2747,6 economy, Lei Increase in comparison with the previous year, % x 128,7 121,7 122,5 108,6 of which: 1485,0 1830,0 2296,0 2837,6 2944,4 real sector, lei Increase in comparison with the previous year, % x 123,2 125,4 123,6 103,7 Public sector, lei 992,4 1450,1 1624,5 1954,3 2406,5 Increase in comparison with the previous year, % x 146,1 112,0 120,3 123,1 including by economic activities: Agriculture, hunting and forestry 744,0 914,5 1098,6 1484,4 1468,9 Increase in comparison with the previous year, % x 122,9 120,1 135,1 98,9 Mining and quarrying 2037,3 2623,8 3098,3 3739,7 3314,0 Increase in comparison with the previous year, % x 128,8 118,1 120,7 88,6 Manufacturing industry 1651,6 1914,5 2314,1 2762,8 2800,8 Increase in comparison with the previous year, % x 115,9 120,9 119,4 101,4 Electricity, heating, gas and water supply 2323,6 2872,3 3595,8 4316,4 4520,3 Increase in comparison with the previous year, % x 123,6 125,2 120,0 104,7 Construction 1972,8 2429,1 2967,6 3468,9 3057,3 Increase in comparison with the previous year, % x 123,1 122,1 116,9 88,1 Wholesale and retail trade 1228,1 1555,2 2088,7 2530,7 2614,1 Increase in comparison with the previous year, % x 126,6 134,3 121,1 103,3 Hotels and restaurants 1150,5 1384,6 1759,5 2111,9 2153,6 Increase in comparison with the previous year, % x 120,3 127,1 120,0 102,0 Transport and communication 2142,9 2549,1 3039,5 3533,1 3653,5 Increase in comparison with the previous year, % x 119,0 119,2 116,2 103,4 Financial activities 3450,6 3863,3 4648,3 5446,3 5637,7 Increase in comparison with the previous year, % x 112,0 120,3 117,1 103,5 Real estate transactions 1671,4 2051,7 2583,6 3215,6 3417,2 Increase in comparison with the previous year, % x 122,7 125,9 124,4 106,2 Source: NBS

The table data reveal that growth rhythms of the previous years decreased significantly during the reference period, moreover, the average salary decreased with more than 11% in the economic activity of mining and quarrying. The economic situation in corresponding economic activities is reflected by the significant difference of remuneration level in every activity. Still, the lowest salaries are paid in agriculture, forestry and fishing, while the highest – in financial activities, electricity, heating, gas and water supply, and transport and communication. Simultaneously, the excessive difference is reduced gradually, due to the development of remuneration regulation based on partnership and social dialogue. The process of salaries homogenisation and uniformisation becomes more obvious. Thus, in 2005 the ratio between the economic activity with lowest salaries and the activity with highest salaries represented 1:4,6, while in 2009 it represented 1:3,8. According September 2009 survey, the distribution of employees according salary size is reflected by the data of the following table.

49 Annual Social Report 2009

Table 2.19. Salary size according September 2009 survey including by economic activities: Real Public Total transport and sector agriculture industry trade sector communication Number of employees that worked during the whole month, thousand 423,5 249,6 31,8 65,2 37,2 24,8 173,9 persons % of employees with the salary calculated: Under 600 Lei 0,6 0,9 5,0 0,4 0,2 0,1 600,01 – 800 Lei 7,6 3,9 17,0 1,3 2,5 1,1 12,9 800,01 – 1200 Lei 16,5 15,5 22,8 11,4 22,3 15,0 18,0 1200,01 – 1600 Lei 13,4 14,1 17,8 11,8 18,3 11,8 12,3 1600,01 – 2000 Lei 11,5 12,2 13,0 10,8 14,4 8,6 10,6 2000,01 – 2500 Lei 11,9 12,1 10,1 12,8 11,7 10,2 11,5 2500,01 – 3000 Lei 10,0 10,2 6,2 12,5 8,5 10,0 9,8 3000,01 – 3500 Lei 8,1 7,6 3,4 10,0 5,5 7,7 8,6 3500,01 – 4000 Lei 6,4 5,9 1,7 7,8 4,4 7,0 7,2 4000,01 – 5000 Lei 6,5 7,0 1,6 9,2 4,5 10,3 5,7 5000,01 – 6000 Lei 3,2 4,2 0,7 5,2 3,0 6,5 1,9 Over 6000 Lei 4,2 6,3 0,7 7,0 4,4 11,6 1,3 Source: NBS

Following the table data, in September 2009, a salary under subsistence minimum (1187,8 Lei) was paid to 44,8% of employees in agriculture, 31,0% public employees, while in transport and communication – to only 16,3%. In the same time, 28,4% of employees from transport and communication and only 3,0% from agriculture benefited of salaries higher than 4000 Lei.

Public sector In 2009, the new remuneration system provided by the Law Nr. 355-XVI from 23.12.2005 concerning the new remuneration system in the public sector continued being implemented. The implementation of new system of remuneration of public employees started in 2006, and more remuneration rules according implementation schedule were implemented by 2009. Monthly salaries were decided for the appointed high level civil servants. The remuneration based on salary scales giving gradually the bonuses and premiums was adopted for civil servants and officers of the central body of national defence organs. The remuneration conditions and salary size for employees in education, health protection, social assistance, science, culture, arts, sport, and other public units, as well for army personnel and management body of the national defence units, state insurance and public policy were set based on unique remuneration tariff system. By 2009, the need to increase the salaries from salary scales occurred, in particular for the employees with low remuneration. Starting with 1 of January 2009, the minimal salary increased from 400 Lei to 600 Lei per month in order to achieve this goal. The new salary scales by remuneration categories were recalculated and approved by law, taking into account the new minimal salary. As a result, all employees from education, science, sanitary and social assistance units, culture, arts and sport, as well from other units financed from the national public budget benefited of a 10-35% increase of basic salaries. On 1 of July 2009, the above-mentioned measure

50 Annual Social Report 2009 was implemented for army personnel of the management organs of national defence, state insurance and public order. In addition to remuneration rules provided by the Law Nr. 355-XVI from 23.12.2005, the salaries for didactic staff of undergraduate institutions and didactic staff of universities were increased to the average of salary scales by categories of remuneration starting with 1 of April 2009, and their transfer to a new remuneration mode, based on monthly salaries, provided to ensure remuneration at the level of average salary foreseen for economy for the reference year was planned to start with 1 of September 2009. The last activity was broken in three stages taking into account the financial-economic crisis, and severe increase of budgetary deficit, thus, the salaries of didactic personnel increased 24% starting with 1 of September 2009, further 12% increases to be implemented starting with 1 of January 2011 and 1 of September 2011. Simultaneously, activities that provided the increase of salaries for the civil servants, army personnel, management body of the national defence organs; national insurance and public order were post- poned. Thus, the average salary in public sector represented 2406,5 Lei or 23,1 % more in comparison with the 2008 level as a result of implementation of improvement methods of public employees remuneration. In 2009, the growth of the salary in public sector (23,1%) was 6 times higher than in the private sector (3,7%). An increase of over 2,4 times (from 992,4 Lei in 2005 to 2406,5 Lei in 2009) of the average salary of public employees was insured after 4 years of implementation of provisions of Law Nr. 355-XVI from 23.12.2005. Dynamics of salaries in the public sector activities is characterised by the data of the following table.

Table 2.20. Dynamics of salaries in the public sector, 2005-2009

2009 in comparison 2005 2006 2007 2008 2009 with 2005, times Average salary in national economy, Lei 1318,7 1697,1 2065,0 2529,7 2747,6 2,0 Average salary in private sector, Lei 1485,0 1830,0 2296,0 2837,6 2944,4 2,0 Average salary in public sector, Lei 992,4 1450,1 1624,5 1954,3 2406,5 2,4 Ratio of the average salary in public sector to average sal- 66,8 79,2 70,7 68,9 81,7 x ary in private sector, % Average salary by economic activities, Lei: Research and development 1449,5 2010,0 2620,4 3252,9 3553,3 2,4 Increase in comparison to the previous year, % x 138,6 100,8 124,1 109,2 X Public administration 1325,7 2119,4 2394,7 2724,8 3179,8 2,4 Increase in comparison to the previous year, % x 159,9 113,0 113,8 116,7 X Education 861,0 1188,4 1317,2 1625,8 2105,5 2,4 Increase in comparison to the previous year, % x 138,0 110,8 123,4 129,5 X including: didactic personnel 1206,9 1660,0 1802,4 2210,4 2934,9 2,4 Increase in comparison to the previous year, % x 137,5 108,6 122,6 132,8 x Health care and social assistance 855,7 1196,0 1457,3 1824,4 2156,1 2,5 Increase in comparison to the previous year, % x 139,8 121,8 125,2 118,2 x Other activities of collective, social and personal services 551,0 785,2 980,6 1236,8 1541,0 2,8 Increase in comparison to the previous year, % x 142,5 124,9 126,1 124,6 x Source: NBS

51 Annual Social Report 2009

Thus, in 2009, the employees in education benefited of the highest salary increase (+29,5%); the salary of didactic staff grew with 32,8%. For the first time, the average salary of didactic personnel (2934,9 Lei) exceeded the average salary in the national economy. Simultaneously, the discrepancy between the remuneration level in public and private sectors was reduced significantly. In 2009, the average salary in public sector represented 81,7% from the average salary in private sector, while in 2008, it represented only 68,9.

2.8. Conclusions and Recommendations

Employment policies are characterised by the dynamics of labour resources, activity rate of population and rate of employment, unemployment rate and the capacity of national economy to use at maximum the available human resources. The financial-economic crisis marked deeply the labour market, its effects led to increase of the misbalance between the supply and demand of labour force, decrease of the number of employees in the national economy, creation of a limited number of new jobs, fact that caused major records of number of unemployment and deepening unemployment phenomenon in 2009. Labour market was influenced significantly by the phenomenon of “demographic decline” with the continuous decrease of population number, due to negative migration and natural growth. The mechanisms that led to reduction of population number and damage of population age structure are caused by the low fertility rate, increase of external migration and population general mortality which intensified the process of demographic ageing. Reduction of number of population of working age and increase of average age of employees in the national economy produce complex effects on the social-economic development, with a direct impact on the total labour supply, and on the income distribution and public expenses for social needs etc. The continuation of process of population demographic ageing may cause serious deficits of the human resources, necessary for the country sustainable development, worsened by the massive exodus of young labour force. An important element that characterises the labour force quality on the labour market is the labour force cost, where the weight of salary is predominant. Low salary is the major reason for low labour market attractivity in the Republic of Moldova, a significant decrease of salary growth rhythms was registered in 2009 in comparison with previous years. Simultaneously, in 2009 the salary increase in public sector (23,1%) was 6 times higher in comparison with the private sector (3,7%). Still, the remuneration by economic activities is very differentiate. Simultaneously, the gradual decrease of excessive difference is registered as the remuneration regulation based on partnership and dialogue was developed. The process of salary homogenisation and uniformisation becomes more obvious. Thus in 2009, the ratio of the economic activity with the lower salaries to the economic activity with the highest salaries represented 1:3,8 (in comparison to 1:4,6 registered in 2005). The training of a sufficient number of highly qualified specialists and skilled workers is a major task in the consolidation of competitive potential of human resources, necessary in a modern labour market. During the last years, the process of professional training intensified, including in the framework of secondary vocational system. Simultaneously, the trends in the above-mentioned field are still negative, an indifference of economic units for the organisation of human resources training was noticed, including personnel training for own needs, when signing contracts with the higher, secondary specialised and secondary professional education institutions. Labour market strengthens permanently its measures of social protection, being in a process of continuous formation; employment policies are promoted with the purpose to support the hiring of unemployed, including returned emigrants, and to provide job seeking persons with fair and correct services, and to ensure a continuous increase and an adequate salary level on the segment of employees work remuneration.

52 Annual Social Report 2009

The implementation of active measures of labour force employment shall continue with the assistance of the National Employment Agency and its territorial structures: professional training of unemployed, involvement in the services of professional information and counselling, labour mediation activities, labour use in public works and other similar activities extending the number of beneficiaries. Priority should be given in promoting following objectives for the continuous improvement of the situation on the labour market and increase of labour force employment: • Amendment and modification of legislation in the field of labour force employment in order to adapt NEA provided services to job seeking persons; • Connection of professional training with the requirements of labour market, or at the direct request of economic units, thus ensuring an increase of professional training courses graduates employment; • Increase labour force adaptability to social and economic changes by insuring the premises for geographic and professional internal mobility of labour force; • Increase labour profitability though significant increases of paid salaries and career growth, compulsory respect of work insurance conditions; • Improvement of employment quantity and quality by developing labour force competitivity and abilities, insuring efficient management of labour migration; • Extending the number of registered unemployed attending the professional training courses, promotion of temporary employment through stimulative measures to participate in public works and increase of the number of beneficiaries of professional integration or reintegration allowance.

53 Annual Social Report 2009 3. SOCIAL INSURANCE

The system of social insurance is one of the main institutions of social protection in the conditions of market economy, which ensure the constitutional law of citizens for material aid at old age, in case of sickness, partial or complete loss of work capacity, unemployment etc. As usual, it covers all residents of the Republic of Moldova, of which, a part of them (those employed) pay insurance contributions, while others benefit of the system aids (pensions, allowances etc.). The main task of insurance scheme is to guarantee the income of insured person in case of income loss in result of sickness, unemployment or old age etc. The corresponding legal framework regulates the quantum of awarded means depending on work experience, salary size, severity of labour capacity loss and other factors.

3.1. Public system of state social insurance. General aspects

Public system of state social insurance is a component part of the system of social protection, with the main objective to provide monetary aids to insured persons, which cannot earn their incomes due to some risk situations (permanent or temporary work incapacity, maternity, old age, unemployment etc.). The following basic principles guide the organisation and functioning of social insurance system: • principle of uniformity – the state organises and guarantees the activity of the public system of social insurance according unique legal provisions; • principle of equality – all participants in the public system – contributors and beneficiaries – are treated in a equal way in what concerning the respect of their rights and implementation of legal provisions; • principle of social solidarity of generations – the participants in the public system of social insurance assume – consciously and mutually – the obligations and benefit of the right provided by legislation on prevention, limitation or elimination of social risks; • principle of obligativity – natural and legal persons are obliged to participate in the public system; • principle of contribution, – the social insurance funds are created based on the contributions of natural and legal persons – participants of the public system of social insurance. The public system of social insurance is based on collection of state social insurance contributions from employers and insured persons and on the distribution of aids to beneficiaries.

3.2. Analysis of the social insurance pension system

3.2.1. Demographic context The population of the Republic of Moldova decreased significantly, from 4359,4 thousand inhabitants in 1990 to 3567,50 thousand in 2009 – of which 1476,1 thousand (41,4%) in urban area and 2091,4 (58,6%) in rural area, as a result of social, economic and political changes of the last decade of the previous century. This fact had an unfavourable effect on all demographic processes. The reduction of population with 791,7 thousand inhabitants during the above-mentioned period can be explained by the missing records on the left part of river Nistru at NBS (estimated at 537 thousand), and by the population emigration processes and negative natural growth. These changes in the population structure represent a demographic decline, and lead to speed up the process of demographic ageing and increase of dependency rate. Population analysis by age groups reveals a decrease of 6,7 p.p. of share of young population (0-14 years) from 23,8% in 2000 to 17,1% in 2009, while the share of old population (65+ years) increased from 9,8% to 10,1% during the same period. (Figure 3.1.)

54 Annual Social Report 2009

Figure 3.1. Population distribution by age groups, areas and sex, as of 01.01.2010

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Total Urban Rural Men Women

0-14 years 15-64 years 65 +

Source: NBS

The coefficient of population ageing was 14% as of 01.01.2010. Almost 15% of rural population -ex ceeded 60 years, the total old women in the total rural women represented 17,9%. The risks of unfavourable demographic development have a direct impact on the public system of social insurance. As the most important can be mentioned the following risks: • Increase of number of old age pensioners during the following years due to generations born in 1948-1952, which are 2-3 times more numerous than the previous generations; • Decrease of young labour force offer, a part of which does not enter the labour market due to various reasons; • Labour force ageing and problems of work productivity. The results of modelling of mid and long term demographic indicators reveal a continuous ageing of population during 2010-2050. Thus, according estimations the old population will represent 16,2% in total population by 2015, and 30,3% – by 2050, simultaneously, the share of children and of population of working age will decrease significantly12.

3.2.2. Dynamics of number of pensioners Currently, the social insurance system serves 624 thousand pensioners, 73% of which benefit of old age pensions. Simultaneously, the beneficiaries of social aid have a significant share; in 2009 they represented 80% of the total number of pensioners.

Table 3.1. Dynamics of number of beneficiaries of pensions and allowances, 2004-2010, thousand persons

2004 2005 2006 2007 2008 2009 2010 Total pensioners, including: 627,6 620,7 618,3 621,4 619,4 621,4 624,6 1) age pension 468,1 460,8 457,3 459,7 458,8 462,1 457,9 Paid from the SSIB 329,7 407,7 419,3 399,4 424,7 460,3 461,4 2) Beneficiaries of allowances Paid from the SB 73,3 86,7 95,3 87,6 84,9 85,9 89,3 Source: NHSI

12 ASM (2009). Ageing of population of the Republic of Moldova: social and economic consequences. http://www.unfpa.md/images/stories/ publicati/imbatrinireapopulatieirm_book_color_out.pdf

55 Annual Social Report 2009

During 2000-2009, the number of active population and employed persons reduced with 23,5% and 21,8% accordingly, however, the total number of pensioners reduced only with 0,9%. This fact increased the financial tension on employed persons. (Table 3.2)

Table 3.2. Ratio between the economically active/employed population and pensioners, 2004-2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Economically active population, 1654,7 1616,7 1615,0 1473,6 1432,5 1422,3 1357,2 1313,9 1302,8 1265,3 thousand pers. Employment, thousand persons 1514,6 1499,0 1505,1 1356,5 1316,0 1318,7 1257,3 1247,2 1251,0 1184,4 Total pensioners, thousand pers. 706,4 684,1 653,0 628,5 620,7 618,3 621,4 619,4 621,4 624,6 Ratio between economically ac- 2,3 2,4 2,5 2,3 2,3 2,3 2,2 2,1 2,1 2,0 tive population and pensioners Ratio between employed popula- 2,1 2,2 2,3 2,2 2,1 2,1 2,0 2,0 2,0 1,9 tion and pensioners Source: NBS

It is necessary to maintain the relation between the number of employed population, which pays social insurance contributions and pensioners in the limits 4:1 – 5:1, for the stable functioning of pension insurance system of pay as you go type, as the public system of social insurance is in Moldova. In 2000, the relation between pensioners and employed persons represented 2,1:1, in 2009 it constituted 1,9:1. This situation reveals the need of some parametric changes of the pension system. The total number of pensioners that benefited of aids, based on the Law on state social insurance pensions, represented approximately 619 thousand persons as of 1 January 2010, of which: 73,9% – age pensioners, 21% – beneficiaries of disability pensions and 4% – beneficiaries of survivor pension. It is necessary to mention that the number of age pension beneficiaries varies insignificantly from one year to another, while the number of beneficiaries of disability pension is in increase. Thus, the number of beneficiaries of disability pension increased with 1,6% in comparison to the previous year, then in comparison to 2005, it increased with 8,6%. This situation confirms the findings of analyses in the disability field, where data reflect clear trends of annual increase of disability rates among working age persons. Number of beneficiaries of survivor pension decreased 5,3% in comparison with 2009, and 23,1% in comparison with 2005.

Table 3.3. Number of pensions (pensioners) by categories, as of 1 of January of 2005-2010

Pension category Number of pensions Pensions set according: 2005 2006 2007 2008 2009 2010 I. Law on state social insurance pensions – total, 612.636 611.509 615.172 613.490 616.122 619.801 of which: Old age (advantageous and general conditions) 456.255 451.789 453.793 452.262 455.229 457.920 Government members 80 83 84 84 85 84 deputies 96 102 108 116 117 129 Civil servants 3.490 4.357 4.773 5.266 5.562 5.795 Mayors, presidents and deputy presidents of county council 194 290 317 354 387 411 Work experience (workers of civil aviation, railway transport, 707 664 642 713 713 709 artists, geologists) disability 119.925 123.719 125.676 126.538 128.145 130.227 survivor 31.889 30.505 29.779 28.157 25.884 24.526

56 Annual Social Report 2009

Pension category Number of pensions Pensions set according: 2005 2006 2007 2008 2009 2010 II. Pensions set according other laws – total 8.056 6.768 6.230 5.943 5.278 4.769 of which: Custom workers - 35 33 24 20 19 Participants at the liquidation of Cernobyl accident 2.228 2.217 2.203 2.187 2.168 2.136 consequences According law on army 1.766 1.141 922 1.436 1.374 1.302 Work experience (medical workers, pedagogues) 4.062 3.375 3.343 1.901 1.310 862 Prosecutors and judges - - 371 395 406 450 III. Pensions total (I+II) 620.692 618.277 621.402 619.433 621.400 624.570 Source: NHSI

In 2009, the number of new pensions set for old age reduced with 7,8% while the number of survivor pensions – 9,3% in comparison with the previous year. The number of disability pension increased with 3,7% in comparison with 2008.

Table 3.4. Number of newly established pensions, 2004-2009

Pension category Number of pensions Pensions set according: 2004 2005 2006 2007 2008 2009 I. Law on state social insurance pensions – total, 34.406 38.747 39.272 39.120 40.838 38.149 of which: Old age (general, advantageous conditions) 19.127 23.331 26.608 26.103 27.988 25.815 Government members 18 7 2 8 3 3 deputies 17 11 8 8 7 14 Civil servants 2.607 1.254 626 791 778 823 Mayors, presidents and deputy presidents of county councils 177 89 41 48 43 39 Work experience (workers of civil aviation) 357 33 17 498 40 32 Disability 9.521 11.054 9.537 9.646 9.876 9.515 Survivor 2.582 2.968 2.433 2.045 2.103 1.908 II. Pensions set according other laws – total 88 55 41 681 135 132 of which: Custom workers ------Participants at the liquidation of Cernobyl accident 77 49 36 36 26 31 consequences According law on army 11 6 5 619 73 44 Work experience (medical workers, pedagogues) 0 0 0 0 0 0 Judges and prosecutors 0 0 0 26 36 57 III. Pensions total (I+II) 34.494 38.802 39.313 39.801 40.973 38.281 Source: NHSI

57 Annual Social Report 2009

3.2.3. Analysis of social insurance contributions The reform of pension system provides the gradual transfer of social insurance contributions burden from employers to employees. As a result, the employer contribution size decreased with 1%, while the individual contribution increased with 1%. (see Table 3.5.). The main objective of the gradual redistribution of insurance tariff from employers to employee is the decrease of fiscal burden, which should result in increase of reinvestment means and of the share of individual contributions and should motivate to declare the real incomes of employees. Another positive effect of this redistribution should be the increase of share of individual contributions, which would allow accumulation of means for the future pension.

Table 3.5. Tariffs of state social insurance contributions, 2005-2009

Categories of contributors 2005 2006 2007 2008 2009 For the persons employed on a 1 individual contract basis (employer/ 27%+2% 26%+3% 25%+4% 24%+5% 23%+6% employee) Natural persons – own account 2 1374 2013 2318 2920 3708 workers, Lei For employers in agriculture 3 20%+0%+2% 16%+4%+3% 16%+4%+4% 16%+4%+5% 16%+6%+6% (employer / state/ employee) 1,7 Lei annually Owners of agricultural land, for a unit/ processing the land individually and 4 Type of agricultur- 480 576 725 920 natural persons, which, by contract, al land, for every rented agricultural land, Lei insured person Source: SSIB Laws for 2005-2009

Since 2008, the annual calculation basis of compulsory individual contribution of state social insurance does not exceed 5 average monthly salaries forecasted for economy multiplied with 12. Dur- ing the previous years, the monthly calculation basis was limited to 3 monthly average salaries for economy. In 2009, the individual contribution of state social insurance compulsory for insured employees, hired on the basis of a individual work contract or other contracts for the provision of works or services, persons that undertake activity at the appointment of executive authorities or by election, state nota- ries, judges, prosecutors, parliamentary lawyers represented 6% of the total monthly salary and other remunerations, while for employers it represented 23% from the salary and remuneration fund. Thus, the cumulated tariff of state social contribution represents 29%. Simultaneously, starting with 2006, the owners of agricultural lands which process it individually, as well the persons that rented or leased agricultural land pay fixed state social contributions. Other categories of persons can be voluntary insured, based on the individual contract signed with NHSI, and pay fixed state social insurance contributions. In 2009, this amount constituted 3708 Lei, and gives the right to contributor for a minimal pension and aid in case of death. The employer is responsible for the transfer of amounts for state social insurance. A difficult situation in the system of social insurance created due to inefficiency of control mechanisms on the employer transfers on individual accounts of employees. By Law, NHSI is obliged to inform the contributors on the payments made in the favour of persons insured by employers. Until 2010, the only way to get this information was the post mail, during 30 days after the presentation of written request.

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3.2.4. Pensions of agricultural employees The complicated system of state social contributions generates a range of problems, which refer, in particular to the agricultural sector. A lower tariff for the state social contributions set for the employees of agricultural sector, as well, the sophisticated system of contributions for the persons that work on agricultural lands, plus the reduced level of their accumulation lead to a significant redistribution of means provided for the payment of pensions for employees of agricultural sector. In these conditions, the system faces serious problems in what concerning the equal collection and redistribution of resources. Accord- ing NBS data, in 2009, approximately 28,2% were employed in agricultural sector from the total number of persons employed in economy. The total amount of contributions of these persons represented approximately 5% in the SSIB, and the pensioners from agricultural sector represented approximately 43% of the total old age pensioners. In 2009, the average replacement rate in agriculture represented 48,4%, according the average pension for old age in agriculture of 711,99 Lei and the average nominal salary in agriculture of 1.469,9 Lei. In 2009, the average pension in agriculture represented 88,9% of the average age pension. It is to be mentioned that the lower incomes in agriculture with seasonal character, in fact, cannot be subject of social contributions, which influences directly the pension size in this sector. As a result, the state implication in subventionning the expenses for these persons is needed.

3.2.5. Analysis of social insurance pensions quantum The replacement rate is one of the main indicators that reflect the pensioners’ welfare level and allows outlining the efficiency of a pensioning system to honour the assumed risks, including poverty prevention and exclusion. In this context, at EU level, this indicator is included in the set of primary indicators, used to measure social inclusion in the member states. The average replacement rate represents the relation between the average age pension and the average salary. Unfortunately, the current pension system proposes a rather modest insurance level to its participants.

Table 3.6. Dynamics of replacement rates in 2004-2009 2005 2006 2007 2008 2009 Nominal average monthly salary, Lei 1318,7 1697,1 2065,0 2529,7 2747,6 Average age pension, Lei 397,18 457,51 565,83 666,28 800,82 Increase of nominal average monthly salary in com- 19,5 28,7 21,7 22,5 8,6 parison to the previous year, % Increase of average age pension in comparison to the 17,9 15,2 23,7 17,7 20,1 previous year, % Consumer Price Indices (annual average),% 111,9 112,7 112,3 112,7 100,0 Indexation of state social insurance pensions, % 18,2 15,7 20,7 17,0 20,0 Gross replacement rate, % 30,1 26,9 27,4 26,3 29,1 Source: NBS, NHSI, own calculations

In 2009, the average replacement rate in economy was of 29,1% ( 1 p.p. less than in 2005). The registered decrease of average replacement rate (see Table 3.6.) is motivated, mainly, by high rhythms of salary growth, because, according current legislation provisions, the pensions are indexed according the mean of annual growth of Consumer Price Indices and annual growth of average salary in the country for the previous year. Simultaneously, the situation is aggravated by the small size of newly set pensions, fact conditioned by the peculiarity of pensioning formula and current indexation mechanism which generates inequality between newly set pensions and those already existing in the system. Long term modelling reveals that under current functioning conditions of the pension system, the replacement rate will further reduce, until 2040; afterwards, it will set at approximately 11-12%. The dif-

59 Annual Social Report 2009 ference between the average calculated salary and the average set pension will increase significantly. In these conditions, the continuous need to update the pension will occur, in order to eradicate the poverty among pensioners, and this fact may lead to the destabilisation of pension system. Since 2003, the pensions are indexed annually. In 2009, the indexation coefficient represented 20%. These indexations generated the increase of average nominal size of age pension from 166,87 Lei in 2002 to 397,18 in 2005 and to 800,82 Lei in 2009. In fact, during 2002-2009, the average age pension increased 5 times. In reality, an assessment of effects of these changes from the perspective of increase of real pension size was not made. The minimum age pension for employers in agriculture increased from 175,08 Lei in 2004 to 507,55 Lei in 2009. The minimal pension for other beneficiaries of age pensions increased from 196,98 Lei in 2004 to 570,11 Lei in 2009. During the reference period, the increase in both cases was 3 times. The average age pension increased 1,2 times in comparison with the beginning of period 2009/2008. Simultaneously, the disability pension increased from 293,45 Lei in 2004 to 652,23 Lei in 2009, the increase represented 2,2 times. Average pension of beneficiaries of disability pension of I degree increased from 360,48 Lei in 2004 to 831,60 Lei in 2009; the average disability pension of II degree – from 308,9 Lei in 2004 to 696,72 Lei in 2009, while the average disability pension III degree increased from 192,88 Lei in 2004 to 417,18 Lei in 2009. The survivors pension increased as well, from 209,13 Lei in 2004 to 431,50 Lei in 2009 or 2,06 times. The average survivor pension increased 1,7 times in comparison with the previous year 2008.

Table 3.7. Dynamics of subsistence minimum and average age pension, 2005-2009 2005 2006 2007 2008 2009 Subsistence minimum, total population, Lei 766,1 935,1 1.099,4 1.368,1 1.187,8 Subsistence minimum, pensioners, Lei 649,1 800,3 943,4 1.167,4 1.022,8 Average quantum of age pension, Lei 397,18 457,51 565,83 666,28 800,82 Ratio between the age pension and subsistence mini- 61 57 60 57 78 mum, pensioners, % Source: NBS, NHSI, own calculations

The quantum of average age pension is situated under the level of subsistence minimum for pensioners, and represented 78 % of it in 2009. Simultaneously, significant differences of pensions of different categories of pensioners were noticed. Thus, the pensions of the Government members and deputies are approximately 7 times higher than the pensions obtained in general conditions. The other types of pensions set for various categories of beneficiaries, according different laws, are approximately 2-3 times higher than the age pensions. This situation influences the credibility in the system and generates inequality. In this context, the political measure to unify the pensioning norms is justified and obvious.

Table 3.8. Dynamics of pension quantum, as of 01.01 of 2005-2010 Average pension quantum, (Lei) Type of pension set according: 2005 2006 2007 2008 2009 2010 I. Law on state social insurance pensions Age pension 336,75 397,18 457,51 565,83 666,28 800,82 Government members 3.317,32 3.630,14 4.794,97 5.574,10 6.054,28 6.678,16 deputies 1.988,94 3.004,89 4.665,62 5.423,27 5.873,72 6.433,01 Civil servants 832,32 974,37 1.095,56 1.292,19 1.514,51 1.800,50 Mayors, presidents and deputy presidents of county councils 1.028,79 1.165,13 1.387,92 1.684,22 2.015,01 2.343,50

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Average pension quantum, (Lei) Type of pension set according: 2005 2006 2007 2008 2009 2010 Work experience (workers of aviation, workers of railway 499,86 607,95 702,96 2.337,31 2.864,94 3.535,57 transport, artists, geologists) disability 293,45 337,62 380,96 467,42 548,08 652,23 survivor 209,13 241,47 270,48 318,95 367,62 431,50 II. Pension set according other laws Custom workers 0,00 1.318,85 1.457,15 1.644,04 1.786,56 2.083,15 Participant at the liquidation of Cernobyl accident 734,8 866,5 997,33 1.197,53 1.398,43 1.669,90 consequences Law on army 99,30 94,72 94,04 474,74 668,43 731,24 Work experience (medical workers, pedagogues) 165,34 197,49 224,40 269,33 314,12 376,21 Prosecutors and judges 0,00 0,00 3.514,03 4.015,21 4.389,01 4.378,41 Source: NHSI

3.3. State social insurance pensions

State social insurance pensions represent a monetary right of insured person, proportional to responsibilities on the payment of state social insurance contributions. The following categories of pensions are provided in the system of public system of social insurance: a) Age pension; b) Disability pension; c) Survivor pension. Current legislation13 set the minimum quantum of pension, for every category in particular.

3.3.1. Age pension The following cumulated conditions should be respected to have the right for age pension: to reach the pensioning age established by legislation and to have the necessary contribution period. Retirement age. Since 1998 when the Law on State Social Insurance Pensions was adopted, in the Re- public of Moldova, in 1999 began increasing the retirement age, both for men and women. Furthermore, since 2002 up to now the retirement age represent 62 years for men and 57 years for women as a result of modification of the Law on State Social Insurance Pensions14. Currently, there is a trend to equal the retirement age for men and women in many states, such as Denmark, Germany, Spain, Belgium – 65 years, and France – 60 years. Contribution period. Contribution period represent the sum of activity periods during which the insurance contributions were paid. Contribution period includes contributive periods – activities during which the person is under social insurance, as well, non-contributive periods – periods similar to contribution period (military service, normal or reduced term; period of a child care under 3 years by one of the parents or the tutor, in case of death of both parents; period during which the insured person benefited of allowance for temporary work disability, unemployment allowance, professional integration or reintegration allowance).

13 After 01.04.09 – Government Decision Nr.197 from 10.03.2009 on the indexation of social insurance contributions and some state social contributions// Official Monitor, 2009, nr. 53-54, art.237 14 Law Nr.1485-XV from 22.11.2002 for the modification of 41 article of the Law nr. 156-XIV from 14.10.1998 on state social insurance pensions// Official Monitor, 2002, nr.161, art. 1264

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The periods of forced absence are included in the contribution period as well, when the insured income or social insurance contributions were paid. Except the above-mentioned periods, the following types of activities implemented until 1 January 1999 are included in the contribution period: work performed as a kolkhoz member, creation activity of members of creation unions, activity as employees in church or priest; since 1 April 1992 – care of a person with I degree disability, of a disabled child under 16 years or of a person older 75 years; period of study in higher education institutions, day classes, military or other service similar to it. Contribution period duration. Since 1 January 1999, the contribution period necessary for the age pension represented 26 years for men and 22 – for women. Every next year, the contribution period increased one year for men and 2 years for women. Since 2003, the necessary contribution period represent 30 years both for men and women. The insured person at retirement age, but with incomplete contribution period, however, it has a contribution period of at least 15 years, can benefit of a partial pension, calculated according achieved contribution period. As well, the legislation provides rules for the persons with a contribution period higher than 30 years. Thus, the established pension increases 2% annually from the insured monthly average income for every year that exceeds the contribution period of 30 years and in case of outrunning the retirement age. The minimum pension is given in case when the age pension quantum calculated according law, is lower than the established minimum quantum of age pension. Age pensions are paid integrally to all pensioners, including those with incomes liable of state social insurance.

3.3.2. Disability pension Disability represents the complete or partial loss of work capacity, which persists after the expiry of period when the temporary work capacity allowance was given and limits the possibility to participate in income generating activities. Disability state, causes, the degree and time of appearance are decided by the Republican Council of Vitality Medical Expertise based on some Government approved regulations. Three disability degrees are established in relation to degree of loss of work capacity. The right for disability pension is decided for the insured person that lost completely or partially the work capacity due to a disease: a) Ordinary disease; b) Accident at work; c) Professional diseases. The insured person framed in the disability degree due to an ordinary disease benefit of disability pension if the contribution period conditions in relation to age when the disability was set are met:

Table 3.9. Contribution period necessary to set the disability pension, according insured person age

Age when disability was set Contribution period under 23 years 1 year 23-26 years 2 years 26-31 years 3 years over 31 years 5 years

However, the disability pension is decided regardless contribution period duration in case of disability caused by an accident at work or professional disease.

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The quantum of disability pension is calculated according disability degree using the formulae approved by the Law on State Social Insurance Pensions, which take into account the contribution period and insured monthly income. A minimum disability pension is provided in case when the quantum of disability pension, calculated according law, is lower than the quantum of minimum established disability pension. Disability pensions are paid integrally to all pensioners, including those with incomes liable of state social insurance.

3.3.3. Survivor pension The survivor pension paid from the state social insurance budget represents the monthly payment to persons that lost their bread winner. The right for survivor pension is given if the deceased person was pensioner or met the requirements to get a pension. Survivor pensions are given to: – children under 18 years, if they study in day education institutions (secondary, secondary specialised and higher), until graduation, but not exceeding the age of 23 years; – surviving spouse, if at the moment of breadwinner death, or during 5 years after death, reached the retirement age or got the I or II disability degree, and had at least 15 years of marriage with the deceased person and did not remarry; – surviving spouse or guardian (curator) which takes care of children under 3 years of deceased breadwinner, during the periods of unemployment or care of children under 3 years. The quantum of survivor pension is calculated in percent from the pension of deceased breadwinner according number of legal survivors.

3.3.4. Pensions of some categories of citizens Legislation of the Republic of Moldova provides special conditions to set pensions for some categories of citizens (judges, prosecutors, local representatives, civil servants etc.). The difference from the general conditions to set the pension consists in some facilities given to these categories, with the purpose to outline and appreciate their merits for the state. It is necessary to meet the following conditions in order to benefit of the right for pension:retirement age, (for example: 50/50 years for judges and prosecutors, 62/57 years for deputies of Parliament, Govern- ment members and local representatives, 57/52 for civil servants); Fulfilment of total contribution period of 30 years and of the special contribution period, which differ according position held (for example: 20 years as judge or prosecutor, 2 years as Parliament deputy and Government member, 15 years as civil servant, and 8 years as local representative). Pensions of these categories of citizens are financed in proportion of 50% state social insurance budget and 50% from the state budget. They are calculated in quantum of 75% from the amount of all average monthly income (for deputies, Government members and local representatives) and in quantum of 75% from the average monthly income of the last 60 months of activity in civil service (for civil servants). As of 01.01 2009, the number of beneficiaries of this type of pension represented 1,1%in the total number of pension beneficiaries. Separate laws set the retirement conditions for judges and prosecutors. Thus, the conditions providing the pension right and calculation for prosecutors are regulated by the Law on Prosecution15. Law on Judge status16 set the conditions for the pension right for judges. In case when judges meet all conditions provided by the Law, they can benefit simultaneously by both, pension and lifetime monthly allowance. Average pension of a Government member is 8,3 times higher than the average age pension set in general conditions, the average pension of a civil servant is 2,2 times higher than the average age pension.

15 Law Nr.294-XVI from 25.12.2008 on Prosecution//Official Monitor, 2009, nr. 55-56, art. 155 16 Law Nr.544-XIII from 20.07.1995 on the Judge status//Official Monitor, 2002, nr. 117-119, art. 946

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Currently, the first steps in unification of pension system are made in order to respect the basic principles of the public system of social insurance, so as all contributors to the state social insurance system could benefit of the right for age pension in unique conditions.

Figure 3.2. Quantum of average pensions by categories, as of 01.01.2010, Lei

Survivor 431.5

Disability 652.23

Age limit 800.82

Participants at Cernobyl 1669.9

Custom workers 2083.15

Civil servants 1800.5

Local representatives 2343.5

Work experience 3535.57

Prosecutors, judges 4378.41

Deputies 6433.01

Government members 6678.16

0 1000 2000 3000 4000 5000 6000 7000

3.4. Social insurance allowances

State social insurance system offer to all its participants the right to benefit of both, a long term protection (social insurance pension), and a short term protection – in case of person temporary work incapacity. Social insurance allowances represent all forms of payments paid to insured persons from the Social Insurance State Budget.

The right for social insurance allowances The insured persons, residents of the Republic of Moldova have the right for social insurance allowances and the unemployed with the right for unemployment allowance. The person is entitled to social insurance allowances connected to social risks of which is insured. The insured persons of the public system of social insurance are entitled to following allowances: a) allowance for temporary work incapacity caused by ordinary diseases or accidents not connected with work activity; b) allowance for disease prevention (quarantine); c) allowance to recover work capacity; d) maternity allowance; e) one time allowance at child birth; f) allowance for care of child under 3years; g) allowance for care of a sick child; h) aid in case of death. The unemployed are entitled to allowances stipulated by cases a), d) and h).

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3.4.1. Allowance for temporary work incapacity Note: Work incapacity – situation of insured person occurred after loss of physical and intellectual abilities or work skills due to an illness or accident.

Granting conditions: The allowance for temporary work incapacity is granted to insured persons, if at least one of the following conditions is met17: • at least 3 years of contribution period; • at least 3months of contribution period during the last 12 months preceding the insured accident (if the total contribution period is under 3 years); • performing activity based on individual work contract of determined period, including seasonal workers, for at least 12 months, during the last 24 months preceding the insured accident.

Granting period The period for which the allowance for temporary work incapacity is granted is at maximum 180 calendar days during one year and starts with the first day of sick leave. The allowance is paid after 120 days in case of extended sick leave, approved by the Republican Council of Vitality Medical Expertise. The supervising doctor can decide on extending the sick leave with 30 more days after 180 days based on the possibility of recovery of the person and avoiding the situation to be included in a disability degree. The persons employed in the agricultural sector and those with individual work contract with determined period benefit as well of the allowance for temporary work incapacity. Allowance for temporary work incapacity of 30 days during a calendar year is granted to insured persons with individual work contract of determined period, not exceeding one year, including persons hired in seasonal works, and unemployed during payment of unemployment allowance. The insured persons with individual work contract for a period more than one year are entitled to allowance of temporary work incapacity of 180 calendar days.

Calculation basis The calculation basis is the insured average monthly income earned during the last 6 calendar months preceding production of insured risk. The monthly quantum of allowance is set on a differentiate basis according the duration of contribution period: – under 5 years – 60% of the established calculation basis; – 5 to 8 years – 70% of the established calculation basis; – Over 8 years -100% of the established calculation basis. In 2009, the total number of beneficiaries of temporary work incapacity allowance decreased with 1531 persons or 0.4% (the highest share had the beneficiaries of allowance in case of sickness or trauma, in 2009, their number reduced with 232 persons or 0,1%) in comparison with 2008. In 2008, the number of persons that benefited of allowances for temporary work incapacity in case of sickness or professional diseases increased with 709 beneficiaries, however in 2009 this number decreased with 605 persons (or 3,6 times) in comparison with 2008. Despite the decrease of number of beneficiaries of allowance for work incapacity in 2009 in comparison with 2008, the expenses for their payment registered an increase of 68168,8 thousand lei in the same period (conditioned mainly by the increase of salaries).

17 Law Nr.289-XIV from 22.07.2004 on allowances for temporary work incapacity and other social insurance allowances//Official Monitor, 2004, nr. 168-170, art. 773

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Table 3.10. Expenses for allowances of temporary work incapacity, 2007-2009 2007 2008 2009 Nr. of Paid Nr. of Paid Nr. of Paid Real Real Real Type of allowance benefi- amount benefi- amount benefi- amount number number number ciaries, (thou- ciaries, (thou- ciaries, (thou- of days of days of days pers. sand lei) pers. sand lei) pers. sand lei) allowances in case of 5224899 332993 289617,9 5452549 358441 368756,8 5316067 358209 410522,4 sickness or trauma allowances in case of accidents at work or 17059 577 1304,2 20832 832 1681,1 17107 669 1417,1 professional disease* allowances to care for 126235 12430 5903,0 137438 13863 8384,5 134048 14598 9721,0 sick persons Maternity allowances 1600052 15537 86065,2 1724774 21415 119070,3 1902197 20050 144912,3 allowances – other cases 7342 379 490,8 25745 874 2153,6 17220 810 1591,6 Total allowances 6966980 361462 382717,1 7352272 394999 499328,9 7378242 393894 567497,6 *Note: except those paid by the employers *Source: NHSI

3.4.2. Maternity allowances Maternity allowance (pregnancy and post-partum) is granted to insured women, wives supported financially by their husbands and unemployed entitled to maternity leave, and includes the prenatal and postpartum leaves. The maternity leave is granted starting with the 30th pregnancy week for a 126 calendar days period, and in case of problematic deliveries of in case of birth of two and more children – for 140 calendar days. In case of maternity leave during the leave to care for a child under 3 years, the entitled person will benefit of both allowances (maternity and care of a child under 3 years). The maternity allowance is established on wife name in case when she is supported financially by an employed husband18. The identity card and marriage certificate confirm the fact that person is the wife of employed person. The monthly quantum of maternity allowance is 100% of the insured average monthly income earned during the last 6 calendar months preceding the month of insured risk. In 2009, the expenses for maternity allowance payment increased 25842 thousand Lei in comparison with 2008. This increase is caused by the increase of real number of days – 177423 days or 10,3% more in comparison with the increase of only 7,8% in 2008 in comparison to 2007 fact that caused the increase of expenditure for the payment of this allowance.

3.4.3. Unique birth allowance Unique birth allowance represents a form of monetary assistance to insured women from the public system of social insurance. Its quantum is established by the Law of State Social Insurance Budget. Ac- cording provisions of Law of State Social Insurance Budget for 200919, the quantum of unique birth allowance for a live born child represented: • 1400 Lei – for the first child; • 1700 Lei – for every next child. Mother is entitled to the above-mentioned allowance, and in case of her death to father or other relative who will take care for the child, or the adopter (guardian).

18 Wife is considered financially supported by husband if at the date of entitlement of maternity leave she is not employed and is not insured by the corresponding risk (maternity), fact confirmed by the employment record or by a certificate from social insurance bodies. 19 Law of State Social Insurance Budget for 2009 nr. 262-XVI from 11.12.2008//Official Monitor, 2008, nr. 237-240, art. 866

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3.4.4. Monthly allowance for child care under 3 years A form of monetary support set and paid by the public system of social insurance to insured persons for child care is the monthly allowance for child care under 3 years. At the expiry of maternity leave, the employed women and apprentices, as well wives supported financially by their husbands, present a written request to benefit of the partly paid leave for child care until 3 years. This leave can be used integrally or partly any time, until the child is 3 years old and is included in the contribution period. The partly paid leave for care for child under 3 years can be used by the child father, grandmother, grandfather or another relative who will take care for the child, and are insured persons. In 2008, the Law nr. 155 from 04.07.2008 on modification and amendment of article 18 of the Law nr.289-XV from 22.07.2004 on allowances for temporary work incapacity and other social insurance allowances was adopted, in order to increase the amount of entitled allowance for the child care until 3 years. Thus, the monthly quantum of allowance for child care represent 25% of insured monthly income during the last 6 calendar months preceding the months of insured risk production, and not less 250Lei for every child. During 2005-2009, the number of persons that benefited of partly paid leave for child care until 3 years is in increase. In 2009, 29268 persons of which 27528 – women, 668 – men, and 1072 –other persons benefited of the monthly allowance for child care until 3 years.

Table 3.11. Dynamics of expenses for the protection of families with children during 2005-2009, insured persons 2005 2007 2008 2009 Number Estab- Number Estab- Number Estab- Number Estab- Type of allowance of allow- lished of allow- lished of allow- lished of allow- lished ances monthly ances monthly ances monthly ances monthly (benefi- amount, (benefi- amount, (benefi- amount, (benefi- amount, ciaries) thou. Lei ciaries) thou. Lei ciaries) thou. Lei ciaries) thou. Lei Unique allowance at the first 4708 2270,6 5769 5514,0 5458 6288,0 5984 8195,9 child birth, Unique allowance at the birth 3649 1630,7 3762 3605,4 4932 6931,1 5880 9849,9 of every next child, Monthly allowance for child 20097 3046,4 24852 5756,2 27235 8796,0 29268 14628,2 care until 3 years, of which: To mothers 19031 2873,6 23429 5414,3 25613 8255,7 27528 13731,5 To fathers 397 69,5 520 141,0 601 220,2 668 387,6 To other persons 669 103,3 903 200,9 1021 320,1 1072 509,1 Monthly allowance for the 2247 234,3 1654 171,6 1764 181,7 1537 157,6 care of child 3-16 years Source: NHSI

3.4.5. Allowance for care for a sick child In case of sickness of a child under 7 years, of a disabled child with undercurrent affections until 16 years, mother is entitled to allowance for care for a sick child, for at maximum 14 calendar days (in case of ambulatory medical assistance) or for maximum 30 calendar days (in case of medical assistance in hospitals, for the period the child needs care). A certificate for care for a sick child is given to any family member (father, grandmother, grandfather, other employed family members, or guardian or curator), if due to argumented reasons, confirmed documentary, mother cannot take care of the child (sickness, temporary absence, loss of parental rights etc.). The allowance quantum depends on the average insured monthly income and the duration of contribution period.

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3.4.6. Aid in case of death The aid in case of death represents a unique payment given in order to support the family of deceased or the person that bore all expenses. Only one person is entitled to receive the aid in case of death, it can be by case: the surviving husband, child, parent, guardian, curator, or, the person that proved to bear all occasional death expenses of deceased insured person which could be the pensioner of the public system of social insurance, unemployed or the person with an contribution period of at least 3 years. The insured person, unemployed, and pensioner are entitled to aid in case of death of an uninsured family member20 which they supported financially. The aid in case of death is paid once in a fixed amount. The quantum of this aid is set annually by the Law of State Social Insurance Budget. In 2009, according the Law of State Social Insurance Budget the quantum of aid in case of death paid in case of an insured +person, pensioner of public system of social insurance, unemployed, as well of a family member supported financially, or of a person with a contribution period of at least 3 years death, represented 900 Lei. In 2009, the annual expenditures for the payment of aid in case of death increased 12,5% in comparison with 2008, fact explained by the increase of quantum of these payments. It should be mentioned that the number of beneficiaries of aid in case of death decreased with 0,2%.

Table 3.12. Actual expenses for the payment of aid in case of death in 2004-2009 2004 2005 2006 2007 2008 2009 Annual expenses, (paid in total) thousand lei 15704,5 27427,0 26914,2 26568,7 29449,8 33143,4 Number of beneficiaries (insured persons) 31688 39268 38470 37962 37228 37154 Quantum of aid in case of death 700-00 700-00 700-00 700-00 800-00 900-00 Source: NHSI

3.5. Insurance in case of accidents at work and professional diseases

Insurance in case of accidents at work and professional diseases guarantees insured persons a set of payments and allowances to decrease and compensate the consequences and prevent accidents at work and professional diseases. The employer is obliged to insure the employees for accidents at work and professional diseases from the moment of sign of individual work contract. According insurance legislation for accidents at work and professional diseases21 insured persons are entitled to following allowances for accidents at work and professional diseases: a) Allowance for temporary work incapacity; b) Disability allowance; c) Death allowance. The Insurance Fund for accidents at work and professional diseases is a component part of monetary means collected from the social insurance contributions paid by employers.

20 Is considered family member: a) husband; b) parents; c) children uner18 years or student in a day education institution, – until graduation, however until 23 years, as well, children unable to work, regardless age, if the lost work capacity before reaching mentioned ages. 21 Law on insurance of accidents at work and professional diseases nr.756-XIV from 24.12.1999 //Official Monitor, 2000, nr. 031, art. 192; Law on State Social Insurance Budget for 2008 nr. 271-XVI from 07.12.2007//Official Monitor, 2007, nr. 203-206, art. 798

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According legislation of Romania, the value of increase of tariff of social insurance contributions, depending on the risk class of production sectors and work places, varies from 0,5% to 4%. In Romania persons insured of accidents at work and professional diseases benefit of the following payments and services: a) Medical rehabilitation and recovery of work capacity; b) Professional rehabilitation and conversion; c) Allowance for temporary work incapacity; d) Allowance for temporary transfer to other job; e) Integrity compensations; f) Compensations in case of death; g) Reimbursement of expenses. In Russian Federation the insured persons benefit of: a) Allowance for temporary work incapacity ; b) Allowance in case of death; c) Disability allowance, d) Unique allowance, e) Additional expenses for medical, social and professional rehabilitation

According the experience of other states, the possibility to enlarge the package of payments for accidents at work and professional diseases provide establishing of differentiate social insurance tariffs of for every employer taking into account the work conditions (normal, specific or special) of employees. The value of increase or decrease of social insurance contribution for employer is calculated according the number of accidents at work and professional diseases during the reference period; the seriousness of accidents at work and professional diseases consequences; the volume of expenses for insurance payments and allowances. Currently, in the Republic of Moldova, it is impossible to enlarge the existing package of allowances for accidents at work and professional diseases in the current situation when, social insurance field promote an 1% decrease annually of the tariff of social contributions paid by employer, as well, due to the lack of some institutions empowered to undertake the classification by the risk degree of production places and work places.

3.5.1. Allowance for temporary work incapacity Allowance for temporary work incapacity caused by accidents at work or professional diseases is paid based on the medical certificate and research documents of the accident at work or confirmation of professional diseases. The quantum of allowance for temporary work incapacity represents 100% from the insured average monthly income during the last 6 months preceding the accident at work or time when the professional disease was stated. The allowance is paid by employers from own means, for the first 20 calendar days, the state social insurance budget ensure the payment from the 21st day. The duration of allowance lasts until 180 calendar days, during one year, and is calculated from the first day of sick leave. 30 days can be added to 180 days in case of argumented situation. In case when the insured person was given a disability degree before the expiry of 180 days, the allowance is paid until the date when the decision on disability was approved. Dynamics of expenses for the allowances for temporary work incapacity caused by accidents at work or professional diseases is presented in the Table 3.10.

3.5.2. Disability allowance The insured person with a decided disability degree as a result of accident at work or professional diseases is entitled to disability allowance paid monthly during the entire period when they benefit of disability pension from the public system of social insurance.

69 Annual Social Report 2009

The quantum of disability allowance differs according disability degree. For the insured person with the I or II disability degree, the allowance is calculated as the difference of 2/3 from the insured average monthly salary of the last 6 months preceding the month when the accident at work happen or the professional diseases was stated and the quantum of his disability pension established from the public system of social insurance. The quantum of disability pension for the insured person of III disability degree is determined in percent from the quantum calculated for the I and II degrees, corresponding severity of work capacity loss.

Table 3.13. Dynamics of expenses for the payment of disability allowances, 2003-2009 2003 2005 2007 2008 2009

Categories of beneficiaries Nr. benef Nr. Monthly decided amount (thou Lei) benef Nr. Monthly decided amount (thou Lei) benef. Nr. Monthly decided amount (thou Lei) benef Nr. Monthly decided amount (thou Lei) benef. Nr. Monthly decided amount (thou Lei) Disability allowances, total 76 11,9 182 57,5 213 113,2 228 157,2 247 196,0 including for: Disability gr. I 5 0,9 11 3,9 17 10,2 16 10,8 15 11,4 Disability gr. II 38 8,5 82 40,1 100 82 118 120 128 143,6 Disability gr. III 33 2,5 89 13,5 96 21 94 26,4 104 41,0 Source: NHSI

3.5.3. Allowance in case of death In case of death of insured person in result of an accident at work or professional diseases the following persons benefit of allowance in case of death: a) Insured person children under 18 years, or until 23 years if they study in higher, secondary or secondary specialised education institutions, day courses, and children with disabilities regardless age. The quantum of allowance for a child is the equivalent of 5 average monthly salaries of insured person, during the last 6 months preceding the month accident and work or professional diseases happened; for 2 children – the equivalent of 8 average monthly salaries; for 3 and more children – the equivalent of 12 average monthly salaries, but not less than 5, 8 and 12 average monthly salaries in economy for the preceding year when the insured case happened. b) Spouse of insured person who is disabled or retired. The quantum of allowance represent 3 average monthly salaries of insured deceased person for the last 6 months preceding the month when the accident at work happened or professional diseases was confirmed, but not less than 3 average salaries in economy for the year preceding the year insured case happen. c) Spouse or one of the parents of the insured deceased person or any other person which does not work, and at the time of death took care for deceased person children under 3 years. The quantum of allowance represent 3 average monthly salaries of insured person during the last 6 months preceding the month when accident at work happened or professional diseases was confirmed, but not less 3 average monthly salaries in economy for the year preceding the insured case year.

3.6. State social insurance budget

The financing of social protection system is preformed from the State Social Insurance Budget which is a component part of the national state budget; it is autonomous, however, and is one of the main elements of the national financial system. SSIB is managed by NHSI, through State Treasury and the Ministry of Finance, and comprises six funds with special purpose:

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1. Fund of Pensions; 2. Fund of protection of families with children; 3. Insurance Fund for accidents at work and professional diseases; 4. Fund of allowances, 5. Fund for unemployment; 6. Fund of health recovery, and 7. Expenses for the organisation and functioning of public system of social insurance which are set in relation up to 5% annually, to the total annual expenses provided by the SSIB Law. The enlisted funds collect the financial resources paid in the social insurance budget, which are later used for financing the expenses specific to each fund. SSIB incomes and expenses play an important role in the framework of social insurance system management, while the level of collection of social insurance contributions reveal the level of contributors trust in the system and level of financial stability of the system. The general SSIB incomes are distributed in 4 chapters of income: (i) compulsory state social insurance contributions; (ii) transfers from the state budget; (iii) interest rates (from deposits in commercial banks and state securities) and (iv) other incomes (regressions, penalties, fines). 3% are taken annually by the Fund of Reserve from the SSIB incomes, used to cover social insurance payments in duly argumented situations or other expenses of the public system, approved by the Law on State Social Insurance Budget. The cumulated Reserve Fund cannot exceed 50% of the total expenses planned for the corresponding budgetary year. The contributors of the state social insurance public system are, by case: (i) insured persons owing social insurance individual contributions; (ii) employers; (iii) legal persons similar to employers, where are employed persons in representative functions or appointed at the level of executive, legislative or legal authority, during the mandate, whose rights and obligations are similar to employees hired based on an individual work contract; (iv) persons that signed social insurance contract and (v) employees working based on individual work contract at non-resident employers of the Republic of Moldova. The shares of social insurance contributions are differentiate according normal or special working conditions and are approved the Law on State Social Insurance Budget.

Execution of State Social Insurance Budget The incomes of State Social Insurance Budget of 7514179,7 thousand Lei and the expenses of SSIB of 7571168,3 thousand Lei were established by the Law on State Social Insurance Budget for 2009 nr. 262- XVI from 11.12.2008. The SSIB incomes were précised at the 7469654,1 thousand Lei level and the expenses – at 7666691,2 thousand Lei.

Table 3.14. Execution of State Social Insurance Budget, 2003-2009 2003 2004 2005 2006 2007 2008 2009 Incomes (executed), thousand lei 2734439,4 2947860,4 3696035,3 4347650,4 5157229,0 6362837,8 7581662,3 Expenses (executed), 2173876,4 2768883,0 3697773,5 4378060,9 5244559,3 6315149,8 7607212,2 thousand lei Surplus (+)/Deficit (-), thousand lei 560563 178977,4 -1738,2 -30410,5 -87330,3 47688,0 -25549,9 Source: NHSI

Following the table, since 2005 the social insurance system faces a budgetary deficit, which increased gradually from 1,8 mio. Lei to 87,33 mio. Lei in 2007. And in 2008, after a three years deficit period, the SSIB registered a surplus of 47,7 mio. Lei; situation changed again in 2009, when the SSIB faced again a deficit of 25,6 mio. lei.

71 Annual Social Report 2009

Structure of incomes and expenses of State Social Insurance Budget During 2000-2009, the nominal incomes of state social insurance budget increase approximately 4 times. The social insurance contributions had the major share in the structure of incomes and represented 73,8% in comparison with 85,38% in 2008. The share of transfers from the state budget represented 25,8%, and other incomes and interest rates had a share of 0,02% and 0,22% accordingly in the structure of budget incomes. The précised volume of incomes was implemented 101,5% according data on state social insurance budget execution.

Table 3.15. Incomes collected in the state social insurance budget for 2008-2009

2008 2009 Approved/ Imple- % of Approved/ Imple- % of Precised mented imple- Précised mented imple- (thousand (thousand menta- (thousand (thousand menta- Lei) Lei) tion Lei) Lei) tion Total – incomes, of which: 6416436,0 6362837,8 99,2 7469654,1 7581662,3 101,5 Compulsory state social insurance contributions 5446606,0 5432581,8 99,7 5478414,5 5595224,8 102,1 Interest rates (non-tax revenues) 27973,6 27786,0 99,3 17053,8 16766,6 98,3 Other incomes 228,0 287,8 126,2 1148,0 1263,9 110,1 Transfers from the state budget in the state social 941628,4 902182,2 95,8 1960779,3 1956201,3 99,8 insurance budget Source: NHSI

In 2009, the cumulated incomes represented 1218,8 mio. Lei or 19,16% more in comparison with the previous year. This fact is influenced mainly by the increase of volume of transfers from the state budget to state social insurance budget, in 2009, these transfers were 2,2 times higher than in 2008. The volume of state social insurance contributions calculated in the Fund of work remuneration by employers and individual contributions transferred in the employees’ salaries registered a slight increase of 3%, in comparison with 2008 as a result of general increase trend of average salary in economy with 8,6 % in comparison to 2008.

Table 3.16. Expenses financed from state social insurance budget in 2008-2009 2008 2009 Imple- Imple- Approved % of im- Approved % of im- mented mented / Precised plementa- / Precised plementa- (thousand (thousand (thou. lei) tion (thou. lei) tion lei) lei) Pension Fund 4524869,3 4535952,4 100,2 5437689.0 5438842.3 100 Fund of protection of families with children 105343,1 106011,7 100,6 180136.2 182795.0 101.5 Social insurance Fund for accidents at work 2570,1 2610,6 101,6 3033.9 3115.3 102.7 and professional diseases Fund of allowances 522615,3 527835,3 101,0 608562.7 599890.9 98.6 Unemployment Fund 42223,1 34300,3 81,2 46128.6 42466.5 92.1 Fund of health recovery. Expenses for the organisation and functioning of state social 92262,4 85945,6 93,2 73117.1 73597.9 100.7 insurance system 157287,4 143228,1 91,1 210005.6 196554.4 93.6 Total – expenses 5460906,8 5435884,0 99,5 6555831.3 6537262.3 99.7 Source: NHSI

72 Annual Social Report 2009

In 2009, the total amount of compulsory state social insurance contributions transferred from the state social insurance budget represented 5595,2 mio. lei, meaning an increase of payments of contributions with 162,6 mio. Lei in comparison with 2008. As well, the level increase of state social insurance contributions was influenced by the increase of fixed annual fee approved for self-employed persons social insurance (from 2920 Lei in 2008, to 3708 Lei in 2009) and natural persons – owners of agricultural lands (from 725 Lei in 2008 to 920 Lei in 2009). In 2009, the expenses made from the state social insurance budget represented 6537,3 mio. Lei, 20,3% in increase in comparison with 2008. The Pension Fund had the highest share of expenses financed from the state social insurance budget and rep- Figure 3.3. Implementation of state social insurance resented 83,2%. The age pensions had the high- budget, 2002-2009 est share in total expenses provided to cover the social insurance pensions – 77,5%, the expenses Thousand Lei to cover the disability pensions represent 17,9% 8000 from the expenses of Pension Fund. 1099220 thousand Lei were planned as ex- 6000 penses of state budget for social payments, paid from the state social insurance budget. The actual 4000 expenses represented 1091315,2 thousand Lei or 99,3% from the planned amount. 2000 The expenses for the payment of compensa- 0 tions represent 38,1%, and have the highest share 2002 2003 2004 2005 2006 2007 2008 2009 in the total actual expenses in SSIB, however, it decreased 4 p.p. in comparison with 2008. The pay- Expenses de facto Revenues de facto ment of all other types of allowances represent 22,2%.

Table 3.17. Expenses from the State Budget, 2008-2009 2008 2009

Approved Imple- % of im- Approved Imple- % of im- / Precised mented plementa- / Precised mented plementa- (thou Lei) (thou Lei) tion (thou Lei) (thou Lei) tion

Total 913954,3 872468,4 95,5 1099220,0 1091315,2 99,3 Pensions 122491,2 124214,1 101,4 130690,1 130442,7 99,8 Allocations 222955,6 221386,7 99,3 243148,4 241967,4 99,5 Allowances 150303,5 148362,4 98,7 164077,8 163587,1 99,7 Compensations 401974,6 364417,5 90,7 420147,3 415608,7 98,9 Monetary aids 7644,6 6748,0 88,3 117381,2 117126,8 99,8 Bank and post services 8584,8 6800,7 79,2 10464,1 9065,9 86,6

Coverage of the difference between the established pension to the minimum pension - - - 13311,1 13516,6 101,5 for beneficiaries of social insurance pensions

Other payments - 539,0 - - - - Source: NHSI

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3.7. Bilateral agreements in the field of social insurance

The coordination of social insurance systems – problem faced by the Republic of Moldova during the last decades – became an important component of social policies promoted by the state in conditions of amplification of labour force mobility between states and massive migration of population of working age. The negative effects of emigrational processes are of long duration and, as usual, are faced by working migrants and their family members who worked a period abroad either at their return in the country, or when moving on the territory of other states. In both cases, these persons are not entitled to social insurance payments. In these conditions, often, migrant workers and their families are disadvantaged in comparison with citizens of destination country from economic and social points of view, their social insurance rights are not respected. Thus, the signing of social insurance bilateral agreements with the main destination countries of migrant workers was needed in order to respect their rights and to offer social guarantees. During ’90s of the previous century, the Republic of Moldova signed agreements in the fields of pensions with some states from post-soviet area – Russian Federation (1995), Belarus (1995), Ukraine (1995), Uzbekistan (1995) and Azerbaijan (1997). One of the basic principles of above-mentioned agreements, and of the agreement signed between ex-URSS with Romania and Bulgaria (terminated at 1 January 2005) is the principle of territoriality, according which, the pensions are established and paid by the state on which territory the person lives, regardless its contribution to the public system of social insurance of resident state. The principles are outdated due to changes in the political and financial-economic relations with these countries. Currently, the Republic of Moldova intend to increase the number of states to regulate its relations in the field of social insurance, based on new principles, which should ensure a framework of social insurance guarantees to future pensioners. In this context, the intergovernmental Agreement on Social insurance, developed based on the Eu- ropean Convention of Social Insurance and according general laws set by the Regulation nr. 1408/71/CEE on the coordination of social insurance system for employed persons, independent workers and their family members which move to European Union was approved. The intergovernmental agreement contains undiscriminatory provisions for citizenship or residence principle. The entitled person would benefit of payments regardless citizenship and even if is resident on the territory of other contracting state. The draft of this Agreement is applied to national legislations of contracting states in regards to following social insurance payments: payments in case of maternity and sickness, accidents at work and professional diseases, disability payments (pensions and allowances), age pensions, survivor pensions, aids in case of death, unemployment aids. As a basic principle the Agreement requires the payment of social insurance contributions in one contracting state – namely, in the state where the migrant worker undertake his activity. Other Agree- ment principles are: • Equal treatment of citizens of each party – the same social insurance rights and obligations, regardless travels undertaken on the territory of both parties, with the purpose of professional activity or residence; • Determination of applicable legislation – consists in solution of law conflicts and determination of legislation of competent country, so as the migrant workers would be under the provisions of legislation of one country, where they are employed; • Sum of social insurance periods when deciding on the period and entitling to rights presumes that the institution in charge of establishing the rights of a migrant worker should take into account the insured periods in own country and the periods in the other country (maintenance of gained rights). In this case, each of the competent institutions pay the pension part proportional to contribution period in the own system; • Export of payments entitles a migrant worker to benefit of gained payments in the states where worked, on the territory of own country (maintenance of gained rights).

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The Agreement is targeted to following categories of beneficiaries: • Persons that were or are insured according legislation of any country participant in the Agree- ment (employees, independent workers, posted workers, the staff of diplomatic missions and consulates); • Family members of above-mentioned persons (their protection is limited to the rights that deri- vate from the situation of being family member of the employee). During 2008-2009, the process of negotiation and sign of bilateral agreements in the field of social insurance, initiated previous years, continued. During the reference period, the negotiations on the draft of bilateral agreement with Bulgaria in the field of social insurance were finalised, and it was signed in Sofia at 1 December 2008, and entered in force at 1 September 2009. The same year, the second round of Moldovan-Portuguese negotiations started and finalised, as a result, the Social Insurance Agreement between the Republic of Moldova and Portuguese Republic was signed at 11 February, in Lisbon. Two negotiation rounds on agreement were organised with Czech Republic. As well, a series of states expressed their will to regulate their relations in the field of social insurance and to sign bilateral agreements with the Republic of Moldova: Greece, Italy, Latvia, Grand Duchy of Lux- embourg, Austria, Poland, Turkey, Estonia, and Lithuania. In the future, the Republic of Moldova plans to extend the list of countries to sign bilateral agreements in this field, in particular with the main destination countries of Moldovan migrants. The signing of bilateral agreements in the field of social insurance with the interested states shall have a positive impact on the welfare of insured persons from the category of migrant workers. The insurance of social insurance rights of migrant workers will facilitate their freedom of movement.

3.8. Conclusions. Recommendations

Currently, the present social insurance system requires a significant increase of the number of contributors, and implicitly, of their incomes. This could be a real solution to lead at ensuring a higher social protection level to system beneficiaries. The necessary ratio between the number of contributors and the number of pensioners should be 4/1- 5/1 for the stability of the system. However, at the present moment it constitutes only 2/1. The excessive redistribution of means provided for the payment of pensions to pensioners from agricultural sector causes discrepancy between the sizes of paid contributions and promised (received) payments. As a result, the employees of agricultural sector contribute with only 4,7% of the total paid amount, while, 40,8% of total incomes of state social insurance budget are used for the payment of pensions to these categories. In 2009, the replacement rate in agriculture represented 48,4%, resulting from the average age pension for farmers in amount of 711,99 Lei and the average salary in agriculture for 2009 in amount of 1469,9 Lei, while the average replacement rate in economy represents 29,1%.This fact reveals the unfavourable effects of unequal distribution and leads to distrust in the pension system and to evasion from the payment of state social insurance contributions. Social insurance system faces the following problems: • Long-term instability, determined by the unfavourable demographic conditions; • Increase of newly set pensioners, and as a result, the increase of burden on economically active population and on the state social insurance budget; • Low pension quantum in comparison with salaries and subsistence minimum; • Decrease of replacement rate; • Uneven tariffs of social insurance contributions; • Significant redistribution of resources due to uneven tariffs of contributions for various categories of contributors;

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• System complexity due to the considerable amount of rules that regulate the pension provision to various categories of beneficiaries; • Presence of some unjustified expenses in the social insurance system, which do not correspond to insured risks. In order to improve the social insurance system, it is recommended: – to formulate clearly the cases qualified as insured risks in the frame of public system of social insurance and to exclude the unjustified expenses, which do not correspond to insured social risks; – to continue the gradual redistribution policy from employer to employee; – to cancel the payment of social insurance contributions by employed pensioners or to recalcu- late the age pensions for the persons that continue to work after retirement; – to simplify the calculation formula for all types of pensions; – to calculate disability pensions according contribution period achieved until the date of getting the pension and not of the potential one; – to cover the counter value of insurance payments for accidents at work and professional diseases from the employer contributions (from 0,5% to 4%); – to increase the share of social insurance contribution owed by employer to compensate the expenses for the payment of anticipated pensions paid by employer to employees of professions specified in the List nr. 1. A solution for the entire pension system would be the unification of pension system and alignment to unique pensioning conditions. A series of activities in order to diminish some facilities for pensioning are required, this would allow fair pensioning and achievement of balance between contributions and benefits for all pensioners.

76 Annual Social Report 2009 4. SOCIAL ASSISTANCE

Social assistance is a component part of the system of social protection and comprises a set of programs, measures and specialised services to protect persons, families, vulnerable groups, which do not have the possibility to ensure by own efforts the access to a decent life due to some economic, socio- cultural, biological or psychological conditions. The system of social assistance is an important instrument of redistribution of economic development results in the favour of vulnerable population groups. Social assistance represents a set of monetary non-contributive benefits (social provisions) or social services, applicable separately or jointly, to satisfy the needs of persons in risk situations. This chapter will analyse the existent system of monetary payments and social services from the perspective of their development, type, expenses and number of beneficiaries. As well, the consolidation trends in a unique system of social assistance, based on unique principles, methodologies, information systems, and criteria of beneficiaries’ selection will be presented.

4.1. Payments of social assistance

In the Republic of Moldova, the system of payments of social assistance includes 18 types expressed in: compensations, allocations, allowances and aids regulated by various legislative-normative documents, however, often insufficiently interconnected (due to a segmented treatment in the policies of social protection and external interventions). Eligibility for payments is determined mainly by the categorical principle, and the payments have a rewarding character. The eligibility mechanisms of examination of solicitors incomes (allowances for child care until 1,5/3 or until 16 years and material aids in the frame of RFPSS and the social aid) are applied only in case of three payments. The system of payments is broken down in 4 big groups according their material content: a) Universal payments – (i) unique allowance at child birth; (ii) monthly allowances for child care until 1,5 years; b) Unique or sporadic payments – (i) unique allowance at child birth; aid in case of death; (ii) compensations and annual allowances and (iii) humanitarian and material aids; c) Permanent payments – (i) nominative compensations; (ii) monthly allowances for child care from 1.5/3 years until la 16 years; (iii) allowances for adopted or guarded child; (iv) state monthly allowances; (v) state nominal allowances for special merits; (vi) allowances for care; (vii) state social allowances and (viii) social aid; d) Payments in kind – (i) material aids with money or goods (ii) humanitarian aids. The social assistance payments are divided in two groups according their character, with and without income testing. Approximately 95% of payments are paid from the state budget through SSIB and only an insignificant part – from the budgets of territorial administrative units.

4.1.1. State social allowances for some categories of citizens The Program of state social allowances was introduced in 1999 as a result of implementation of a new pension legislation based on insured risks and contributions which excluded social pensions established by the old legislation. State social allowances are established in the framework of legislative provisions of the Law of State Social Allowances for some categories of citizens22. According the Law, the social allowance is an amount of money paid monthly or just one time to persons that do not meet the conditions to be entitled to receive pension according the Law on state social insurance pensions from the state budget.

22 Law Nr.499-XIV from 14 .07.1999 with further modifications and amendments.

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Figure 4.1. Dynamics of average quantum of social allowances for 2000-2009 For children with disabilities, under 16/18 years, total For people with disabilities from childhood, total 300 300 250 250 200 200 150 150 100 100 50 50 0 0 2000 2003 2006 2009 2000 2003 2006 2009 nominal inflation adjusted nominal inflation adjusted

For people with disabilities, total In case of loss of breadwinner, total 100 140 120 80 100 60 80 40 60 40 20 20 0 0 2000 2003 2006 2009 2000 2003 2006 2009

nominal inflation adjusted nominal inflation adjusted

For elderly people Allowances for care 100 350 300 80 250 60 200

40 150 100 20 50

0 0 2000 2003 2006 2009 2002 2003 2006 2009

nominal inflation adjusted nominal inflation adjusted

Source: Authors calculations based on the NHSI and NBS data

Beneficiaries of social allowances are the following categories of citizens: • People with disabilities of I, II, and III degree (with ordinary disease, which do not have the necessary contribution period to get the disability pension); • Children with disabilities under 16 years, form I,II,III (the form set according Government Deci- sion nr.1065 from 11.11.1999 „On the approval of List of diseases and pathologic states which allow children under 16 years the right to get the status of child with disabilities and state social allowances according legislation”);

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• Persons with disabilities from childhood, forms I, II, III (persons with disabilities from childhood, which do not have the necessary contribution period for a disability pension, including children under 16 years); • Children who lost the breadwinner (is given to persons under 16 years, in case of pupil and students at higher or secondary education institutions, except education by correspondence – until the graduation of corresponding institution, but not exceeding 23 years; • Elderly people (set for persons of standard retirement age, but do not meet the requirements to get age pension). Social allowances are given with the condition that the beneficiary is not fully supported by the state. Since 2005, annually at 1 of April, the state social allowances, except the allowance for care and the aid in case of death, are indexed, according the average increase of Consumer Price Indices for the previous year, fact stipulated in article. 6, paragraph. (13) of the Law Nr.499-XIV in order to enhance social protection of the social strata, which represent the most vulnerable categories of population, and with the purpose to increase the material support, which currently, is still rather insignificant. For 2009, the indexation coefficient of social allowances was set at 12,7% Thus, the nominal average values of state social allowances were in continuous growth when the annual indexation was applied. In 2009 in comparison with 2006 (a complete calendar year from the application of indexation) all types of allowances increased approximately 1,4 times. However, in comparison with 2000, the most significant increase (approximately 4,4 times) was noticed for the allowances for children with disabilities and for the allowances for people with disabilities from childhood (approximately 4,7 times). The average increase varied for the other types of allowances from 1,7 times for allowances for people with disabilities to approximately 2,5 times for allowances for elderly people. Unfortunately, their real value is still very low despite the indexation of their nominal value. The following Table reflects the quantum of state social allowances during 2000-2009, with the calculated increases and indexations.

Table 4.1. Dynamics of number of beneficiaries of state social allowances, their quantum and monthly set amounts, 2000-2009 Nr. of beneficiaries, persons Monthly set amount, thou Lei Average quantum, Lei State social allowances 2000 2003 2006 2009 2000 2003 2006 2009 2000 2003 2006 2009 For children with disabilities under 16/18 years, 10361 13006 12628 15237 608.3 1171.4 2294.9 3957.7 58.71 90.07 181.73 259.74 total, of which degree I 3718 4618 4979 6162 241.5 460.5 996.0 1759.2 65.00 99.72 200.04 285.49 degree II 5161 6625 6379 7614 284.9 561.6 1083.3 1844.4 55.25 84.77 169.82 242.24 degree III 1482 1763 1270 1461 81.9 149.3 215.6 354.1 55.25 84.70 169.80 242.38 For people with disabilities from childhood, total, 4507 21080 23900 24160 244.2 1736.1 4019.8 6108.3 54.18 82.35 168.19 252.82 of which degree I 671 4757 5650 5833 43.6 455.5 1131.3 1666.1 65.00 95.75 200.23 285.63 degree II 3334 13810 14561 14283 184.3 1155.5 2476.1 3463.3 55.25 83.67 170.05 242.47 degree III 502 2513 3689 4044 16.3 125.1 412.4 978.9 32.50 49.79 111.78 242.06 For people with disabili- 660 1949 2715 4061 35.5 96.4 175.8 375.0 53.79 49.43 64.76 92.35 ties, total, of which degree I 95 263 342 481 6.2 16.6 27.9 56.0 65.00 62.96 81.69 116-49 degree II 482 1134 1721 2623 26.6 61.6 120.9 262.6 55.25 54.30 70.25 100.10 degree III 83 552 652 957 2.7 18.2 27.0 56.4 32.50 32.99 41.41 58.99

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Nr. of beneficiaries, persons Monthly set amount, thou Lei Average quantum, Lei State social allowances 2000 2003 2006 2009 2000 2003 2006 2009 2000 2003 2006 2009 In case of loss of bread- 493 2186 2794 3454 33.7 146.0 229.0 399.9 68.36 66.79 81.95 115.79 winner, total of which For one child 291 1270 1657 2395 14.2 62.2 102.1 210.1 48.75 49.00 61.58 87.71 For two and more 183 822 1009 902 17.8 73.2 108.6 158.5 97.20 89.05 107.60 175.72 children For one child, in case of loss of both breadwin- 19 67 89 117 1.9 6.6 10.9 20.5 97.50 98.00 123.11 175.64 ners For two and more children, in case of loss of - 12 22 19 - 2.3 5.1 6.7 - 187.83 229.71 351.62 both breadwinners For elderly people 63 4260 4144 3215 2.3 212.4 260.7 288.4 35.75 49.86 62.90 89.69 Source: NHSI

The number of beneficiaries and the costs connected to these payments were in continuous growth since the program of state social allowances was introduced. Thus, by 2009 the total number of beneficiaries of allowances increased 3,1 times in comparison with 2000, while the expenses for the payment of these allowances increased 12 times. (Figure 4.2)

Figure 4.2. Dynamics of number of beneficiaries of state social allowances and total monthly expenses for them

Number of allowances Thousand Lei

60000 12000 11129 50127 48312 50000 46181 47174 44159 45269 9580 42481 40000 8046 8000 6980 30000 23184 20084 4833 4201 20000 16084 4000 3362

10000 1323 924 1149 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Beneficiaries, persons Total monthly established, thousand Lei

Source: NHSI

The dynamics of the number of beneficiaries comprises two stages, the first during 2000-2004 when a spontaneous increase of 2,74 times was noticed, this is explained by the increase with 71 times of the number of beneficiaries from uninsured elderly people. Accordingly, the increase at first stage among other categories was not so significant and represented: (i) 4,4 times among beneficiaries of allowances who lost the breadwinner, (ii) 3,3 times among people with disabilities, (iii) 4,9 times among people with disabilities from childhood and (iv) 1,2 times among children with disabilities23. The second stage was during 2005-2009 characterised by a slower increase of number of beneficiaries, the general growth was 10,7%. Mainly, this growth was caused by the increase of 1,9 times of the

23 Analysis performed based on the NHSS and RSA materials for 2005

80 Annual Social Report 2009 number of beneficiaries among people with disabilities and of 1,3 times of the number of beneficiaries of allowances for the loss of breadwinner. It should be mentioned that the number of beneficiaries of these payments reduced 0,8 times, this is a proof of efficiency of state social insurance system coverage. (Figure 4.3)

Figure 4.3. Dynamics of number of beneficiaries of state social allowances, by categories and stages

0.8 Elderly persons 1.3 2009/2005 1.9 Loss of breadwinner 1.0 1.2 Persons with disabilities

70.8 Persons with disabilities from 4.4 childhood 2004/2000 3.3 4.9 Children with disabilities under 1.2 16/18 years

0.0 20.0 40.0 60.0 80.0 times

Source: NHSI, calculations of authors

In what concerning the dynamics of costs for the payment of state social allowances, similar to beneficiaries, it is divided in two periods: before and after indexation. Thus, during 2000-2004, the highest costs were registered for the payment of allowances for elderly people – approximately 96.9 times and the payment of allowances for persons with disabilities from childhood – approximately 9,3 times. The expenses for other categories of payments varied between 1,2 and 3,1 times. In the period after indexation, since 2005 and until 2009, the expenses for the payment of allowances were amortisated and varied by types of categories from 1,2 times to 2,9 times. (Figure 4.4)

Figure 4.4. Dynamics of monthly expenses for the payment of state social allowances, by stages

1.2 Elderly persons 2.1 2009/2005 2.6 0.2 Breadwinner loss 2.5 Persons with disabilities 96.9 4.8 2004/2000 3.1 Persons with disabilities from 9.3 childhood 2.3 Children with disabilities under 16/18 years 0.0 20.0 40.0 60.0 80.0 100.0 120.0 times

Source: NHSI, authors’ calculations

4.1.2. Allowances for care Since 2002, according provisions of the Chapter V of the Law nr. 499-XIV from 14.07.1999 on state social allowances for some categories of citizens, persons that take care of a person with I degree disability are entitled to monthly allowances for care. Initially, this allowance was given only to persons that took care of a child with disabilities of I degree, or persons with disabilities from childhood, however, later on the group of beneficiaries was completed with two more categories, and modifications to the basic leg-

81 Annual Social Report 2009 islation were made24. The purpose of this allowance is to prevent and decrease the risk of institutionalisation and keep the people with I degree disability in the family. Currently, the following persons benefit of the allowance for care: a) Persons that take care at home of a child with disabilities, I degree, under 16 years; b) Persons with disabilities from childhood, degree I, with the condition that these persons are supported completely by the state; c) Persons with disabilities of I degree, blind – for company and home care; d) Persons with disabilities of I degree, bedridden, which suffered after Cernobyl accident (allowance set by Law nr.909-XII from 30.01.1992). The number of beneficiaries was in continuous growth since these allowances were introduced, by 2009, the total number represented 15703 persons, what is a growth of 96,1% in comparison with 2002. The most significant increase was registered for the beneficiaries that take care at home of a child with disability I degree, this increase was of 7,8% in comparison with 2008, and 51,2% in comparison with 2002. Simultaneously, the number of beneficiaries among persons with disabilities, I degree blind increased with 1,9% in comparison with 2008, and 373 times in comparison with 2005 (when they were included in the system). In what concerning number of beneficiaries that took care of persons with disabilities from childhood, it registered an increase of 28,5% in comparison with 2002 and a slight decrease of 0,8% in comparison to the previous year.

Table 4.2. Dynamics of number of beneficiaries of allowances for care, 2002-2009 Persons which take care at home of: 2002 2003 2004 2005 2006 2007 2008 2009 Child with disability under 16/18 years, 4017 4353 4640 4806 4807 4993 5637 6074 I degree Persons with disabilities from childhood, 3991 4380 4738 5052 4860 5110 5169 5127 I degree Persons with disabilities, I degree, blind - - 12 3371 4037 4239 4397 4479 Persons with disabilities, I degree, bedridden - - - 22 23 23 25 23 that suffered of the Cernobyl accident Total 8008 8733 9390 13251 13727 14365 15228 15703 Source: NHSI

The allowance for care represent a fixed amount and is not indexated, its size is adjusted by law. In 2008, the allowance for care increased 20% in comparison with 200725.

Table 4.3. Dynamics of expenses for the payment of allowance for care Monthly amount, thousand Lei Beneficiaries 2009/2008 2008 2009 Persons which take care at home of child with disability 1687.9 1821.6 7.9 under 16/18 years, degree I Persons with disabilities from childhood, I degree 1550.4 1538.6 -0.8 Persons with disabilities, I degree, blind 1318.9 1343.6 1.9 Persons with disabilities, I degree, bedridden that suffered 7.5 6.9 -8.0 of the Cernobyl accident Total 4564.7 4710.7 3.2 Source: NHSI

24 Law nr.45-XIV from 03.03.2006, for the modification and amendment of the Law nr. 499-XIV from 14.07.1999 on state social allowances for some categories of citizens. 25 Law Nr.154-XVI from 04.07.2008 for the modification and amendment of some legislative documents.

82 Annual Social Report 2009

It should be mentioned that during 2002-2009, the allowance amount increased 4,6 times. (Figure 4.5). In 2009, the quantum of allowances for care did not increase and remained at the level of previous year, however, the monthly expense for the payment of this allowance increased 3,2%. (Table 4.3)

Figure 4.5. Dynamics of quantum of allowance for care, 2002-2009

lei 350 300 300 300 250 250 200 150 115 124 124 100 100 65 50 0 2002 2003 2004 2005 2006 2007 2008 2009

Source: MLSPF

4.1.3. Allowance in case of death The death allowance is set by the Law nr. 499-XIV from 14.07.1999 on state social allowances for some categories of citizens. The death allowance is given in case of death of an uninsured person with the condition that none of the family members is entitled to death aid from the public system or of social insurance for deceased person. Uninsured person benefit of the right for death allowances for a family member financially supported by him, in case when the deceased person is not entitled to death aid from the public system of social insurance, as well, in the case when none of the family members are entitled to death aid from the public system of social insurance for the deceased person. The death allowance is given once to a person that can be by case family member, guardian, curator or, any person that can prove to bear the expenses connected to the funerals. In 2009,, the death allowance represented 700 Lei.

Table 4.4. Death allowance for uninsured persons for 2009 Number of Allowance quantum, Annual amount,

beneficiaries Lei thousand Lei Death aid for uninsured 3455 700 2416,3 persons Source: NHSI

4.1.4. Nominative compensations The program of nominative compensations for population was introduced for the amortisation of effects of costs increase on heating, electricity and facilities26 in 1999. The researches organised during a decade since the implementation of this program, proved its inefficiency, both, from the perspective of costs which constitute approximately 40% from the state budget for social assistance 27, annually, and from the viewpoint of weak targeting to poor groups, thus generating over inclusion or over exclusion errors. Mainly, this situation is caused by categorical treatment of eligibility and low quantum of these

26 Law Nr.933-XIV from 14.04. 2000 on special social protection of some categories of population 27 Authors calculations based on the data of NHSS for 2009

83 Annual Social Report 2009 payments. It should be mentioned that according legal provisions28, 11 categories benefit of these payments. However, from a retrospective point of view of their development, we can conclude that during years three categories evolved to 14 subcategories. According the provisions of the Law nr. 933-XIV from 14.04.2000 on special social protection of some categories of population, the nominative compensations are monetary payments instead of facilities established before. The quantum of nominative compensations is determined according the nominative cost of services provided to a person, according rules. By their character, the nominative compensations are divided in: – Compensations, of 25% and 50%, according beneficiary category; – Annual compensations to purchase coal and firewood for the cold period, in 2008, their size were of 750 Lei and 125 Lei accordingly. In 2009, the number of beneficiaries of compensations represented approximately 258 thousand persons, with 1,3% more in comparison with the previous year, it increased however 5,8% in comparison with 2000. The highest number of compensations was registered in the first 4 years from program implementation, this number varied from 54570 in 2001 to 37707 in 2004. Since 2005, the increase of number of beneficiaries of compensations was slower; this number varied annually around 20 thousand persons. As a result, it is supposed that the number of beneficiaries will decrease inversely once the right to perform these payments will be suspended at 1st of January 2010.

Figure 4.6. Dynamics of increase of number of beneficiaries of nominative compensations and expenses for their payment

nr. benef thounsand lei 300,000 500,000 450,000 250,000 400,000 350,000 200,000 300,000 150,000 250,000 200,000 100,000 150,000 100,000 50,000 50,000 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Number of beneficiaries, of which New beneficiaries De facto expenses

Source: NHSI

Annually, the expenses connected with the payment of these compensations increased in parallel with the increase of number of beneficiaries. Thus, in 2009, the expenses represented 368734,4 thousand Lei, with 10,1% more in comparison with the previous years, and almost 4 times more in comparison with 2000, the year when this program began. The nominal increase of the average quantum of nominative compensation represented 8,9% in comparison with 2008, and a double increase was registered in comparison with 2000. (Table 4.5.)

28 Government Decision nr.761 from 31.07.2000 „On the nominative compensations for some categories of population”, which represent the implementation mechanism of the Law on nominative compensations.

84 Annual Social Report 2009

Table 4.5. Dynamics of expenses and average sizes of nominative compensations by categories 2000 2003 2006 2009 Total cal- Total cal- Total cal- Total cal- Average Average Average Average Categories of beneficiaries culated, culated, culated, culated, size, size, size, size, thousand thousand thousand thousand Lei Lei Lei Lei Lei Lei Lei Lei People with disabilities, I 6,393.4 63 16,604.0 84 18,034.4 101 31,348.1 173 degree People with disabilities, II 27,140.9 55 49,407.7 54 66,594.3 89 115,334.5 152 degree People with disabilities, III 3,049.2 55 8,704.1 53 11,208.5 66 21,948.0 104 degree Children under 18 years 3,654.9 66 10,190.9 83 12,719.5 94 25,611.8 162 People with disabilities from 7,955.8 70 20,094.0 79 30,609.4 85 52,288.3 135 childhood Participants in the WWII and 15,277.0 60 37,157.4 73 33,352.5 95 34,699.3 143 their wives Persons similar to war 3,850.3 58 8,776.6 50 541.9 98 1,108.0 158 participants The families of those fallen and dead in the result of work 422.4 52 819.4 83 870.7 100 1,339.3 162 at NPS Cernobyl Participants at armed activities in Afghanistan and 9,071.5 99 15,252.8 168 on the territory of other states Solitary pensioners 14,080.8 62 23,138.9 54 25,723.3 66 31,199.0 97 Families with 4 and more 7,355.0 82 10,854.8 75 9,741.2 90 12,722.9 147 children under 18 years Persons who during the WWII 753.6 52 1,057.3 97 950.9 150 worked behind the lines Persons who were in Leningrad during the 0.3 50 33.3 50 71.3 98 104.4 142 blockade Participants in armed activities to fight for territorial 14,088.1 67 24,827.3 108 integrity of the Republic of Moldova Total 89,180.0 61 186,534.7 65 233,683.9 77 368,734.6 122 Source: NHSI

If we analyse the share of beneficiaries of compensations by categories, we can notice that the most significant part is represented by the people with disabilities II degree, which represented approximately 36,2% in 2009, with 14,4% in increase in comparison to 2000. The following three significant groups of beneficiaries are: (i) people with disabilities from childhood – 12,2%; (ii) solitary pensioners – 10,6% and (iii) participants in the fights for territorial integrity of the Republic of Moldova – 7,8%. The other categories have a share that varies in insignificant decimals of percent units. (Figure 4.7)

85 Annual Social Report 2009

Figure 4.7. The share of beneficiaries of nominative compensations by categories

100% 6.1 4.8 7.3 7.8 90% 3.5 2.8 15.6 14.8 12.6 10.6 80% 3.6 4.6 3.1 3.0 70% 7.7 16.8 11.5 17.3 60% 12.2 11.6 7.8 10.2 5.5 50% 3.8 4.5 4.4 7.2 3.8 4.8 5.7 40%

30% 33.6 32.6 33.6 36.2 20%

10% 7.0 7.0 5.9 6.2 0% 2000 2003 2006 2009

Participants in military actions for the defence of RM territorial integrity Persons that were in Leningrad during the blockade Persons that worked behind the lines during the WWII Families with 4 and more children under 18 years Solitary pensioners Participants in armed conflicts in Afghanistan and on the territory of other states Families of those deceased after the NP Cernobyl accident Persons similar to war participants WWII participants and their spouses Persons with disabilities from childhood Children with disabilities under 18 years Persons with disabilities III degree Persons with disabilities II degree Persons with disabilities I degree

Source: NHSI

It should be mentioned that one of the main roles of the social assistance system is to diminish the poverty risk (the primary precondition that generates multiple deprivation and social exclusion) and to absorb the effects of economic crisis. Even the 2009 year can be characterised by a controversial situation, when two financial support programs functioned in the frame of the same system: nominative compensations and „Social aid”29 – payment for poverty, introduced in the last quarter of 2008, and applied in 3 stages. In fact, this situation was qualified as transition period, what presumed the freeze of increase of nominative compensations quantum and the gradual transition to „social aid”. Thus, the Law nr. 135-XVIII from 29.12.2009 introduced modifications and amendments to the Law nr. 933-XIV from 14.04.2000 on special social protection on some categories of population, and stipulates the right to nominative compensations for the categories of persons entitled with this right by 31.12.2009, persons should have benefited of corresponding payments until their expiry according legislation, following the procedure approved by the Government. Since 1st of January 2010, the nominative compensation won’t be established anymore (new beneficiaries won’t enter the system).

4.1.5. State monthly allowances Currently, the state monthly allowances are set according the provisions of the Law nr.121-XV from 3.05.2001 on additional social protection of people with disabilities from war, participants at the WWII and their families. The above-mentioned allowances have a rewarding character from the state for the contribution during the WWII, as well, during the events for the country independency and integrity defence. It should be mentioned, as well, that the number of beneficiaries and paid amounts reduced due to annual natural decrease. In 2009, 12489 persons benefited of monthly allowances, 11,2% less in comparison with the previous year and 29,5% less in comparison with 2001 (when this type of payments was introduced). (Figure 4.8)

29 Law Nr.133-XVI from 13.06.2008, on Social Aid

86 Annual Social Report 2009

In what concerning the expenses for the pay- Figure 4.8. Dynamics of number of beneficiaries of state ment of state monthly allowances they reduced monthly allowances, 2001-2009 11,1% in comparison with the previous year, 30000 however increased 1,8 times in comparison with 2001. 25000 It should be mentioned that despite the fact 20000 that the number of beneficiaries and the expenses for these payments are decreasing, the state 15000 monthly allowances are considered one of the most expensive social programs after nominative 10000 compensations. In major terms, this situation can 5000 be explained by the quite significant quantum of these payments in comparison with other social 0 payments. 2001 2002 2003 2004 2005 2006 2007 2008 2009

Number of beneficiaries Source: NHSI

Table 4.6. Number of beneficiaries and expenses for the payment of state social monthly allowances, 2008 – 2009

Allow- Number of benefi- Annual expenses, Categories of beneficiaries ance ciaries, persons thousand Lei size, Lei 2008 2009 2008 2009 People with disabilities from war: degree I 600 506 486 3675,4 3 538,3 degree II 450 3126 2 947 17643,2 16 464,1 degree III 375 474 463 2223,3 2 187,1 Participants at war and ex-political prisoners 300 5052 4 209 20013,0 16 343,7 Persons decorated with orders and medals 75 1115 945 1090,3 952,1 Persons who were in Leningrad during the blockade 300 68 63 260,8 240,0 Wives of surviving participants, unable to work, of WWII participants 150 3382 3 018 6405,1 5 793,1 Children of WWII participants, or participants of military actions in peace time, soldiers died on duty, participants at the liquidation of 150 80 78 221,7 186,0 consequences of Cernobyl accident One of the parents, unable to work, of participants at military actions during peace, at the defence of territorial integrity and inde- 150 267 280 567,1 621,9 pendence of the Republic of Moldova, at liquidation of Cernobyl consequences, deceased Total 14070 12 489 52099,9 46 326,3 Source: NHSI

4.1.6. Compensations to participants at the liquidation of consequences of Cernobyl accident The Law on social protection of citizens who suffered from the Cernobyl accident, nr. 909-XII from 30.01.1992 was adopted with the purpose to protect the rights and interests of citizens of the Republic of Moldova who were affected by the Cernobyl accident and those who participated at the liquidation of its consequences in the disposal area. The above-mentioned category of persons benefit of pensions

87 Annual Social Report 2009 and various social payments, such as the compensations instead of tickets for balneo-sanatorial recovery, unique compensation for the damaged health, unique material aid for recovery, monthly allowance for care etc. Thus, according the provision of the Law nr. 909-XII from 30.01.1992, the persons who got sick and suffered of actinic disease and people with disabilities are entitled to annual insurance, beyond the queue, with free tickets (in case of medical prescription) to balneo-sanatorial institutions situated on the territory of the country, as well, to the sanatoriums situated on the territory of Ukraine: “Moldova” (Odesa), “Moldova” (Truskavet), “Sanatatea”, “Serghei Lazo” and “Zolotaia niva” (Sergheevka), in case of impossibility to get the tickets, to receive a monetary compensation equivalent to the average ticket cost. Children born after 26 of April 1986 until 18 years, with a parent who suffered from Cernobyl accident, as well, children evacuated from the disposal area benefit (according art.13) of the same facilities (free ticket or monetary compensation). Based on the article 9 paragraph (1) of the above-mentioned Law, the people with disabilities among citizens who suffered from Cernobyl accident are entitled to a unique compensation equal to an average salary in economy in the country, for the month preceding the month of request for compensation, for every percent of loss of professional work capacity. This compensation is paid to all people with disabilities irrespective the date of disability confirmation. The amount calculated for every beneficiary is paid during 4 years, in shares, 25 % annually. The compensation set and not paid due to beneficiary death is paid to spouse, children, or his parents, for the corresponding year. According article 9 paragraph (2), the people with disabilities are entitled to receive annually a unique material aid for recovery equal to two average salaries in the country, calculated for the previous year. The participants at the liquidation of consequences of Cernobyl accident during 1986-1987 and during 1988-1990 benefit of a unique material aid for recovery equal to one average salary or 50% accordingly, of an average monthly salary in economy for the previous year. The people with disabilities of I degree, bedridden, are entitled to monthly allowance for care, equal to 300 Lei. Simultaneously, the families that lost their financial supporters in the result of Cernobyl accident are entitled to a unique compensation equal to 15 average salaries in the country, calculated for the previous year. This compensation is paid irrespective the date of death of breadwinner. Types of social allowances, amounts and expenses, as well the number of beneficiaries is presented in the following table:

Table 4.7. Payments to participants at the liquidation of consequences of Cernobyl accident, 2008 -2009

Total calculated, Number Average quantum, Types of compensations thousand Lei of beneficiaries Lei 2008 2009 2008 2009 2008 2009 1. Compensations instead of tickets for balneo – sanatorial recovery: People with disabilities and participants 8173,1 7761,6 1920 1617 4256,80 4800,00 Children born 4-7 years after 1986 135,4 384,0 69 120 1961,70 3200,00 Children born 7-14 years after 1986 1393,4 2753,4 355 706 3925,20 3900,00 Children born 14-18 years after 1986 3020,1 5721,6 697 1192 4332,90 4800,00 2. Annual material aid for recovery of: People with disabilities 9045,6 11100,3 2189 2194 4132,00 5059,40 Participants of 1986-1987 226,6 108 106 194,9 1804,50 2137,76 Participants of 1988-1990 3. Unique compensation to people with disabilities 2804,6 3789,3 119 115 23568,10 30341,94 for the damaged health 4. Unique compensation at the loss of breadwinner 730,1 1151,5 26 33 28079,20 34894-31 5. Unique material aid to children at the loss of 10,4 7,2 29 20 360,00 360,00 breadwinner

88 Annual Social Report 2009

Total calculated, Number Average quantum, Types of compensations thousand Lei of beneficiaries Lei 2008 2009 2008 2009 2008 2009 6. Additional vacation (leave) 146,1 165,7 85 91 1718,60 1820,43 7. Annual provision of recovery tickets 1656,1 329 5033,70 8. Disability pension, total 35283,1 3242,9 2068 614 1421,79 5281,60 gr. I 6263,6 28,9 290 5 1799,88 5780,00 gr. II 28608,5 3473,4 1741 2041 1369,35 1701,82 gr. III 411,1 616,3 37 286 925,81 2154,81 9. Old age pension 264,6 2819,4 23 1721 958,60 1638,26 10. Pension in case of loss of breadwinner 834,0 37,7 77 34 902,63 1108,44 including: 1 survivor 653,4 24,8 64 24 850,81 1032,58 2 survivor 134,7 68,7 10 71 1122,50 967,74 3 survivor 45,9 56,8 3 63 1275,00 901,73 Source: NHSI

4.1.7. Compensations instead of treatment tickets for people with disabilities from war According the Law nr. 190-XV from 8.05.2003 on veterans, the people with disabilities form war are entitled to free tickets of sanatorial recovery one time per year in the rehabilitation centres of the Ministry of Social Protection, Family and Child and other institutions of this type, at choice, instead of recovery tickets, a monetary compensation once in two years, in conditions approved by the Government. Thus, the method and setting of payment conditions of above-mentioned compensation were approved according the Government Decision nr. 868 from 28.07.2004 “On the approval of Regulation for setting and payment of monetary compensation instead of free sanatorial recovery tickets to people with disabilities from war”. The dynamics of compensations instead of recovery tickets during 2007-2009 is presented in the following table:

Table 4.8. Compensation instead of treatment tickets to people with disabilities from was, 2007-2009 Average amount, Number of beneficiaries, Total calculated, Category Lei persons thousand Lei 2007 2008 2009 2007 2008 2009 2007 2008 2009 People with disabilities from war Compensations paid from the 3142,59 3482,80 4200,00 81 58 385 254,6 202.0 1617,0 state budget Compensations paid from 3145,32 3456,64 4200,00 1443 113 698 4538,7 390.6 2926,7 State Social Insurance Budget Source: NHSI

4.1.8. State nominal monthly allowance Until 2003, the nominal monthly allowances were specified by various Government Decisions, and this created an uncertain situation from the viewpoint of beneficiaries’ coverage. This fact was an argu- ment for the unification of system of compensations in a unique legal framework. The state nominal monthly allowance for persons with special merits was established according the chapter IV of the Law on Veterans, nr.190-XV from 8.05.2003. The following categories of beneficiaries are entitled to established pensions according legislation: a) persons decorated with state distinctions based on the Law nr.1123-XII from 30.07.1992 on the state distinctions of the Republic of Moldova;

89 Annual Social Report 2009

b) persons decorated with state distinctions of ex-U.R.S.S. equivalent with state distinctions of the Republic of Moldova by the Parliament Decision nr. 533-XIII from 13.07.1995 on the rights of citizens of the Republic of Moldova decorated with state distinctions of ex Soviet Union; c) other persons, at the proposal of Commission of examination of requests for state nominal allowances. The nominal allowance is set in the following quantum: a) persons with honorific titles and decorated with medals – 25 lei; b) persons decorated with orders, except persons decorated with the orders “Order of Republic”, “Stefan cel Mare” and “Labour Glory” of I, II and III classes, and persons with the title of Hero of Socialist Work – 50 Lei; c) persons given honorific titles, those decorated with medals and orders – 50 Lei; d) persons decorated with orders “Orders of Republic”, “Stefan cel Mare” and “Labour Glory” I, II and III classes and persons with the title of Hero of Socialist Work – 500 Lei. The establishment and payment procedure of state nominal allowances is regulated by the corresponding Regulation approved by the Government Decision nr. 1413 from 27.11.2003.

Table 4.9. State nominal allowances for special merits for the state, 2008-2009 Allowance size, Number of beneficia- Total calculated, Category of beneficiaries Lei ries, persons thousand Lei 2008 2009 2008 2009 2008 2009 Holders of honorific titles or medals 25,00 25,00 7594 7540 189,9 2175,0 Holders of orders or honorific titles, and medals 50,00 50,00/54,00 16267 15161 813,7 9199,2 Persons decorated with the orders „Order of the Republic”, „Stefan cel Mare”, „Labour Glory” I, II 500,00 500,00 167 184 83,5 1004,7 and III classes and the holders of title Hero of Socialist Work Total 24028 22885 1087,1 12378,9 Source: NHSI

Similar to the case of state monthly allowances, the number of beneficiaries of state nominal allowances is decreasing. The explanation could be the natural decrease of beneficiaries, and the reduction of awarding model of these state distinctions (Figure 4.9.)

Figure 4.9. Dynamics of number of beneficiaries of state nominal monthly allowances, 2004-2009

Dynamics of number of beneficiaries of state nominal monthly allowances

30000 29108 27410 27694 26520 25000 24028 22885

20000

15000 Dynamics of number of beneficiaries of state nominal monthly allowances 10000

5000

0 123456 2004 2005 2006 2007 2008 200 9

90 Annual Social Report 2009

4.1.9. Social aid The Parliament adopted the Law on Social Aid, nr. 133-XVI from 13.06.2008, with the purpose to ensure a minimum monthly income to vulnerable families by paying a social aid, established according the assessment of monthly average global income of the family and the necessary social insurance in order to make more efficient the system of social payments and their targeting to the poorest persons. The Regulation on the establishment and payment procedure of social aid (by Government Decision nr. 1167 from 16.10.2008) was approved for the application of the Law. According provision of the Law (art. 5) the vulnerable families benefit of social aid, in case when the global income is lower than the insured minimum income and, simultaneously, all adult members of this family correspond to at least one of the following situations: a) Have the age requested for establishing a pension according legislation; b) are persons with various disability degrees; c) are unemployed registered at the territorial employment agency; d) take care of a child under 3 years; e) take care of a family member(s) with the I disability degree, which needs care according the decision of Council of Vitality Medical Expertise, take care of a child/children with disabilities from the same family or take care of a person over 75 years from the same family, according the decision of Medical consultative council. The families and their members who have incomes as employees with the condition that other adult family members correspond to one of the above-mentioned situations are eligible as well. The monthly quantum of the social aid is set as a difference between the minimum guaranteed income and the family global income. The minimum guaranteed monthly income represents the sum of all quanta of minimum guaranteed monthly incomes set for every members, as follows: a) 100% of the minimum guaranteed monthly income for the solicitor; b) 70% of the minimum guaranteed monthly income for every other adult family member; c) 50% of the minimum guaranteed monthly income for every child; d) plus 30% of the minimum guaranteed monthly income for every adult family member with a disability degree; e) plus 50% of the minimum guaranteed monthly income for every child with disabilities; f) plus 10% of the minimum guaranteed monthly income if the person with a disability degree is the only adult in the family. The Government initiated an ambitious reform of the system of social assistance meaning the gradual transfer from the system of nominative compensations, based on categories of persons to a system of monetary poverty payments for families – social aid, by the adoption of the Law on Social aid. The Law represent the political framework in this area, and plan to provide a payment to poor families, whose average monthly global income is lower than the guaranteed minimum income, by applying a new targeting mechanism of this allowance. The process of implementation of new legal framework was broken in 3 stages: (i) for families with members with disabilities – since 1 of October 2008; (ii) for families with children – since 1 of January 2009; (iii) for other families – since 1 of July 2009. The mechanism of social aid targeting is constructed on three basic elements: the payment, the income difference and welfare characteristics (proxy test). The social aid payment is given to households, recognising the fact that the poverty depend not only on the income of one person, but on the incomes of other family members, as well, on the family size and characteristics of its members. Thus, the amount of payment varies according the number of family members (adult equivalent). The eligibility and the size of social aid constitute the difference between the monthly family income and the Minimum Granted Monthly Income (MGMI). MGMI is set every year in the Law of State Budget. Its level should be sufficient to have a real effect on the family living conditions and taking into account the parallel functioning of the system of nominative compensations, also, to be high enough to attract the interest in the system of social aid.

91 Annual Social Report 2009

In 2008, MGMI was based on an underestimated inflation level and was fixed at 430 Lei. This did not change until 2009. The household income is calculated based on the sum of different incomes earned by all family members, including the income from agriculture, determined according Government Decision nr. 514 from 10.05.2007 which adopted the Regulation on calculation of quantum of normalised net income, earned by population households (farms) and auxiliary households involved in plant and animal production. In the context of use of assessment indicators of incomes from agricultural activity, it was identified that many solicitors are vulnerable from the viewpoint of physical capacity as aged persons, persons with disabilities, children, and despite the fact that they own agricultural lands, they cannot be processed, and accordingly, cannot earn incomes. The Regulation on the establishment and payment procedure of social aid was completed with one point that specifies that the agricultural income should be ignored in case of families with persons unable to work (persons of over 75 years, persons with disabilities and children) in order to support these persons. Taking into account the fact that the real income can be hidden (in special, from remittances and occasional activities), the welfare characteristics expressed in points – proxy system – can be very useful in identifying non-poor families and to eliminate the inclusion errors. Proxy list is based on the data of household budget survey (HBS) for the last three years. The new system of social payments is based on an absolutely new treatment, and the social assistants play a special role here. The new treatment involves a developed network of social assistants, which should assist the solicitor in filling in the request and to give information on the necessary documents. Social assistants receive the requests in the community where solicitors live and handle them to Direc- tions/Sections of social assistance and family protection (D/SASPF) for automated processing (using a specially developed program in this purpose). As well, social assistants should visit the soliciting families in order to verify their declarations. Every solicitor receive a letter from D/SASPF which informs on the decision taken as regards to the request, and in case of a positive answer, the amount to be received by the family, the period of decision validity and the date when a repeated request can be presented are mentioned. During 2009, approximately 31500 families benefited of at least one social aid payment of over 114,5 mio. Lei calculated for them, and 85% of these amounts were given to families from rural area. In the same time, 9 of 10 families had at least one child. Although, in 2009, 62167 requests of social aid were registered, 53378 solicitors from rural area and 8789 from urban area, only 70,4% were decided to receive social aid. Table 4.12. presents the situation of requests, after their electronic processing, in the aspect how many requests were presented to a certain date and how many of them are decided positive, indicating the reason to negative requests. A positive trend is registered and indicates the increase of positive requests percentage and a decrease of incomplete or contradictory requests. The basic reason for a negative decision is a income higher than MGMI, while both, proxy and the article 5 (eligibility conditions.

Table 4.10. Distribution of social aid requests Quarter Quarter Quarter Quarter Quarter Total 4 2008 1 2009 2 2009 3 2009 4 2009 Percent of positive request 17.6% 59.7% 71.4% 76.0% 80.7% 61.1% Percent of negative requests --- income>MGMI 71.3% 32.4% 20.9% 16.8% 13.3% 30.9% Percent of negative requests --- income

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Simultaneously, the Table 4.11. shows the tendencies of social aid average amount cumulated in 2009, by households of rural and urban area.

Table 4.11. Average amount of social aid per household, Lei Rural Urban Total 1 2009 473.37 377.11 448.58 2 2009 567.87 479.67 552.29 3 2009 604.12 514.90 589.13 4 2009 618.09 523.80 603.31 5 2009 623.82 532.03 609.91 6 2009 629.90 538.95 616.70 7 2009 629.88 540.94 617.18 8 2009 631.95 538.96 618.75 9 2009 629.76 544.46 617.28 10 2009 627.23 554.72 616.33 11 2009 628.54 559.41 618.11 12 2009 630.62 560.63 620.24 Source: MLSPF

It should be mentioned that the traditional beneficiaries of previous programs of social protection succeeded to request the new payment, while the households with no previous contacts with social assistance haven’t been involved or were involved very little. The average monthly size of this payment is higher than the average planned for all eligible households due to the profile of solicitors (mainly, big families in a difficult situation, which are entitled to big amounts). While the HBS estimated the average payment at 400 Lei, the average amount paid every month represented approximately 610 Lei in rural localities and approximately 520 Lei – in urban. The following table reflect the information on the amount transferred for the payment of social aid from the National House of Social Insurance for 2009.

Table 4.12. Amount transferred for the payment of social aid, 2009 Month of payment Calculated amount (thousand Lei) January 145,1 February 962,0 March 4868,8 April 8938,7 May 10976,2 June 12942,9 July 12793,6 August 12715,8 September 12313,2 October 12299,8 November 12798,8 December 12883,4 Source: NHSI

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4.1.10. Material aids One of the basic components of the integrated system of social assistance is the Republican Fund and local funds of social support of population, which provide material aid to vulnerable persons, affected by poverty or in difficult conditions due to sickness in result of some exceptional situations. The activity of these public institutions is regulated by the Law on Republican Fund and the local funds of population social support nr. 827- XIV from 18.02.2000 and the government Decision nr. 1083 from 26.10.2000 on the implementation of this law. The implementation of legislative and normative framework mentioned in the activity of funds gave possibility to complete it with means obtained from the transfers of mobile operators, allowances from the budgets of territorial administrative units, transfers from currency exchange points and of the Minis- try of Information Technologies and Communications. In 2009, 123896,8 thousand Lei were collected, and for the first time in 10 years it was in decrease. According current legislation, the above-mentioned means were used mainly to provide nominative material aids to vulnerable persons with highest poverty incidence from the funds of population social support. The distribution of material aids can be followed in the table below:

Table 4.13. Number of material aids and amounts given to solicitors, 2009 Amount Average Nr. Nr. of Nr. of ben- Categories of beneficiaries of material aids (thousand size, d/o aids eficiaries Lei) Lei Pensioners – total, including: 195124 193647 64142,1 328,72 a) persons that benefit of disability social allowances and pensions 101860 100647 31978,0 313,94 b) single pensioners, beneficiaries of compensations for the payment of 12380 12236 4753,1 383,93 1. facilities c) aged persons over 75 years and not included in b); total, 53661 53574 15533,15 289,47 including: of 100 complete years and over 67 67 335,0 5000,0 d) other pensioners not included in a); b) and c) 27222 27189 11872,85 436,15 Persons unable to work – total, including: 5280 5277 3403,3 644,56 a) not included in the labour market due to long sickness before disability 2799 2796 1687,5 602,89 2. b) in situation of extreme poverty and with no living subsistence source, 2481 2481 1715,8 691,58 including with asocial behaviour (homeless people etc.) Families with children – total, including: 65150 62314 21922,52 336,49 a) with 4 and more children, benefit of compensation to pay the dwelling 16875 15873 4831,6 286,32 facilities; b) with children with disabilities; 14504 13139 4320,5 297,88 3. c) with one parent (monoparental); 12987 12896 4537,85 349,41 d) with guardianship on orphans, non-institutionalised, 3577 3212 1354,3 378,61 under 18 years e) other families with low incomes, not included in a); b); c) and d) 17207 17194 6878,27 399,74 Other persons (not included in 1; 2 and 3) which are in exceptional situations and cannot outrun them independently (serious sickness, 25072 25050 13287,55 529,98 natural calamities, disasters, accidents, military conflicts, ecologic cataclysms, fires, epidemics, funeral of relatives etc.) – total, including: a) job seeking persons (unemployed); 1652 1647 1135,4 687,29 4. b) persons with special merits to the state (participants in military conflicts and liquidation of consequences of ecologic cataclysms, persons with valu- 13918 13912 5682,8 408,31 able contribution in work etc.); c) persons released from penitentiaries, teenagers (16-18 years), young families, students and other persons with low incomes who need the state 9502 9491 6469,35 680,84 social support TOTAL: 290626 286288 102755,47 353,57 Source: RFPSS

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Approximately 63% of the means distributed for material aids were used to satisfy the requests of improvement of material situation, the remaining part – for partial payment of medical services, purchase of medicines and other similar needs. In 2009, 11556,5 thousand Lei of the republican fund were used supplementary to provide 27996 material aids to beneficiaries (9332 persons) through the National House of Social Insurance, state monthly allowances stated by the Law nr.121-XV from 03.05.2001 „On the additional social protection of some categories of population”. Thus, during the reference period, 114312,0 thousand Lei were used to provide 318622 material aids to needy persons, with the average amount of 358,76 Lei, from the republican and local funds of social support.

Figure 4.10. Dynamics of the average number of material aids provided during 2001-2008, Lei lei 500

400 398,1 358,8 319,2 300 282,6 200 203,4 152,5 100 99,6 66,4 37,8 0 2001 2002 2003 2004 2005 2006 2007 2008 2009

Aids quantum

Source: RFPSS

The republican fund means through the local funds contributed to implementation of special destination programs for various categories of socially vulnerable persons. The following categories benefited of unique financial aids: – WWII participants, their wives (husbands) to 9 May – in amount of 4983,5 thousand Lei; – Poor families with children to 1 June, the International Child day – in amount of 4000,0 thousand Lei; – Poor families with children for schooling (at 1 September) – in amount of 5000,0 thousand Lei; – Aged persons to the International Day of Aged People (1 October) – in amount of 4000,0 thousand Lei; – People with disabilities to the International Day of People with Disabilities (3 December) – in amount of 12500,0 thousand Lei. In total, 30483,5 thousand Lei were transferred by the local funds with “special destination”. As well, during the reference period, the republican fund performed transfers to local funds (subven- tions) in the total amount of 27850,2 thousand Lei; these means were used for the current material aid of solicitors, subventionning of social aid canteens, provision of unique material aids in quantum of 1000 Lei to people with disabilities and families of Afghanistan war participants, and 500 Lei to people with disabilities, families of participants at the military conflict in Transnistria and to participants at the liquidation of consequences of nuclear accident from Cernobyl. 67 persons aged 100 years and over benefited of unique material aids in amount of 5000 Lei. Directly from the Republican Fund, 1672 material aids in amount of 4500,0 thousand Lei were provided to needy persons, of which 77 persons benefited of the compensation of 1205,8 thousand Lei for the transport of bodies of their relatives dead abroad.

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Population social support funds subventioned 65 canteens of special aid, which provided free lunches to aged persons or people with disabilities, 2537,2 thousand Lei were used for this purpose. During the reference period, community commissions for the assessment of needs to provide material aids were created by the mayoralties, which gave the possibility to target correctly the material aids to the poorest persons. The practice of financial support of vulnerable persons and families reveal the fact that grace to improvement of state material support mechanism, the social aid of poor persons became more accessible and consistent, thus, the direct implication of local public administration authorities increased in the corresponding activities of social support of needy persons.

4.2. Impact of social payments on poverty and social exclusion

4.2.1. Disposable income and social payments Essentially, the social protection policies intend Figure 4.11. Total disposable income, monthly averages per person, Lei to develop and maintain a social insurance system for the persons which cannot or are unable to pro- 1600 100% duce enough income for subsistence. The set of so- 1400 90% cial guarantees offered by the current system of so- 1200 cial protection is expressed in social payments and 1000 80% services, with the purpose of both, to cover the in- 800 72.3% 72.6% sured social risks, and, through the social assistance 600 70% 67.5% 65.8% system to intervene for the prevention or outrun- 400 60% ning of some risk situations that lead to poverty and 200 social exclusion. 0 50% The researches in the field of poverty come to 2006 2007 2008 2009 reveal that the most vulnerable part of population urban rural of the Republic of Moldova, which require the state Average rural income rated to urban support in a way or another are the persons living in Source: NBS, HBS rural area30. It is to be mentioned that in 2009, the disposable income per person in rural area represented 65,8% of Figure 4.12. Share of social payments in disposable income of households by area of residence the disposable income of persons of urban area, 1,7 p.p. less in comparison with the previous year and 25 6.5 p.p. less in comparison with 2006. (Figure 4.11). A difference of 10 p.p. was noticed when analysing the 20 19.5 share of income from activity between the rural and 16.3 15 14.8 15.3 14.6 urban area. This situation comes to confirm the fact 13.6 that the discrepancy between the incomes of rural 11.6 11.9 10 and urban inhabitants is continuously growing, and the development of some social-economic measures 5 with emphasis on rural area is absolutely necessary. According HBS data, in 2009, social payments 0 had approximately 1/6 of the households’ disposable 2006 2007 2008 2009 income. Although both, rural and urban households urban rural benefit of these payments, the share of these pay- Source: NBS, HBS ments is more obvious in the incomes of rural households, with the difference of 4,9 p.p. (Annex 8).

30 Annual reports „Report on poverty and policy impact”, Ministry of Economy

96 Annual Social Report 2009

It should be mentioned that the share of social payments in households incomes in growing continuously. It increased 3,2 p.p in comparison with 2008 and 4,7 p.p in comparison with 2006 in rural area (Figure 4.12). Accordingly, the difference is less pronounced in the urban area with an increase of 1 p.p. in comparison to 2008 and 3 p.p in comparison to 2006. In 2009, for the total country, the share of social payments including pensions represented approximately 17% (Annex 8). In 2009, the total income from social payments represented 19,5%, with 16,7% for pensions in the rural area. This fact outlines the rapid growth of the share of elderly population in the villages, and the lack of possibilities to earn the incomes necessary for living. In 2009, the ageing coefficient registered 15% in rural area, the share of elderly women represented 17,2% in the total of feminine population31

4.2.2. Efficiency and effectiveness of social assistance programs The payments from the social payments system represent an important source of income for a considerable group of families and persons, whose living standards depend on their efficiency. Based on HBS data, the effect of the system of social protection on the population living standard can be assessed; an analysis of payments from the perspective of incidence, coverage and adequate character being performed. Payments incidence refers to the percent of households receiving some payments in the total surveyed households. Coverage measures the share of households receiving payments, from the total of potentially eligible households, for example, allowances for children are provided only to households with children of corresponding age. Thus, the share of coverage expresses the percent of households with children and receiving the corresponding allowances. The adequate character of the payment assess the payment size in comparison with other households incomes and report on its capacity to reduce the poverty. Incidence of payments. According HBS data, in 2009, 57% of households were under the incidence of social payments, and 47,8 % of households benefited of some types of pension (age limit, work experience, disability, survivor), these including 41,2% of population (Table 4.14).

Table 4.14. The incidence of payments on households and their members, % , 2009 Households Persons Social payments 57.1 54.4 Pensions 47.8 41.2 Pension for disability 10.3 11.0 Allowances for children 6.8 11.1 Allowances for care of children under 3 years, of which 4.6 7.4 Allowances for care of children, uninsured persons 2.7 4.5 Allowances for care of children, insured persons 1.9 2.9 Allowances for children, mothers with many children, solitary mothers 2.4 4.3 Compensations 17.7 19.0 Nominative compensations for gas 16.0 17.1 Nominative compensations for electricity 17.6 18.9 Social pensions/social allowances 3.3 4.7 Unemployment aid 0.5 0.6 Social aid 0.8 1.4 Source: NBS, HBS, calculations of authors

31 NBS (2010). Structure of resident population by sex as of 1 January 2010. http://www.statistica.md/newsview.php?l=ro&idc=168&id=2981

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Figure 4.13. Beneficiaries of social payments, 2009 As well, 27% of households with 31,4% persons, where almost 1/3 of population live received some 60% payments (excluding the above-mentioned types of 47.8% 50% pensions) (Figure 4.13.). 41.2% Except pensions, the nominative compensations 40% 31.4% represent the most frequent payments given to 11 30% 27.0% categories of beneficiaries32. Thus, 17,7% of the total surveyed households benefited of various nomina- 20% tive compensations. Mainly, the same households’ 10% benefit of nominative compensations for gas and electricity, and approximately 16% of them receive 0% households persons both types of payments. This situation confirms additionally the fact that the compensatory system is Pensions Social payments excluding pensions rather accessible. Source: NBS, HBS It should be mentioned however, that the share of households receiving other monetary payments is much smaller. 6,8% of households benefited of allowances for children and only 3,3% of households – of state social allowances. The social aid introduced in 2008 for poverty decrease was reflected only in 0,8% of households included in the survey in 2009, comprising 1,4% of persons from surveyed households. The unemployment aid has the lowest incidence among monetary payments the households benefit. In 2009, only 0,5% of households benefited of this type of payments, comprising 0,6% persons from surveyed households. This situation can be influenced by the low addressability level of rural population to Territorial Employment Offices, due to the lack of qualification necessary for current eligibility conditions of labour market and exceeding the period for which the unemployment aid is given. (Table 4.14). Coverage with payments. However, the payments incidence share can not reflect the entire situation on population inclusion in the system of social protection. Hence, it is necessary to include not only the corresponding group of households or persons in the analysis in order to make an adequate assessment of one type or another of payments. Thus, the analysis of payments for persons with disabilities includes only households with persons with disabilities, and only households with children of corresponding age are analysed in case of allowances for children. 2009 HBS data give the possibility to conclude Figure 4.14. Households coverage with social payments, %, 2009 that the coverage with payments for persons with disabilities is high enough and represent approxi- 90 80 mately 70% (Figure 4.14). Thus, approximately 30% of 70 households that declared to have at least one person 60 with disabilities among their members do not bene- 50 fit of corresponding payments. Mainly, this thing can 40 be explained by the retirement age of these persons, 30 20 thus receiving the age pension, with a higher quan- 10 tum in comparison with the pension for disability. 0 It should be mentioned that in case of allow- Disability Allowances Allowances Allowances ances for children, the coverage with payments pension for children for children for children under 16 years of 3-16 years under 3 years is relatively reduced. This situation could be influ- Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5 enced by their specific targeting character according the age group of children: universal in case of Source: NBS, HBS, calculations of authors unique and monthly allowances until 1,5/3 years of

32 Law nr.933-XIV from 14.04.2000, on special social protection of some categories of population, modified to be completed by the Law Nr.447-XV from 30.12.2004.

98 Annual Social Report 2009 children, both for insured and uninsured persons, and from 1,5/3 years until 16 years – based on the parents income test33. In 2009, only 19% of all households with children under 16 years benefited of various types of allowances for children. These are unique birth allowances, monthly allowances for child and monthly allowances for child care and support, including allowances for guardianship etc. As well, it was noticed that the coverage is rather low in case of allowances for children between from 3 to 16 years, due to the incomes test mechanism for system accessibility. Only 7% of households with children of 3-16 years benefited of allowances targeted to this group. In 2009, a better situation was noticed for 52% of households covered by the allowances for care of children under 3 years. Taking into account that the poorer households have in average more children, it is supposed that the coverage rates with children targeted allowances should be higher in poorer quintiles. In what concerning the allowances for children aged 3-16 years, offered based on incomes test, the coverage shares are more reduced in richer quintiles. As a result, the coverage is higher in poor households, of the first quintiles, and reveals once again the efficiency of targeting of this program of payments. Adequate character of the payment. The adequate character of state implemented social protection policies is relevant in the context of poverty eradication and social inclusion of vulnerable groups. HBS data allow detailed evaluation of efficiency payments targeting to households, while the analysis of their distribution and the incomes from payments by quintiles lead to formulation of some conclusions on ”pro-poverty” policies of social protection. Distribution of households receiving pensions and social allowances, as well the distribution of monetary amounts by quintiles of disposable income is presented in the following figures 4.15 4.16, and in the Annex 9.

Figure 4.15. Distribution of recipient households Figure 4.16. Distribution of payments by quintiles, %, 2009 (monetary amounts) by quintiles, %, 2009

Pensions Pensions

Disability pensions Disability pensions

Social pensions/social allowances Social pensions/social allowances

Unemployment aid Unemployment aid

Social aid Social aid

Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5 Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5

Source: NBS, HBS, calculations of authors

A uniformity pension distribution is noticed, caused by the fact that this kind of payments are not targeted to poverty reduction and are distributed by demographic and social criteria. In the same time, the data reveal a proportionality of distribution of households and monetary amounts targeted to them, in case of pensions.

33 HBS does not give the possibility to outline strictly these types of allowances, because according current methodology the age of persons included in the survey is registered as completed years.

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In case of state social allowances a discrepancy is noticed between the quintiles receiving these payments, for some categories of citizens; 30,8% of the households of II quintile, and 22% for the III quintile, and only 19,6% of the households from the quintile I. In what concerning the social aid, it is necessary to mention that the households of the lower quintiles absorb in majority the allocated amounts, representing 47,6% for the I quintile and 30% – for the II quintile. This confirms efficient targeting of these payments and adequate system inclusion based on the test of needs. Although the unemployment aid is provided based on contributive principles, a pro-poverty character of its targeting was noticed. Thus, 58,2% of benefiting households belong to quintiles I and II, which collect 56,7% of the monetary amounts targeted in this purpose. The distribution of beneficiaries ofallowances for children is characterised by a less obvious trend of poverty targeting, the allowances for children care, paid to uninsured persons are predominant. 32,1% of resources are accumulated by the I quintile and 23,9% – by the II quintile (Figures 4.17. and 4.18.).

Figure 4.17. Distribution of households receiving Figure 4.18. Distribution of allowances for children allowances for children, by quintiles, %, 2009 (monetary amounts) by quintiles, %, 2009

Allowances for children Allowances for children

Child care until 3 years Child care until 3 years

Child care, uninsured persons Child care, uninsured persons

Child care, insured persons Child care, insured persons

Allowances for children Allowances for children of 3-16 years of 3-16 years

Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5 Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5

Source: NBS, HBS, calculations of authors

Mainly, this situation is caused by the high number of households with children from poorer quintiles. Speaking about the allowances for care of children between 3 and 16 years, in fact, these are based on income test. Approximately 76% of households are included in the quintiles I and II, which absorb over 80% of monetary amounts targeted to them. Thus, the analysis based on the survey data reveals some insignificant errors of error inclusion. It is to be mentioned that analysis of distribution of targeted payments with incomes test is of a particular interest, because it gives possibility to analyse how adequate the corresponding social protection programs targeted to poor households support are. The analysis of recipient households, as well, of monetary amounts allocated in the framework of programs of nominative compensations, confirms their uniformity character. (Figures 4.19. and 4.20.) Si- multaneously, the data confirms that not always, the poorest strata benefit of them. Thus, the share of recipient households from the V quintile represent 14,4%, and it is almost identical to the share from the I quintile – 14,7%.

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Figure 4.19. Distribution of households receiving Figure 4.20. Distribution of nominative compensations nominative compensations, by quintiles, %, 2009 (monetary amounts) by quintiles, %, 2009

Compensations Compensations

Nominative compensations Nominative compensations for gas for gas

Nominative compensations Nominative compensations for electricity for electricity

Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5 Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5

Source: NBS, HBS, calculations of authors

4.2.3. The impact of social payments on beneficiaries The impact of social protection policies can be assessed by comparing the beneficiaries’ distribution before and after the transfer of monetary means. The corresponding exercise can be performed using fixed thresholds of income distribution by quintiles or comparing the poverty rates before and after the transfer of monetary amounts. Distribution by quintiles. Distribution of persons from the households receiving social payments before and after receiving the corresponding payments allows assessment of their effect on beneficiaries (Figures 4.21. and 4.22.). The impact analysis is emphasised on the difference between the shares of persons of the I quintile before and after receiving the payments.

Figure 4.21. The impact of some social payments on Figure 4.22. The impact of allowances for children on beneficiaries, %, 2009 beneficiaries, %, 2009

100% 100%

90% 90% 80% 80%

70% 70%

60% 60%

50% 50% 40% 40%

30% 63,0% 30% 59,2% 55,8% 51,2% 51,3% 20% 39,2% 20% 36,0% 38,8% 37,7% 33,9% 32,3% 31,7% 30,5% 24,1% 10% 20,7% 20,7% 10% 0% 0% until after until after until after until after until after until after until after until after

Disability Social pensions/ Unemployment Social aid Child care Child care Child care Allowances pension social allowances aid until 3 years uninsured insured persons for children persons of 3-16 years

Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5 Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5

Source: NBS, HBS, calculations of authors

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The disability pensions and unemployment aid have the highest impact on beneficiaries living standard, registering, accordingly, a difference of 18 and 17 percent points for the I quintile, followed by the social aid with a difference of 12 percent points. In the case of allowances for children, their impact is insignificant on households’ poverty, due to low sizes of these payments, which finally, diminish the targeting effects. Thus, the impact of allowances for children until 1,5/3 years in case of uninsured households of the I quintile represent only 1,1 p.p in comparison with 7,6 p.p. for insured households. While in case of allowances for children until 16 years, both for insured and uninsured persons of the I quintile, this difference is 3,4 percent points. Estimation of incidence and cost of Social Aid program. The MLSPF 2009 data reveal the estimative number of eligible households which were to enter the system starting with July (the last stage of implementation of Law on Social Aid) was approximately 71 thousand. In reality, however, only 21.000 households received the social aid payment from July, two major problems being identified: over 10 thousand households were not kept in the system and over 56% of eligible households were not covered yet by the new payment due to low information level. In the context of analysis of new introduced mechanism, based on HBS 2009 data, the estimation of percent of households eligible for social aid was performed, including by areas of residence for the following period. The estimations were based on conditions of allocation of corresponding payments according Regulation of social aid establishment and payment34. Thus, the data reveal only 5,9% of the total number of households are eligible to be accepted for the corresponding program, of which 1,9% households of urban area and 9,1% – or rural area. The monthly estimated cost of this program is approximately 26,7 mio lei, including 23,4 mio. lei targeted to rural area. (Table 4.15).

Table 4.15. Incidence and cost of social aid program, 2009 urban rural total Households eligible for social aid, % 1.9% 9.1% 5.9% Necessary monetary amounts, mio. lei 3.3 23.4 26.7 Source: NBS HBS, calculations of authors

The profile of potentially eligible households reveal that the farms have the highest share (31%) and the households with 3 and more children (16%), where the head of household have no education (10%) with the age between 40-49 and 50-59 years (9% and 8% accordingly). It is to be mentioned that a higher risk was registered for households led by men (7%) in comparison with those led by women (4,2%). (Annex 11). In conclusion we can mention that all these data reveal the efficiency of the new targeting mechanism of social payment, in the same time reconfirming that the zone with maximum concentration of households in risk situations is the rural area. In this context, it is obvious the need not only for social protection policies in general, but for a series of policies with economic character for the enhancement of rural area.

4.3. Social services

Social services represent a complex of measures and activities organised to meet the social needs of persons or families in order to outrun some difficult situations, to prevent social marginalisation and exclusion. The Republic of Moldova is fully engaged in the process of harmonisation with European standards and values. The reform in the field of social services is one of the most important. In this context, the Na-

34 Approved by the Government Decision Nr.1167 from 16.10.2008. The estimation was performed using 19, 21 and 27 points of the Regulation.

102 Annual Social Report 2009 tional Program on the creation of integrated system of social services was approved by the Government Decision nr. 1512 from 31.12.2008. The program intends to extend rapidly the specialised and community social services in order to improve considerably the efficiency and effectiveness of high specialisation social services by their consolidation, integration and targeting groups of persons with difficulties. The system will become more efficient from the viewpoint of costs, will cover all those that need social support and will have a positive impact on life quality of persons in risk situations combining the prevention and rehabilitation measures, and trying to solve the cases at community level before they worsen (and their solution will become more expensive). The integrated system of social services has the following characteristics: a) Identification and prioritisation of individual needs of persons with difficulties; b) Solution of problems at community level, and provision of specialised social services to beneficiaries according needs; c) Integration of social services, avoiding doubling, overlaps or gaps in their provision; d) Coordination of process of efficient use and professional training of human resources employed in the system of social assistance; e) Management of quality and efficiency insurance of social services according unique standards and mechanisms. The development of integrated system of social services will create better opportunities for social inclusion of persons with difficulties, thus ensuring the respect of their fundamental rights.

4.3.1. Primary social services The extension of social services at community level represents a major source for the efficient implementation of social policies. The community can provide systematic support with professional character, completed with community and interpersonal support. The primary social services are provided to prevent or limit the difficult situation, to solve the problem at an initial stage, keeping the beneficiary in the family and in the community. In this context, the decentralisation of social services represent a favourable framework for the community activity, implication of human resources and efforts in the solution of approximately 80% of social assistance requests. The primary social services are provided to all groups of beneficiaries at the level of every community. In the same time, the mayoralties can decide on developing the specialised social services, based on the needs assessment and community potential.

Social home care The social home care represent a wide range of services and facilities provided through prevention and care measures of dependent persons, so as they can increase their independency degree, to live as independently as possible in their own houses. The social homecare services are provided based on the Regulation-type on the divisions of home social aid to solitary elderly and persons unable to work. According provisions of Government Decision nr. 688 from 10.06.2003 „On the structure and staff of mayoralties of villages (communes), towns (municipalities)” and Government Decision nr. 689 from 10.06.2003 on the „Organisational chart and staff of county president team (apparatus), departments, divisions and subdivisions in the subordination of County Council”, the position of head of homecare service is established as 1 unit per 30 social assistants, and the social assistant position – according the number of served beneficiaries – 10-12 served persons to one personnel unit in urban areas and 8-10 served persons – per personnel unit in rural areas. The homecare service is an alternative to „care in institutions”. This fact presumes that homecare of elderly persons for their community integration and support is more efficient than their placement and long-term isolation in a hospital or asylum. The services offered in the frame of homecare services take the form of:

103 Annual Social Report 2009

– Moral support; – Support for the payment of some facilities; – Maintenance of household and dwelling; – Aid in personal hygiene; – Organisation of dwelling adaptation process to the needs of a dependent person; – Support in foodstuff purchase; – Implication in social and cultural activities. The entitlement to homecare services is set based on the registration request, presented by solicitor or his legal representative, the correspondence to eligibility criteria and results of need assessment.

Figure 4.23. Social homecare services, 2002-2009

Social homecare services

3000 30000 25323 25598 24446 24508 25510 2500 25000 21390 19951 2430 2465 2481 19951 2329 2383 2000 20000 2105 2006 2006 1500 15000

1000 10000

500 5000

0 0 2002 2003 2004 2005 2006 2007 2008 2009

Social workers hired in the homecare service, persons Beneficiaries, persons

In 2009, 25598 solitary and unable to work persons benefited of homecare services, offered by 2481 social assistants. This proves that local administration authorities undertake systematic measures to develop the homecare service in order to cover a higher number of solicitors and to improve the quality of provided services. In 2009, the number of beneficiaries of homecare services increased with 5667 persons or with 28% in comparison with 2002.

Social aid canteens services The organisation charity tables for come categories of citizens play an important role in the provision of social services. Social aid canteens provide free nutrition services to vulnerable persons according the Law nr. -81-XV from 28.02.2003 on the social aid canteens and the Regulation-type of their activity (Government Deci- sion nr. 1246 from 16.10.2003). The following categories benefit of the services of social aid canteens: – persons of retirement age (homeless, without legal supporters, without or with low incomes); – persons with disabilities; – children under 18 years (from families with many children, monoparental or other socially vulnerable families). The social aid canteen as a social service offer a caloric and rich in vitamins nutrition to persons of vulnerable groups. Canteens offer the following services: – preparation and serving of one daily meal per person (as usual, lunch); – free food transport at home for vulnerable persons which cannot come at the canteen; – preparation and distribution of food by mobile centres.

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The persons can benefit of the social aid canteens services for maximum 30 days quarterly, what allows covering a higher number of socially vulnerable persons, who need these services.

Figure 4.24. Dynamics of the number of social aid canteens, 2002-2009

Social aid canteens

160 7000 5884 5873 140 5425 6000 120 131 143 4416 5000 4164 4068 100 3538 99 4000 80 90 97 2795 73 3000 60 54 2000 40 44 20 1000

0 0 2002 2003 2004 2005 2006 2007 2008 2009

Number of canteens Number of beneficiaries

In 2009, 143 social canteens functioned in the republic, and 5873 socially vulnerable persons benefited of their services. 1579 persons monthly were provide hot lunches at home. In comparison to previous years, an increase of social canteens services is noticed; in 2009 this number was approximately 3 times higher in comparison to 2002. This fact reveal the awareness of social problems and implication of local public administration authorities of I and II level in the prevention of marginalisation and social exclusion of socially vulnerable persons. According financial estimations, the cost of one lunch represents 12-13 Lei/person/day in the counties of the republic and 16-18 Lei/person/day in municipalities Chisinau and Balti. There was noticed a less active implication of local public administration authorities in the development of nutrition provision services of vulnerable persons in the counties Calarasi, Nisporeni, Riscani, Ciadir-Lunga and Vulcanesti, none social canteen works here. A model of best practices in the development of nutrition provision services in social canteens is the community Association „Concordia-Proiecte Sociale”. During 2008, 20 social canteens opened with their assistance in 14 counties of the republic: Orhei (3), Hincesti (3), Donduseni (2), Criuleni (2), Causeni, Flo- resti, Soroca, Cantemir, Singerei, Telenesti, Stefan-Voda, Drochia, Leova, and Comrat. The activity of social canteens is emphasised on preventing social exclusion and facilitation of social integration process of vulnerable persons.

Community social assistance service The service of community social assistance represents a core of social assistance established at community level, which offers support in the solution of difficult situations for the majority of social problems. The service has the purpose to provide social assistance to persons with difficulties and to increase the inclusion level of most vulnerable population segments in social assistance programs at the community level. The objectives of social assistance community service are as follows: a) Information on the access to social services, early identification and prevention of social problems and ensuring early intervention for their solution; b) Development and provision of social primary services for the support and consolidation of capacities of persons and families with difficulties;

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c) Mobilisation and consolidation of community capacities in care and protection of persons with difficulties. The Service of community social assistance was established in the subordination of territorial structure of social assistance by the Government Decision nr. 1255 from 11.11.2008 for the successful implementation of social protection policies and enhancement of territorial structures of social assistance. The following staffs were planned: • Head of Service – 1 unit in every territorial administrative unit of level II; • Social assistant – 1 unit per 5000 inhabitants in urban localities and up to 3000 inhabitants in rural localities, but not less than 1 unit in every mayoralty. The Regulation – activity framework of Service of Community Social assistance and the files job-type for the head of service, social assistant with supervision functions, and the community social assistant were approved by the Order of the minister of Social Protection, Family and Child nr. 54 from 10.07.2009 for the functioning of new service and the consolidation of capacities and abilities of social assistance territorial structures. According the provisions of above-mentioned Regulation, the Service of Community Social Work includes the head of service, the social assistant with supervision functions and the community social assistant. According the Article 1 of the Law nr. 547-XV from 25.12.2003, the social assistant is the person with special education in the field, which provide social services to families and persons with temporary difficulties, and which due to economic, social, physical or psychological reasons are not able to earn by own means and efforts a decent living. The social community assistant identifies and evaluates the potential beneficiaries and their situation (social and living conditions), expresses the problems faced by them and to set the needs to outrun the difficulty, develops and implements individual assistance plans, together with beneficiaries and their families, offers primary social services to beneficiaries. In the same time, he mobilises the community, cooperate with local public administration, line institutions, and non-governmental organisations in order to solve the problems of beneficiaries, proposes and prepares the cases for reference at the specialised social services. In 2009, the number of staff units of social assistant increased twice in comparison with 2007, and with 239 units in comparison with 2008. An increase of financial means allocated from the state budget for the service development is noticed. As well, the number of completed social assistant units increased (1159 units in 2009) in comparison with the previous years, although there are social assistants hired on 0,75, 0,5, 0,25 working day in 11 counties, such as Basarabeasca, Briceni, Cahul, Donduseni, Drochia, Glodeni, Ialoveni, Riscani, Leova, Nisporeni and Singerei.

Figure 4.25. The service of community social assistance

The service of community social assistance

3000

2500

2000 1159 1500 901,5 1000 538 500 62,5 996 1235 600 0 0 2006 2007 2008 2009

Approved units Active units

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The case Management – a guidelines with methodological instructions, used by the social assistant to evaluate the needs of beneficiaries and their families together with them, to coordinate, to monitor, to assess and support the beneficiary entitled to necessary social services and to re-establish his social functionality – was developed and approved in order to consolidate the capacities of social assistant and to unify the working procedures with beneficiaries of social assistance. The guide of social assistant comprises the following stages: I. Case identification and registration – screening process of the person/family in difficulty; II. Initial evaluation presumes the general situation investigation of the beneficiary to decide if cor- responds or no to social assistance criteria; III. Case opening – the moment when the social assistant, together with the supervisor decide on case opening in order to collect information and undertake some measures to solve it; IV. Complex evaluation – detailed investigation and analysis of all elements involved in the case: beneficiary and his environment, family and the system of social relations, factors that generated the risk situation, possible resources for case solution etc.; V. Individual assistance plan – all measures undertaken to satisfy the needs of beneficiary, with his direct participation; VI. Intervention or implementation of individual assistance plan – specific intervention activities performed by the social assistant, which is the case manager as well, and the mobilisation and implication of all human, financial, material and community resources identified for the case solution and reaching the objectives of individual assistance plan; VII. Monitoring – permanent supervision and assessment of beneficiary situation in order to ensure a balance desired in case solution; the social assistant intervene only if the beneficiary situation modifies or unplanned factors may disturb the reached balance; VIII. Case revaluation and revision of individual assistance plan – periodic evaluation of beneficiary progress, as well, the improvement of individual assistance plan; IX. Case closing – can be done either according individual assistance plan – when all previously set objectives were reached or by reference to specialised social services – when the risk situation cannot be solved by primary social services. The Mechanism of case reference in the system of social services (approved by the Order of the minister of Social Protection, Family and Child nr. 55 from 12.06.2009) was developed in context of organisation of activities with beneficiaries for efficient and rapid case solution. This provides a set of standard rules and procedures on the route to be passed by the beneficiary in the system of social services. The reference mechanism in the system of social services is broken in three levels: community level, county/municipal level, and national level. All levels are interdependent. The route can start at any level, but, as usual, it starts in the community and after provided assistance it ends with beneficiary re/integration in the community of origin. The reference mechanism of the beneficiary in the system of social services is performed by stages and is accompanied by the necessary documents. The Guidelines of practical application „Community mobilisation” was approved by the Order of minister of Labour, Social Protection and Family nr. 022 from 04.12.2009, with the purpose to develop successfully the community mobilisation activities. This guidelines offers information with practical application on the methodology of the process of community mobilisation, as well a set of efficiency methods and techniques. The purpose of community mobilisation process is to involve all resources available in the community in order to make more efficient the process of identification and solution of problems faced by population at community level. Its final result is to empower the community to support community members and to enhance the capacities of community members to plan and solve the problems. The Mechanism of professional supervision in social assistance was approved by the Order of the minister of Social Protection, Family and Children nr. 99 from 31.12.2008, with the purpose to develop and consolidate the professional abilities of social assistants and social workers and for efficient functioning of integrated system of social services.

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Professional supervision provides implementation of supervision culture and assessment of achievements for the employees in the social assistance system, thus, contributing to increase the quality of social services. It represents a managerial and professional activity necessary for every structure and organisation that acts in the field of social assistance, using, in this context, various professional support forms and collegial counselling offered in the framework of individual and group, formal and informal meetings, and involving components with various responsibilities. Another problem that require intervention is the fact that the personnel employed at the moment in the system of social assistance comes from various fields of professional formation, hence, with various experience, this outline the relevancy to train/improve their professional skills. The Strategy on the creation of a continuous professional formation system of personnel employed in the social assistance system (for the period 2009 – 2012) and the Action Plan were approved by the Order of the minister of Social Protection, Family and Children nr. 52 from 01.06.2009 for the successful solution of this situation. This is provided for the personnel that works directly with the beneficiaries of social assistance (social workers, social assistants, personnel of day working social services or temporary placement created nearby the territorial structures of social assistance), as well, for the personnel that provide them methodological and managerial support necessary for the implementation of job responsibilities. In this context, should be mentioned the development of Curriculum of initial training in social assistance and of the course support for the initial training of community social assistants. The training Curriculum includes topics based in particular on community needs, on solution of those problems faced by vulnerable persons in the locality where the social assistant acts. As well, an important aspect of that course is the knowledge of legal framework on human rights and professional ethics. Initial training in social assistance, with a program of formation of fundamental professional abilities was organised for the persons working in this field but without corresponding education; 520 community social assistants benefited of such courses.

4.3.2. Specialised social institutions The specialised social services are targeted to a limited number of beneficiaries, often, not taken into account by the community, which need rehabilitation or long term intense assistance from the specialists with a high qualification level. The specialised social services can be provided at all administrative levels (community, county, and national) based on the population needs and existing potential. Currently, the creation and development of community social services alternative to residential social services is undergoing in a continuous process. These have the purpose to keep the families and persons in difficulties in an organisational framework in the community proximity, with the main objective to prevent marginalisation, social exclusion and to facilitate beneficiaries’ reintegration in family and community. The process of social services provision requires the participation of a team of professionals: social assistants, medical assistants, psychologists and social workers, what contributes to considerable increase social services quality. The Regulation-frame of organisation and functioning of territorial structure of social assistance was approved by the Order of the minister of Social Protection, and Family nr. 024 from 8.12.2009 with the purpose to make more efficient the activity of territorial structures of social assistance and consolidation their capacities. Following the 2009 data presented by the territorial structures of social assistance, 105 social institutions and 2 care/placement services activated and provided social services for 5059 adult persons/ families with disabilities.

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Figure 4.26. Types of centres providing social services for adult persons and adults with disabilities

Types of centres providing social services for adult persons and adults with disabilities

2 5 5 37

29 29

Day care centres Mixed centres Asylums Socio-medical rehabilitation centres Shelters Care/placement services

These institutions include 37 day centres, 5 shelters, 29 mixed centres, 5 centres of socio-medical rehabilitation and 29 asylums by types of services provided (Figure 4.26.).

Figure 4.27. Number of social centres and beneficiaries/monthly

Number of social centres and beneficiaries/monthly

40 37 2500 35 29 2000 30 2209 29 25 1500 20 1615 15 1000 5 10 5 500 5 705 2 391 20 0 119 0 s s s service s Shelters Asylum s Mixed centre Care/placement Socio-medical re Day care centre abilitation centre

Number of centres Number of beneficiaries

The Figure 4.27. reveals the fact that day centres provide social services for a higher number of beneficiaries in comparison with other centres – 2209 beneficiaries/monthly. These institutions encourage and promote keeping beneficiaries/persons in difficulty in the family and origin community. Those 29 mixed centres serve 1615 beneficiaries, which benefit of both, day social services and short term placement social services in various difficulty situations, as well, during the cold period of the year, intervention period with the purpose to solve various problems of social character or to solve intergenerational conflicts. The rotation of beneficiaries of residential social services provided in asylums is very low, because they are placed for undetermined periods. A best practice model of development of social services alternative to residential care (from the point of view of cost-effect, these services are more efficient) are the 2 Services of care/placement created and

109 Annual Social Report 2009 developed in the county Ungheni, where the elderly persons with disabilities are under care of family environment in the community neighbourhood.

Figure 4.28. Creation of social centres for adults and persons with disabilities

Creation of social centres for adults and persons with disabilities

16 Care/placement 15 services 14

Shelters 12

10 10 9 9 Day care centres 8 7 6 Socio-medical 5 rehabilitation centres 4 4 4 3 3 3 3 3 Mixed centres 2 2 2 2 2 11 1 1 1 1 0 0 0 0 00 0 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 Asylums -2

An important indicator deducted from the evaluation of social services is the increase of number of social services, with a significant increase after 2001, when 17 centres were registered, currently, 105 centres are registered (a 6 times increase). Simultaneously, it should be mentioned that during the last 2 years, 28 centres opened, and during the last 4 years, 47 social centres for adults and adults with disabilities were created.

Figure 4.29. Distribution of social centres by area

Distribution of social centres by area

13 Asylums 16

15 Mixed centres 14

Centres of socio-medical 4 rehabilitation 1

29 Day care centres 8

4 Shelters 1

rural urban

A serious underdevelopment of community social services in rural area is revealed after the examination of centres by area (Figure 4.29.), manly the centres are placed in urban area. Of the total of 37 day centres, only 8 of them are in rural area, while from the total of 29 mixed centres – 14 are in rural area. Although 16 of the 29 asylums are in rural area, they serve as well, the beneficiaries from other localities of respective county.

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Figure 4.30. Number of approved staff units, by types of social centres

Number of approved staff units, by types of social centres

337,5 Day care centres 345,5

Shelters 77 87 82,5 Rehabilitation centres 82,5 359,75 Mixed centres 368,75 430 Asylums 459

Approved In function

1342 staff units were approved to ensure the efficient functioning of social centres (Figure 4.30.) 1286 of them are completed, while 56 are vacancies. Thus, a personnel deficit was registered: in asylums – 29 units, shelters – 10 units, mixed centres – 9 units and day care centres – 8 units. From the total of 105 centres, 48 institutions are financed by local administration authorities, 41 – by local administration authorities in partnership with donor organisations and 16 – by national and international donor organisations (Figure 4.31.).

Figure 4.31. Financing of social centres/asylums

Financing of social centres/asylums 41 48

16 Local public administration authorities Legal persons (NGOs, community associations, foundations) Local public administration authorities in cooperation with legal persons

In case of day care centres, a higher share has the financial support offered by local administration authorities in partnership with donor organisations – 23 centres (from 37 day care centres), while in case of mixed centres and asylums the financial support from local administration authorities is predominant – 19 centres ( from 29 mixed centres) and accordingly 16 asylums (from 29 asylums). Simultaneously, 9 of 29 asylums are financed by local administration authorities in partnership with donor organisations. The development during the last years of social services outline the increased interest of local administration authorities in prevention and outrun of social problems, social reintegration of persons in difficulty, and the development of a coherent and unitary system of support provided to persons and families in difficulty.

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4.3.3. Residential protection services The residential social services represent a component part of the social assistance system. They continue to be one of the most solicited and expensive forms of care, which provide protection to elderly people and to persons with disabilities which due to some circumstances, are limited in possibilities of participation at social life together with other persons. The reasons to solicit the highly specialised social services could be, in particular, the social-economic: the abuse through abandon – the moral deviation from the normal behaviour in the family (children do not ensure parents subsistence and vice versa), the financial abuse – the vulnerable person is determined to give up his/her things (money, dwelling, other values) in exchange for the promise to be provided care. The persons find themselves in difficult situations of marginalisation or social exclusion due to the lack of support from the family or community, and thus, become dependent of tertiary support. Most often, all these force the person placement in a residential social institution, as the only solution to ensure a quiet and satiate living.

Case reference to social services with high specialisation The identification of cases to be referred to specialised social services or to social services with high specialisation is done by the territorial bodies of social assistance, together with the social assistant from the mayoralty, family doctor and the local administration authorities. According the Law on Social assistance nr. 547 – XV from 25.12.2003, the Government Decision nr. 1512 from 31.12.2008, on the approval of National Program on creation of integrated system of social services for 2008–2012, and in order to prevent and reduce social exclusion of persons in a difficult situation, the territorial units of social assistance should refer the case to social services with high specialisation only after using all intervention possibilities at the local level and taking advantage of resources of the community, own and extended family. The selected persons are preliminary informed by the social assistants on the requirements and conditions of accommodation/expel from the social institution. The accommodation order is issued at the request of territorial divisions/directions of social assistance, accompanied by the request of solicitor, in case of persons with mental disabilities, at the request of his legal representative or by case, at the request of his tutoring institution, and a set of documents regulated by the Instructions on the accommodation of tutored persons in social institutions subordinated to the Ministry of Labour, Social Protection and Family nr. 07/227 from 16.02.2000, which confirms the social statute, health state and the necessity of placement in the residential service. The residential institutions for adults are divided in two categories: for elderly persons and with physical disabilities (somatic – without mental problems) and for persons with psycho neurologic deviations. The type of residential unit is recommended by the Consulting Medical Commission in the frame of IMSP, according psychophysical situation and the self-service capacities of the solicitor. As well, the commission gives his opinion on the need to place the examined person in a residential institution and on the possibility of medical recovery at home in ambulatory conditions.

Residential institutions for adults, subordinated to the Ministry of Labour, Social Protection and Family The Ministry is the coordinator and ensures the good functioning of 6 social institutions for elderly persons and adults with physical disabilities, as well for adults with mental disabilities, situated in various geographic zones of the country, which offer to its beneficiaries, according special needs and peculiarities of individual development, social protection by provision of socio-medical services, accommodation, care, nutrition, clothing and footwear, occupational therapy, cultural activities, kinetotherapy, medical assistance. The beneficiaries of these institutions are elderly persons and people with disabilities from 18 years on, predominantly without legal supporters, which due to physical or sense affections have a low self- service capacity, it is impossible for them to have a dignify life, thus need specialised care and assistance from a third party. The problems of these groups of persons are very specific and require an individual approach, emphasised on implementation of recovery measures, periodic assessment and undertake the measures necessary for their social re/integration.

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Figure 4.32. Capacity of residential institutions for adults

Psycho neurologic boarding school of v. Brinzeni, Edinet 600 Psycho neurologic boarding school of v. Badiceni, Soroca 500

Psycho neurologic boarding school 400 of municipality Balti

300 Psycho neurologic boarding school of v. Cocieri, Dubasari

200 Republican asylum for persons with disabilities and pensioners, Chisinau 100

Republican Centre of rehabilitation 0 of persons with disabilities, labour 1 and war veterans of v. Cocieri, Dubasari

During 2009, the Ministry received 480 accommodation requests in the subordinated social institutions received from the territorial directions/sections of social assistance, following the eligibility criteria, 157 persons were recorded. Also during this period, 179 accommodation orders were issued, of which 126 in psycho neurological boarding schools. In 2009, the number of requests and of beneficiaries from social institutions for elderly persons and people with disabilities decreased 3,3% in comparison with 2008, due to development of community social services. Although a decrease of institutionalisation rate of persons in placement social services is attested, the number of cases referred to these services in the Republic of Moldova remains constant. The residential social institutions perform their activity according current legislation and the Regula- tion-type on the functioning of social institution, also, other own regulations. The financing of institution is done from the state budget, special funds and means from the spon- sors, charity organisations, non-governmental and religious organisations, from legal and natural persons and the income share of persons accommodated in the asylum. The contribution of beneficiaries is a compulsory condition regulated by legislation, but which is insignificant taking into account the cost of one person accommodation in the institution. The accommodation is free with significant expenses for the beneficiaries that did not participate as contributors to the Social Insurance Fund.

Figure 4.33. The relation between the expenses for one person accommodation in residential institutions

Expenses for the accommodation of one beneficiary (Lei/month)

57%

43%

Psycho neurologic boarding schools Institutions for elderly and persons with disabilities

113 Annual Social Report 2009

During 2009, the cost of one beneficiary accommodation in social institution with psycho neurologic profile represented in average 2500 thousand Lei/monthly, with the average beneficiary contribution of 222 Lei, and 3300 thousand Lei/monthly for the institutions with somatic profile, with the beneficiary contribution of 440 Lei in average. The Figure 4.33. reflects the relation between expenses for accommodation of one person in residential institutions, according the type of institution. The care in institutions is performed according provisions of Government Decision nr. 506 from 11.05.2006 on the approval of natural rules for care of accommodated persons in the social institutions and the Government Decision nr. 520 din 15.05.2006 on the approval of rules for monetary expenses for the care of persons accommodated in social institutions. The nutrition is organised 4 times per day according the approved financial limits, which is 29 Lei 63 bani/day, according the schedule and the menu developed by the dietologist. The diets are used according beneficiaries health situation and medical prescriptions. Medical assistance is provided according the Unique Program of medical insurance in medicine, and financial funds allocated by employed medical staff (higher, mid and lower). The supply with medicines is performed according the indications of doctors and in the limit of allocated results, what is 4 Lei 93 bani per person per day. Every beneficiary has an observation sheet which reflects beneficiary health situation in dynamics and the explanation of made indications. If needed, the beneficiaries have hospital investigations and treatments in republican, municipal or county medical institutions. The institutions may require the emergency services in difficult cases. The structure of personnel of institutions ensures the effective and efficient organisation of process of services supply, what is mentioned in the employment scheme, approved by the Ministry of Labour, Social Protection and Family, following the institution purpose and objectives.

Table 4.16. Capacity and personnel of social residential institutions 2009 Social institutions Capacity Personnel, units (beds) De facto approved The psycho neurological boarding school from village Brinzeni, county Edinet 300 158,0 161,0 The psycho neurological boarding school from village Badiceni, county Soroca 460 234,0 238,0 The psycho neurological boarding school from mun. Balti 550 248,25 266,5 The psycho neurological boarding school from village Cocieri, county Dubasari 355 170,0 177,0 Republican asylum for pensioners and people with disabilities from mun. Chisinau 210 135,5 135,5 Republican centre of rehabilitation for people with disabilities, veterans of labour 250 145,0 152,5 and military conflict from village Cocieri, county Dubasari TOTAL 2125 1090,75 1130,5 Source: MLSPF, reports of residential institutions

A discrepancy of 4% (Table 4.16.) between the number of de facto and approved staff was noticed. There is a lack of medical staff and low number of medical staff due to the fact that the persons served in social institutions are persons with serious chronic diseases. The shortage of necessary personnel to serve the beneficiaries affects the quality of provided services, while the low salaries make the vacancies less attractive.

Improvement of residential social services system In 2009, two workshops were repaired and equipped – tailoring and crocheting – opened in the psycho neurological boarding school of village Brinzeni of county Edinet, with the assistance of Swiss Agency for Cooperation and Development in the Republic of Moldova with the purpose of ergo therapeutic activities which contribute to formation of life abilities. Cattle and a pig farm and a greenhouse for vegetable production also function here.

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Workshops of tailoring, housekeeping, hairdressing and boot making opened at the psycho neurological boarding school of village Cocieri, county Dubasari. A carpentry and tailoring workshop and a minifarm for poultry production opened at psycho neurological boarding school of village Badiceni, county Soroca. Daily, the residents of these institutions are involved in ergo therapeutic activities. Green- houses for vegetable production opened in these psycho neurological boarding schools as well. All products obtained from these activities are used for current needs of respective institution. Exhibitions with sales of works made by persons with special needs, as well, the beneficiaries of subordinated special institutions are organised at the International Day of persons with disabilities and Easter. In the result of cooperation with the Ministry of Health, a request was made to all primary medical- sanitary institutions which serve the territory of social residential institutions in the subordination of MLSPF in order to facilitate the access for issuing the reimbursed medicines and the provision of other medical services, which cannot be offered by residential institutions in some circumstances, but are guaranteed to state insured persons from the means of compulsory insurance for medical assistance. The problem of free medical legal expertise of dead residents of subordinated institutions was solved due to cooperation with the Centre of Legal Medicine, fact that attracted considerable expenses before. Action Plans that cover a set of curative-prophylactic, sanitary-epidemiological and pharmaceutical measures were developed in order to prevent and reduce probability of A (H1N1) cases and seasonal flu in the subordinated social institutions. As a result of efficient cooperation with medical-curative institutions all beneficiaries and personnel of risk groups were vaccinated. Thus, cases of sicknesses were not registered as a consequence of efficient institutional management. The National Program on mental health for 2007-2011 (GD nr. 353 from 30.03.2007) provide increase of psychiatric assistance availability and efficiency by creating proper conditions to provide the assistance and protection, rehabilitation and integration in the family and community of persons with mental disabilities. Currently, the field of mental health in the country is at the stage of extension from a hospital system to an extra hospital system. The extra hospital system of psychiatric assistance is based on the activity of community centres of mental health, where the patients can benefit of a wide range of services, taking advantage of existent potential. At the moment, there are 3 community centres of mental health in the municipality Chisinau, municipality Balti and county Ungheni. In the context of residential system reform, one of the key objectives in the implementation of national policies in the field of social protection of people with disabilities presumes the development of deinstitutionalisation process from the point of view of creation of alternative social services, in cooperation and partnership with various social actors. A good model is the partnership between the MLSPF and the Foundation „Casa Mea” with the purpose to create an alternative form to residential care for adults with mental disabilities and with a low intelligence level, for their reintegration and socialisation in the community and development of their life abilities. Currently, two houses were created in the counties Straseni (village Truseni) and Drochia (village Sofia), where 11 persons live, ex-beneficiaries of boarding school with mental disabilities (girls) from Hincesti and of the psycho neurologic boarding school village Badiceni, county Soroca.

4.3.4. Recovery/rehabilitation services and balneo-sanatorial treatment Two republican centres of recovery for elderly persons and people with disabilities „Speranta” in the town Vadul lui Voda and „Victoria” in Sergheevca, Ukraine are in the subordination of the Ministry of La- bour, Social Protection and Family. The centre „Speranta” from Vadul lui Vodă provides services of prophylaxis, treatment and rehabilitation of patients with diseases of cardiovascular apparatus, neurosis with functional disorders of the peripheral nervous system, primary deforming osteoarthritis, deformation degree I and II. The beneficiaries are served by 25,25 medical units, 48,75 medical assistant staff, 48,5 auxiliary medical staff, and 125,75 other staff. The Centre „Victoria” from Sergheevca is specialised in prophylaxis and treatment of diseases of skeletal apparatus, respiratory apparatus and chronic prostatite. The beneficiaries are served by 17,5 medical units, 35,0 medical assistant staff, 39,5 auxiliary medical staff, and 128,0 other staff.

115 Annual Social Report 2009

The tickets for medical rehabilitation in the above-mentioned centres are issued according the Regu- lation on the evidence and distribution of medical rehabilitation tickets to elderly persons and people with disabilities, approved by the Order of the minister nr. 32 from 09.06.2003. The persons with disabilities over 18 years registered at the directions/sections of family protection benefit as well of medical rehabilitation tickets according the current Regulation. 8791 persons annually benefited of balneo-sanatorial treatment in both centres. The capacity of each centre is 260 beds. The period of medical rehabilitation for a person includes 21 calendar days. In 2009, the person/day nutrition standard represented 71,18 Lei in the rehabilitation centres. For the same period, the medica- tion person/day standard represented 6,29 Lei. In 2009, 4395 persons benefited of medical recovery tickets at the Centre „Speranta” and 4160 persons in the centre „Victoria”. The cost of one medical recovery ticket from the state budget at centre „Speranta” was of 3524,00 Lei, and 5405,61 Lei in the centre „Victoria”. Based on the financial means collected annually from the sale of medical recovery tickets to some categories of beneficiaries spared partially from paying the full ticket, the Ministry of Labour, Social Pro- tection, and Family have the right to purchase tickets of balneo-sanatorial treatment in other profiles and other balneo-sanatorial institutions from the republic, which are distributed following the conditions of Regulation on the recording and distribution of medical rehabilitation tickets to elderly persons and people with disabilities. In 2009, the Ministry purchased 56 sanatorial tickets for 280,0 thousand Lei at the Sanatorium „Codru” county Calarasi, village Hirjauca, and 25 sanatorial tickets for 145,0 thousand Lei at the Sanatorium „Dnestr” from Camenca. The sections/directions of social assistance and family protection from the republic ensure the beneficiaries with medical recovery tickets, based on the request, the pass confirming the beneficiary -cat egory and the medical certificate. Beneficiaries that supported repeated/acute myocardial infarction, primary/repeated accent stoke are entitled to medical rehabilitation tickets at the Republican Centre of rehabilitation of pensioners and people with disabilities „Speranta” from Vadul lui Voda, without queue, irrespective the fact is they benefited of medical rehabilitation ticket in the duly way, distributed by the Direction/Section of social assistance and family protection. In case when according the decision of Republican Council of Vitality Medical Expertise the person with I degree disability require permanent assistance from another person, that person called “ACCOM- PANYING” benefit as well of medical rehabilitation ticket. The unemployed persons with I and II degrees of disability, elderly persons and people with disabilities among the politically repressed persons and subsequently rehabilitated and beneficiaries of age pensions or unemployment state social allowances benefit of medical recovery tickets also. Employed persons with II and III disability degree, accompanying of people with I degree disability which need permanent assistance from another person according the decision of Republican Council of Vitality Medical Expertise, benefit of a 30% payment for a medical recovery ticket provided from the state budget.

4.4. Conclusions. Recommendations

Social assistance is the basic mechanism used by the state to prevent, limit or remove the negative effects of events produced on persons or vulnerable groups who cannot face the situation requirements. The main objective of social assistance is to diminish poverty effects and to promote social inclusion of vulnerable persons and with various disabilities using various social assistance services, provided in combination with monetary benefits according problem. One of the priority activities of the National Development Strategy represent the improvement of existing system of provision of social payments, which shall be achieved by the gradual implementation of

116 Annual Social Report 2009 principle of beneficiaries living standard assessment. In this context, the Law on Social Aid was adopted, and a new access mechanism to state social assistance was implemented in order to substitute the rewarding system with the system of income test and gradual unification of programs of social payments. The following issues have been identified after the first year of Law implementation: • Insufficient staff in the system of social assistance for the implementation of Social Aid Law; • Missing adequate internal checks in the process of social aid provision, this could lead to fraud risks and some errors in the process; • No check for the verification of unemployment status of beneficiaries planned to receive social aid, thus increasing the risk of social aid payment to persons which are not eligible anymore; • The method of calculation of income from the use of agricultural lands does not reflect the real income and has a direct impact on the decision to provide social aid; • Reduced information and understanding level of the new system, with specific difficulties to cover families not covered previously by social assistance payments; • Lack of social assistants in some communities; low implication of social assistants in the social aid payment. The basic priority is to increase the request for the social aid and to continue monitoring the implementation of payment in order to ensure a proper targeting by management adjustment. As a consequence, the following steps of program implementation should be: • Information campaigns targeted to eligible households not covered previously by social assistance programs and improvement of local communication strategy (announcement in mayoralties and information boards in villages, user friendly brochures); • Training and better implication of social assistants in low performance counties; • Approaching concerns on irregularities of request process; • Modification and amendment of legislative documents in order to eliminate the difficulties ap- peared in the legislation implementation process on social aid provision. The second component part of the social assistance system is the social services. In conditions of rapid changes in economic, social, cultural and political areas, the citizens of the Re- public of Moldova face various social problems, what forward special requirements for promoting some efficient policies in the field of social services. This should provide the establishment of a general framework for the social services integrated system creation and functioning, with the determination of tasks and responsibilities of central and local administration authorities, other legal persons entitled to ensure and provide social services, also, the protection of rights of beneficiaries of social services. Thus, a complex vision of the development of social services system should be created, what would face the needs of families and/or persons in difficult situations. The following basic principles in provision of social services can be mentioned: – principle of targeted social assistance , which allows priority targeting of social services to most vulnerable persons revealed after the assessment of individual needs; – principle of emphasise on beneficiary, which provide the adjustment of social services according beneficiaries needs based on regular evaluations of social services impact on beneficiary situation; – principle of accessibility – provides ensuring the access to persons and families to social services, development and placement in the neighbourhood of beneficiaries; – principle of equal opportunities insurance – which provide the insurance of equal opportunities, meaning the entitlement to social services in condition of equal treatment, without discrimination; – celerity principle – promptitude in decision making process for the solution of difficult situations. The expected results shall guarantee quality insurance and efficiency of social services, clear delimi- tation of attributions and responsibilities of public administration at all levels, establishment of a precise standardisation procedure of social services provision.

117 Annual Social Report 2009 5. FAMILY AND CHILDREN PROTECTION

The policies in the field of social protection of family and children are targeted to birth encourage by promoting efficient activities of family support, modernisation and diversification of family type community services in order to prevent institutionalisation of children and to increase the life quality level of the society cell – the family. A priority objective is to ensure an adequate and efficient social protection through solving serious problems faced currently by the family and children, problems conditioned by negative effects such as the economic decline, population ageing, instability of living conditions and the impact of parents legal and illegal migration for work. The national system of social protection of family and children is based on promotion of individual approaches in the selection of protection measures, and has two basic components: monetary payments and social services.

5.1. Payments for family and children

The allowances paid to families with children represent the main economic support from the state and is expressed in unique or periodic payments to families in case of child birth and care according children age and family income level. One of the main tasks of the Government is the promotion of active policies of birth stimulation and women support and encouraging, including for the second and third child and the examination of increase possibilities for the package of privileges provided to families with children. Since 1st of January 2009, the allowances for children increased according the objectives of the Gov- ernment Program of Activity for 2009 – 2013 „European integration: Freedom, Democracy, Welfare” and based on the provision of State Budget Law for 2009 nr.244-XVI from 21.11.2008 and the State Social Insurance Budget Law for 2009 nr.262-XVI from 11.12.2008. It should be mentioned that since 2005, the quantum of unique allowance at child birth is identical for both, insured and uninsured persons, and since 2008, the quantum of unique allowance at child birth became differentiated at birth of the first child and every next child. Thus, according Government Decision nr.1478 from 15.11.2002 on the allowances for families with children, the unique allowance at birth of the first child represent 1400 Lei, and 1700 Lei at birth of every next child (both for insured and uninsured persons).

Figure 5.1. Dynamics of unique allowance at child birth, 2005-2009

Dynamics of unique allowance at child birth

1700 1500 1400 1200 1000 1000 800 800 500 500

2005 2006 2007 2008 2009

Dynamics of birth allowance for the first child Dynamics of birth allowance for every next child

118 Annual Social Report 2009

Table 5.1. Dynamics of number of beneficiaries of unique child birth allowances, 2004-2009 2004 2005 2006 2007 2008 2009 Unique child birth allowance, insured persons 6951 8357 8808 9531 10390 11864 Unique child birth allowance, uninsured persons 21623 26187 26855 26864 26380 28470 Source: NHSI

The data of the above table reveal a permanent increase of the number of beneficiaries of unique birth allowances. The number of insured beneficiaries increased 1,7 times and of uninsured beneficiaries – 1,3 times, in comparison with 2004. The monthly allowance for child care until 3 years for insured persons represents 25% of insured average income, established according article 7 of the Law nr. 289-XV from 22.07.2004 on allowances for temporary work incapacity and other social insurance payments, but not less than 250 Lei. The monthly allowance for child care until 1,5 years for uninsured persons represents 150 Lei in comparison with 100 Lei paid in 2007.

Table 5.2. Dynamics of monthly allowance quantum during 2001-2009, Lei 2001 2002 2003 2004 2005 2006 2007 2008 2009 Monthly allowance for child care: Insured persons (until 3 years) 50 75 100 100 149,9 184,1 230,8 322,6 478,92 Uninsured persons (until 1,5 years) 50 50 75 75 100 100 100 150 150 Monthly allowance for child care of 25 25 25 50 50 50 50 50 50 1,5 (3) – 16 years Source: NHSI

Table 5.3. Number of beneficiaries of monthly allowances for child care, 2008-2009 2008 2009 Monthly allowance for child care until 3 years, insured persons 27235 29268 Allowance size, Lei 322,6 478,92 Monthly SSIB expenses, thousand Lei 8796,0 14628,2 Monthly allowance for child care until 1,5 years, uninsured persons 38166 39741 Allowance size, Lei 150 150 Monthly SB expenses, thousand lei 68181,3 73795,7 Source: NHSI

The monthly allowance for child care of 1,5/3-16 years, both to insured and uninsured persons it is paid in amount of 50 Lei, if the monthly average total income for every family member does not exceed 54 Lei. According 2009 data of National House of Social Insurance, 79078 beneficiaries received monthly allowances for child care in comparison with 79972 in 2008. Also, the families with 4 and more children (under 18 years) and families with children with disabilities (under 18 years) benefit of nominative compensations for the payment of facilities according the rules set by the Government (based on the Law nr.933-XIV from 14.04.2000 on special social protection of some categories of population). According the Law nr. 499-XIV from 14.07.1999 on state social allowances for some categories of citizens, the families that take care of children with disabilities benefit ofstate social allowances according the disability severity degree of the child, families that take care of a child with I disability degree benefit of care allowances.

119 Annual Social Report 2009

Table 5.4. Number of beneficiaries and average quantum of state social allowances, 2000-2009 2000 2003 2006 2009

Categories of beneficiaries Number of beneficiaries. size average Number of beneficiaries. size average Number of beneficiaries. size average Number of beneficiaries. size average For children with disabilities 10361 58-71 13006 90-07 12628 181-73 15237 259-74 under 16/18 years* I degree 3718 65-00 4618 99-72 4979 200-04 6162 285-49 II degree 5161 55-25 6625 84-77 6379 169-22 7614 242-24 III degree 1482 55-25 1763 84-70 1270 169-80 1461 242-38 In case of loss of breadwinner, total, 493 68-36 2186 66-79 2794 81-95 3454 115-79 of which – for one child 291 48-75 1270 49-00 1657 61-58 2395 87-71 – for 2 and more children 183 97-20 822 89-05 1009 107-60 902 175-72 – for one child in case of loss of both parents 19 97-50 67 98-00 89 123-11 117 175-64 – for 2 and more children in case of both - - 12 187-83 22 229-71 19 351-62 parents loss * until 18 years, since 0 1.01.2008 Source: NHSI

State social allowances are amounts paid monthly from the state budget through the state social insurance budget to persons which do not correspond to conditions to be entitled to social insurance pension. The following categories of children benefit of social allowances: – children with disabilities under 18 years with I, II, III severity degree; – children which lost the breadwinner (set to persons under 18 years, in case of pupils and students of higher and secondary education institutions, except the courses by correspondence, until the graduation of corresponding institution but not later 23 years); – persons performing homecare of a child with disabilities under 18 years, degree. I. In 2009, with the occasion of 1 June, the International Children Day, 22124 families benefited of unique material aids in total amount of 4596,5 thousand Lei, of which: 4 million Lei were from the resources of Republican Fund of population social support, and 596,5 thousand Lei – from the resources of local funds of population social support based on the Law of Republican Fund of population social support Nr.827-XIV from 18.02.2000. The average aid amount was of 366 Lei. The republican Fund of population social support set the minimum amount of a material aid of 100 Lei for the family, 200 Lei for every child in house of children family type and those under the care of professional parental assistants. The list of beneficiaries was set by the mayoralties and county divisions/ sections of social assistance and family protection. Simultaneously, at the beginning of school year 2009-2010, 31757 families benefited of material aid for schooling in the total amount of 10442,45 thousand Lei. The average amount of one aid represented 322 Lei. The republican Fund of population social support allocated 5,0 mio. Lei, the municipal fund of population social support – 4626 thousand Lei, and the local funds of population social support – 813,45 thousand lei. The beneficiaries are big families, families with children with disabilities, monoparental families, families with orphan non-institutionalised children, as well the child houses of family type and the service of professional parental assistance.

120 Annual Social Report 2009

5.2. Children poverty

General characteristics of households with children In 2009, the households with children under 18 years represented 39,9% of the total of households from the Republic of Moldova. 57,2% of these households are from rural area. By structure, the households with one child are predominant – 52,8% of the total of households, followed by the households with 2 children – 37,0% and accordingly the households with 3 and more children represent 10,2%. The households with one child are predominant for the households from urban area, the cases of households with 3 and more children are more frequent for rural area.

Figure 5.2. Distribution of households with children by the number of children and areas, 2009

Total 4,9% Ur ban Rural 10,2% 14,3%

33,1% 45,8% 52,8% 37,0% 62,0% 39,3% 1 child 2 children 3 and more children

According the type of household, married couples are most frequent with a share of 47,3% of the total number of households with children, while the monoparental households represent 5,7%. (Figure 5.3.) The share of monoparental households is 4,9 p.p higher in urban area in comparison with rural area (accordingly 8,5% and 3,6%). An analogue situation is characteristic and for married couples, which are more frequent in urban area. Simultaneously, more households from the category „other households with children”, households with more families, are more frequent in rural area.

Figure 5.3. Distribution of households with children by type of household and areas, 2009

100% 90% 80% 39,0 47,0 70% 53,0 Other households with children 60% 8,5 50% 5,7 Solitary parent with children 3,6 40% Family couple with children 30% 52,5 20% 47,3 43,4 10% 0% total urban rural

Distribution of households with children by their level of welfare reveals a decrease trend of number of households with children in ascending from a lower quintile to a higher one. Thus, less frequent are cases of households with 3 and more children, households with more families, and rural households once the level of welfare increases. The households from rural area represent 83% of the total of less wealthy households (quintile I), and according the number of children, the households with maximum 2 children represent 42,8%. Another characteristic for less wealthy households is that every second household has more families. According the social-economic status of the household, the agricultural sector dependent households represent

121 Annual Social Report 2009

42,3%, the households with pensioners – 21,3%, and the households with the head of household receiving income from non-agricultural activity – 20,8%. The distribution of households with children by quintiles varies by areas. Thus, in urban area, once the welfare of households increases the share of households with children increases as well (from 8,6% up to 30,4% for the households of V quintile). The situation is different in case of households of rural area, where the number of households with children decreases once the welfare level increases (from 31,6% to 9,6%).

Figure 5.4. Distribution of households with children by quintiles and areas, 2009

35 30 31, 6 30, 4 26, 6

25 23, 6 21, 8 20, 3 20, 1 19, 7 19, 9 18, 9 20 18, 5 15, 5 % 14, 9 15 9, 6 10 8, 6 5 0 1 2 3 4 5 quintile total urban rural

In 2009, the average size of a household with children was of 4,1 persons, with differences from urban area – 3,7 persons and rural – 4,4 persons. The increase of average size of households with children depends on the increase of number of children in the household. Thus, the values of this indicator varies from 3,6 persons for households with one child and up to 5,9 persons for the households with three and more children. In average, a family couple with children has 3,7 persons, the monoparental households – 2,4 persons, and those with more families – 4,7 persons. The big households have a higher risk to be attributed to vulnerable population strata. Thus, the average size of a household with children decreases from 4,6 persons in case of households of the I quintile to 3,7 persons for the wealthier households with children (Quintile V).

Figure 5.5. Average size of households with children by the type of household and quintiles, 2009

5 4,7 4,6 4,3 4,5 4,1 3,8 4 3,7 3,7 3,5

s 3 2,4

on 2,5 rs 2 pe 1,5 1 0,5 0 Family Solitary Other qI qII qIII qIV qV couple parent households with with with children children children

122 Annual Social Report 2009

Presence of migrants in households with children In average, every fifth household with children has at least one member abroad. Simultaneously, the share of these households in rural area represents 25,5% in comparison to 12,7% in the urban area, fact that reveals that the population from villages is more affected by unemployment, thus, more motivated to leave abroad for a job. In general, the rural households with children and migrants represent 72,9%, and this indicator increased 2,0 p.p. in comparison to 2006. What concerning the number of children, we can reveal that the households with migrants and one child represent 48,9%, followed by the households with 2 children – 39,3%, and the remaining are the households with 3 and more children. The family couples with at least one person left abroad represent 34,5%, the monoparental households represent 0,6%, and 65% are the other households with children. It should be mentioned that in 2006 the number of households with migrants and with 2 children increased, in particular, based on the more frequent cases of family couples with one parent abroad (Figure 5.6.).

Figure 5.6. Structure of households with migrants by the number of children and type of household, 2006- 2009

100% 100% 12,3 11,8 Other households 80% 3 and more 80% children with children 35,3 39,3 67,0 64,9 60% 2 children 60% 40% 40% Solitary parent 1 child 0,5 0,6 with children 52,4 48,9 20% 20% 32,5 34,5 0% 0% Family couple with children 2006 2008 2006 2008

It should be mentioned that according the level of welfare and the presence of migrants in the household, the households with children and with migrants are wealthier than the households without migrants. In fact, every fourth households with children, where at least one member is abroad is a part of the category of wealthiest households and only 10% are part of less wealthy households. The situation of households without migrants is different, an inverse trend was registered: every fourth household with children and without migrants is a part of category of least wealthy households and only 17,3% belong to the wealthiest households.

Figure 5.7. Distribution of households with children by presence of migrants and quintiles, 2009

30 % 24, 5 24, 3 23, 3 25 22, 9 20, 5 18, 9 18, 8 18, 5

20 17, 3 15 10, 9 10 5 0 qI qII qIII qIV qV

Households with children and migrants Households with children without migrants

Incomes of households with children Household income is one of the main characteristics of welfare level. The income structure and dynamics in time has a major influence on the child life and implicitly, on his future.

123 Annual Social Report 2009

In 2009, the disposable incomes of households with children registered the same trends as for other categories of households. In average, the incomes of households with children represented 937,8 Lei monthly, per person or with approximately 10,0 % less in comparison to 2008. The households of rural area were most affected, a 13,8% income decrease was registered in comparison to 6,0% for urban households. The main source for income formation is the employment (46,2%), followed by the individual agricultural activity (10,1%), individual non-agricultural activity (7,7%) and the social payments (8,8%). An important source for the incomes of households with children is the transfers from abroad. In average, these transfers contributed to income formation with 22,4%. Irrespective of the type of household, the main income source is employed activity, with a contribution varying from 51% in case of family couples to 42% in case of households with more families. The monoparental households and the households with more families are more dependent of social payments. In average, these payments contribute to the formation of households monthly incomes with 7,9% and 13,4% accordingly. The remittances are a source of income as well, in particular, for the family couples, (21,8% of total disposable income) and for other types of households (23,4%).

Figure 5.8. Average income of households with children by the number of children and type of household, 2009

lei % 1200 60 1000 50 800 40 600 30 400 20 200 10 0 0 n n n n 1 child children 2 childre 3 and more with childre with childre with childre Family couple Solitary parent

Total incomes, monthly averages per person, Lei Other households Share of salary incomes in total incomes, %

The dependency of rural households on the agricultural activities determined some discrepancies in the income level of households with children. In comparison to urban area, the monoparental households were revealed as most vulnerable. In fact, the family couples from rural area are in the same situation as the households with more families. In case of households of urban area, a better situation is registered for the family couples in comparison with other types of households. The number of children in the household is another factor that determines the income levels per households. In average, a household with one child register a monthly income per person of 1065,1 Lei in comparison with 630,7 Lei in case of households with 3 and more children. Once the number of children in the household increases, the share of incomes from employed activity decreases, and accordingly, the contribution of social payments and individual agricultural activity increases (see Figure 7). The social payments are an important income source in particular for big households. In average, these payments gathered 82,9 Lei monthly for a member of a household with children. 63,1% of these payments are created based on various types of pensions, 13,3% represent the allowances for children, 6,1% – nominative compensations, 1,2% – social aid, the others are other social payments including for families with children. The allowances for children, nominative compensations and the social aid are

124 Annual Social Report 2009 more important in the case of households with 3 and more children and family couples with children. The monoparental households and those with more families are in a higher share dependent of pensions in comparison to other social payments.

Figure 5.9. Structure of social payments according the type of household with children, 2009

Other households with children Solitary parent

Family couple

3 + children

2 children 1 child

total

0% 20% 40% 60% 80% 100% Pensions Allowances for children Nominative compensations Other social payments Social aid

From the total of social payments, 69% are the payments of social insurance and 31% of social assistance. For the households with maximum 2 children, the social insurance payments are predominant in the structure of social payments, while in the case of households with 3 and more children, the contribution of these payments decreases in the favour of social assistance payments. According the households type, a higher dependency of social insurance payments is recorded for the households created from more families, while in case of family couples, the social assistance payments are predominant.

Figure 5.10. Structure of social payments by types, according the type of household with children, 2009

100%

80%

60%

40%

20%

0% total 1 child 2 children 3+ children Family Solitary Other couple parent households with children Social insurance payments Social assistance payments

The polarisation of incomes of households with children is highlighted by their distribution by quintiles. Thus, the average monthly income per person in a household of the I quintile, in 2009 represented 490,6 Lei, lower with approximately 3,2 times in comparison to the average monthly income of persons from the V quintile. The poorest households (quintile I) gathered incomes from employed activity of 36,8 % or 15,6 p.p. less in comparison to wealthier households (quintile V). Simultaneously, the incomes from agricultural activity (22,3% in comparison to 3,0% in case of households from the V quintile) and from social payments (accordingly 16,4% and 5,4%) are more characteristic for poorer households.

125 Annual Social Report 2009

Children poverty According 2009 situation, when the poverty rate for the total population represented 26,3%, is was 28,2% for children, with 2,9% of children suffering of extreme poverty compared to 2,1% for the total population. Every fourth person is a child in the total poor population, and in the total population in extreme poverty, one third are children.

Figure 5.11. Rate of absolute and extreme poverty, 2006-2009

Rate of absolute poverty Rate of extreme poverty 32,8 35 30,2 5,4 28,2 6 30 25,8 27,3 26,4 27,2 26,3 5 4,5 25 3,7 4 3,2 3,2 20 2,8 2,9 15 3 2,1 10 2 5 1 0 0 2006 2007 2008 2009 2006 2007 2008 2009

Total population children Total population children

In condition when the poverty rate for total population remained at the level of 2008, the situation of children aggravated, an increase of one percent point was registered for the poverty level among children. Simultaneously, the situation of children suffering of extreme poverty improved. In case of this category of children, the poverty level reduced with 0,8 percent points, fact that reveals a decrease of the number of children with no minimum nutrition level ensured. The increase of absolute poverty rate among children is determined by the increase of poverty level in the rural area. Children of rural area face a poverty risk of 37,7% compared to 12,8% in the case of children of urban area. Simultaneously, the poverty level among children of urban area decreased 1,1 percent point compared to last year, however, for the rural area, it registered an increase of 2,8%.

Figure 5.12. Children poverty rate by areas, 2006-2008

Rate of absolute poverty, % Rate of extreme poverty, %

37,7 37,0 34,9 5,5 40 33,0 6 5,1 4,8 30 25,6 4,0 3,7 18,1 4 20 13,9 12,8 2,0 1,7 1,4 10 2 0 0 2006 2007 2008 2009 2006 2007 2008 2009

urban rural urban rural

The households’ characteristics such as the number of children and the household type determine as well the vulnerability level of households with children. The risk of families with children to become poor increases considerably at the birth of every next child. Thus, in 2009, the highest poverty rates were registered for households with 3 and more children (46,6%), while the lowest – for the households with only one child (19,2%).

126 Annual Social Report 2009

Figure 5.13. Absolute poverty rate by the number of children in household and type of household, 2009

50 46,6 45 40 33,6 35 26,1 30 25,9 23,7 25 19,2 20 15 10 5 0 1 child 2 children 3+ children Family coupleSolitary parent Other households with children Number of children Type of household

According the type of household we can reveal that the highest risk to get in poverty have the children of households created from more families (33,6%), due to the fact that this type of households is predominant for the rural area, where, in general, the poverty incidence is higher. Simultaneously, these households, as usual, comprise more generations, where the cases of inactive persons are frequent, and they do not have any source of income or their incomes are insufficient to ensure a decent living to children. The children poverty varies according parents’ education level and accordingly, the probability for children to become poor is lower when the parents have education. Thus, every additional education level of parents means a decrease of poverty risk for children, from 3,1% in case of households where the household head has higher education, to 58,8% for the households where the household head do not have lower secondary education. The occupational status of parents is another factor that determines the level of children welfare. Thus, the lowest poverty rates are registered for children with both parents-employees (13,3%) or at least one parent is own account worker in non-agricultural activities (13,8%). The situation is worse in case of children with both parents as own-account workers in agricultural activities, the poverty level for this category of children represents 52,0% (Figure 5.14). Once again, this fact confirms the instability of incomes from own account agricultural activities practiced by rural population.

Figure 5.14. Absolute poverty rate for children by parents’ occupational status, 2009

Other situations 24,7

Both are employees 13,3

At least one own account worker 13,8 in non-agricultural activities

At least one employee 29,6

One own account worker in agricultural activities 34,2 % Both are own account workers 52 in agricultural activities

0 10 20 30 40 50 60

The parents’ presence in the family is another important characteristic for the analysis of children vulnerability level. Population migration, in particular, of working age, led to the situation when 16,1% of children live in the families where at least one parent is abroad (Figure 5.15.). Every tenth child lives

127 Annual Social Report 2009 in a family where mother is abroad, 4,5% – in the families with father abroad, and 1,6% – with both parents abroad. The material situation of children with one parent abroad is much better in comparison with families without migrants. The poverty risk for children in the family with migrants is 2,2 times less than in case of children without migrants (31,7%). Poverty incidence for children from families with migrants is even lower when both parents are abroad (15,2%) (Figure 5.16).

Figure 5.15. Distribution of children by the presence Figure 5.16. Children poverty rate according of parents, 2009, % the presence of parents, 2009, %

Both parents are 35 31,1 abroad 30 25 1,6 4,5 10,0 Father is abroad 20 15,2 14,1 15 12,5

Mother is abroad 10 5 83,9 0 Both parents are Both parents Father Mother Both parents present are abroad is abroad is abroad are present

The remittances are an important income source for households with children, in particular, for those of rural area. The depart abroad of at least one parent reduce the incidence of children poverty in rural area with 2,8 times, while, in case of children from urban areas, the share between the poverty rate of households with migrant and without is 1,1 times. Children social protection. The current system of children social protection, except various social services, provides more types of payments targeted to families with children (monthly allowances for child care, unique birth allowances, nominative compensations, social allowances, social aid etc.). In general, the payment of social insurance and assistance represent one of the income sources of families with children. According the households welfare, we can reveal that these payments have a higher share in case of poorer households 16,4% of total incomes, compared to 5,4% for the wealthier households. Simultaneously, the social insurance payments have a higher share, including pensions of which households members benefit. The 10% of incomes of poorer households are created from pensions. This fact, reveal a higher dependency of poorer households of social insurance payments (Figure 5.17.).

Figure 5.17. Share of social payments in total disposable income of households with children, by quintiles, 2009

% 18 16,4 16 14 12,7 12 10,0 10 8,2 8,8 8 6,2 6,2 5,4 6 4,3 4 2,1 2,6 1,7 1,3 2 0,8 0,6 0 1 2 3 4 5

Quintiles

Total social payments Pensions Allowances for children

128 Annual Social Report 2009

The allowances for child care are less important for the households with children, their contribution is 2,1% in total disposable income of households of I quintile compared to 1,3% for the households of the V quintile. The allowances for children based on income test have a better pro-poverty targeting, than the allowances for child care until 1,5/3,0 years. Thus, the share of households of I quintile which benefit of allowances for child care until 1,5/3 years represent 13,8% compared to 0,7% in case of households of the V quintile. 27,5%of poorer households with children (quintile I) benefit of social payments, and 28,2% benefit of social assistance payments. Once the welfare level of households increases, the share of households that benefit of social payments decreases, and most frequent are cases when households benefit of social assistance payments (Figure 5.18.).

Figure 5.18. Share of households that benefit of social payments, by quintiles, 2009

% 28, 2

30 27, 5 27, 0 23, 8 23, 8 25 23, 6 20, 1 18, 5

20 17, 4 17 16, 8 16, 7 14, 3 15 13, 6 11, 7 10 5 0 1 2 3 4 5

Quintile Total social payments Social insurance payments Social assistance payments

During the last years, the social payments provided to households with children were increasing; however, their size is still insignificant. For example, monthly allowances for child care contributed to poverty reduction with 0,9 p.p. in 2009.

Table 5.5. Impact of allowances for children on children poverty, 2009 %

Absolute poverty rate Difference, percent Before payment After payment points Allowances for children 29,1 28,2 0,9 Pensions 33,3 28,2 5,1 Nominative compensations 28,7 28,2 0,5

Pensions have a higher impact on the welfare level of children. In 2009, these contributed with 5,1 p.p. to poverty reduction. The nominative compensations contributed with 0,5 p.p.

5.3. Social services targeted to family and children

The existence of a range of social-economic factors such as poverty and migration, demographic and cultural attitude changes contribute to the increase of request for social services. Moreover, during the last years, an increase of the number of children in difficulty is recorded: children from socially vulnerable families, children without parental care, the phenomenon of children abandon connected with labour migration, abandoned children and sexual exploitation and traffic of children. These factors, as well, generate the additional request of social services.

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5.3.1. Primary social services The primary social services have the purpose to prevent or limit some difficult situations, to solve the problems at the initial phase, keeping the beneficiary in the family and in the community. The following types of primary social services targeted to families with children and children in difficult situations can be mentioned: – Service of family support; – Service of child reintegration in the family; – Day services offered in the frame of multifunctional community Centre. Currently, 163 social centres for families with children and children in difficult situation work in the country, according the information from territorial structures of social assistance, of which: – 102 day care centres, which provide services for approximately 5125 beneficiaries; – 31 temporary shelters, which provide services for approximately 1034 beneficiaries; – 28 mixed centres, which provide services for approximately 1195 beneficiaries; – 2 centres of socio-medical rehabilitation, which provide services for approximately 217 beneficiaries. The spectrum of provided social services by the above-mentioned centres according their type (day care, shelter, or mixed) includes: information/communication, socio-cultural services, counselling/consultancy, mediation (socio-familial, of conflicts), psychotherapy, psycho correction, occupational therapy/nutrition protected workshops (nutrition daily standard), daily care, adapted transport, distribution of humanitarian aids, rehabilitation (kinetotherapy, physiotherapy, art therapy, music therapy), medical care and emergency long/short term placement. Their role is to create an active communication, information environment, and development of beneficiaries’ abilities to prevent some risk situations or to outrun difficult situations. Analysing the data of Figure 5.19, we can conclude that a higher share have services provided in the frame of day care centres. Thus, of the total of 163 centres, 63% of them are the day care centres, 19% – the temporary shelters, 17% – mixed centres and 1% – centres of socio-medical rehabilitation.

Figure 5.19. Social centres for families with children and children in difficult situation

Day care centres 17% 1% Shelters

19% Mixed centres 63% Centres of socio-medical rehabilitation

61 centres of those 102 day care centres (or 59%) provide services just for children, 22 – for children and teenagers and 19 – are mixed. Services for various categories of beneficiaries are provided by the day care centres: children, teenagers, families with children, elderly persons, and people with disabilities, thus ensuring the social integration of persons of different ages and with different problems. According the information provided by territorial structures of social assistance, currently, there are 28 mixed centres for families with children and children in difficult situation in the republic: 14 of them provide services for more categories of beneficiaries, 9 centres – for children and 5 – for teenagers.

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Figure 5.20. Distribution of day care centres by categories of beneficiaries

Centres for family and children in difficulty

Mixed, 19%

Children and young persons 22% Children, 59%

copii copii şi tineri mixte

According the Figure 5.21., we can conclude that 50% of them provide services to more categories of beneficiaries.

Figure 5.21. Distribution of mixed centres by categories of beneficiaries

Mixed centres

Children, 32%

More categories, 50%

Young persons, 18%

Children Young persons More categories

5.3.2. Specialised social services The specialised social services serve a reduced number of persons, whose problems cannot be solved at the community level. The number of persons that need specialised social services is much lower than the number of those that benefit of primary social services. They include specialised day care services, centres of temporary shelter, support for substitutive families, and support for the integration of children in families from the residential care. The forms of children protection are: – adoption; – guardianship/curatorship. The Ministry Labour, Social Protection and Family is the central authority in the field of adoption, and acts according the provisions of Hague Convention of children rights and cooperation in the field of international adoption from 29.05.1993 and the Legislation of the Republic of Moldova in the field of adoption. In 2009, 213 children were adopted, 184 children were adopted by citizens of the Republic of Mol- dova, the international adoption being used only in case when a family from the country could not be identified, respecting their higher interest. In 2009, 29 children were adopted by foreign adopters.

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Table 5.6. International adoption in 2009 Nr. Child destination country Number of adopted children d/o 1. USA 5 2. Italy 19 3. Germany 1 4. Switzerland 2 5. Spain 2 Total: 29

In 2009, the guardianship/curatorship was decided for 1565 children remained without parental care, according the data of sections/divisions of social assistance and family protection/municipal division of children rights protection Chisinau; An efficient form alternative to residential child care is the service of professional parental care. The peculiarity of this service consists in offering to children substitutive family care in the family of professional parental assistant. The purpose of the service of professional parental care is to ensure temporary protection to children in difficult situation, his socialisation and reintegration in the biological family, extended or in other forms of family care. Not more than 3 children can be placed in the family of professional parental assistant in the same time; exception is the placement of brothers and sisters. During 2009, 103 children benefited of services of 87 families of professional parental assistants. The quantum of allowances for children from the service of professional parental assistance according the duration and type of the placement were set by the Government Decision nr. 924 from 31.12.2009 on allowances for children placed in the services of professional parental assistance.

Table 5.7. Quanta of allowances for children from the service of professional parental assistance Allowance size for one child, Lei Nr. Type of allowance* Long term Short term Emergency Temporary placement placement placement placement 1. Unique placement allowance1 - 3000 500 250 2. Monthly allowance for child care2 21 Lei/day 21 Lei/day 21 Lei/day 21 Lei/day Annual allowance for clothing, footwear, 3. 3000 - - - hygienic-sanitary products 4. Unique allowance at the reach of 18 years3 1000 1000 - -

* In case of placement of a child with disabilities in the service of professional parental care the allowances: unique at placement, monthly for child care and annual for clothing, footwear and hygienic-sanitary products will increase with 30%. ¹ In case of short-term placement, the unique placement allowance is calculated 250 Lei monthly, according the duration of placement set by guardianship authority. 2 The monthly allowance for child care will be paid according the real number of placement days. 3 The unique allowance at the reach of 18 years will be paid to boy/girl for (re)integration in the society and prepare for an independent life.

Family type child house represent an institution created on a family basis with the purpose of partial support and education of orphan children and those without parental care. This institution can host (according current legislation) from 3 to 7 children under 14 years. The total number of children placed in the child house for care and of own children should not exceed 7 persons. During 2009, there were 318 children placed in 76 family type child houses in the Republic of Mol- dova.

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The Ministry of Labour, Social Protection and Family promote respect of children rights and ensure their social protection from the negative effects of parents migration. A current issue is to develop new efficient mechanisms of monitoring and making more responsible the migrating parents in what concerning their parental obligations for the children left in the country. A first important step to ensure social protection of children whose parents departed abroad for work consists in implementation of provisions of Government Decision nr. 290 from 15.04.2009 on the approval of Procedure of issue the certificate on child registration left in the country, whose parent/ guardian (curator), citizen of the Republic of Moldova is employed temporarily abroad. According the above-mentioned Decision and the conditions of art. 22 paragraph (3) lit. d) of the Chapter III of Law nr. 180-XVI from 10.07.2008 „On labour migration”, the citizens of the Republic of Mol- dova employed temporarily abroad are obliged to present the copy of confirmation document on registration of minor children remaining at home, at the registration of individual work contract at the Nation- al Employment Agency, document issued by the competent body of children protection in the residence rayon/sector of parents. According the above-mentioned legislative document, the child recording certificate is issued by the section/division of social assistance and family protection in the county. In municipality Chisinau, such certificates are issued by the municipal Division for protection of children rights. The following documents should be attached to the request of certificate issue: identity card (copy); identity card of spouse (copy); marriage/divorce/death certificate of one child parents (copy); child birth certificate (copy); certificate on family structure, issued by the local administration authority, the service of exploitation of dwelling stock or other institutions managing the dwelling stock. In case when this certificate is requested by the child guardian, the annexes should comprise the identity card (copy) and child birth certificate (copy). Simultaneously, in case when the child remains with one of the parents, the solicitor annexes additionally a certificate confirming parents’ capacity to take care of the child and perform his parental duties and responsibilities, according the provisions of Family Code. The certificate is issued at the residence locality by guardianship authority from the territorial administrative of I level, and by sector divisions for children rights protection in municipality Chisinau. If the child remains in the country without legal representative, the county Section/division of social assistance and family protection (Municipal division for children rights protection) should specify in the certificate the protection form to be applied to child, while the parent is away. Following the above-mentioned, the registration procedure of children is applied in case of parents or legal representatives’ temporary employed abroad, based on individual work contract. However, serious problems raise the illegal migration abroad. Taking into account that many children without parental care in the result of parents migrations are in the community and are involved in the education process, a new interdisciplinary vision of specific problems faced by them should be implemented, by the consolidation of capacities of didactic personnel, community social assistants, family doctors etc. from the viewpoint of psycho-emotional approach and communication with „socially abandoned children”. Simultaneously, when children without parental care are in a vulnerable situation, the community social assistants should play an important role in identifying and offering primary social services, or re- ferring to other competent structures, including the reference, by case, to give support in the frame of specialised social services, in the context of implementation of integrated system of social services. Assistance services provided in the frame of temporary shelter represent family type social assistance services provided to children in risk situations, for a determined period of time. The purpose of the Centre is to offer children in difficult situation accommodation, care, education and if needed, psychological, medical counselling, systematic observation and assessment of child development, pedagogical and psychological counselling to child family, the work in the direction of child (re)integration in a family environment. The temporary placement services are classified according provided services:

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– emergency service, – socio-medical rehabilitation service for children with special needs, – socio-medical rehabilitation service for victims of abuse and violence, – Post-institutional care services for graduates of residential institutions. The centre is created by the decision of local public authority. The corresponding decision is taken based on the appeal of guardianship institution and of the service of social assistance. The final purpose of services provided in the frame of the centre is reintegration/integration of the child in the natural/extended family, child adoption or development of abilities for an independent life for beneficiaries that reached 18 years. Of all 31 temporary shelters, 24 centres (78%) provide services just for children, 3 centres – for the couple mother- child, 2 centres – young persons, and couple mother – child, and 2 centres for – for young persons.

Figure 5.22. Distribution of temporary shelters provided for families and children, by categories of beneficiaries

Temporary shelters for family and children

Young persons and couple Young persons, 6% mother-child, 6%

Couple Children, 78% mother-child, 10%

Children Couple mother-child Young persons Young persons and couple mother-child

From the total of 163 centres for families and children in difficulty, 43 of them provide social services for children and young persons with disabilities, 2 of which (5%) are shelters for children with disabilities, 34 centres (79%) – day care centres and 7 (16%) – mixed centres.

Figure 5.23. Social centres for children and young persons with disabilities

Social centres for children and young persons with disabilities

Mixed centres, 16%

Temporary shelters, 5% Day care centres, 79%

Day care centres Temporary shelters Mixed centres

Following the Figure 4.6. we can reveal that approximately 79% of the total of day-care centres are provided for families with children and teenagers with disabilities. The maternal centre is a protection service of the couple mother-child which ensures the right to every child to keep his family relations, offering the possibility of problems early solution to mother in

134 Annual Social Report 2009 a difficult situation, in order to facilitate the reintegration in the family and community. The direct beneficiaries of maternal centre are the couples mother-child, as well, the pregnant women in the last pregnancy quarter, in risk situations from the viewpoint on child separation from his family. The period to stay in the shelter for the mother and child is 6 months. In some cases, the placement duration can be increased with 6 more months if the multidisciplinary team considers appropriate to do so. The maternal centre offers: placement, medical care, social assistance services and counselling, socio- familial integration services.

5.3.3. Social services with high specialisation Social services with high specialisation are provided by residential institutions. The (24/24 hours) residential care is provided to a restricted number of persons, which face extremely serious problems. Residential services involve high costs; furthermore, they do not reflect and face completely the needs of beneficiaries. Ministry of Labour, Social Protection and Family coordinates the activity of two residential social institutions for children with mental disabilities: • Boarding school for children with mental disabilities (girls), from Hincesti; • Boarding school for children with mental disabilities (boys), from Orhei. Both institutions act based on the Regulation-frame of functioning of boarding school for children with mental disabilities, approved by the Order of Minister of Labour, Social Protection, Family and Chil- dren nr.45 from 13.06.2008, with the purpose of temporary protection of children with mental disabilities, providing psycho-pedagogic and socio-medical assistance for socio-familial re/integration. The boarding schools provide children the following rehabilitation/recovery services: a) Psycho-social, psycho-pedagogic and medical rehabilitation; b) Daily care to support physiological integrity by ensuring a corresponding nutrition and personal hygiene; c) maintenance and/or development of community/family relations. Simultaneously, beneficiaries with locomotion disabilities are provided specialised services of: wheelchairs, access slopes, support bars, motoric support equipment nr. 4, adapted WC, orthopaedics/prosthesis, curative gymnastics, massage. According the National Strategy and the Action Plan for the reform of children residential care system for 2007-2012, approved by the Government Decision nr. 784 from 09.07.2007 and based on the Ministry agreement, 5 beneficiaries of the Boarding school for children with mental disabilities from Hincesti were reintegrated in their biological and extended families. Simultaneously, 17 beneficiaries of Boarding school for children with mental disabilities from Orhei were reintegrated in their biological and extended families in the context of implementation of the Proj- ect „Inclusive Community – Moldova”. A good thing in the activity of these two institutions is the fact that the Boarding school provide counselling to family by: permanent information on child development and evaluation in the Boarding school; prepare the parents how to care for the child according child needs. This work activity with the family is performed by various forms, such as: individual periodic meetings in the institution, telephone conversations, letters, and meetings with parents. During 2009, a range of activities with the implication of local actors, community persons, were organised in the child institutions in the Ministry subordination, thus a proper framework was created for relationning and socialisation with children from above-mentioned institutions, in the context of implementation of provisions of National Strategy on community activities for the support of children in difficulty 2007-2009, approved by the Government Decision nr. 954 from 20.08.2007 and of the National Plan of community activities for the support of children in difficulty for 2007-2009, approved by the Govern- ment Decision nr. 995 from 03.09.2007.

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Table 5.7. Maintenance expenses in residential institutions for children, 2009 Boarding school for children Boarding school for children with mental disabilities with mental disabilities (boys) from Orhei (girls), from Hincesti Number of beneficiaries 321 347 Number of employees 197 196 Nutrition norm, approved per beneficiary 26,48 Lei/day 26,51 Lei/day 29,39 Lei (25,04 Lei from the 24,48 Lei (22,47 Lei from the state budget, 2,86 Lei from state budget, 0,86 Lei from De facto nutrition norm humanitarian aids and 1,49 humanitarian aids and 1,10 Lei from grant) from grant) Expenses for the maintenance of a beneficiary/day, ap- 89,91 Lei 96,67 Lei proved Expenses for the maintenance of a beneficiary/day, de 94,95 Lei 95,50 Lei facto Total expenses of institution maintenance, approved 10501,7 thousand Lei 11117,6 thousand Lei Total expenses of institution maintenance de facto 10501,5 thousand Lei 10972,6 thousand Lei Source: MSPFC

5.4. Repatriation of children identified without parental care beyond country borders

During 2009, 20 repatriation missions were organised of children identified in Russian Federation (25 children), Ukraine (8 children), Romania (8 children) and Sweden (1 child), in total 42 children were repa- triated with the assistance of Representation of Swiss Foundation Terre des Hommes in the Republic of Moldova and Mission of the International Migration Organisation in Moldova, based on the Government Decision nr. 948 from 07.08.2008 on the approval of Regulation of repatriation procedure of children and adults – victims of human traffic, illegal traffic of migrants, and of unaccompanied children. A tripartite Cooperation Agreement between the Ministry of Labour, Social Protection and Family of the Republic of Moldova and the Mission of International Migration Organisation in the Republic of Moldova and the Swiss Foundation Terre des Hommes in the Republic of Moldova was signed on 12 March 2009. The draft of Methodological Guidelines on the procedure of identification, protection, voluntary assisted repatriation and children reintegration was developed together with Swiss Foundation Terre des Hommes in the Republic of Moldova. During 2009, the repatriation procedure was promoted and applied in the Republic of Moldova and Russian Federation in the framework of FACT Project, in cooperation with line central public administration authorities, the Embassy of Republic of Moldova in Russian Federation, the temporary shelter of minors, the Centre of placement and rehabilitation of early age children, specialists in the protection of children rights and specialists in problems of families with children in risk situations from the Sections/ Divisions of social assistance and family protection, as well the community social assistants. The repatriation procedure stipulates the protection stages of children from identification to reintegration; social actors involved in this process, and the instruments applied at every protection stage. The application of repatriation procedure contribute to coordination of children identification, protection, repatriation and reintegration activities in a secure environment and guarantees the determination of child protection form, adequate to social situation, age, education level and opinion. In order to make more efficient the process of repatriation of abandoned children on territories of other countries, it was developed:

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– the draft of Government Decision to start the negotiations on the draft of Agreement between the Government of the Republic of Moldova and the Government of Russian Federation concerning cooperation in the field of repatriation of victims of human traffic, traffic with children, illegal traffic with migrants, unaccompanied children and migrants in difficult situations; – the draft of Government Decision to initiate the negotiations on the draft of Agreement between the Government of the Republic of Moldova and the Government of Italian Republic on cooperation in the field of protection of unaccompanied Moldovan children or in difficulty on the territory of Italian Republic.

5.5. Children summer rest

In 2009, 16 824 594 Lei were provided for the organisation of children summer rest by the Law on State Budget, according the current priorities in national policies of social protection of children. In this context, the Regulation of activity of summer camps for rest and recovery of children and teenagers health (Government Decision nr. 334 from 23.04.2009) identified the method of use of budgetary means in this purpose. Simultaneously, the maximum cost for one day in the summer camp according the type of camp for the summer season 2009 was set by the Government Decision nr.353 from 07.05.2009.

Table 5.8. The maximum cost of one day in summer rest camps for children and teenagers, Lei Nr. Types of rest and recovery summer camps for children The maximum cost of one day in the camp, Lei d/o and teenagers 1. Camp for rest and recovery 100 2. Specialised camp (sciences, arts, sport) 105 3. Day camp 71

The contracts with camps providing services of rest and recovery for children for the summer season 2009 were signed according procedure of public acquisitions based on the Law nr.96-XVI from 13.04.2007 on public acquisitions. The working group for the organisation of public tender for the acquisition of services of organisation of children rest and recovery in the summertime was established by the Order of the Minister of Social Protection, Family and Child nr.39 from 04.05.09, and the Order nr.37 from 04.05.2009, which approved the nominal structure of the Commission for the organisation of children rest and recovery during summertime, and the Regulation of Activity of this Commission. The Commission and Working Group comprised representatives of the Ministry and National Confederation of Trade unions of Moldova. The Working Group decided the sign of purchase contracts with 33 summer rest and recovery camps from 39 received offers. The decision on necessary tickets for every county/municipality was taken based on the information from the National Bureau of Statistics concerning the number of children of 7-18 years and on the data of National Trade union Confederation concerning the contribution of primary trade union organisations, taking into account their territorial placement. 17 254 tickets for prices varying from 800 Lei to 1000 Lei – the maximum price set by the Govern- ment, were purchased from the amount of 16824594 Lei allocated from the state budget in those 33 summer camps. According the provisions, 55% (9490 tickets) from the total number of tickets were distributed to sections/divisions of social assistance and family protection/Division of minors’ protection of municipality Chisinau, given to children between 7 and 18 years, preferably of the following categories:

137 Annual Social Report 2009

a) orphans and children with one alive parent; b) children from monoparental families; c) children from families with low incomes; d) children from numerous families; e) children under tutorship/curatorship; f) children placed in family type services; g) children placed in temporary placement services; h) children from families where both parents are with disabilities; i) children from families where both parents are pensioners; j) children with performances in education or winners of didactic and extra didactic contests. 45% (7764 tickets) were distributed to the National Trade union Confederation to contribute at ensuring summer rest of children of employees.

5.6. Conclusions. Recommendations

In conditions of economic financial crisis, accompanied by a massive migration flow of family members searching for work, the priority objective of social protection remains the development of a coherent and unitary system of family support. The national system of social protection provides payments and social services targeted to families with children. During the last years, an increase trend of allowances quantum targeted to families with children is noticed, however, the impact of these payments on the beneficiaries’ welfare still is insignificant, due to low quantum of payments, and their real value is affected by the high inflation level. The approach of family assistance based on the evaluation of monthly average global income and the need of family members for social assistance are relevant in the context of making more efficient the payments targeted to families with children. The basic principle stipulated by a wide range of national legislative documents, and the principles assumed by the Government at the ratification of UN Convention on children rights is the child necessity and right to live in a family or family-similar environment. Its implementation is ensured by optimal protection forms of children in difficulty. During 2009, the social services alternative to institutionalisation were developed and diversified, both community and family type, namely: day care centres and centres of shelters for various categories of children in difficulty, maternal centres, family type child houses, and the service of professional parental assistance. The regulations-type on functioning and sets of minimum quality standards were approved in order to ensure the legislative framework for the majority of above-mentioned social services. A severe problem faced today by the family is the legal and illegal migration of parents searching for work. Based on the Law nr. 180-XVI from 10.07.2008 on the Labour Migration and in order to ensure children protection, the procedure of issue of recording certificate of the child remaining in the country, whose parent/legal representative, citizen of the Republic of Moldova, is employed abroad. The corresponding certificates shall be issued by municipal/county guardianship authorities. This activity is the first step to ensure the respect rights and protection of children affected by the parents’ migration. In this context, a new Regulation on the activity of guardianship and curatorship authorities at the local and county level shall be developed, one of the priority compartments should emphasise on parts responsabilisation in the context of prevention of negative consequences of „social abandon” and the risk of occurrence of difficult situations for children, as well, the identification of an efficient intersectorial mechanism which would not allow parents to leave abroad without ensuring at least, legal representation of children interests. Following the above-mentioned in the present chapter, and in order to optimise the family and child protection policies, the further efforts should be concentrated on the following:

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– development, approval and extension of legal mechanisms for the accreditation and monitoring of social services providers, as well, the purchase mechanism from providers; – implementation at the national level of an information system of recording all children in difficulty, the existing and necessary social services, the costs of services and personnel from the system of family and child social protection; – prevention of children social abandon as a result of parent migration for work abroad; – improvement of activity of tutorship bodies in the frame of local public administration authorities, level I and II and promotion and respect of child rights, regular monitoring and assessment of their activity; – consolidation of specialists efforts with abilities in the field of children rights protection in order to prevent and stop the phenomenon of child violence; – consolidation of professional capacities of specialists working in the field of children rights protection.

139 Annual Social Report 2009 GENDER EQUALITY. PREVENTION AND FIGHTING 6. VIOLENCE AND HUMAN TRAFFICK

6.1. Gender equality

The achievement of equality between men and women is considered an integral part of the process of constitution of a true, conscious, and gender sensitive democracy, with the main premise to ensure participation of all society members, women and men, in all areas of activity.

Legislative framework The national Program of gender equality insurance for 2010-2015 approved by the Government De- cision nr. 933 from 31.12.2009, was developed according the provisions of final recommendations of UN Committee on Fighting Women Discrimination for the Republic of Moldova (August 2006), Recom- mendations of monitorisation of Law-frame and National Plan „Promoting gender equality in community during 2006-2009” (Government Decision nr. 984 from 25.08.2006) implementation. Simultaneously, the development of such a legislative document was conditioned by the commitments of the Republic of Moldova, assumed at the ratification of integration agreements in the field of human rights, in particular the documents that approach gender equality: Human Rights Declaration (1948), Convention on political rights of women (1952), the International Agreement of Economic, Social and Cultural rights (1966), UN Convention on the elimination of all forms of women discrimination (1979), Beijing Platform and Action Plan (1995), Millennium Declaration (2000), relevant IMO Conventions. The following documents in this field served as starting points: Declaration on equality between men and women as fundamental criterion for democracy, adopted at the 4th Conference of European Minis- ters on Equality between Women and Men (Istanbul, 13-14 November1997), Declaration and Action Plan adopted at the third Summit of Heads of State and Government members of the Council of Europe (War- saw, 16-17 May 2005), the Resolution on the implementation of gender equality: a challenge for human rights and a premise to economic development, adopted at the 6th Conference of European Ministers on Equality between Women and Men (Stockholm, 8-9 June 2006), the Basic Strategy for equality between women and men for 2001-2005, the Roadmap for equality between women and men (2006-2010), Rec- ommendation CM/Rec(2007)17 of the Committee of Ministers of Council of Europe to member states on standards and insurance mechanisms of gender equality etc. The experience of the countries that adopted and implemented such documents as Romania, Bulgaria, Ireland, Denmark and Kazakhstan was explored as well. The National Program of gender equality insurance 2010-2015 has the purpose to identify and ensure opportunities, conditions, and methods of efficient implementation of gender equality in the Republic of Moldova. The above-mentioned Program represents a strategic document, which determines the objectives of gender equality policies in Moldova until 2015 and sets the priority activities in this field. The Program comprises the following components: social protection and family, employment and migration, budgeting as (interdisciplinary) field, education, health care, violence and human traffic, political participation, rising information level/mass-media.

The general objectives are to: • Conceptualize and substantiate the state policy in the field of gender equality as a determinant factor to ensure the national insurance, country sustainable development and creation of adequate conditions to increase population life quality; • Integration of gender equality principle in the programs and policies in all fields and levels of decisions adoption and application; • Ensure the implementation mechanism and the legislative-normative framework in the field; • Ensure an efficient management of gender equality implementation at the national and local levels;

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• Draw public opinion attention to the prevention and elimination of gender prejudices and stereotypes and of conditions generating gender based discrimination situations; • Promote balanced participation of women and men in various fields of public and private life; • Implement a gender based education system in the context of continuous education; • Stimulate inter-trans-disciplinary research activity in the field of gender equality; • Development of dialogue and partnerships between public authorities, civil society, all implicated actors; • Include gender analysis as a component part of any type of analysis; • Implement an efficient mechanism to monitor and evaluate the gender equality policy achievements. The Program provides that the necessary financial resources should be planned by every responsible ministry. Simultaneously, the financing of all activities of National Program implementation shall be carried out from both, the budgetary means approved for corresponding years for the line ministries, and with the financial support of international organisations based on the country partnership agreements. The implementation of National Program shall be ensured by two mid-term Action Plans which will be implemented by competent authorities during the periods 2010-2012 and 2013-2015. In 2012, the implementation success of the first Action Plan will be assessed, and these results shall be used for the development of the second Action Plan in context of ensuring the complete implementation of Program strategic objectives. The above-mentioned Program was developed with the active implication of representatives of state structures, civil society, and scholar community. The basic findings, objectives and identified problems, fields of intervention and indicators were validated in the frame of multiple public discussions, national conferences and round tables.

Legislation harmonisation from gender perspective The labour Code of the Republic of Moldova entered into force on 1 October 2003 and has some undiscriminatory provisions. Both the Labour Code and the Law nr.355-XVI from 23.12.2005 on the remuneration system in the public sector forbid the discrimination based on gender, age, disability, social origin, marital status, race, political beliefs, religion and trade union adept or activity in the establishment and payment of salaries. The evaluation of labour legislation performed by the Government in cooperation with Program UNIFEM Moldova describe the protectionist aspects created for women in order to ensure a better care from the state, fact that have a negative effect on the women placement in the labour market and the development of labour market. Various chapters of the Labour Code reflect these conditions, in particular, Part II Title X dedicated to women labour, with an emphasis on maternity protection. The following could be mentioned among special conditions for women: • Interdiction to attract in night shifts (art.103, p.5) pregnant women, women in postpartum leave, and women with children under 3 years • To offer an additional unpaid leave for the care of children between 3 and 6 years, keeping the job/position (art.126 p.1) . • Interdiction to send pregnant women, women in postnatal leave and women with children under 3 years in business travels (art.249 p.1). The Labour Code proclaims the women protection, but this damages their right to chose and to take decisions in what concerning their work activities. The Provisions of Labour Code impose stereotypes and consolidate the traditional roles, thus contributing in the enhancement of patriarchal society. With the birth of a child, as usual, women must leave the labour market for a long period of time due to the underdeveloped system of preschool institutions. The women protectionist aspect leads to men discrimination, with limitations in performing their paternal attributions in practice, taking into account that the Code provides specific conditions just for mothers. These aspects create a major obstacle for women and present a dilemma for employers.

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In the same time, the labour legislation does not reflect the provisions of art. 26 of European Social Book, namely, the phenomenon of sexual harassment and the definition of harassment as a form of discrimination at work, thus leading to establishment of an intimidating, hostile, degrading, or offending environment with the purpose or effect of personal dignity violation. Currently, the definition of "sexual harassment" is defined only by the Law Nr. 5-XVI from 09.02.2006 on ensuring the equality of chances to women and men. Taking into account the international requirements in this field, the national legislation must be amended with the provisions that would reflect a mechanism to ensure the respect of stipula- tions on sexual harassment, such as the identification mechanism, presentation of complains presentation of evidences or specifications by role inversment in the process of existence proof of sexual harassment phenomenon. Taking into account the conclusions of the study, the Ministry of Economy, Ministry of Labour, Social Protection, and Family in partnership with the Program UNIFEM/Sida “Promoting gender equality in National Development Plans and Policies” (hereafter the Program UNIFEM Moldova), as well, with the implication of civil society, expert lawyers in labour, gender, and social protection under the management of NGO “Partnership and Development Centre” initiated the development of a draft of law for the modification of Labour Code and labour legislation. The Ministry, with the assistance of Program UNIFEM Moldova, initiated the process of analysis of national legislative framework from the perspective of gender equality in order to identify the gaps at the legislative level and the problems of practical implementation in the context of harmonisation of national legislation with the provisions of Law Nr. 5 –XVI from 09.02.2006 on ensuring equality of chances between women and men and international standards in the field of gender equality. Thus, national experts with experience in this field were selected to undertake this analysis, and to develop the Compatibility Report. As a member of UN Economic and Social Council (ECOSOC) for 2008-2010, the Republic of Moldova must present the national report on implementation of Millennium Development Goals (MDG). This report must be presented at the annual ministerial meeting of ECOSOC session in July 2010, in New York. The topic of annual meeting will be ”The implementation of international aggregated objectives and the commitments for gender equality and women empowerment”. Thus, the national report on MDG implementation, beyond the description of registered progress in MDG implementation will contain a thematic chapter which will address chances equality between women and men. Simultaneously, the gender issues will be reflected in all 8 MDG. The voluntary national presentations (NVP) represent a new UN instrument to assess the Internationally Agreed Development Goals (IADG) and Millennium Develop- ment Goals (MDG) implementation level. This new procedure was introduced in the result of World Summit in 2005, when ECOSOC (one of the 6 main UN bodies) was made responsible to organise a ministerial meeting in the frame of ordinary session, during which, a selected number of member countries were supposed to present, on a voluntary basis, national reports on IADG and MDG. NVP represent a dialogue forum based on countries experience in the implementation of strategies and policies for IADG and MDG achievement. The NVP have the objective to accelerate the process of implementation of development objectives and to reconfirm the responsibility for the assumed commitments, offering an evaluation and systematisation instrument of results and necessary activities to be further implemented and mobilising the actors implicated in this sector at the national level. The purpose of this new instrument is to reveal the national strategies, programs and plans which proved positive results during implementation, and to outline the difficulties, and sometimes the errors, so as the experience of one country would not be taken by another, but analysed as a practical lesson. Simultaneously, the policies and programs that proved to be effective to be presented so as to have the possibility to replicate them in other countries, where they could be efficient. The NVP is a process that systematically connects the national actions of MDG implementation with the ECOSOC legislative activity for the benefit of other countries. The Government of the Republic of Moldova was assisted by a group of national experts, selected and hired by UN Agencies (UNIFEM, UNDP, UNICEF, UNFPA, UNAIDS), which developed the draft of the NVP Report in cooperation with the Ministry.

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The workshop dedicated to preparation of national report on MDG achievement, and the presentation of pre-final version was organised on 15 December 2009 with the participation of Mr. Navid Hanif, the Director of Division for ECOSOC Policy Coordination in the frame of Department of Economic and Social Affairs of UN Secretariat.

Consolidation of capacities and specialists in the field of gender equality insurance The Ministry in cooperation with the National Bureau of Statistics, UNDP, UNIFEM, and UNFPA organised the Conference ” Policy promotion on gender equality and demographic processes through advanced use of official statistics in the framework of common Project „Consolidation of National Statistical System” on 19 May 2009, with the financial assistance of Swedish International Development Agency (Sida). Several statistical publications were presented at the Conference: biannual compilation „Women and Men in the Republic of Moldova”, statistical breviary „Women and Men in the Republic of Moldova”, Guide of gender statistics user, the handbook „Population: definitions and indicators”, harmonised set of gender sensitive indicators in the MDG context (full and short version) and the UNIFEM Global Report „Progresses of women in the world 2008/2009. On 27 May 2009, the evaluation report at the middle term of the UNIFEM Program in Moldova „Pro- moting gender equality in national development policies and programs” implemented with the financial assistance of Swedish International Development Agency (SIDA), was presented during a round table. The representatives of regional UNICEF/CIS office, gender units from central public administration bodies, donors, international organisations, civil society organisations, scholars and mass-media attended the event. The purpose of the Conference was to inform the public opinion of the evaluation results, the conclusions and recommendations for the future of UNIFEM Program which acts in Moldova since May 2007. The independent Belgian expert Mr. Sean Burke, selected in a process of international competition, performed the evaluation, and presented the results and conclusions of evaluation during the Confer- ence. The evaluation had the purpose to analyse the obtained results and to propose some strategic recommendations for the Program finalisation, as well, to identify the possible problems in the Program implementation. The evaluation covered the period since the beginning of the Program, the first half of 2007 until October 2008. The mid-Program evaluation findings revealed a high level of achievement of objectives and results of target-Program, following the assessments of international independent con- sultant. The UNIFEM Program succeeded to register a remarkable progress since its launching. Simultaneously, the basic recommendation on further activity of UNIFEM Program and Government was to initiate the consulting and drafting activities for a new Program, emphasised on economic ability of women from rural area in benefiting of their social and economic rights and the increase of information access and quality services in the field of labour force employment and social protection. During 15-16 September 2009, in Chisinau, UNFPA in cooperation with Association of American Law- yers for Law Supremacy and the National Institute of Justice and with the participation of specialists from the Ministry of Labour, Social Protection and Family organised the training seminar for approximately 50 law specialists, from more counties of the republic. During two days, they studied national and international legislation on prevention and fight with domestic violence, the optional CEDAW Protocol, in order to use further the gained knowledge in practice and to involve professionally in the solution of these cases. Also, on 10 December 2009, a training seminar „CEDAW – optional protocol” was organised for gender units and NGOs and international organisations in the area. During 2-3 November 2009, Moldovan delegation participated at the regional meeting ”New challenges and opportunities for gender equality in Central and Eastern Europe: key subjects and answers”, organised by the UN Economic Commission for Europe, at Geneva, Switzerland. On 4 November 2009, the national delegation participated in the videoconference on the topic ”Woman and migration in the European and CIS region in the context of global crisis”, dedicated to 30 years anniversary of the Convention on the Elimination of all Forms of Discrimination against Women (CEDAW), organised by the Office of the United Nations High Commissioner for Human Rights (OHCHR), UN Economic Commission for Europe (UNECE) and the United Nations Development Fund for Women

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(UNIFEM). This event followed as the logical extension of preparatory regional meeting for global revision on the implementation level of Action Platform ”Beijing+15”, and offered a common platform for discussions for 5 countries: Belgium (Brussels), Kazakhstan (Almaty), Kyrgyzstan (Bishkek), the Republic of Moldova (Chisinau), and Tajikistan (Dushanbe). The main objective of the event was to discuss the methods and ways to ensure rights protection of migrant women in the context of emigrational process in Europe, taking into account the gender dimen- sions in the emigrational process and the development of coherent emigrational policies emphasised on human rights protection and integration in European region.

Political participation of women The increase of women political participation in the Government structures is considered one of the basic methods to consolidate the gender balance in the society. In reality, women representation in the decision making process at the global level is very inhomogeneous and depends in every country on the administrative level and annual political events. Women political participation depends on a range of factors, such as: to know and claim for the rights; information access on existing laws, policies, institutions and structures that “govern” their live; self confidence, high self-respect and capacity to solicit and face (if needed) the state structures; networks and relations that can provide positive models and roles; a „empowerment” environment – a political, legal, economic and cultural climate which would allow women to involve completely in the decision making process. Other factors are: economic dependency and the lack of adequate economic resources; different employment opportunities (and implicitly, the career development); social-cultural discriminatory attitudes and negative stereotypes taken from the family in public life; overloading with house responsibilities; intimidation, harassment and violence; access lack to information. Beyond the legislative framework, the socio-political obstacles (Source: Development Partnership Cen- tre, Chisinau 2010) faced by women in their way to decision making scenes are as follows: (i) predominance of a masculine model associated to political success and to political life in general (in the post-communist area, the political person is identified with a series of attributes, of which it is not even necessary to be a good family man); (ii) appointment of men as the „family head” in all fields of social, economic, and political areas; (iii) a limited support from political parties, which are reflected from financial resources to human support and confidence; (iv) low availability of political parties to cooperate with women organisations; (v) the interest of men not to compete for management positions with women; (vi) the absence of a political and social stimulation for a education and training system in women leadership which would orient women to political life; (vii) lack of models and support from women in high positions. The socio-economic obstacles are difficult to be outrun, as well: (i) in many cases women are financially dependent by men; (ii) women do not have the necessary resources or economic networks able to finance them in a election campaign; (iii) women do not have time resources due to double obligativity (familial and professional). The third type of problems faced by women willing to get involved in political activity are of ideologi- cal and cultural nature: (i) in many societies the dominant cultural patterns are traditional which attribute predetermined social roles to women and men (the woman is responsible for the house, children, the private space, in general, while the man is responsible for the public space); (ii) unequal power relations between women and men in the family; (iii) low women confidence to get in the elections; (iv) the women perception that politics is „dirty”, „tough” hence, the reduced interest for it; (v) fear of violence, harassment, critics and divorce; (vi) the way how mass-media treats women from the political space (generally, the press impose the woman image in politics as being atypical). Simultaneously, there should be mentioned the fact that although CEDAW Committee welcomes certain progresses presented by the II and III national periodic reports, it expressed its concern for the low number of women in the decisional positions of political and public life in the Republic of Moldova, including in Parliament, public service and judiciary system.

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Also, the Committee is concerned of low women representativity in decisional positions in the country services abroad. The Committee is worried by the fact that despite the previous recommendations, any special temporary measures were not undertaken in this field. In this context, the Committee encourages the Government of the Republic of Moldova to implement measures to increase the number of women in decision making positions, in particular, at the local level, in Parliament, political parties, judiciary system and public service, including abroad. It is recommended for the Republic of Moldova to set specific purposes and schedules in order to accelerate the equal participation of women in the public and political life of all levels. Also, the Committee encourages Republic of Moldova to implement sensitive programs the stimulate women to participate in public life, and to create social conditions for participation, including detailed measures to reconcile the responsibilities from public and private sectors. The Republic of Moldova is encouraged to outline the relevance of women participation in leadership positions of all level for the entire society and for the country development. Taking into account the received recommendations, the Government included „The area of participation of political and public decision making process” in the priority fields of the National Program of ensuring gender equality for 2010-2015, approved by the Government Decision nr.933 from 31.12.2009, with the main objective to „increase women participation in decision making positions of public and political life”. The analysis, from gender perspective, of Parliamentary elections of 2009 reveals that the number of women in the national legislative increased, thus, their share represents 24,75% of all deputies. The management of the Parliament is composed exclusively of men (4 persons), and there is only one woman in the Permanent Office of the Parliament (12 persons). Of those 5 parliamentary fractions, only one has a woman as president and one has a woman in position of deputy president. One woman is among 4 independent candidates. The current Parliament has 9 commissions with 2 women as presidents and 4 women as deputy presidents. At the analysis of lists of candidates for the positions of deputies in the Parliament of the Republic of Moldova for the elections on 5 April 2009, of those 1386 persons, 409 represented women. Also, among 6 independent candidates two were women. Practically, the same composition is noticed on the lists of candidates for the positions of deputies in the Parliament of the Republic of Moldova for the anticipate elections on 29 July 2009. As a result, women represented 303 persons or 31,3 % in the total number of candidates – 996 persons. The following trend revealed in what concerning women representation in the decision making position of central executive body: although there is a gender balance in distribution of employees and even of decision making positions at the level of ministries and other central administration authorities, the number of women decreases in comparison with men the higher they rise on hierarchical positioning. Simultaneously, a decrease trend was registered for the number of women in decision making positions, thus, in comparison with previous period only one Ministry is headed by a woman. At the local level women represent 17,9% among mayors. The Republic of Moldova placed in the top 20 states in the world concerning gender equality, according the 4th Report on global index of gender equality, launched by the World Economic Forum.

Gender budgeting De facto, the gender equality is to be considered a reality despite the positive results registered in Eu- rope in ensuring the equality between men and women. It is clear that new approaches, new strategies and methods are a necessity to reach this purpose. The complex approach of gender equality (gender mainstreaming) represents one of these strategies. In this context, the platform of the 4th World Women Conference organised by United Nations (Beijing 1995), the Council of Europe and, in particular, the Com- mittee for Women and Men equality launched the pioneering work in Europe on sensitivity campaigns on the subject of complex treatment of gender equality. The Council of Europe developed various methods to reach a real implementation of gender equality. Thus, in 2001, the Council of Europe gave priority

145 Annual Social Report 2009 to promotion of gender budgets considering the budget an important planning instrument for Govern- ments. In 2004, the first reports were published; it contained the definition of gender budgeting and relevant information on this subject to encourage the states application, in achieving the promotion contribution of gender equality. Since then, the gender budgets became the most actual subject in many countries of European Union. Once implemented, in the future the gender budgets will become instruments of placement gender equality in the middle/centre of legislation and policies to ensure it de facto. One of the major objectives of the Action Plan to ensure the gender equality in all society areas, adopted during the 6th European Ministerial Conference „Equality between women and men” (Stockholm 2006) stipulated: Human rights and economic challenges in Europe – precondition to ensure gender equality”. The European Ministries responsible for gender equality requested, on a priority manner, to develop a guideline to include gender perspectives in the budgetary processes and to reflect the best practices in this field of EU member countries, models of public budget adoption and implementation, including the budget of the Council of Europe, what contribute to de facto insurance of gender equality. During 5-6 May 2009, the Moldovan delegation participated at the works of High Level Conference „Gender budgets: a factor for real women and men equality” organised by the Council of Europe in Ath- ena, Greece. The Conference in Athena was organised on the information dissemination on the gender sensitive budgets, role of various governmental actors (ministries) in the development, adoption and implementation of public budget, by the Committee for Equality between women and men in the framework of implementation of Action Plan to ensure gender equality in all areas, adopted during the 6th European Ministerial Conference „Equality between women and men” (Stockholm 2006). The purpose of the Conference was to present to all the budgeting process with the presentation of practical manual on the implementation of gender sensitive budget, clear and precise explanation of steps to achieve this budgetary strategy and the purposes we reach in this context. The presentation of the manual was followed by precise examples of countries that initiated and implemented the efficient use of public money in the sectorial budgetary policies with precise results on ensuring de facto gender equality. The conference offered an opportunity to share experience on obstacles met and possible solutions for them, simultaneously, the experts in this field presented proposals for the Council of Europe and further activities that should be undertaken in this field. The information of high level functionaries to respect this approach in planning public budgetary processes which offer a clearer vision on how should the resources be spent to contribute to increase the effectiveness of carried out measures by developing policies focused on real needs of women and men. The Academy of Economic Sciences developed and approved for Master courses the method and training course on gender sensitive budgeting, to be introduced in the Curriculum for 2009. On 22 De- cember 2009, the scientific seminar with a book launch was organised by the Academy of Economic Sci- ences of the Republic of Moldova (ASEM), the manual on gender sensitive budgets and the guidelines were presented.

Social protection and family from gender perspective The recommendation CM/Rec(2007)17 of the Committee of Ministers to member states on standards and mechanisms to ensure gender equality provide that the elements that indicate the political will and states commitments to achieve gender equality include the following: adoption/existence and application of legislation on maternity and paternity protection, including provisions for the paid maternity leave, paid paternity leave equally accessible to both parents, untransferable paternity leave, and all specific measures targeted to both, employed women and men, which allow performing family responsibilities, including care and assistance of sick children or children with disabilities or dependent members. Gender equality is a condition to achieve social justice. Social protection, the basic human right, means effective promotion of social cohesion. Simultaneously, women have often a disadvantage according their relation on labour market due to different social vulnerability based on traditional gender roles and social rules. The main factors leading to this situation are the less qualified works, shorter or longer professional career with negative effects on the personal right for pension.

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Gender equality is a public good, offering social benefits. In this context, the increased poverty risk can affect certain categories of population, were women are predominant: unemployed, solitary parents, elderly persons living alone, families with several dependants. Moreover, poverty and material shortages increase due to incapacity to participate in a complete manner in the social life, due to inadequate access to labour market, education, training, dwellings or health care services. The gender dimension approach of social protection represents the consideration of gender differences in the analysis of social protection system and the creation of policies in this area. The gender approach does not give preferences to women, this address to both genders, as beneficiaries and plenipotentiary participants at the development process. The development of gender sensitive social protection policies must take into account the situation and interests of both genders. Society task is to determine the mechanisms, to be applied and the system of social protection and family, which could maintain the welfare of women and men at different phases of life, including the most difficult ones. Thus, the gender analysis of social protection system allows approaching women and men situation from three perspectives: – As beneficiaries of social protection system (share of women and men with compensations and pensions etc.). In this context, it is significant the women predominance in benefiting of maternity allowances (private field), and men for employment positions (public field). – As service providers, namely, the services offered in the field of social protection (number of women and men in relation to the types of services), it is obvious the overrepresentation of women as social assistants. Often, the „feminisation” of social protection work is determined by the „natural destination” of women to take care of children, elderly persons, persons with disabilities. Once the state sets the low salaries for the employees in social area, it, practically, bases on the informally existing idea of cheap woman work, by one hand, and labour segregation, by other. – As persons taking decisions at the legislative level (where, as usual, men are predominant) and executive (where, as usual, women are overrepresented).

Gender equality in social protection assumes: • Equal access of women and men at the services of social protection; • Equal consumption of social services, according real needs of women and men; • Fair quality of social services.

Family gender approach reveals following key issues: • Conciliation of family life and professional activity of women and men: exclusively women are responsible for house activities, fact limiting their professional activity. Or, ensuring work schedule flexibility (encouraging policies at EU countries level), development of system of services for children care (as in Germany, France and other countries), sharing house responsibilities between spouses/partners etc. represent the basic aspects of gender sensitive family policies. • The system of services of children care: their lack or shortage limit the optimal return, the return of women in the labour market after/during the leave for child care, thus marginalising the woman social statute and economic ability. Development of mentioned services offers a possibility to women to be hired in the labour market etc. • The leave for child care: in many cases, this is associated directly with women responsibility, thus enhancing the traditional stereotype of differentiation of public area for men and private area for women. • Division of gender roles in the family: major responsibility of women for the house work limits their opportunities for social development. Or, men implication influences positively, both, the statute and their health. • Children gender socialisation in the family, performed from the perspective of relations of mothers and fathers with daughters and sons (style and communication means, clothing, expectances

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at child birth for a sex or another, educational projections, implication in the house activities of children of both sexes etc.) play a primary role in the formation of person gender identity. Or, gender stereotypes at family level are the strongest ones; in fact, the gender differences in the parents’ behaviour determine the future the behaviours of boys and girls.

Gender equality in the family assumes: • Ensuring conciliation possibilities for professional activity of women and men; • Giving the leave for child care to both parents, and its fair use by them; • Gender partnership concerning gender roles division in the family etc.

The following achievements from gender perspective in the field of social protection and family should be mentioned: • Equal of marriage age for women and men; • Mothers and fathers right for leaves for child care; • Legal stipulation of social leaves: – Maternity leave (126 pre and post partum); – Partially paid leave for child care until 3 years; – The leave for sick child care until 7 years; • Development of gender indicators in the field of social protection and the harmonised set of gender sensitive development indicators in MDG context. These correspond to MDG (1, 3), CE- DAW (art.5, 11) and NDS (Priority 4. Human resource development, employment increase and promotion of social inclusion); • Function of system of residential services: asylums, shelters, psycho neurological boarding schools for adults and children; • Starting training program for social assistants concerning the assistance to domestic violence victims. Inclusion of some gender equality aspects in training programs. • Inclusion of some education elements concerning the family life in the education of young persons.

Problems of social protection system in what concerning insurance of gender equality principle are as follows: • Legislation protectionist character: Labour Code stipulates an additional unpaid leave for child care from 3 to 6 years, keeping the job (position), what disadvantages women as plenipotentiary participants in the labour market. • System of social assistance , both in its classic form and its current structure, is based on a patriarchal model of society, namely, the women are supposed to undertake an unremunerated care for elderly, children and sick persons, as well a more active implication in the community social activities. This model based on the idea that the family income comes from remunerated and unremunerated work, obviously limit the social, economic and political participation of women, which, predominantly provide services of unremunerated care. In what concerning children care, as expected, the women assume the traditional role in children care and education: both in 2006, and in 2007-2009, more than 97% of persons in leave for child care were women and a bit less that 2% were men. • Persistence of gender stereotypes and strong division of gender roles what influences the social models presenting women as being most responsible for family and private life (unremunerated work), and men – in the public area and professional activity (remunerated work). Such a division leads to persistency of unfair division of house and family responsibilities, being one of the main causes of women discrimination in the labour market and limited social and political participation. The results of the survey Formal and informal aspect of elderly homecare organised in county Singerei in 2008 reflect that:

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– 87,5% of homecare beneficiaries are women and 12,5 % are men; – The formal homecare network does not cover completely the needs for this service; – The bedridden persons in majority of cases are supported by family members, which, predominantly are women (63 %); Underdevelopment of social services/ preschool • Gender differences for retirement age have a social impact. Gender differences of retirement age and forecasted duration of life in retirement (this synthetic indicator is calculated based on two indicators: demographic – duration of remaining life, and social – retirement age set by legislation) what disadvantages men and questions social justice in what concerning the increase of retirement age for men. The forecasted life duration from the retirement age for men is very low. As well, the keeping of traditional forms of obligations distribution in the household relies on women, and the anticipated retirement somehow compensates the work for household maintenance, children birth and education. • Gender discrepancies in pension size for women-men, Women have a disadvantage. Current legislation in the field of state social insurance does not have any sex discriminatory provisions for the contributors and beneficiaries of social payments (pension, allowance). De facto, however, there are gender differences in the size of social insurance pensions. In 2009, average age pension for men represented 891,25, while for women – 764,83 lei or 86% from a men pension. • The factors that influence the discrepancies of pension size for women and men are as follows: difference in salaries (average salary for women is 73% from men salary), periods for child care until 3 years, difference between retirement age of women and men. • Major feminisation of social assistance area. • Contribution period realised by women is lower than the contribution period of men. • For the non-contributive periods, similar to contribution period (military service, period for child care until 3 years) the minimum salary for country is taken in consideration at the determination of pension calculation basis. • Discrepancy between the retirement age of women and men, for women – 57 years, and for men – 62 years, which related to life expectancy disadvantages both men and women. Life expectancy at retirement for men is very low. According traditional forms of distribution of household obligations, the major responsibility relies on women, and the anticipated women retirement compensates somehow their work in household maintenance and children birth and education. • Lack of legal encouragement mechanisms (constraint) of employers to hire pregnant women or women with small children • Lack of legislative framework which could ensure the right for a flexible work schedulefor the parent with small children (morning and evening schedule)

Informational campaign Festival FAMILIA – 2009 On 15th May every year, the international community celebrates the International Family Day, according the decision of General Assembly of United Nations adopted by the Resolution 47/237 from 20.09.1993. The celebration of this day has a particular importance all over the world, many states and communities organise activities to contribute at the improvement of general framework to enhance family role in the society. In 2009, the Republic of Moldova organised the festival FAMILIA in premiere. The event was organised on 15 and 17 May under the aegis of Ministry of Labour, Social Protection and Family in cooperation with United Nations Fund for Population (UNFPA), United Nations Development Fund for Women (UNIFEM), International Migration Organisation (IMO) and carried out by the Agency „Echinox” and „Sense Music”. The Festival FAMILIA was launched during a press conference on 15 May 2009. The actions included in the Festival Agenda referred to 17 May and were organised in three cities simultaneously: Chisinau, Cahul and Balti. The cultural-artistical program of the event included the handing of honour certificates and gifts to couples that registered their marriage on 15 May, to children born in that day, as well, to the families

149 Annual Social Report 2009 that celebrated that day the “golden wedding”. On every scene of all three cities were organised: hour of children, hour of grandparents, family lunch, and the finalisation of competitions – family album, family film “A man and a woman” (1966) by Claude Lelouche and family song. A series of well-known singers from the country: Natalita Barbu, Zinaida Julea, Alexandru Manciu, brothers Bivol, brothers Cordineanu, Georgeta Voinovan, Geta Burlacu, family Rada and Veaceslav Corjov, and TV Project Star Factory sang in the frame of „musical duets” program. All singers were accompanied by their families. The organised event – International Family Day, is a holiday that contributes to social stability and har- mony by promoting the family everlasting values. The purpose of the festival was to draw society and public opinion attention on the problems and shortages faced by contemporary family and advised people to turn to traditional family values, when parents and children have a mutual respect and care for each other.

6.2. Prevention and elimination of gender based violence, including domestic violence

The violence was always a part of human existence, and its impact is visible everywhere in the world. The domestic violence is one of the most frequent forms, and the most difficult to reveal, because it happens in intimacy – there, where the authorities can not intervene. Here is the authorities’ idea that the domestic violence is of private nature and few things can be done. The situation is difficult taking into account the society tolerant perception to domestic violence and even victims. Thus, „In, general women in Moldova are ashamed to speak about family abuse. This thing happens due to some generally accepted perceptions on the fact that the violence is allowed to show their place to women, or in fact, they might produce the violence themselves”.35 It is very difficult to estimate the violence proportions due to the private frame where the violence happens. The few available surveys in the field indicate an alarming situation. An important step to stop the violence and a starting point to mark the recognition and implementation of international commitments in the field of human rights respect by the Republic of Moldova was the adoption of the Law on prevention and combatting domestic violence, and came into force on 18.09.2008. Law contains important definitions on domestic violence and its forms, establishing the institutional framework with detailed responsibilities for competent authorities, and provide creation of assistance centers for the vicitms of violence and an efficient mechanism to solve the violence cases by the possibility to present complains, to apply the protection order and isolation of agressor.

Legislative framework The Ministry of Labour, Social Protection and Family initiated the process of harmonisation of national legislation to the provisions of above-mentioned Law, in order to execute the art. 18 pct. 2 of the Law on prevention and combating the domestic violence nr. 45 from 01.03.200. In this context, the Compat- ibility Report of the legislation of the Republic of Moldova with the provisions of Law on prevention and combating the domestic violence was developed by a group of national independent experts financed by UNFPA, UNIFEM, UNDP and OSCE Mission in Moldova. The Report comprises a series of recommendations to modify and amend national legislation. The interministerial working group was established to examine and validate the recommendations of national legislation modification and amendment, according the Compatibility Report and the development of draft law on modification and amendment of some relevant legislative documents in this field. The working group gathered representatives of ministries empowered with functions to prevent and fight domestic violence, according art. 7, pct.1, lit. a) of the above-mentioned Law, representatives of civil society and scholars, and donor community.

35 Stop violence against women, http://www.stopvaw.org/Moldova.html, Report: An investigation on the statute of women rights in South- Eastern Europe and CIS.

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The Draft Law comes with a series of new elements to be introduced in the national legislation and proposes modifications and amendments to a series of legislative documents, such as: – Criminal Code of the Republic of Moldova nr. 985-XV from 18.04.2002 (Official Monitor of the Republic of Moldova, 2002, nr.128-129, art.1012), with further modifications, – Code of Criminal Procedure of the Republic of Moldova nr.122-XV from 14.03.2003 (Official Moni- tor of the Republic of Moldova, 2003, nr.104-110, art.447), with further modifications, – Family Code of the Republic of Moldova nr.1316--XIV from 26.10.2000 (Official Monitor of the Republic of Moldova, 2001, nr.47-48, art.210), with further modifications, – Code of Civil Procedure of the Republic of Moldova nr.225-XV from 30.05.2003 (Official Monitor of the Republic of Moldova, 2003, nr.111-115, art.451), with further modifications, – Law on Social Assistance nr.547-XV from 25.12.2003 (Official Monitor of the Republic of Moldova, 2004, nr.42-44, art.249), with further modifications, – Law on prevention and fight domestic violence nr. 45-XVI from 01.03.2007 (Official Monitor of the Republic of Moldova, 2008, nr.55-56, art.178), – Law on Local Public Administration nr.436-XVI from 28.12.2006 (Official Monitor of the Republic of Moldova, 2007, nr.32-35, art.116), with further modifications, – Law on Employment and Social Protection of Persons seeking a Job nr.102-XV from 13.03.2003 (Official Monitor of the Republic of Moldova, 2003, nr.070, art.312), with further modifications, – Police Law nr.416-XII from 18.12.1990 (Official Monitor of the Republic of Moldova, 2002, nr.17- 19, art.56), with further modifications. The existence of an adjusted legislative framework together with an efficient institutional mechanism, able to intervene to stop and prevent actions of violence, the consolidated capacities of various actors in this field will give possibility to acheive real results in prevetion and fight with domestic violence in the Republic of Moldova. The Ministry of Labour, Social Protection and Family developed a draft of Regulation-frame for the organisation and activity of rehabilitation centres for domestic violence victims in the context of execution of art. 10 pct. 4 of the Law on Prevention and fight with domestic violence nr. 45-XVI from 01.03.2007. The draft of the Regulation-frame includes detailed provisions on the: centre purpose and objectives, general principles of activity, centre organisation and activity, beneficiaries accommodation in the centre, centre management, the centre staff and financing. The proposed Draft of the Regulation-frame reflects the international commitments of the Republic of Moldova in this field, as well the harmonisation to international practice in the field of social protection through the development of infrastructure of social services targeted to domestic violence subjects. Simultaneously, an important achievement was the approval of Government Decision nr. 544 from 09.09.2009, on the approval of Concept of Informational System „State Register of domestic violence cases”. The automatic information system is provided to collect, store and process the data on the phenomenon of domestic violence, information from central and local public authorities, natural and legal persons on the institutions and services of the protection system of victims of domestic violence, on the rehabilitation services and program of aggressors, as well about the system beneficiaries. The statistical sheets for recording the cases of domestic violence were developed in order to initiate the statistical data collection, for the specialists of three fields: health care, social protection and police. This process was launched in two pilot counties: Drochia and Cahul. The functioning of automatic informational system shall contribute significantly to continuous monitoring of domestic violence phenomenon, and the statistical analysis of numerous indicators extracted from the system will offer a consistent basis for the development of some effective prevention and fight policies. Simultaneously, this system will contribute to responsabilisation of competent specialists in the field domestic violence prevention and fight, by performing their functional attributions in relation to registration and recording of cases, as well, the minimisation of tolerance for domestic violence phenomenon. A report on piloting the automatic information system from Drochia reveals that the system implementation made more efficient the work of multidisciplinary team at the level of victims’ identification,

151 Annual Social Report 2009 further assistance and monitoring. Thus, during January – April 2009, there were found and assisted 32 victims of domestic violence in the county Drochia, 43,75 % of them were registered by the social assistants in the community, 40,6 % – in the frame of Maternal Centre and 15,65 % – at the County Hospital Drochia, registration section. Data on these cases, generated by the automatic Information System will represent a complex image of the cases, with information on the type of violence, reasons, profile of the victim and aggressor, their needs, services offered and the role and functions of the members of multidisciplinary team. The implementation of such information system is very expensive. That is why the Ministry initiated consultations between line state institutions and the main international actors in this field (UNFPA, UNI- CEF and IMO) on the possibility to produce an integrated electronic program which would collect data on the cases of child abuse, domestic violence and human traffic. Such a solution would diminish significantly the production and maintenance costs for the automatic information system “State Register of Cases of Domestic Violence”.

Implementation and monitorisation mechanisms The Coordinating Group in the field of prevention and fight with gender based violence, including domestic violence (created in May 2008), continued activity during 2009. During the reference period, in the context of achievement of proposed objectives, the above-mentioned Group organised monthly meetings and discussed the following topics: – organisation and carry out of International Campaign „16 day of activism against gender based violence”; – presentation of surveys and polls organised during the year by the governmental and non-governmental actors: 1. Gender vulnerability to HIV infection in the Republic of Moldova 2. Practical approaches concerning body punishment of children in the Republic of Moldova – the successes achieved by governmental actors in the implementation of Law on prevention and fight with domestic violence, faced obstacles, evaluated needs and proposals to support the activities, initiatives in the context of performing attributions according above-mentioned Law; – information notes on the activity of national delegation at the meetings of ad-hoc Committee in the frame of Council of Europe for prevention and fighting with violence against women and domestic violence; – promotion activities of the draft law for the modification and amendment of some legislative documents in the context of ensuring national legislation harmonisation to the provisions of the Law in this field; – discussion of the report and recommendations of Mrs. Yakin Ertürk, Special Reporter on the problems of violence against women, causes and consequences of this phenomenon, who had an official mission on field monitorisation and evaluation in the Republic of Moldova etc. The group activity proved the need to establish a central body in charge to ensure the cooperation between central authorities responsible to promote and implement common programs in the field of prevention and fight with domestic violence and victims’ assistance. At the central level, the role of the group consists in avoiding fragmentation of implementation problems of the law-frame by its representativity, whose members are persons with coordination functions of antiviolence activities in the frame of structures mentioned in the article 7paragraph 1 lit. a) of the Law frame, as well, representatives of civil society, international organisations. The European practice indicate on the usefulness of such a coordinating body at the central level; such coordination bodies exist in Sweden, Netherlands, Austria, Spain, Romania and other countries. The basic tasks are to develop and promote policies in the field of policies in the field of prevention and fight with domestic violence and the coordination of all activities in this area in order to ensure integrated services to victims of violence at the local level. Other tasks of this body would be the scientific research and statistical data collection on the phenomenon of domestic violence.

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The Republic of Moldova benefits of a considerable support from the international community in activities of prevention and fight with domestic violence and human traffic. In 2008, the United Nations Development Program (UNDP), United Nations Population Fund (UNFPA), Mission of International Mi- gration Organisation (IMO) and the Mission of Organisation for Insurance and Cooperation in Europe (OSCE), in partnership with the Government of the Republic of Moldova and the civil society launched the Project „Protection and empowerment of victims of human traffic and domestic violence”. The Project is financed by the Government of Japan, through the UN Fund for Human Insurance. The purpose of this project consists in: The Project „Protection and abilitation of victims of human traffic and domestic violence” proposes to face the needs of victims and possible victims of human traffic and domestic violence by the consolidation of protection system at the central and local levels, as well the mobilisation of communities in fighting these phenomena, simultaneously, guarantying the fair access to basic qualitative services for the persons exposed to human traffic and domestic violence. Objectives by the project components: • The objective of the component Protection is: to enhance governmental institutions capacities to provide permanently identification, protection services and assistance to victims of human traffic and domestic violence, in cooperation with civil society; • The objective of the component Enhancement/Capacity Increase is as follows: the empowerment/charging communities, organisations of civil society and persons to be better prepared in approaching human insurance problems such as human traffic and domestic violence, and to offer basic services to persons in risk situations.

MLSPF is the beneficiary of the project for the component protection and refers to providing qualitative services (medical, psychological, social, and legal etc.) to identify, protect and assist the victims and possible victims of human traffic and domestic violence. In this context, during 2009, there was carried out the process of identification of needs and strategic planning in these fields in 5 counties of the country. Simultaneously, workshops on the development initiatives of services for victims of domestic violence were organised with the participation of Ministry representatives in these 5 pilot counties (Soldanesti, Anenii-Noi, Rezina, Vulcanesti and Grigoriopol). These events were organised in order to compile project proposals in the field of social services, presented by the community and training local administration representatives in implementation of these projects. Thus, starting with 2010, the information and counselling centres for victims and potential victims of human traffic and domestic violence are planned to start working. Among the target groups, the young persons of these counties should be mentioned.

Consolidation of human resource capacities in the field During 21-24 May 2009, the Ministry together with UNFPA, the Institute of Training and Research, and ULIM organised the training program „Best practices share and transfer in the field of domestic violence victims’ protection and empowerment”. The general purpose of this program was to create conditions on the creation of multidisciplinary teams in the field of domestic violence prevention and fight in the localities, characterised by corresponding knowledge, work abilities and professional attitude. In the framework of above-mentioned program, specialists of various fields, but with direct responsibilities in domestic violence prevention and fight were trained. On 18 September 2009, one year completed since the Law nr.45 on the prevention and fighting with domestic violence entered into force. An important article of this Law is the “Protection measures”, with one of the provisions to issue protection orders by the law court. The protection order presumes a set of restrictions with the purpose to protect the abused person, including the obligation of aggressor not to approach the victim, to leave temporarily the common dwelling etc. In reality, however, after one year of entrance into force of these legal provisions, in most cases, the person affected by violence is the one

153 Annual Social Report 2009 forced to find a refuge while the aggressor continue to live in the house. In other words, Law provisions including the Protection Order are not applied in practice. This conclusion was made by the participants at a training course for judges, prosecutors and lawyers, on the implementation of provisions of Law nr.45, organised on 15 and 16 September 2009 in Chisinau, by UNFPA in partnership with the Association of American Lawyers for Law Supremacy and National Institute of Justice with the participation of specialists from the MLSPF. 50 specialists from the field of jurisprudence from many counties of the republic attended the training workshop. During two days they studied the national and international legislation in the field of prevention and fight with domestic violence, so as, further to apply this knowledge in practice and to intervene rapidly and professionally in solving these cases. Thus, by the end of 2009, two orders on civil case protection were issued, both in Anenii-Noi. The training workshops for judges, prosecutors and lawyers are a component part of a set of activities provided in the framework of the project „Protection and abilitation of victims of human traffic and domestic violence” which is carried out in Moldova during 2008-2011, organised by UNDP, UNFPA, IMO and OSCE, with the financial support of Government of Japan. The project has the purpose to assist the Government of the Republic of Moldova in the process of reduction of domestic violence phenomenon and human traffic, using more mechanisms, including the insurance of correct functioning of line legislation and its improvement, training of specialists involved in fighting violence and traffic (policemen, doctors, psychologists, social assistants, civil servants, and law specialists etc.), carry out of some awareness activities on the phenomenon of human traffic and violence, development of assistance services for abused persons and aggressors at the community level. The training courses on „Protection and abilitation of victims of human traffic and domestic violence” were organised for multidisciplinary teams at the community level. The purpose of the training course was to consolidate the capacities of multidisciplinary teams at the local level in order to develop strategies for the implementation of legislative provisions for the prevention and fight with domestic violence and human traffic. These training were carried out for the representatives of local public administration from 5 communities of 4 counties: Anenii Noi (c. Roscani, c. Calfa, c. Hirbovat, c. Cobusca Veche, c. Merenii Noi); Soldanesti (c. Salcia, c. Gauzeni, c. Poiana, c. Cobilea, c. Parcani); Rezina (c. Papauti, c. Meseni, c. Ignatei, c. Saharna Noua, c. Tareuca); Vulcanesti (c. Carbalia, c. Cismichioi, c. Etulia, c. Etulia Noua, c. St. Etulia). As well, there are provided trainings for the specialists from health care, social protection and police in filling in the statistical forms for recording the cases of domestic violence in the framework of this project, in the above-mentioned localities.

Information campaigns The subject of domestic violence and rising population for an anti-violent behaviour with women inspired the organisation of information campaigns by UN in the Republic of Moldova. It is important to mention that in 2009, for the fifth year consecutively was organised the campaign „16 days of activities against gender based violence”, with the title „WE CAN STOP VIOLENCE AGAINST WOMEN”. The purpose of the campaign is to mobilise the society, government and non-governmental organisations for active participation in prevention and fight with domestic violence and human traffic. Objectives proposed by event organisers referred to: change of violent attitude and behaviour, creation of a culture of non-violent relations between genders and in family, enhancement of capacities of civil society organisations in promotion and efficient implementation of programs of gender based violence prevention, information of public opinion on the national and international legislation that contribute to protection of victims of violence and restoring their relations. In order to achieve the proposed objectives, a complex program of activities and events was organised at the national and local levels, such as: press conference for the Campaign launch, training courses, round tables, public debates, conferences, TV and Radio programs, sensibilisation, publication

154 Annual Social Report 2009 and distribution of methodological and information materials in this field, training and information in the field of human rights, gender based violence and domestic violence. The brochure „Domestic violence and human traffic from gender perspective” was developed with the support of UNIFEM Program in order to inform and change attitudes and behaviour to domestic violence. Some relevant aspects were reflected here, such as: – Factors that lead to violent manifestations in the family; – Normative-legislative framework in this field; – Achievement in the field of domestic violence and human traffic; – Problems identified in the result of field analysis; – Recommendations on the activities to be undertaken by intervention areas;

Infrastructure of services addressed to subjects of domestic violence Currently, there are more centres offering services addressed to victims of domestic violence in the country, such as: – Refuge „Casa Marioarei”, mun. Chisinau offers services of assistance and rehabilitation for women, victims of family violence; – Centre of Psycho-Social Assistance of Children and Family “Amicul” (Chisinau) offers counselling services provided to victims of domestic violence; – Centre of Assistance and Protection of Violence Victims (Balti), day care centre provide counselling and support in solution of problems of domestic violence victims (financed from state budget); – Consulting Municipal Centre for Family and Children (Balti); – Centre of Information and Counselling for Violence Victims (Cahul), day care centre provide counselling and support in solution of problems of violence victims (financed from state budget); – Maternal Centre „Ariadna” (Drochia) – provides emergency shelter services; – Maternal Centre „Încredere” (Cahul) offers temporary shelter services to couple mother-child and provides counselling services to domestic violence victims; – Maternal Centre „Pro Familia” (Causeni) offers temporary shelter services to couple mother- child and provides counselling services to domestic violence victims. – Maternal Centre “Pro Femina” (Hincesti) offers temporary shelter services and temporary counselling services (psychological, social, legal) for the couple mother-child and domestic violence victims; – Centre of crisis family “SOTIS” (Balti) provides counselling services to victims of domestic violence/human traffic (psychological, social, legal, medical); – The shelter for children in risk situations “Way back home” (Balti) offer rehabilitation services to mother-child couples, victims of domestic violence/human traffic; – NGO La Strada – Mediation services for sexually abused children by foreign citizens; – Hotline for women suffering of domestic violence – 0800 88 008; – Law centre (Causeni) develops the network of legal services for domestic violence victims of 4 counties: Anenii-Noi, Rezina, Soldanesti, and Vulcanesti; The work with aggressors is performed by the employees of Police Stations. Their task is to register for prophylactic recording the family scandalists and to organise instructive measures with aggressors.

6.3. Social policy of prevention and fight with Human Traffic (HT)

During 2009, the Ministry of Labour, Social Protection and family in partnership with the Mission of International Migration Organisation in Moldova and United Nations Fund for Population extended the piloting of National Reference System in the field of protection and assistance to victims and potential victims of human traffic (NRS) in 7 new counties: Vulcanesti, Rezina, Soldanesti, Anenii-Noi, Singerei,

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Riscani, and Ocnita. In the same time the first four and the county Grigoriopol from the left part of river Nistru were supported as pilot counties for the implementation of project „Protection and abilitation of human traffic and domestic violence victims” financed by the Government of Japan, through the United Nations Fund for Human Insurance, implemented by IMO, UNFPA and UNDP, and benefited of a range of trainings. By the end of 2009, the NRS was implemented in 23 counties, 2 municipalities and one town. During October – December 2009, the National Coordination Unit of NRS, together with other representatives of MLSPF and IMO carried our 16 monitorisation visits in the counties where the work of multidisciplinary team (MDT) proved to be less efficient, sometimes at the initiation from the county (Comrat, Vulcanesti, Cimislia, Soroca, Leova, Cantemir, Ocnita, Nisporeni, Rezina, Soldanesti, Anenii Noi, Riscani, Singerei, Edinet, Ungheni, and Telenesti). These visits took the form of participation at the meetings of multidisciplinary teams and/or discussions with team coordinators and/or with heads of section of social assistance and family protection or even with the presidents of territorial Commissions of human traffic fight (deputy presidents of county councils). A range of problems that caused the low activity or inactivity of multidisciplinary teams were identified during these monitorisation visits: 1. The multidisciplinary team did not existed de-facto, there was a confrontation between the territorial Commission for human traffic fight with the Multidisciplinary team in providing assistance and protection to victims and potential victims of human traffic, in some cases, the last one was not even created, at least formally. 2. Low cooperation between specialists from MDT. Due to various reasons in some counties the team coordinators were not able to manage the team, an efficient cooperation method with team members was not found. 3. Insufficient cooperation between MDT and local NGOs. In some counties, a formal cooperation of MDT with local NGOs with attributions in this field was noticed, even if they are team members also. According NRS Strategy all cases assisted by NGOs should be discussed at the MDT meeting and further referred to National Coordination Unit (NCU), and this does not happen due to various reasons (ignorance, the wish to protect confidentiality of beneficiaries assisted in the framework of these NGOs Projects). 4. The coordinating MDT specialist considers the activity in the frame of the team as a supplement to his basic functions. More MDT coordinators manifested dissatisfaction of not being remunerated additionally for the activity they undertake in the management of this structure, requesting a supplement to salary, or the creation of a new unit in the frame of Divisions of Social assistance and family protection which would be responsible only for this segment, motivating that they do not manage to face the high volume of work, and if there would be a separate unit in this field, the work would be more qualitative and more cases could be identified. In fact, both the victims of human traffic and the possible victims of human traffic (solitary mothers, children without care, victims of domestic violence, graduates of residential institutions, migrants in difficulty, other vulnerable categories) are a part of the spectrum of persons to benefit of assistance and support from public authorities according current legislation. 5. So, the team, managed by high functionaries in decision making positions prove to be less functional. In some counties the team was administered formally by functionaries in decision making positions, what created impediments in team work. The meetings were organised very seldom or were not organised at all due to the fact that the team coordinator was always busy. In this context, we would like to mention that in 2006 the order nr. 33 of the Ministry of Labour, Social Protection and Family requested the appointment of one specialist from the Section of Social assistance and Family Protection from the County Council to create a team from the specialists of decentralised structures. According possibility, it is recommended to be the specialist in the problems of families with children in risk situations. Further, this specialist was supposed to become the team coordinator.

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6. Lack of references to NCU. In some counties, it was mentioned a rather good work and many beneficiaries are assisted by the MDT, while the references to NCU are not made because the cases are solved at the local level; sufficient resources at the county level are available. In fact, the reference should have been done even in case when additional assistance at the national level was not necessary, this was an essential condition to create the database at the national level. 7. Confidentiality problem is a serious problem and, unfortunately, it is not dully respected. The principle of confidentiality is basic and needs to be fully respected. In no case the beneficiary should be invited at the team meeting to relate his story. The direct contact with the beneficiary has only the case manager, which is appointed at the team meeting or it is the person that identified the case and had already the first contact with the beneficiary. 8. Cooperation with mass-media in the frame of NRS. The Journalistic Ethics presumes the respect of beneficiaries’ confidentiality, whose histories are revealed in press. Unfortunately, many times the journalists do not respect this principle, explaining that the beneficiary consented to tell his story to a large auditorium, but, in many cases, the beneficiary education level does not allow to understand completely the risks of telling the story in mass-media. The risk for the beneficiary to be identified persists even in the case when the personal data are not presented, taking into account the fact that in many cases the person comes from a small locality where the inhabitants know each other, and, sometimes is enough to learn just some details to identify the persons and further stigmatise him. 9. Personnel flow. Another severe problem turned out to be the high personnel flow among the specialists from the county, who were members of multidisciplinary team. In many counties, the structure of the team changed, while in some counties, even the team coordinator was replaced. Thus, it is necessary to organise additional trainings for the newly created multidisciplinary teams, consolidating their capacities because many persons are relatively new in this field and did not benefit of trainings. 10. Difficulty to gather the team. More team coordinators complained that even if they would like to solve as many as possible cases in the frame of MDT meetings, using its human resources, unfortunately, they face the problem to gather the team in a complete audience, because the representatives appointed from various structures are not eager to activate in the frame of the team.

In the same time, the team specialists presented the following issues: As we were told, in some counties the reference did not happen because the community social assistants are not trained enough to identify the beneficiaries, HT victims, and potential victims. As a result, the MLSPF was asked to organise, by possibility, additional trainings for social assistants in this field. At the meeting in one county, the MDT meetings discussed cases with minors with deviating behaviour, the solution of these cases turned out to be very difficult, due to the lack of some specialised shelters, to work with them. In the same time, many counties mentioned the need for one psychologist in one of the state structures, which could provide counselling services for this group of beneficiaries, a very special and difficult one. In many counties, the centres for children assistance and protection are missing, and the cases when children need assistance and emergent shelter are very frequent. In context of celebration of European Day of Fight against Human Traffic on 17 October 2009, the 2nd edition of the Festival of talented children and organisations active in the field of children social protection „Towards future with small steps” was organised. The procedure of creation of the system of data collection on prevention and fight with human traffic started in the framework of NRS, respecting the principle of personal data protection, which shall be reached by: – development of the concept of data collection information; – development of management regulation of informational system; – development of agreement-frame on the methods of information collection, processing and share between data suppliers and storage-institution – Ministry of Labour, Social Protection and Family.

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The National Coordination Unit (NCU), with the function to collect data, coordinate and monitor the NRS implementation, revealed that during 2009, 133 cases of traffic were assisted, and 307 cases were prevented. The number of total assisted cases represented 440. Thus, from June 2006 until 31 December 2009, 873 cases were assisted: traffic -292 and prevention – 581 cases (Table 6.1.).

Table 6.1. Human traffic cases, assisted and prevented, 2006-2009

Total Traffic Prevention Total traffic TOTAL County / Type of case Total 2009 Prevention 2009 2009 2006-2009 2006-2009 Year of Year 2006-2009 entrance entrance in the system 1 Balti 7 4 11 24 19 43 2 Edinet 10 2 12 26 11 37 3 Causeni 6 23 29 51 65 116

2006 4 Cahul 15 30 45 32 49 81 5 Calarasi 3 6 9 9 39 48 6 Cimislia 3 14 17 16 37 53 7 Hincesti 8 3 11 25 40 65 8 Stefan Vodă 2 4 6 5 15 20 9 Floresti 11 15 26 14 25 39

2007 10 Telenesti 4 5 9 4 9 13 11 Leova 1 1 2 2 3 5 12 Soroca 3 17 20 4 22 26 13 Ungheni 1 5 6 6 12 18 14 Nisporeni 2 3 5 6 9 15 15 Cantemir 1 1 2 2 3 5 16 Comrat 0 2 2 2 3 5

2008 17 Falesti 2 7 9 3 9 12 18 Otaci 0 14 14 3 21 24 19 Chisinau 11 54 65 15 93 108 20 Soldanesti 2 7 9 2 7 9 21 Singerei 1 2 3 1 2 3 22 Anenii-Noi 7 12 19 7 12 19 23 Ocnita 1 3 4 1 3 4

2009 24 Vulcanesti 1 15 16 1 15 16 25 Rezina 2 2 4 2 2 4 26 Riscani 1 2 3 1 2 3

27 Orhei 7 13 20 7 13 20

28 Basarabeasca 1 3 4 1 3 4

29 Ialoveni 1 4 5 1 4 5

30 Straseni 1 3 4 1 3 4

31 Glodeni 1 1 2 1 1 2

32 Donduseni 0 1 1 0 1 1

33 Dubasari 5 8 13 5 8 13

34 Transnistria 8 5 13 8 5 13

35 Rusca (penitentiary) 0 12 12 0 12 12

36 Other countries 4 4 8 4 4 8

TOTAL 133 307 440 292 581 873

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6.4. Conclusions. Recommendations

Gender equality 1. Harmonisation of existing legislative framework with the provisions of Law on Ensuring Equal Op- portunities for Women and Men; 2. Harmonisation of current legislation with art.26 of Social European Chart, revised; 3. Integration of gender dimension in policies and plans in the field of social protection and family and ensuring further analysis from the perspective of gender dimension; 4. Information dissemination on the Law on Ensuring Equal Opportunities for Women and Men, CEDAW and Final Comments of the Committee on elimination discrimination against women, for the Repub- lic of Moldova, August 2007 (Session 36) etc. 5. Implementation of strategic measures provided by the National Program of Ensuring Gender Equal- ity in the Republic of Moldova during 2010-2015; 6. Development and application of Training Curriculum of primary and continuous education for social assistants in the field of ensuring gender equality; 7. Development of National Periodic Report, 4th and 5th on the CEDAW implementation level; 8. Organisation of information campaigns addressed to public opinion on the relevance of equal share of family tasks and responsibilities between women and men, including the necessity of boys and girls to contribute in the household maintenance as a significant element of their education.

Prevention and fight against domestic violence Conclusions: 1. The draft Law on modification and amendment of some legislative documents was improved and promoted; 2. Started the process of creation of information system of data collection in VF. Adoption of SIIVF Con- cept; 3. Assessment by partners of achieved results after the meetings of coordinating group in the field of prevention and fight with gender based violence, including domestic violence; 4. Organisation of seminars and training courses for the development of intervention capacities in cases of domestic violence for the specialists with responsibilities in this field; 5. On 15 May 2009, for the first time, the Ministry organised the National Holiday dedicated to Inter- national Family Day. The celebration of this day reflects the relevance attributed to family by the international community, and the undergoing changes faced by the family institution in all countries of the world. The Festival Familia with the title „Values create family – family creates values” was launched in the frame of a Press Conference.

Recommendations: 1) to develop an Action Plan to implement and monitor the Law on prevention and fight domestic violence, including by adequate mechanisms and allocation of budgetary means and corresponding human resources for the implementation of this law by relevant state bodies; 2) to ensure adequate financing in order to improve existing information structure, including the long term rehabilitation programs for the support of victims of domestic violence and creation of new centres to offer psychological, legal and residential services all over the country, paying a specific -at tention to increasing rural women and girls vulnerability; 3) to participate in the UN World Campaign „Stop together violence against women”; 4) to develop a Regulation of activity of centres and quality standards of services provided to domestic aggressors.

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HT prevention and combating Conclusions 1. During 2009, the NRS piloting was extended in 7 localities of the republic, with the assistance of Mis- sion of International Migration Organisation in Moldova; 2. The procedure of cooperation for the development and sign of Bilateral Agreement on repatriation of children and adults in risk situations between the Republic of Moldova and Russian Federation was initiated; 3. During 2009, the National Coordination Unit in the frame of National Reference System assisted 133 traffic cases and prevented 307. In total, 440 cases were assisted.

Recommendations 1. The analysis of provisions of national legislation in the field of prevention and combating human traffic, and ensuring the compatibility it the provisions of international and community legislation to which Moldova adhered; 2. Development of the Concept of informational system of data collection on HT victims and potential victims and of the Administration Regulation of information system. 3. Implementation of provisions of Strategy and Action Plan of National Reference System, for the protection and assistance human trafficking victims and potential victims; 4. Initiation of development and sign procedures of bilateral agreements on repatriation of adults and children in risk situations, citizens of Republic of Moldova in destination countries. 5. The extension of National Reference System for the protection and assistance of human trafficking victims and potential victims to other localities of the Republic of Moldova.

160 Annual Social Report 2009 7. SOCIAL PROTECTION OF PEOPLE WITH DISABILITIES

This chapter presents, in a dynamic frame, the policies provided to improve the situation of people with disabilities, the trend of main indicators, financial assistance and services offered by the state, revealing the efforts of social inclusion of this category of persons. Approaching situation of people with disabilities becomes especially necessary and actual in the context of achieving the objective of insuring social rights, improvement of living standard and their social welfare, objectives assumed by the Repub- lic of Moldova at the ratification of European Social Chart, revised. According art.1 of UN Convention on the protection of people with disabilities, this category includes persons with physical, mental, intellectual or perception disabilities, which interacting with other obstacles can impede full participation to social life, in equal measure with other citizens. It should be mentioned that the phenomenon of disability is much more comprehensive than it can be interpreted. Disability is the general definition, set for affections, limitations of activity or restriction of participation in social life, not only for sickness on which basis disability degree was set. Thus, the definition of disability is not equivalent with the definition of invalidity; it is much more comprehensive, including invalidity as well. International and national legislative framework uses various definitions and terms on disability/invalidity (for example: invalid, handicapped person). According the Law nr. 821-XII from 24.12.1991 on social protection of persons with disabilities, which is a Law-frame in the field, a person with disability is the person which, due to limitations of vital activity as a result of physical or mental disabilities, needs assistance and social protection. The limitation of vital activity of the person is reflected in the total or partial loss of capacity or possibility of self-service, placement, orientation, communication, behavioural control or impossibility to work.

7.1. Current statistics

According the situation on 31.12.2009, the total number of persons with disabilities represented 176743 (of which children – 15237) in the Republic of Moldova, in increase with 7,2% in comparison to the end of 2005.

Table 7.1. Dynamics of population and number of persons with disabilities, 2005-2009

2005 2006 2007 2008 2009 Number of resident population, thousand pers. 3589,9 3581,1 3572,7 3567,5 3563,7 Employed population, thousand pers. 1318,7 1257,3 1247,2 1251,0 1184,4 Number of persons with disabilities, thousand pers. 164,9 167,5 170,3 173,1 176,7 Ratio between the number of persons with disabilities and resident 4,6% 4,7% 4,8% 4,9% 5,0% population, % Ratio between the number of persons with disabilities and employed 12,5% 13,3% 13,7% 13,8% 14,9% population, % Number of children 787,4 777,9 748,8 852,7 826,4 Number of children with disabilities, thousand pers. 12,9 12,6 12,7 14,1 15,2 Ratio between the number of children with disabilities and the total 1,6% 1,6% 1,7% 1,7% 1,8% number of children, % Ratio between the number of children with disabilities and the number 7,8% 7,5% 7,4% 8,2% 8,6% of persons with disabilities, % Source: NBS, NHSI

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Share of number of persons with disabilities in resident and employed population in the Republic of Moldova increased constantly during 2005-2009, representing 5,0% and accordingly 14,9%, end- year 2009. Analysing the situation in European countries, we can notice the share of persons with disabilities in the total number of population differs from country to country. The differences are explained by the different treatment of disability definition, which in case of developed countries is more comprehensive and includes even more population.

Figure 7.1. Share of number of persons with disabilities in total number of population, 2007

Finland 32 Great Britain 27.2 Netherlands 25.4 World Average 20 USA 18 Bulgaria 16.5 EU average 15.7 Rusia 8.8 Italy 6.6 Romania 5.8 Moldova 4.8 0510 15 20 25 30 35

Source: World Health Organisation

In 2009 in comparison with 2008, in the Republic of Moldova, the number of persons with disabilities increased with 3647 persons or 2,1%, the growth caused by the increase of disability degree in the result of an ordinary sickness (+2763 pers.) and of children with severity degree (+1089 pers.). Annex 8 presents the number of persons framed in a disability degree by categories, 2008-2009. The number of persons with disability degree in the result of an ordinary sickness have the highest share (73,9%) in the total number of persons with disabilities, followed by the share of persons with disabilities from childhood (13,7%) and children with disabilities (8,6%). The other categories of persons with disabilities have insignificant shares under 2%.

Figure 7.2. Share of categories of persons with disabilities in 2009, %

Children with disabilities, 8,6%

Persons with disabilities from childhood, 13,7%

Persons with disabilities in the result of military or special services, 0,6%

Persons with disabilities in the result of participation at Cernobyl consequences liquidation, 1,2%

Persons with disabilities due to accidents at work, 2,0% Persons with disabilities Persons with disabilities due to ordinary diseases, 73,9% due to professional diseases, 0,1%

Source: NHSI

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The number of persons with disabilities increased constantly during 2005-2009, mainly due to the increase of number of persons with disabilities in the result of an ordinary sickness with 8433 persons in 2009 in comparison with 2005, what is approximately 71% of the increase of total number of persons with disabilities in this period.

Figure 7.3. Dynamics of the number of persons with disabilities, 2005-2009

Number of persons 0 20000 40000 60000 80000 100000 120000 140000 160000 180000

2005 122259 23112 12935 6585

2006 124607 23900 12628 6393

2007 125986 24826 12679 6804 An ul

2008 127929 24274 14148 6745

2009 130692 24160 15237 6654

Persons with disabilities due to ordinary diseases Persons with disabilities from childhood Number of children with disabilities Other categories of persons with disabilities

Source: NHSI

According the disability degree, the number of persons with disabilities of II and III degrees increased with 5222 and 5095 persons in 2009, in comparison with 2005, and represents together 87% of the increase of total number of persons with disabilities for this period.

Figure 7.4. Structure by disability degrees of persons with disabilities, 2005-2009

Number of persons 020000 40000 6000080000 100000120000 140000160000 180000

2005 24762 111320 28809

2006 24686 111645 31197

2007 24967 112765 32563 An ul

2008 25737 114169 33190

2009 26297 116542 33904

I degree II degree III degree

Source: NHSI

48,0% are women and 52,0% are men in the total number of persons with disabilities. Approximately 60% of the total number of persons with disabilities lives in rural area. According age, the persons of 40 and 59 years represent 2/3 of cases in the total number of persons with disabilities.

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7.2. Social protection

Social protection of people with disabilities is a component part of the system of social protection, the main task is to protect and support the persons with disabilities, both, by social payments and social services.

7.2.1. Social payments The activity of the Ministry of Labour, Social Protection and Family is oriented toward application of new mechanisms of social protection of categories of population with low incomes (in particular of persons with disabilities), the improvement of legislative framework that would ensure population access to the minimum of social assistance payments guaranteed by the state, allowances and social services in order to achieve the objectives of national strategic documents. These activities are a part of social- economic reforms, and the results contribute directly to the improvement of population welfare, their social integration and serve as a guarantor of the citizens’ rights for social protection and insurance. According the provisions of current legislation, the persons with disabilities, including children with disabilities benefit of the following types of social payments: 1) Pension (Law nr. 156 – XIV from 14.10.1998 on state social insurance pensions), the person with a disability degree caused by an ordinary diseases benefit of a disability pension, if faces the conditions for contribution period, in relation to age at the date of disability decision (until 23 years – 1 year of contribution period, from 23 to 26 years – 2 years of contribution period, from 26 to 31 years – 3 years of contribution period, over 31 years – 5 years of contribution period). In case when the person does not face the conditions to get a pension, they benefit of state social allowance. 2) State social allowance (Law nr. 499-XIV from 14.07.1999 on state social allowances for some categories of citizens) is set to persons with disabilities, including children, who do not meet the conditions to get the right for pension from the state social insurance budget. State social allowances (except the allowance for care and the aid in case of death) is indexed annually on 1 April, taking into account the average of annual increase of Consumer Price Indices for the previous year. In 2007, the indexation coefficient represented 12,7%, 12,3% – in 2008, and 12,7% – in 2009. Thus, the average quantum of social allowance in 2007 represented 170 Lei, and 243 Lei in – 2009. 3) Allowance for care (Law nr. 499-XIV from 14.07.1999) is offered to the following categories of persons: a) persons that take care at home of a child with disabilities, grade I; b) persons with disabilities from childhood I degree, which are not supported completely by the state; c) persons with I degree disability blind, for accompanying and homecare. The quantum of allowance for care is 300Lei/monthly. 4) State monthly allowance (Law nr. 121-XV from 3.05.2001 on the additional social protection of some categories of population) it is paid including to persons with disabilities from war, the quantum of social allowances for persons with I degree disabilities from war is 600 Lei, degree II – 450 Lei, and III degree – 375 Lei. 5) compensations for urban, suburban, and interurban transport (Law nr. 821-XII from 24.12.1991 on the social protection of people with disabilities) it is paid to persons with disabilities of I and II degree, children with disabilities and persons that accompany a person with I degree disabilities or a child with disabilities. The above-mentioned compensation is set by the territorial bodies of social assistance and family protection and is paid from the budgets of territorial-administrative unit. The average quantum of compensation is about 40 Lei monthly for persons with disabilities of I degree and for children with disabilities, and 20 Lei monthly for people with disabilities of II degree. (Annex.9) 6) Annual compensation for the expenses for transport use (Government Decision nr. 1268 from 21.11.2007, in force since 1 January 2008) is paid to persons with disabilities of skeletal system, in quantum of 400 Lei annually. The above-mentioned compensations are set by the Sections (Divisions) of social assistance and family protection of beneficiary residence and paid through county (municipal) post offices of State Enterprise „Posta Moldovei”. (Annex 10)

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7) Nominative compensations for the payment of facilities (Law nr. 933-XIV from 14.04.2000 on the special social protection of some categories of population) it is paid to persons with disabilities of I, II and III degrees (set for unlimited period) and to children with disabilities, which benefited of this right until 31.12.2009, for the payment of dwelling facilities (electricity, natural and bottled gas, water, heating and services of living block maintenance etc.). During 2007-2009, when the tariffs to energy resources increased, the quantum of compensation for electricity, natural gas (including for heating purpose) and coal was adjusted according new tariffs. 8) Social aid (Law nr.133-XVI from 13.06.2008 on the social aid) was paid during the period December 2008 – December 2009, to approximately 17521 families (including persons with disabilities), and the total amount of financial means used for payment represent 114 million Lei. Every request is evaluated individually and the calculation of social aid quantum is carried out in the frame of automatic program by territorial bodies of social assistance and family protection, thus, the subjective factor is excluded, the increase of state guaranteed minimum represented 430 Lei. 9) Material aid (Government Decision nr. 1083 from 26.10.2000 on the application of Republican Fund Law and local funds of population social support) can be offered once a year to persons with disabilities to support them to outrun special situations. The person entitled to this right addresses to executive direction of Fund for population social support at the residence locality, and presents the corresponding supporting documents to get the material aid. A detailed analysis of social payments targeted to persons with disabilities is presented in the Chap- ter 4. SOCIAL ASSISTANCE.

7.2.2. Social services Social services represent an important form of social protection of persons with disabilities. Current- ly, the social services are targeted mainly to satisfy the primary needs, as usual in residential institutions. The services alternative to residential care are oriented to rehabilitation and social inclusion, and are provided, as usual, by social public administration in partnership with associative sector. The detailed presentation of social services targeted to persons with disabilities is reflected in the Chapter 4. SOCIAL ASSISTANCE. The high specialisation social services for persons with disabilities are offered in the frame of the Experi- mental Republican Centre for Prosthesis, Orthopaedics and Rehabilitation (ERCPOR) and include services of provision with technical assisting means for persons with disabilities and medical rehabilitation services. The provision of technical assisting means for persons with disabilities36 is carried out according Government Decision nr. 87 from 31.01.2002 on the extension of functions and making ERCPOR activities more efficient, meaning the consultation, treatment and rehabilitation of participants at the war, in particular, those with disability degree, persons with skeletal disabilities. In 2009, the insurance with technical assisting means for personal mobility37 reduced in comparison with 2008 for all types of means: technical assisting means for walk, manipulated with both arms – from 608 to 406; crutch of forearm – from 479 to 299 and walking sticks – from 898 to 711. 932 wheel chairs were offered or 712 units (57%) less than in 2008. The number of functional beds decreased from 7 beds in 2008 to 4 in 2009. The number of persons hospitalised at ERCPOR for rehabilitation and prosthesis decreased. In total in 2008, 1702 persons were hospitalised, while in 2009 this number represented only 1461 persons (-241). In comparison with 2005, the total number of hospitalised patients for rehabilitation reduced with 30%, while of those ensured with prosthesis means – with approximately 22%.

36 Any product, instrument, equipment or a technical system used by a person with disabilities, special product or of general use, which prevents, compensates, monitors, decreases, or neutralises the deficiency, catalogued by the European Committee of Standardisation in the European Standard EN ISO 9999: 2002 from 8.09.2002, approved by the Decision of Service of Standardisation and Metrology of the Repu- blic of Moldova nr.1733-ST from 18.07.2005 to be applied from 01.07.2006. 37 The assisting means for personal mobility, according the Standard EN ISO 9999:2002 include assisting means for walking manipulated by one arm (stick, crutches) and both arms (frame, table and chair for walking),wheelchairs without motors.

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In 2009, the production of prosthesis systems reduced with 146 units in comparison with 2008, and represented 617 prosthesis systems for upper and lower limbs. As well, the production and accordingly insurance with assisting means for medical personal treatment38 reduced. In 2008, 4253 persons were given such means, in 2009, this number reduced with 28% (-1175) and represented 3078 units. During 2009, a similar situation repeated in case of ensuring with orthopaedic footwear. In 2008, 8973 footwear units were offered to persons with skeletal disabilities (pairs or unit from pair), while in 2009 the ensuring with orthopaedic footwear included 1736 persons less and represented 7237 footwear units. In 2009, the ERCPOR got positive indices for rehabilitation services: kinetotherapy, investigative and digital radiology, massage services, and complex investigations etc. Thus, the number of persons that benefited of kinetotherapy sessions increased. In 2008, 20705 such sessions were organised, while in 2009 the Centre was available for 21524 sessions. This index is highest for the last 5 years, and in comparison with 2005 it registers a 10% increase (+1950 sessions). Taking into account the complexity and seriousness of affections of persons with disabilities, in 2009, this category of population had the possibility to benefit of 3407digital investigations. Since 2006, these examinations became possible for persons with disabilities in the frame of the Centre, when they were 589, meaning approximately 17% of the total number of investigations offered in 2009. In 2009, the number of persons with disabilities that benefited oflaboratory examinations increased. Thus, in 2008, 2782 patients were investigated, and in 2009 this number reached 4021 persons or 1239 (30%) more. The number of examinations per patient increased as well this indices indicate the quality of diagnosis and the possibility to personalise the recovery treatments. In 2008, a person with disabilities benefited in average of 20 clinical laboratory examinations, while in 2009, the average of examinations per patient represented 25,6. In 2009, the number of massage sessions offered in the frame of ERCPOR increased from 12212 sessions in 2008 to 12338 sessions in 2009.

7.3. Vitality medical expertise

Vitality medical expertise is a social-medical activity and has the purpose to determine and evaluate the structural and functional deregulations of human body, deregulations that reduce capacities of full and effective participation in society of working age persons. The responsible institution, in this respect, is the Republican Council of Vitality Medical Expertise (RCVME), which according the provisions of Gov- ernment Decision nr.688 from 20.06.2006 on the vitality medical expertise, recognises the level of loss of work capacity, according the reduction of self-service capacities, intellectual, behavioural and communication capacities (sight, hearing, speech), skeletal, body aptitude and dexterity, situational adaptation, participation in social and professional life.

7.3.1. Primary disability 39 Table 7.2. Application and classification of persons with disabilities in disability degree, 2005-2009 Primary disability 2005 2006 2007 2008 2009 Persons with disabilities expertised for the first time: 13511 15607 15902 16520 16794 - Dynamics of the number of expertised persons + 2096 + 295 + 618 + 274 - persons classified in disability degree 13377 13700 13779 14021 14127 - Dynamics of the number of persons classified in disability degree + 323 + 79 + 242 + 106 - level of correspondence in disability degree 99,0% 87,8% 86,6% 84,9% 84,1% Source: RCVME

38 The assisting means for personal medical treatment, according Standard EN ISO 9999:2002 include cordons, belts, bandages and corsets. 39 Persons with disabilities classified for the first time with disability degree.

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Although, during the last 5 years the number of persons with disabilities expertised for the first time increased from 13511 persons in 2005 to 16794 in 2009, during the last year the increase rhythm in comparison with 2008 reduced, registering a difference of 274 persons, to the increase of 618 expertises in the previous year (2008/2007). Despite the increase of number of primary expertises, the level of correspondence to disability degree at the first expertise of patients, decrease from 99% in 2005 to 84% in 2009. Thus, it is 106 persons more than in 2008, in 2009, 14127 persons were classified for disability degree, of which 5789 inhabitants were from urban area (22 persons more than in 2008) and 8338 inhabitants from rural area (84 persons more in comparison with 2008). In 2009, the value share of persons with disabilities with II disability degree, increased, while the share of persons with I and II disability degree decreased in comparison with the corresponding value shares for 2008.

Table 7.3. The distribution of value share of primary disability degree, 2008-2009

Primary disability 2008 Primary disability 2009 Growth RCVME Number of cases Value share, % Number of cases Value share, % 2009/2008, % I1 Degree 2013 14,4 1973 14,0 -2,0 II2 Degree 8164 58,2 8334 59,0 2,1 III3 Degree 3844 27,4 3820 27,0 -0,6 Total 14021 100,0 14127 100,0 0,8 Source: RCVME404142

In 2009, similar to the last years, the diseases of circulatory system are constantly the predominant causes of primary disability. This year, the cardiovascular diseases caused the primary disability for 2862 persons, represents the fifth part of persons classified with the primary disability degree. In 2008, this number represented 2890 persons. During 2008-2009, the second position, in the totals of primary disability are the malignant tumours, with a share of 19,3%. In 2009, this group of tumours gathered 2733 persons in the primary disability degree; in 2008 this number was of 2713 persons. The diseases of the nervous system occupy the third position with 9,6% in the causal structure of primary disability, in 2009, 1358 such persons were classified with primary disability degree, in 2008, this number was of 1393 persons. In 2009, 1155 persons were classified with primary disability degree of with osteo-articular system, muscles and connective tissue diseases, what is 145 persons or 14,4% more than in 2008. This was the highest increase in 2009, fact that resulted in placing this category of diseases on the fourth place in the structure of primary disability, in comparison with 2008, when this position was held by mental and behavioural deviations. In total, the diseases of circulatory system, malignant tumours, the diseases of nervous system, osteo-articular, and the mental and behavioural deviations have a share of 64,9% in the causes of primary disability in 2009, in comparison with 2008 when they registered 64,7%. The details for distribution on 2009 of persons with primary disability degree by nosologic forms, age and severity degree are presented in the Annex 16.

40 Reduction of average level of vital capacities with disability classified in the limits of 25-49%; 41 Reduction of emphasised degree of vital capacities with disability classified between the limits of 50-74%; 42 Total loss or reduction of vital capacities of severe degree of disability over 75 %

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7.3.2. Repeated disability43 During 2009, 46353 persons were expertised repeatedly in comparison with 48265 persons in 2008. 45876 persons with disabilities from the total number were classified again with disability degree. In 2008, the number of this category represented 47736 persons. 17522 persons with disabilities were reexpertised from urban areas, 17338 of them were reexpertised repeatedly for this category. For the beneficiaries of rural localities these indicators represented 28831 and 28538 persons. Repeated disability by counties for 2008-2009 is presented in the Annex 17. The number of reexpertised persons increased during 2005-2007, decreasing in 2008- 2009, while the share of the number of persons classified in the disability degree at re-expertise was relatively constant, in the limits of 99%.

Table 7.4. Repeated classification of persons with disabilities, 2005-2009 Repeated disability 2005 2006 2007 2008 2009 Persons with disabilities expertised repeatedly: 44875 48475 50304 48265 46353 - persons classified in disability degree 44496 47788 49574 47736 45876 - level of correspondence to disability degree 99,2% 98,6% 98,5% 98,9% 99,0% Source: RCVME

During 2009, the value share of II degree disability increased, while the value share of I and III disability degree decreased in comparison with the corresponding value shares of 2008. It is to be mentioned that the number of persons with disabilities repeatedly classified in disability degree in 2009, decreased for all three severity degrees in comparison with the previous year.

Table 7.5. Distribution of value share of correspondence degrees to repeated disability degree, 2008-2009

Repeated disability 2008 Repeated disability 2009 Growth RCVME Number of cases Value share, % Number of cases Value share, % 2009/2008, % I Degree 3923 8,2 3558 7,8 -9,3 II Degree 31690 66,4 30795 67,1 -2,8 III Degree 12123 25,4 11523 25,1 -4,9 Total 47736 100,0 45876 100,0 -3,9 Source: RCVME

7.3.3. Permanent disability44 In 2009, the permanent disability after expertise was set for 1138 persons (8,1%) beneficiaries expertised for the first time for disability degree and for 9945 persons (21,7%) of those expertise repeatedly. Analysing the level of decision of permanent disability degrees on the persons with disabilities expertised during the last 5 years we can notice a trend of decrease of primary disability expertise, although in 2008 this registered a light increase. The level of permanent disability although reduced numerically in 2009 in comparison with the decrease of 2006 in comparison with 2005, its share increased for the period 2007-2009 in the case of repeated classification of disability degrees of persons with disabilities.

43 Attribution of disability degree after the repeated expertise of vital capacities, either of assessment of rehabilitation or worsening of situation 44 Disability when the reduction of different degree of vital capacities is irreversible for the body structure and functions, for what repeated evaluations are no longer necessary.

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Table 7.6. Classification of persons with disabilities in permanent disability degree, 2005-2009 Permanent disability 2005 2006 2007 2008 2009 Level of classification in primary permanent disability degree Number of persons 1472 1171 1072 1142 1138 Share in total number of persons classified in primary disability degree, % 11,0% 8,5% 7,8% 8,1% 8,1% Level of classification in repeated permanent disability degree Number of persons 9242 8747 9477 10042 9945 Share in total number of persons classified in repeated disability degree, % 20,8% 18,3% 19,1% 21,0% 21,7% Source: RCVME 7.3.4. Partial45 and total46 rehabilitation The rehabilitation of persons with disabilities reveals a lower level of corresponding indices for 2009 in comparison with 2008. Thus, during 2009, 2836 persons with disabilities with disability degree were rehabilitated; this is 145 persons less in comparison with 2008, when this number was of 2981 persons. Of those 2836 rehabilitated beneficiaries: • totally – 477 persons: – 2 persons, with the I degree, in 2008 – 1 person; – 50 persons with the II degree in 2008 – 96 persons; – 425 persons with the III degree in 2008 – 432 persons. • partially – 2359 persons: – from I degree to II – 269 persons, in 2008 – 295 persons; – from I degree to III – 13 persons, in 2008 – 14 persons; – from II degree to III – 2077 persons, in 2008 – 2143 persons. The number of rehabilitated persons, both totally, and partially, after an increase in 2006 in comparison with 2005, further decreased in 2007-2009.

Table 7.7. Number of persons classified to rehabilitated, partially and totally disability degree, 2005-2009 Persons classified to disability degree 2005 2006 2007 2008 2009 Total rehabilitated, of which: 2703 3875 3300 2981 2836 – total rehabilitation 371 576 559 529 477 – partial rehabilitation 2332 3299 2741 2452 2359 Source: RCVME

7.4. Social inclusion

Social inclusion presumes a set of multidimensional activities in the field of justice, social protection, employment, health care, education, transports, roads, constructions, culture, information and communications for persons living in social exclusion in order to create and develop opportunities so as to ensure an index of living standard equivalent to society where they live. On 30 March 2007, in New York, the Republic of Moldova signed the UN Convention on the rights of persons with disabilities, thus revealing the political wish to set clearly defined objectives to develop and promote the policies in this field, in order to adjust national legislation to the provisions of international legislation.

45 Result of medico-social assistance that led to the improvement of vital capacities and the reduction of disability degree 46 Result of medico-social assistance when the reduction of vital capacity is up to 25% and classification to disability degree is not allowed.

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The UN Convention on the rights of persons with disabilities is an international treaty which sets the rights of persons with special needs and the obligations of states-parties to promote, protect and insure the rights of these persons.

7.4.1 Children social inclusion According the art. 6 of the Law on Education nr. 547-XIII from 21.07.1995 the right to education is guaranteed, irrespective nationality, sex, age, social state and origin, political or religious beliefs. Despite the generally regulated right to education, the use of this right by children with disabilities is performed seldom in the general system of education, both, due to low adaptability of access roads/sloops to institutions, lack of special furniture, the education programs and the lack of educational programs with inclusive character for both, preschool and school cycles. In this context, a solution would be inclusive education, which is a form of education for the child with special needs which goes to the school with other children of the same age to benefit of individual education according his special needs. In the Republic of Moldova the inclusive education is a slow process with many difficulties in the implementation, either financial or human factor (resistance to change of specialists in the field and other involved actors). Also, the society still prefers the idea of residential care of children with disabilities, which cannot face their needs today and does not meet the international standards on children special education. Thus, the reform of this system is necessary and would offer the possibility to (re)integrate children with disabilities from residential system in the society. The Republic of Moldova knows positive practices in promoting social inclusion services, but, in more case, these are promoted and supported by international organisations and associative sector. Best- practices models were implemented by the High Level Group „Children friendly school”, Centre for In- formation and Documentation on Children Rights, Centre „Origami” (Chisinau), Day care centre for Social Rehabilitation and Integration of Young persons with Disabilities (Chisinau), Day care centre „Speranta” (Chisinau), Community Centre for Early Education (Talmaz) etc.

7.4.2. Employment of persons with disabilities During the last years, the creation of favourable employment conditions for persons with disabilities became one of the state priorities. The National Employment Agency together with territorial agencies supports the local public administration in implementation of employment programs of persons with disabilities in the jobs of public interest or of interest for local communities. During 2007- 2009, were employed in public works: • 2007 – 3107 unemployed, of which 49 persons with disabilities; • 2008 – 3150 unemployed, of which 44 persons with disabilities; • 2009 – 2478 unemployed, of which 19 persons with disabilities. During 2009, 711 persons with disabilities, of which 346 women appealed the employment agencies. 81 persons, of which 36 women were hired. 191 consultations were provided to persons with disabilities of I and II degrees, of which for 101 women, from the total number of consultations provided to unemployed by the services of labour mediation. 172 persons with III disability degree (73 Women) and 47 persons with I and II disability degrees (25 women) benefited of consultations of information and professional counselling. In order to increase the employment chances, the persons in long duration unemployment, as well the vulnerable categories of population on the labour market, including persons with disabilities, are involved in the Program „Labour Club”, which gives possibility to persons to benefit of information support, psychological assistance, professional consultancy and individual practical assistance at hiring. The persons with disabilities of III degree and persons with disabilities of I and II degrees benefit of professional selection and formation courses, during which, the correspondence degrees to certain professions is determined. Thus, during 2009, 38 persons were admitted to professional formation courses, 31 – graduated the courses, 15 unemployed received primary qualification, requalification

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– 13 unemployed, training – 3 unemployed. 20 graduates (52,6%) were hired after the graduation of courses. 50 persons, of which 28 women of I or II degree disability period expired appealed to the services of territorial employment agencies and benefited of allowance for professional integration or reintegration of 15% of average salary per economy in the previous year, for a period of 9 calendar months.

Table 7.8. Employment of persons with disabilities, 2007-2009 2007 2008 2009 Category Appealed to Hired in the Appealed Hired in the Appealed Hired in the services labour market to services labour market to services labour market Persons with III degree disability 448 102 398 114 711 81 I and II degree disability 170 * 187 * 191 * *not recorded Source: NEA The Employment agencies (selected regions) worked with 179 persons with disabilities, of which 39 were employed afterwards (21,8%) in the framework of the project Supporting Public Services for Employ- ment in Moldova, namely: • TEA mun. Chisinau: worked with 21 persons with auditive difficulties, of which, 13 persons benefited of qualification courses and were employed afterwards; • TEA mun. Balti: worked with 74 persons with disabilities, of which 6 persons were employed, 4 benefited of courses of professional training, and one person was involved in public works; • TEA county Soroca: worked with 66 persons with disabilities, of which 16 persons were employed, and 4 persons found a job independently; • TEA county Cahul: worked with 18 persons with disabilities, of which 4 persons were registered for courses of professional formation and 4 were employed. Based on the Law nr. 102–XV from 13.03.2003 on employment and social protection of persons seeking for a job, only persons with III degree disabilities are allowed to be registered at the employment offices, as well, they have the possibility to benefit of information counselling offered by the specialists of employment offices on vacancies and other information. In order to aware the public opinion on the situation of persons with disabilities, and on the problems faced by them, the General Assembly of United Nations declared the day of 3 December – the Inter- national Day of Persons with Disabilities. On 3 December 2009, a set of activities dedicated to the celebration of a Social Inclusion Decade of persons with disabilities under the patronage of Ministry of Labour, Social Protection and Family were organised. In the frame of Decade, more cultural, artistic and sport activities, exhibitions of handicraft and photos, conferences, charity tables were organised. In the framework of the event, theatrical and artistic performances, exhibition of paintings of children with disabilities were organised with the participation of children and teenagers with disabilities. Another event in the frame of the decade was the exhibition with sale “Creation without differences”, the works of about 300 participants – persons with disabilities were presented for sale. The money collected by the vendors was used to purchase raw material for other works and for individual needs.

7.5. Conclusions. Recommendations

During the last years, an increased society attention for social protection problems of persons with disabilities is noticed. In 2008, the Division of social protection policies for persons with disabilities was created in the frame of the Ministry of Labour, Social Protection and Family, with the purpose to develop and promote protection and social inclusion policies for this category of persons.

171 Annual Social Report 2009

The current system of social protection of persons with disability faces a series of difficulties. One of them refers to the definition of „disability”, which has various meaning in the legislation of the Republic of Moldova, thus, we can meet definitions of „invalidity” and „handicap”, which are discriminatory terms and label the persons with disabilities. In this context, it is opportune and necessary to uniform the legislation and to adjust it to international regulations in this field. System of social protection needs a coherent reform, because the number of persons with disabilities, beneficiaries of social protection, is in a continuous growth, and the problems faced by them are complex In should be mentioned that the social protection of people with disabilities is targeted and emphasised predominantly on provision of social payments, which do not meet completely the needs of this category of persons (such as: low quantum of social payments, and creation of system dependency for the person). In this context, the system of social protection should be a system of support of persons with disabilities (payments in order to outrun a crisis situation) and services to facilitate the process of social integration. A solution could be the centration of the system of social protection and provision of qualitative and personalised social services, which would meet the needs of persons with disabilities and would create and develop their autonomy. Another aspect is the predominant treatment of disability from the viewpoint of medical model, what presumes that the emphasise is put on the possible handicap, and not on the constrains that impede the use of fundamental rights of persons with disabilities. Thus, it is necessary and opportune to change the approach of disability by combining the medical model with the social one, so as the problems of persons with disabilities would be treated from a multidimensional approach. In perspective, for 2010, we intend to modify the methodology of assessment of disabilities for children and adults (work capacity). This thing would lead gradually to the increase of social integration of persons with disabilities and decrease of their dependency of social protection system. Another problematic dimension of the system is the insufficient development of the system of social inclusion, both for children and adults. The process of social inclusion of children with disabilities is problematic due to the limited physical access in kindergartens, schools, higher education institutions and other public institutions, fact that impedes the use of right to education and social-cultural participation of persons with disabilities, which has later a negative impact on the possibility to be employed, and on the social life as well. It is necessary to promote various coherent programs of social inclusion at the level of central and local public authorities in order to solve this problem. What concerning the employment of persons with disabilities, we can notice that, in fact, only persons with disabilities of III degree benefit of assistance from the NEA specialists, through its territorial divisions, fact that determines the reduced coverage of benefit of unemployment aid and allowance of persons with disabilities of I and II disability degrees. In the same time, the point 2 of Procedure of Regis- tration and solution of employment requests and unemployment aid (Government Decision nr.862 from 14.07.2003) provide that „the unemployed include the persons which lost a job, including people with disabilities, able to work” A solution for the entire system of social protection of persons with disabilities would be: – reform of legislative framework in the field of social protection of persons with disabilities; – modification of assessment methodology of disabilities for adults and children; – creation of various social services for the persons with disabilities; – development of an efficient mechanism to provide services of professional orientation, training and rehabilitation of persons with disabilities. The undertaken measures for the support of persons with disabilities are a real support for them; however, they do not solve completely their problems. Only a multisectorial, multidimensional and par- ticipative approach may generate efficient solutions, with the support of institutions and entire society.

172 Annual Social Report 2009

173 Annual Social Report 2009

annexes

174 Annual Social Report 2009

Annex 1. Main indicators of labour force market (2001-2009)

Dev Indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2009/ 2008 Total population, thousand persons 3635,1 3627,8 3618,3 3607,4 3600,4 3589,9 3581,1 3572,7 3567,5 -5,2 Economically active population, 1616,6 1615,0 1473,6 1432,5 1422,3 1357,1 1313,8 1302,8 1265,3 -37,5 thousand persons Rate of activity, 57,9 57,2 51,6 49,7 49,0 46,3 44,8 44,3 42,8 - 1,5 Population of 15 years and over, % Employed population, thousand persons 1499,0 1505,1 1356,5 1316,0 1318,7 1257,3 1247,2 1251,0 1184,4 -66,6 Employment rate of population of 15 53,7 53,3 47,5 45,7 45,4 42,9 42,5 42,5 40,0 -2,5 years and over, % Men 56,2 55,1 49,3 46,6 46,0 45,5 44,8 45,2 42,6 -2,6 Women 51,4 51,7 46,0 44,9 44,8 40,5 40,5 40,1 37,7 -2,4 Remunerated population in the total 60,0 59,3 64,0 63,9 63,0 67,0 66,7 68,0 70,6 +2,6 of employed population, % Population employed in agriculture, 764 747 583,3 532,9 536,7 422,4 408,6 388,6 333,7 -54,9 thousand persons Share of population employed 51,0 49,6 43,0 40,5 40,7 33,6 32,8 31.1 28.2 -2,9 in agriculture, % ILO unemployment, thousand persons 118 110 117 116 103,7 100,0 67,0 51,7 81,0 +29,3 of which Women 47,6 45,4 47,2 46,4 43,9 38,2 25,2 21,8 30,2 +8,4 Men 70,1 64,4 69,9 70,1 59,8 61,7 41,5 30,0 50,8 +20,8 Unemployed registered at NEA, 59,5 63,3 62,2 59,5 59,8 51,8 48,4 46,2 79,2 +33,0 thousand persons of which placed in the labour market 24,1 24,2 25,1 24,6 24,6 23,8 23,4 22,1 17,0 -5,1 Vacancies managed by NEA, thousand 39,7 38,6 40,3 41,0 42,3 47,5 48,3 48,9 27,1 -21,8 places. Beneficiaries of unemployment aid, 16,0 12,6 7,6 3,3 2,9 4,2 4,9 4,8 9,0 +4,2 thousand persons Rate of unemployment:- (ILO, %) 7,3 6,8 7,9 8,1 7,3 7,4 5,1 4.0 6,4 +2,4 men 8,7 8,1 9,6 10,0 8,7 8,9 6,3 4,6 7,8 +3,2 women 5,9 5,5 6,4 6,3 6,0 5,7 3,9 3.4 4,9 +1,5 urban 13,8 12,1 12,2 11,9 11,2 9,2 6,9 5,5 8,0 +2,5 rural 2,7 3,0 4,5 5,0 4,0 5,8 3,6 2,7 5,0 +2,3 young persons (15-24 years) 16,5 15,1 18,1 21,0 18,7 17,1 14,4 11,2 15,4 +4,2 Average unemployment duration, 26 27 23 22 22 21 19 16 14 -2 months Economically inactive population, 2022 1208 1380 1448 1479,9 1576,0 1617,9 1639,0 1693,1 +54,1 thousand persons Persons declared left abroad for work, 172,0 231,3 291,0 345,0 394,5 310,1 335,6 309,7 295,0 -14,7 thousand persons of which: Urban 68,0 78,7 89,7 106,6 112 92,8 103,1 97,1 89,4 -7,7 Rural 104,0 152,5 201,3 238,4 282,4 217,3 232,5 212,5 205,6 -6,9

175 Annual Social Report 2009 - -11 -41 158 825 814 -169 -146 -121 fee Tu 1216 2030 3245 3370 ition -2144 -1836 -1998

Plan -2 -2 10 -63 -86 -21 401 401 -8 -322 -182 -212 -212 -213 -322 -141 get Bud -

-2 10 Deviations (+,-) Deviations -63 -43 -86 559 390 643 602 -169 -146 -142 1216 1818 3104 3362 -2466 Total Total -2049 -2320

64 - 131 658 104 150 875 250 189 789 764 83,4 74,4 9420 2574 fee Tu 3841 3636 3077 3370 ition

10549 14185 22185

87 50 100 150 ncluding 240 240 560 558 268 814 849 I 5223 3632 5613 get 7058 7058 5613 100,0 2462 Bud - 12601 2009 12601

27734

87 50 8,1 131 150 240 344 710 332 764 99,0 91,9 82,9 1433 1064 1038 6206 De facto (statistics) 9454 3636 8690 5832 13259 Total Total 14643 13390 17607 21243 49919

- 300 500 115 150 875 105 250 310

800 910 62,5 15,2 84,8 80,1 8595 4410 fee Tu 5075 5985 2420 9735 ition

12155 18940 50 100 150 150 ncluding 215 240 100 550 560 270 900 870 I 5405 3845 5935 5935 get 7270 7270 100,0 2470 Bud - 12200 12200

27875 Planned 50 7,6 300 150 150 215 355 700 375 910 97,7 92,4 87,5 1435 1150 1180 8255 2420 2470 12700 Total Total 14000 11010 11920 13000 17005 19425 46815 92 36 - 185 477 155 200 101 662 930 72,1 21,1 78,9 74,4 1050 8791 3146 fee Tu 3483 4413 3464 3694 ition

10088

13552 22321

50 ncluding 150 353 311 830 803 337 I 7792 1257 1112 3533 6289 6289 get 100,0 100,0 100,0 1539 Bud - 14658 14658

10239 10239 32725 De facto 50 8,7 185 150 353 403 985 373 930 98,8 91,3 85,4 1853 1457 1213 6679 9772 3464 5233 15135 Total Total 16583 10702 15320 20327 23791 55046 2008 90 - 285 150 140 200 280

925 78,7 17,0 83,0 77,4 1050 1075 9992 3900 fee Tu 4520 5445 3295 1335 ition

11307

14602 21382

50 100 ncluding 150 345 355 100 820 800 361 100 I 8288 1400 1270 3985 7066 7066 get 1591 Bud - 23010 23010

10758 10758 42425 Planned 50 7,4 285 150 345 445 970 501 925 98,8 92,6 87,0 1875 1600 1550 7885 3295 1591 24060 Total Total 18280 11586 12511 24345 22065 25360 63807 5 82 - 235 959 314 104 235 172 808 80,3 16,7 83,3 77,9 1044 3526 fee Tu 4037 4845 3533 1194 3057 ition 11020

12465 15998 25094

50 100 ncluding 125 291 271 100 734 592 154 929 100 I 6220 1220 2937 5290 5290 get 644 8233 8233 Bud - 15048 15048

29215 De facto 50 8,0 235 125 296 353 258 808 98,6 92,0 85,4 1048 1636 1455 1101 6463 9327 3533 3701 16007 Total Total 17240 10135 16242 20698 24231 54309 2007 - 285 130 150 185 170

320 925 78,7 16,4 83,6 77,4 1050 1030 4030 fee Tu 4705 5630 3430 1335 ition 10470

11780 15210 22175

50 100 ncluding 125 290 271 100 734 616 220 960 100 I 6239 1220 2985 5435 5435 get 665 8275 8275 Bud - 17700 17700

32075 Planned 50 8,4 285 125 290 401 884 405 925 98,5 91,6 85,4 1646 1390 1280 7015 3430 665 18750 Total Total 16709 10140 11065 19035 20055 23485 54250 ycle I ycle ycle II ycle C C Dynamics of the Admission Plan 2007-2009 in higher, secondary specialised and secondary vocational education (persons) secondary education specialised and secondary vocational Annex Plan 2007-2009 in higher, 2. Dynamics of the Admission Type of education / of education Type Name of the Ministries Academy of Science Academy Ministry of Defence Ministry of Internal Affairs Ministry of Culture Ministry of Health Border ServiceBorder Ministry and of Agriculture IndustryFood Ministry of Culture Ministry of Education Ministry of Health Ministry and of Agriculture IndustryFood Ministry of Education – Public institutions – Public 3. Secondary specialised education Share, %: – public institutions Share, 2. Higher education- – Non-public institutions Share, %: – Public institutions %: – Public Share, – Non-public institutions – Non-public – Public institutions – Public 4. Secondary vocational 4. Secondary vocational education – Non-public institutions Share, %: – public institutions Share, – Non-public institutions – Non-public – Public institutions – Public 1. Higher education - 1. Higher education including: Admissions – total Admissions

176 Annual Social Report 2009

70,8 86,0 87,6 87,4 82,2 88,3 89,3 88,9 88,3 70,5 86,6 88,9 2008 137,9 105,0 104,6

persons

86,8 49,0 90,5 86,8 86,8 83,9 62,4 88,5 88,1 67,3 47,1 60,4 61,5 114,8 104,1 2005

2009 to, % 2009 to,

35,4 76,8 72,6 73,0 44,0 97,3 86,2 165,8 120,8 103,4 109,0 101,0 165,4 120,9 116,9 1997 658 131 764 87,4 88,3 88,9 3077 5613 7058 8690 9454 3636 12601 2009 10549 13259 13390 17607 21243 477 185 930 94,3 3483 6289 9772 3464 105,6 100,5 14658 2008 10088 10018 15135 15320 10702 20321 23889 959 235 808 91,9 4005 5322 8147 9327 3453 104,8 102,5 15048 2007 12165 16007 16242 10135 20314 23767 914 239 783 92,2 74,8 4263 4846 7506 9109 9892 3440 100,5 14341 2006 14908 15255 15494 22414 25854 151 911 99,2 1342 4933 4890 6778 9823 5399 101,3 108,3 13931 2005 22376 15273 15424 10734 29154 34553 239 93,1 1516 4739 4818 6368 1040 9557 4890 106,4 105,8 13799 2004 20638 15315 15554 10597 27006 31896 101 194 385 107 728 1990 4505 4731 5745 9236 9964 5760 14326 2003 18645 16316 16701 24390 30150 375 918 98,9 93,6 2162 1138 3069 5621 4207 5125 6370 113,6 13937 2002 16095 16099 16474 21716 28086 271 1837 1131 3275 5083 1070 4406 5476 7163 104,5 102,7 134,1 14553 2001 12485 16390 16661 17568 24731 363 95,3 96,6 1456 1106 2911 7659 4940 1315 4017 5332 5837 102,9 14256 2000 15712 15951 12599 18436 218 969 97,2 80,8 95,5 1208 1221 3329 7500 5211 4550 5519 5201 15309 1999 16517 16735 12711 17912 141 93,9 70,3 1404 1040 4269 6919 6837 1522 5309 6831 5007 103,3 15675 1998 17079 17220 13756 18763

79 1861 2548 5426 6379 8188 1738 7974 9712 3600 16400 1997 18261 18340 14567 18167 ycle I ) ycle C Dynamics of matriculation of students and pupils in the higher, secondary specialised and secondary vocational education, 1997-2009 secondary education, specialised and secondary vocational and pupils in the higher, Annex of students 3. Dynamics of matriculation Total, in % to previous year previous in % to Total, Private Tuition fee Tuition Including: budget Public Secondary vocational education Secondary vocational Total in % to previous year previous in % to Total Private Tuition fee Tuition Including: budget Public Secondary specialised education Total, in % to previous year previous in % to Total, Private Tuition fee Tuition Including: budget Public Public Higher education ( Higher education

177 Annual Social Report 2009 72,1 96,3 84,1 75,5 85,1 75,5 88,9 89,8 194,8 103,5 105,6 102,7 2008 persons 81,5 79,6 98,4 80,0 78,8 71,4 89,4 89,2 117,8 102,4 123,5 100,7 2007 84,6 98,3 80,6 68,1 81,2 82,2 82,6 114,2 110,2 121,0 111,3 105,1 2006 87,7 92,5 32,0 65,2 61,5 62,2 177,5 111,4 104,9 126,8 233,4 121,9 2005 Deviation, 2009 – to (+,-) 2009 – to Deviation, 91,1 86,1 34,8 57,8 66,6 67,2 131,3 182,9 125,6 108,1 268,8 181,0 2004 83,3 35,3 59,3 70,5 71,2 172,6 289,8 112,3 171,5 124,2 267,6 200,5 2003 1,7 6,3 3,3 3,0 7,9 7,0 378 710 657 27,2 26,8 16,7 1359 5885 1699 5805 1520 3608 2009 21243 21621 0,8 5,5 4,1 2,8 9,3 6,1 194 985 682 23,1 28,3 19,8 1313 5574 2251 6825 1480 4779 2008 23889 24083 1,9 4,8 3,7 2,8 5,7 6,2 464 892 668 23,7 30,4 20,9 1154 5746 1376 7367 1510 5054 2007 23767 24231 1,3 4,7 3,2 2,1 5,8 5,5 331 839 543 27,9 32,5 17,0 1233 7300 1527 8522 1446 4444 2006 25854 26185 0,6 3,5 2,3 1,5 2,1 3,6 213 810 518 728 18,3 52,2 15,9 1220 6364 1247 5531 2005 18135 34553 34766 0,9 2,3 2,4 1,6 2,0 2,6 288 743 779 523 632 840 16,9 51,9 19,4 5445 6237 2004 16697 31896 32184 0,7 1,5 2,1 1,3 2,1 2,5 219 469 632 383 635 758 15,6 54,2 20,0 4737 6085 2003 16451 30150 30369

7 6 5 4 3 2 1 Area Area code Dynamics of students’ admission to higher education, subject groups, 1997-2009 subject higher education, admission to groups, Annex 4. Dynamics of students’ Share, % Share, Share, % Share, Share, % Share, Share, % Share, Share, % Share, Share, % Share, Share, % Share, Share, % Share, Share, % Share, Title of basic area Title TAL (without foreign citizens) (without foreign TAL TAL (with foreign citizens) (with foreign TAL O O Foreign citizens Foreign SERVICES HEALTH PROTECTION HEALTH AGRICULTURE ENGINEERING, PROCESSING TECHNOLOGIES, TECHNOLOGIES, ENGINEERING, PROCESSING ARCHITECTURE AND CONSTRUCTIONS SCIENCES SOCIAL ECONOMIC SCIENCES AND LAW SOCIAL ECONOMIC HUMANITIES AND ARTS HUMANITIES EDUCATION T T

178 Annual Social Report 2009

19 97 38 4,8 2,4 146 789 374 115 18,5 47,4 12,3 14,6 fee Tuition Tuition persons 39 75 28 5,9 0,3 0,6 5,7 0,2 9,6 including 745 721 11,5 10,6 16,0 11,1 28,4 1448 1337 3577 2015 1401 1215 12601 Budget De facto 39 75 28 6,7 0,3 0,6 6,2 0,2 9,4 891 836 13,6 10,0 15,8 10,5 26,9 1822 1337 3596 2112 1401 1253 Total 13390

2009 75 75 15 60 15 60 9,4 1,9 7,5 1,9 7,5 9,4 175 800 325 21,9 40,6 fee Tuition Tuition 55 75 50 6,1 0,5 0,6 6,0 0,4 7,3 including 745 730 885 10,4 10,5 15,7 11,8 30,9 1265 1280 3770 1910 1435 12200 Planed Budget 70 75 50 7,1 9,8 0,5 0,6 6,1 0,4 7,3 920 790 945 12,2 15,3 11,2 29,6 1590 1280 3845 1985 1450 Total 13000

6 64 20 13 0,9 3,0 2,0 9,7 161 662 398 24,3 60,1 fee Tuition Tuition 63 48 6,0 6,7 0,4 0,9 5,4 0,3 6,7 ncluding I 881 975 135 791 977 25,3 13,0 12,3 23,0 3715 3376 1900 1797 14658 Budget De facto 63 48 6,8 6,4 0,4 0,9 5,3 0,3 6,4 975 135 811 977 26,8 12,4 11,8 22,5 1042 4113 3440 1906 1810 Total 15320

2008 50 15 90 15 3,7 1,1 6,7 1,1 655 150 150 210 15,7 49,1 11,2 11,2 fee 1335 Tuition Tuition 4,2 0,4 1,2 7,2 1,4 9,8 including 100 270 330 955 17,0 10,6 11,7 10,5 22,4 3910 2430 5160 2690 1660 2250 2425 23010 Planed Budget 4,8 0,5 1,1 7,2 1,4 9,3 115 270 330 18,8 10,0 11,3 10,6 21,8 4565 2430 5310 2740 1750 2265 2575 1165 Total 24345

1 16 39 80 1,3 3,3 6,7 564 196 298 25,0 47,2 16,4 fee 1194 Tuition Tuition 85 81 4,3 7,8 0,6 0,8 4,8 0,5 8,5 including 120 718 644 24,1 13,3 11,2 24,1 3621 1178 3633 2008 1272 1688 15048 Budget 2007 85 81 5,8 7,3 0,5 0,7 4,7 0,5 7,8 120 757 942 25,8 12,5 10,9 23,6 De 4185 1179 3829 2024 1272 1768 facto 16242 Admission to secondary vocational education, by subject groups, 2007-2009 subject by education, groups, secondary to vocational Annex 5. Admission 90 4,1 9,7 0,5 0,6 5,1 0,6 8,9 9,1 120 975 105 775 22,4 11,6 23,2 4265 1845 4415 2200 1685 1725 19035 Planed Area Share from total number, % number, total from Share Share from total number, % number, total from Share Share from total number, % number, total from Share Share from total number, % number, total from Share Share from total number, % number, total from Share Share from total number, % number, total from Share Share from total number, % number, total from Share Share from total number, % number, total from Share Share from total number, % number, total from Share Share from total number, % number, total from Share Share from total number, % number, total from Share onstructions ndustry Total Services Agriculture C I Handicraft Printing industryPrinting Food industry Food Wood processing industry processing Wood Light industryLight Transport Transport Telecommunications

179 Annual Social Report 2009

Annex 6. Total number of pensioners and the average pension quantum Number of pensioners Average pension quantum, Lei Pension type 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 1. Pensions calculated according retire- 611509 615172 613490 616122 619801 377,44 432,87 535,98 631,35 757,67 ment Law – total (1.1+1.2.+1.3), of which: Including Women 377406 383556 388518 3934673 400004 371,47 426,58 524,85 634,35 738,82 Including employees 86693 81219 113804 127330 138878 420,00 490,24 608,74 722,60 120477,6 1.1 Age pension (1.1.1 +1.1.2 +1.1.3+1.1.4 457285 459717 458795 462093 465048 397,18 457,51 565,83 666,28 800,82 1.1.5+1.1.6+ 1.1.7), of which: Including Women 306022 311694 316765 322899 327563 383,09 441,21 543,27 637,87 764,83 Including employees 59706 71272 82743 95481 105748 459,2 517,55 665,88 781,31 935,86 in minimum quantum 15993 15495 25070 30777 37021 272,55 299,49 380,55 425,28 534,60 1.1.1. general conditions – total 389523 393680 395045 400629 405726 401,24 461,87 572,46 674,12 809,96 1.1.2. advantageous conditions 62266 60113 57217 54600 52194 371,83 429 520,10 608,78 729,80 (anticipated – total) (a+b+c), of which: a) List nr.1 4106 4068 3952 3880 3778 440 509,93 629,45 744,71 897,20 b) List nr.2 9534 9067 8502 7991 7511 457,56 529,42 639,06 747,20 897,15 c) mother with 5 and more children 48626 46978 44763 42729 40905 349,27 402,61 487,85 570,55 683,61 1.1.3 Government members 83 84 84 85 84 3630,14 4794,97 5574,10 6054,28 6678,16 Including Women 7 6 7 7 6 3259,52 4691,33 5539,28 6010,00 6701,00 Including employees 22 24 28 31 30 3754,68 4855,29 5646,42 6118,80 6771,60 1.1.4 deputies 102 108 116 117 129 3004,89 4665,62 5423,27 5873,71 6433,01 Including Women 11 12 13 13 17 3133,63 4772,33 5515,38 5984,15 6421,35 Including employees 42 48 56 59 67 3057,61 4635,54 5327,67 5871,03 6403,34 1.1.5 Civil servants 4357 4773 5266 5562 5795 974,37 1095,56 1292,19 1514,51 1800,50 Including Women 2744 3017 3330 3557 3768 915,11 1033,05 1224,86 1443,79 1732,94 Including employees 1725 2219 2608 2980 3179 1071,20 1211,72 1423,93 1667,96 1985,09 1.1.6 mayors, president, deputy presidents of 290 317 354 387 411 1.165,13 1387,92 1684,22 2015,01 2343,50 community councils Including Women - 45 59 66 74 - 1180,73 1700,03 2072,37 2426,05 Including employees 73 87 102 121 144 1267,19 1529,78 1872,33 2267,00 2625,73 1.1.7. Work experience 664 642 713 713 709 607,95 702,96 2337,31 2864,94 3535,57 Including employees 146 141 127 126 129 635,61 728,94 235,91 2960,37 3598,47 1.1.7.1. employees of civil aviation – total, 528 642 592 713 610 700,23 702,96 2744,26 2864,94 4030,63 of which: a) flight personnel 516 499 589 603 608 710,82 822,2 2756,68 3314,07 4042,44 b) flight attendants 12 12 3 2 2 244,41 282,75 320,66 367,00 440,50 1.1.7.2. employees of railway transport 5 3 2 2 2 302,2 322 382,50 448,00 537,50 1.1.7.3. artists 130 127 118 105 97 247,71 286,49 346,34 403,05 484,09 1.1.7.4. geologists 1 1 1 1 - 243 280 338,00 396,00 - 1.2. Disability – total 1.2.1.+1.2.2.+1.2.3.), 123719 125676 126538 128145 130227 337,62 380,96 467,42 548,08 652,23 of which: Including Women 64893 65543 65720 66223 66933 337,62 373,86 456,60 534,44 635,63 I degree 13619 13369 13183 13298 13423 418,03 477,31 587,47 695,29 831,60 II degree 86753 86922 87089 87948 89602 356,89 405,95 499,41 585,90 696,72 II degree I 23347 25385 26266 26899 27202 219,07 244,66 301,11 351,65 417,18 Including employees 26 815 9537 30307 31677 32955 331,76 369,63 457,63 537,23 638,09 1.2.1. ordinary disease – total, of which: 119875 121892 122865 124508 126631 338,32 381,55 468,17 548,92 653,03 I degree 13 257 13000 12836 12968 13103 417,47 476,63 586,77 694,45 830,39 II degree 85 005 85200 85390 86208 87831 356,6 405,58 499,03 585,53 696,25 III degree 21613 23692 24639 25332 25697 217,89 242,97 299,42 349,85 414,84

180 Annual Social Report 2009

Number of pensioners Average pension quantum, Lei Pension type 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 1.2.2. accidents at work - total, of which: 3772 3704 3587 3540 3499 315,33 361,79 440,88 516,48 620,22 I degree 356 361 340 322 313 437,31 500,7 610,02 723,26 876,33 II degree 1714 1681 1654 1688 1713 370,56 423,99 515,88 600,03 713,78 III degree 1702 1662 1593 1530 1473 234,2 268,72 326,91 380,78 457,00 1.2.3 professional disease - total, of which: 72 80 86 97 97 331,37 374,9 510,61 626,86 768,37 I degree 6 8 7 8 7 509,83 528,5 775,85 936,25 1090,85 II degree 34 41 45 52 58 409,82 443,92 615,40 752,59 896,46 III degree 32 31 34 37 32 214,56 243,93 317,29 383,24 465,62 1.3. Survivors – total, of which: 30505 29779 28157 25884 24526 241,47 270,48 318,95 367,62 431,50 Including Women 6491 6319 6033 5551 5348 230,79 256,59 300,92 343,06 403,03 1 survivor 22468 22597 21587 5551 19134 213,34 243,03 289,37 343,06 397,02 2 survivors 6465 5794 5294 19978 4403 306,43 342,92 402,28 335,61 539,90 3 and more survivors 1572 1388 1276 4752 989 376,36 415,06 473,62 460,07 615,91 Including employees 26 28 35 46 46 227,11 255,46 314,22 367,64 417,78 2. Pensions calculated according other 6768 6230 5943 5278 4769 683 680,85 915,03 1451,10 1755,56 laws (2.1.+2.2.+2.3.+ 2.4.+2.5) 2.1. for the participants at the liquidation of Cernobyl accident – total (2.1.1.+ 2217 2203 2187 2168 2136 866,50 997,33 1197,53 1398,43 1669,90 2.1.2.+2.1.3.), of which: Including Women 87 85 84 82 80 840,58 966,75 1176,83 1373,35 1631,33 Including employees 401 398 393 396 394 837,46 969,41 1171,67 1364,12 1631,87 2.1.1. age limit – total 13 14 17 23 24 616,23 686,07 852,17 958,60 1032,58 2.1.2. disability – total 2125 2112 2087 2068 2041 875,64 1009,07 1215,10 1421,79 1701,82 I degree 297 294 294 290 286 1108,79 1278,47 1538,75 1799,88 2154,81 II degree 1783 1768 1749 1741 1721 846,42 976,98 1175,79 1369,35 1638,26 III degree 45 50 44 37 34 501,48 559,7 614,95 925,81 1108,44 2.1.3. survivor – total, of which: 79 77 83 77 71 661,78 731,98 826,39 902,63 967,74 1 survivor 62 59 64 64 63 612,01 681,96 784,96 850,81 901,73 2 survivors 14 16 16 10 6 779,78 845,68 942,62 1122,50 1388,66 3 and more survivors 3 2 3 3 2 1.139,66 1297,5 1089,66 1275,00 1784,50 2.2. According Law on militaries 1141 922 1436 1374 1302 94,72 94,04 474,74 668,43 731,24 (2.2.1.+2.2.2.) Including Women 156 128 129 112 92 85,59 84,52 398,57 513,52 570,03 Including employees 29 21 40 44 46 102,13 110,19 441,22 662,70 735,67 2.2.1. disability to active militaries-total, 616 497 1044 1040 1017 103,05 102,46 504,47 728,41 786,52 of which: I degree 61 52 117 117 112 126,7 124,21 577,77 917,74 992,72 II degree 379 294 724 723 699 105,94 104,77 551,05 766,72 834,06 III degree 176 151 203 200 206 88,62 90,47 296,11 479,13 513,09 2.2.1.1. including people with disabilities 337 272 758 736 717 122,28 121,01 548,80 829,36 890,00 from WWII I degree 40 32 91 88 86 148,7 148,62 620,30 1018,80 1092,67 II degree 172 129 510 494 471 132,95 132,64 607,57 890,42 964,71 III degree 125 111 157 154 160 99,14 99,54 316,42 525,22 561,15 2.2.2. survivor pension to active 525 425 392 334 285 84,95 84,19 395,56 481,68 533,97 militaries – total, of which: 1 survivor 499 408 375 321 275 81,33 81,1 379,41 465,56 518,71 2 survivors 24 15 15 10 8 149,87 151,6 719,46 793,00 877,62 3 and more survivors 2 2 2 3 2 208,5 208,5 994,00 1169,33 1258,00

181 Annual Social Report 2009

Number of pensioners Average pension quantum, Lei Pension type 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 2.2.2.1. of which families of people with 34 29 27 19 19 76,88 73,68 339,74 412,89 463,47 disabilities from WWII 1 survivor 26 24 23 15 15 61,42 61,58 287,69 327,40 366,60 2 survivors 7 4 3 3 3 119,71 120 568,00 659,00 742,66 3 and more survivors 1 1 1 1 1 179 178 852,00 956,00 1078,00 2.3 Work experience pensions 3375 2701 1901 1310 862 194,49 224,4 269,33 314,12 376,21 2.3.1 medical workers 1207 993 701 493 326 197,18 227,73 273,76 317,59 373,05 2.3.2 pedagogues 2168 1708 1200 817 536 192,96 222,50 266,64 312,00 381,41 Including employees 275 - 233 183 120 120,07 - 191,01 230,28 273,98 2.4 custom workers 35 33 24 20 19 1318,85 1457,15 1644,04 1786,55 2083,15 Including Women 9 9 7 7 7 1365,00 1505,77 1652,28 1856,42 2137,42 Including employees 28 26 18 14 13 1391,00 1543,26 1750,50 1914,00 2253,07 2.5 prosecutors and judges - 371 395 406 450 - 3514,03 4015,21 4389,01 4378,41 Total pensions ( 1+2 ) 618277 621402 619433 621400 624570 383,17 442,26 548,30 646,42 775,54 Including Women 383557 389333 393905 399747 404721 374,22 462,15 530,53 623,92 748,27 Including employees 89.288 103267 116690 131158 142871 436,5 495,49 635,81 750,45 899,67 Source: NHSI

182 Annual Social Report 2009

Annex 7. Newly established pensions and the average pension quantum Number of newly established pensions Average pension quantum, Lei Type of pension 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 1. Pensions set according Pension Law 38747 39272 39120 40838 38149 320,01 367,72 526,34 595,10 698,69 –total (1.1+1.2.+1.3), of which: Including Women 21654 24972 30952 26468 22921 320,97 369,19 514,63 612,58 666,36 Including employees 16234 17073 16610 18744 15659 365,94 419,72 583,55 595,10 828,51 1.1. age limit (1.1.1+1.1.2+1.1.3+1.1.4+ 24725 27302 27429 28859 26726 362,17 406,96 545,84 775,22 1.1.5+1.1.6+1.1.7), of which: 657,73 Including Women 15724 20033 26076 20953 18386 350,21 393,82 545,84 612,58 710,64 Including employees 11895 13217 12646 14224 12173 406,63 455,62 625,72 750,29 910,95 in minimum quantum 9666 6614 7172 7515 6807 272,17 299,5 380,84 445,30 535,70 1.1.1. general conditions – total 21903 25442 25047 27075 25079 366,98 410,37 549,85 661,96 779,81 1.1.2. advantageous conditions 1428 1166 1029 913 736 288,46 332,68 448,40 532,35 619,13 (anticipated – total) (a+b+c), of which: a) List nr.1 183 155 128 139 86 426,96 524,61 741,57 868,62 1055,27 b) mothers with 5 and more children – total 1245 1011 901 774 650 268,1 303,25 406,75 471,96 561,43 1.1.3. Government members 7 2 8 3 3 3430,42 5040,00 5587,50 6048,33 5502,33 Including Women 1 - 2 - - 1599,00 - 5737,50 - - Including employees 4 2 4 3 1 4298,75 5040,00 5531,25 6048,33 5857,00 1.1.4 among deputies 11 8 8 7 14 2.840,54 4431,5 5381,25 5663,28 5857,07 Including employees - 6 7 6 10 2974,57 4355,66 5367,86 5719,66 5817,00 1.1.5 civil servants 1254 626 791 778 823 1067,16 1306,35 1583,64 1975,64 2388,26 Including Women 752 381 516 528 614 988,67 1258,56 1525,04 1907,36 2334,56 Including employees 760 478 626 649 642 1108,68 1376,36 1618,49 1995,70 2406,66 1.1.6 among mayors, presidents and deputy 89 41 48 43 39 1214,42 2151,78 2305,91 3005,74 2904,41 presidents of judets* councils Including Women 14 5 12 10 9 1162,50 2018,40 2236,83 3064,30 2915,77 Including employees 33 17 18 23 27 1318,27 2116,41 2444,33 2959,56 2876,11 1.1.7. Age experience 33 17 498 40 32 664,72 863,29 3104,29 2592,87 3766,28 1.1.7.1. workers of civil aviation, flight person- 33 17 498 40 32 664,72 863,29 3104,29 2592,87 3766,28 nel – total, 1.1.7.2. workers of railway transport ------1.1.7.3. artists ------1.1.7.4. geologists ------1.2. Disability – total (1.2.1.+1.2.2.+1.2.3.), 11054 9537 9646 9876 9515 260,11 292,08 389,02 459,79 538,04 of which: Including Women 5210 4327 4337 4400 4034 248,62 275,45 356,36 426,99 494,77 Including employees 4316 3848 3860 3828 3470 261,75 296,34 386,18 454,30 535,75 I degree 871 784 794 870 856 330,23 379,93 530,85 670,07 754,51 II degree 7058 5750 5913 6014 5932 286,91 324,16 433,83 506,13 590,14 III degree 3125 3003 2939 2992 2727 180,04 207,71 260.55 305,50 356,75 1.2.1. ordinary disease – total, of which: 10928 9446 9549 9738 9423 260,44 292,27 389,23 460,12 538,49 I degree 859 773 786 860 851 329,86 379,94 531,23 667,35 753,86 II degree 6994 5706 5865 5938 5884 287,22 324,35 433,75 506,45 590,29 III degree 3075 2967 2898 2940 2688 180,12 207,73 260,62 305,91 356,92 1.2.2. accidents at work - total, of which: 115 86 89 127 90 234,89 276,53 357,39 435,14 495,88 I degree 12 11 8 10 5 356,83 379,18 492,87 903,80 865,40 II degree 61 42 44 72 48 247,01 302,21 418,15 462,05 572,37 III degree 42 33 37 45 37 182,47 209,63 255,81 287,93 346,67 1.2.3 professional diseases – total, of which: 11 5 8 11 2 200,9 194,4 490,75 455,18 310,50

183 Annual Social Report 2009

Number of newly established pensions Average pension quantum, Lei Type of pension 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 I degree ------II degree 3 2 4 4 - 364,33 242 728,25 820,75 - III degree 8 3 4 7 2 139,62 162,66 253,00 246,14 310,50 1.3. Survivor – total, of which: 2968 2433 2045 2103 1908 207,79 231,49 297,41 359,17 412,82 Including Women 720 612 539 574 497 205,86 225,44 277,60 336,73 393,60 Including employees 4 3 7 10 7 130,00 232,00 356,57 370,10 356,57 1 survivor 1911 1618 1343 1434 1283 179,9 204,92 272,87 327,41 368,30 2 survivors 797 621 530 514 499 147,13 277,27 334,68 407,47 489,20 3 and more survivors 260 194 172 155 126 292,23 306,5 374,13 492,82 563,66 Pensions set according other laws 55 41 655 99 132 1082,34 544,361 550,72 868,84 2444,11 2.1. for the participants at the liquidation of Cernobyl accident – total 49 36 36 26 31 620,95 609,55 619,0 868,84 712,87 (2.1.1.+2.1.2.+2.1.3.), of which: Including Women 3 - 1 - 1 467,00 - 586,00 - 522,00 Including employees 8 6 8 - 6 628,62 718,83 870,25 - 1287,00 2.1.1. age limit – total 2 1 5 5 3 443 336 871,80 877,00 787,33 2.1.2. disability – total 42 29 22 14 18 635,21 640,1 626,09 1047,00 845,83 I degree 3 2 2 - - 1.176,00 1735,5 1636,00 - - II degree 28 17 11 10 14 670 660,88 654,54 518,00 962,21 III degree 11 10 9 4 4 397,63 385,6 775,12 2369,00 438,25 2.1.3. survivor – total of which: 5 6 9 7 10 572,4 507,33 461,11 506,57 451,20 1 survivor 3 4 5 6 9 476 457,75 442,00 472,83 433,88 2 survivors 2 2 3 1 1 716,5 606 404,00 709,00 606,00 3 and more survivors - - 1 - - - - 727,00 - - 2.2. According the Law on Militaries 6 5 619 73 44 63,5 75 546,76 670,53 739,38 (2.2.1.+2.2.2.) Including Women - - 27 2 - - - 438,14 649,50 - 2.2.1. disability to active militaries – total, of 5 4 562 64 42 63,2 73,75 560,60 687,68 740,38 which: I degree - - 66 11 2 - - 613,63 903,72 921,00 II degree 2 2 438 44 33 88,5 88,5 585,61 673,97 808,42 III degree 3 2 58 9 7 46,33 59 311,37 490,55 367,71 2.2.1.1. including people with disabilities 2 1 490 39 33 78,5 97 577,51 775,97 806,84 from WWII Mondial I degree - - 60 8 2 - - 620,61 992,25 921,00 II degree 1 1 381 25 26 98 97 604,25 781,52 878,61 III degree 1 - 49 6 5 60 - 316,79 464,50 387,80 2.2.2. survivor pension to families of active 1 1 57 9 2 65 79 57 548,44 718,50 militaries – total, of which 1 survivor 1 1 53 7 1 65 79 384,09 431,71 479,00 2 survivors - - 4 1 1 - - 757,25 637,00 958,00 3 and more survivors - - - 1 - - - - 1275,00 - 2.2.2.1. of which to families of people with ------disabilities from WWII 1 survivor ------2 survivors ------3 and more survivors ------2.3. judges - - 26 36 57 - - 4331,04 4052,72 4193,93 Total pensions ( 1+2 ) 38802 39313 39775 40937 38281 347,82 385,77 554,38 628,47 744,79 Source: NHSI

184 Annual Social Report 2009

Annex 8. Households’ disposable income, 2006-200947

2006 2007 2008 2009 total urban rural total urban rural total urban rural total urban rural Total disposable income, monthly aver- 839,6 1000,6 723,8 1018,7 1210,0 878,9 1188,6 1463,3 987,0 1204,4 1501,2 987,8 ages per person, Lei Including in % by source 100 100 100 100 100 100 100 100 100 100 100 100 Remunerated activity 41,6 57,1 26,1 41,4 56,2 26,6 42,9 56,5 28,0 43,9 57,2 29,1 Individual agricultural 18,6 2,6 34,5 15,1 2,0 28,4 10,5 1,2 20,7 10,9 1,4 21,5 activity Individual non-agricul- 7,8 10,4 5,2 6,4 8,4 4,4 7,5 8,8 6,1 6,3 7,1 5,4 tural activity Income from ownership 0,2 0,4 0,0 0,3 0,5 0,1 0,3 0,4 0,1 0,2 0,3 0,0 Social payments, of 13,2 11,6 14,8 13,6 11,9 15,3 14,9 13,6 16,3 16,9 14,6 19,5 whom: pensions 11,0 9,3 12,7 11,5 9,8 13,1 12,8 11,4 14,3 14,4 12,2 16,7 Allowances for children 0,4 0,3 0,5 0,5 0,5 0,4 0,4 0,4 0,4 0,6 0,6 0,6 Compensations 0,5 0,4 0,6 0,5 0,4 0,6 0,6 0,4 0,7 0,7 0,5 0,9 Other incomes 18,7 17,9 19,4 23,2 21,2 25,3 23,9 19,5 28,7 21,8 19,5 24,4 of which remittances 13,9 11,9 15,8 17,5 12,9 22,2 19,1 12,9 25,9 16,4 12,4 21,0 Source: NBS

47 http://www.statistica.md/public/files/ComPresa/Venituri/Venituri_Cheltuieli_2009_Anexa.pdf

185 Annual Social Report 2009

Annex 9. Efficiency of social payments targeting, 2009 Quintiles of disposable income Total 1 2 3 4 5 Distribution of households receiving payments Pensions 10.3 25.9 30.1 18.9 14.8 100 Disability pension 14.8 20.0 25.0 22.5 17.7 100 Allowances for children, total 33.9 22.5 15.0 17.8 10.8 100 Allowances for children until 3 years, of which: 27.9 20.5 14.6 22.8 14.3 100 Allowances for child care, uninsured persons 32.1 23.9 11.3 21.2 11.4 100 Allowances for child care, insured persons 21.7 15.5 19.3 25.1 18.5 100 Allowances for children of 3-16 years 52.3 24.4 13.5 7.4 2.4 100 Compensations 14.7 20.8 28.8 21.2 14.4 100 Nominative compensations for gas 15.1 20.6 28.7 21.3 14.3 100 Nominative compensations for electricity 14.8 20.8 28.8 21.3 14.3 100 Social pensions/social allowances 19.6 30.8 22.0 19.1 8.5 100 Unemployment aid 34.5 23.7 16.7 15.1 9.9 100 Social aid 47.6 30.0 14.5 6.4 1.5 100 Distribution of payments (monetary amounts) Pensions 6.9 21.4 30.7 21.4 19.5 100 Disability pension 12.0 16.6 25.9 23.3 22.3 100 Allowances for children, total 23.1 18.2 18.3 22.6 17.8 100 Allowances for children until 3 years, of which: 19.9 16.1 17.1 24.2 22.8 100 Allowances for child care, uninsured persons 32.1 23.9 11.3 21.2 11.4 100 Allowances for child care, insured persons 14.6 12.7 19.5 25.4 27.7 100 Allowances for children of 3-16 years 57.6 22.6 11.9 6.3 1.6 100 Compensations 14.8 20.5 27.3 22.9 14.5 100 Nominative compensations for gas 16.2 20.7 27.6 21.1 14.4 100 Nominative compensations for electricity 16.2 20.6 27.7 21.0 14.5 100 Social pensions/social allowances 17.9 31.0 22.2 20.5 8.5 100 Unemployment aid 33.8 22.9 15.8 21.2 6.3 100 Social aid 49.8 36.2 6.3 6.6 1.1 100 Source: NBS, HBS, calculations of authors

186 Annual Social Report 2009

Annex 10. Impact of payments on persons living in recipient households, 2009 Quintile 1 Quintile 2 Quintile 3 Quintile 4 Quintile 5 total Before the transfer (if they would not receive the corresponding payments) Pensions, total 55.7% 16.8% 11.1% 9.9% 6.6% 100% Pension for disability 39.2% 21.2% 15.2% 14.8% 9.5% 100% Social payments excluding pensions 30.5% 22.6% 18.4% 17.0% 11.5% 100% Allowances for children, 42.9% 22.6% 13.6% 13.3% 7.7% 100% Allowances for children until 3 years, of which: 36.0% 21.8% 13.7% 18.0% 10.5% 100% Allowances for child care, uninsured persons 38.8% 25.7% 10.9% 15.8% 8.8% 100% Allowances for child care, insured persons 31.7% 15.9% 18.0% 21.4% 13.0% 100% Allowances for children of 3-16 years 59.2% 21.2% 11.8% 6.7% 1.2% 100% Compensations 25.5% 23.6% 22.6% 16.7% 11.5% 100% Nominative compensations for gas 23.5% 21.5% 23.4% 19.0% 12.5% 100% Nominative compensations for electricity 23.3% 22.0% 23.6% 18.7% 12.4% 100% Social pensions/social allowances 30.5% 24.8% 22.0% 14.0% 8.7% 100% Unemployment aid 51.2% 25.4% 9.0% 6.0% 8.5% 100% Social aid 63.0% 21.7% 10.3% 4.2% 0.7% 100% After the transfer of payment to household Pensions, total 16.3% 24.9% 26.3% 18.6% 14.0% 100% Disability pension 20.7% 20.1% 22.6% 20.5% 16.0% 100% Social payments excluding pensions 24.6% 20.7% 20.6% 20.0% 14.1% 100% Allowances for children 38.4% 22.9% 13.8% 15.9% 9.1% 100% Allowances for children until 3 years, of which: 32.3% 21.1% 13.5% 20.8% 12.2% 100% Allowances for child care, uninsured persons 37.7% 23.7% 10.5% 18.6% 9.5% 100% Allowances for child care, insured persons 24.1% 17.1% 18.1% 24.3% 16.3% 100% Allowances for children of 3-16 years 55.8% 23.8% 11.9% 6.7% 1.8% 100% Compensations 22.8% 21.8% 23.9% 18.9% 12.6% 100% Nominative compensations for gas 23.3% 21.2% 23.7% 19.1% 12.6% 100% Nominative compensations for electricity 22.8% 21.8% 23.9% 19.0% 12.5% 100% Social pensions/social allowances 20.7% 29.5% 22.5% 18.6% 8.7% 100% Unemployment aid 33.9% 24.1% 21.6% 11.9% 8.5% 100% Social aid 51.3% 32.7% 7.1% 8.2% 0.7% 100% Disposable income per person 20.0% 20.0% 20.0% 20.0% 20.0% 100% Source: NBS, HBS, calculations of authors

187 Annual Social Report 2009

Annex 11. Households’ profile, potentially eligible for social aid Eligible for social aid Total

yes no Man 7.0 93.0 100 Household head sex Woman 4.2 95.8 100 Total 5.9 94.1 100 under 30 years 3.8 96.2 100 30 – 39 years 7.3 92.7 100 40 – 49 years 9.0 91.0 100 Age of household head (by groups) 50 – 59 years 8.3 91.7 100 60 – 64 years 4.5 95.5 100 65 years and over 1.8 98.2 100 Total 5.9 94.1 100 Higher 1.1 98.9 100 Education level of household head Secondary general and vocational 6.8 93.2 100 (by groups) Primary and lower secondary 6.5 93.5 100 No primary education and illiterate 10.2 89.8 100 Total 5.9 94.1 100 Farmers 31.4 68.6 100 Employed in agricultural sector 6.8 93.2 100 Employed in non-agricultural sector 0.8 99.2 100 Socio-economic statute Entrepreneurs 100.0 100 Pensioners 3.1 96.9 100 Other 4.7 95.3 100 Total 5.9 94.1 100 Households with 1 child under 18 years 6.7 93.3 100 Households with 2 children under 18 years 7.4 92.6 100 Number of children under 18 years Households with 3 and more children under 16.4 83.6 100 18 years Households without children 4.6 95.4 100 Total 5.9 94.1 100 Source: NBS, HBS, calculations of authors

188 Annual Social Report 2009

Annex 12. Number of persons with disabilities, by categories, 2008-2009 Increase 2009/2008 2008 2009 Persons % People with disabilities: 173096 176743 3647 2,1 I degree 25737 26297 560 2,2 II degree 114169 116542 2373 2,1 III degree 33190 33904 714 2,2 Persons with disabilities in result of an ordinary disease, 127929 130692 2763 2,2 of whom: I degree 13396 13584 188 1,4 II degree 88387 90454 2067 2,3 III degree 26146 26654 508 1,9 Persons with disabilities in the result of a professional disease, 97 97 0 0,0 of whom: I degree 8 7 -1 -12,5 II degree 52 58 6 11,5 III degree 37 32 -5 -13,5 Persons with disabilities in the result of accidents at work, 3540 3499 -41 -1,2 of whom: I degree 322 313 -9 -2,8 II degree 1688 1713 25 1,5 III degree 1530 1473 -57 -3,7 Persons with disabilities in the result of participation at the 2068 2041 -27 -1,3 liquidation of consequences of Cernobyl accident, of whom: I degree 290 286 -4 -1,4 II degree 1741 1721 -20 -1,1 III degree 37 34 -3 -8,1 Persons with disabilities in the result of special or military 1040 1017 -23 -2,2 service, of whom: I degree 117 112 -5 -4,3 II degree 723 699 -24 -3,3 III degree 200 206 6 3,0 Persons with disabilities from childhood, of whom: 24274 24160 -114 -0,5 I degree 5883 5833 -50 -0,8 II degree 14463 14283 -180 -1,2 III degree 3928 4044 116 3,0 Children with disabilities, of whom: 14148 15237 1089 7,7 I severity 5721 6162 441 7,7 II severity 7115 7614 499 7,0 III severity 1312 1461 149 11,4

189 Annual Social Report 2009

Annex 13. Compensations for the trips in urban, suburban and interurban transport, 2009 Quantum of com- Number of beneficiaries pensation Lei/ Monthly Planned Expendi- County/ Periodicity expenses tures Nr. People People With Without municipality Children of payment (thousand (thousand with dis- with dis- accom- accom- with dis- Total lei) Lei) abilities I abilities panying panying abilities degree II degree person person 1. Mun. Chisinau 4314 17901 1866 24081 60 30 Monthly 8420,0 8269,9 2. Mun. Balti 1011 4787 446 6244 45 22,5 Monthly 2736,1 2336,7 3. Anenii – Noi 618 2678 332 3628 40 20 Quarterly 1009,3 1006,8 4. Basarabeasca 219 914 152 1285 40 20 Quarterly 376,6 355,7 5. Briceni 1094 3073 508 4675 40 20 Quarterly 1122,0 380,0 6. Cahul 660 2346 440 3446 40 20 Annually 1091,0 1091,0 7. Cantemir 357 1396 325 2078 35 17,5 Annually 569,5 569,5 8. Calarasi 588 2831 337 3756 40 20 Semestrially 1037,7 1095,8 9. Causeni 439 2314 321 3074 40 20 Quarterly 876,2 832,0 10. Cimislia 336 1727 198 2261 40 20 Semestrially 629,8 617,7 11. Criuleni 852 2308 720 3880 40 20 Semestrially 909,8 925,1 12. Donduseni 287 1883 179 2349 40 20 Quarterly. 647,1 667,5 13. Drochia 574 3158 412 4144 40 20 Semestrially 1108,6 1168,8 14. Dubasari 222 1399 130 1751 40 20 Quarterly 584,7 483,5 15. Edinet 903 4387 399 5689 40 20 Semestrially 1677,8 970,5 16. Falesti 245 2921 200 3366 23,3 13 Lunar 607,0 607,0 17. Floresti 507 3498 384 4389 40 20 Quarterly 1143,6 886,4 18. Glodeni 396 1531 624 2551 40 20 Annually 550,0 551,0 19. Hincesti 670 2907 475 4052 40 20 Semestrially 1131,4 1221,5 20. Ialoveni 543 2372 332 3247 40 20 Quarterly 757,4 742,0 21. Leova 241 1102 213 1556 40 20 Semestrially 463,5 482,5 22. Nisporeni 432 1751 229 2412 40 20 Annually 685,0 685,0 23. Ocnita 394 2823 230 3447 40 20 Quarterly 747,4 870,0 24. Orhei 772 3770 572 5114 25,6 19,3 Quarterly 1223,2 1220,41 25. Rezina 367 1914 195 2476 40 20 Quarterly 731,4 731,4 26. Riscani 403 2488 328 3219 40 20 Quarterly 856,6 889,3 27. Singerei 610 3575 501 4686 40 20 Quarterly 1261,0 1261,0 28. Soroca 656 4634 506 5796 0 20 Semestrially 11391,0 600,1 29. Straseni 1290 3759 962 6011 40 20 Semestrially 1200,0 1242,0 30. Soldanesti 201 2200 192 2593 40 20 Quarterly 716,64 716,64 31. Stefan-Voda 351 2074 259 2684 40 20 Quarterly 834,2 790,5 32. Taraclia 288 2087 220 2595 40 20 Quarterly 772,5 649,7 33. Telenesti 505 2955 503 3963 40 20 Quarterly 989,3 989,3 34. Ungheni 583 3416 423 4422 - 20 Annually 1302,7 502,4 35. TAU Gagauzia 1149 7398 796 9343 40 20 Annually 2558,3 2555,74 Comrat 492 3058 330 3880 40 20 Annually 1128,5 1128,5 Ciadir-Lunga 502 3442 362 4306 40 20 Monthly 1071,2 1097,46 Vulcanesti 155 898 104 1157 40 20 Annually 358,6 329,78 TOTAL 23077 112277 14909 150263 52718,34 38964,39

190 Annual Social Report 2009

Annex 14. Compensation of transport expenses of persons with disabilities of skeletal system (compensation quantum – 400 Lei)

Number of beneficiaries People People with Planned People People Children Expendi- with dis- disabilities due expenses County/ with dis- with dis- with dis- tures 2008 Nr. abilities to accidents 2008 municipality abilities abilities abilities Total (thousand from war at work and (thousand from child- of general under 18 Lei) or similar professional Lei) hood profile years to them diseases 1. Mun. Chisinau 36 199 54 343 116 748 286,2 284,5 2. Mun. Bălţi 2 18 2 15 - 37 16,8 14,1 3. Anenii – Noi 6 12 18 46 - 82 33,2 32,8 4. Basarabeasca 2 3 3 21 - 29 10,0 10,0 5. Briceni 17 18 2 20 3 60 24,0 24,0 6. Cahul 3 7 10 16 - 36 24,0 14,5 7. Cantemir 7 11 6 13 - 37 16,0 14,8 8. Calarasi 11 8 5 49 - 73 15,4 23,7 9. Causeni 11 28 15 55 - 109 23,2 23,2 10. Cimislia - 36 6 40 9 91 20,8 20,8 11. Criuleni 8 32 1 31 18 90 25,4 34,6 12. Donduseni 9 34 70 22 9 144 56,7 57,6 13. Drochia 15 105 12 281 51 464 57,2 43,6 14. Dubasari 8 5 4 9 - 26 11,6 10,4 15. Edinet 11 9 11 28 6 65 26,0 26,0 16. Falesti 6 29 4 45 21 105 36,0 36,0 17. Floresti 13 38 6 43 25 125 27,6 49,0 18. Glodeni - 9 14 145 15 183 73,4 73,2 19. Hincesti 9 81 8 133 24 255 80,0 97,9 20. Ialoveni 7 39 7 123 29 205 82,0 82,0 21. Leova 3 3 2 2 - 10 10,3 4,0 22. Nisporeni 7 11 3 77 57 155 103,6 59,9 23. Ocnita 8 38 5 63 18 132 41,2 52,5 24. Orhei 18 64 7 214 17 320 15,03 15,03 25. Rezina - 8 - 13 - 21 17,2 8,4 26. Riscani 9 32 6 83 - 130 60,0 50,8 27. Singerei 5 37 3 50 15 110 29,3 29,3 28. Soroca 3 26 5 7 42 83 33,2 33,2 29. Straseni 11 53 4 55 - 123 32,0 48,3 30. Soldanesti 5 16 7 13 - 41 17,66 17,66 31. Stefan-Voda 8 41 5 196 70 320 9,6 - 32. Taraclia 4 44 5 58 6 117 46,8 46,8 33. Telenesti 14 4 3 5 2 28 12,0 10,8 34. Ungheni 8 38 5 24 10 85 33,2 34,0 35. UTA Gagauzia 4 82 22 172 33 313 123,49 15,2 Comrat 2 34 6 83 22 147 58,33 15,2 Ciadir-Lunga 1 32 14 63 10 120 48,0 - Vulcanesti 1 16 2 26 1 46 17,16 - TOTAL 288 1218 340 2510 296 4952 1530,08 1398,59

191 Annual Social Report 2009

Annex 15. Primary disability, 2008-2009, persons

2008 2009 Increase RCVME Total Gr.I Gr.II Gr.III Total Gr.I Gr.II Gr.III 2009/2008 % s. Riscani Chisinau 989 203 644 142 958 197 614 147 -3,1 s. Centru Chisinau 955 114 543 298 906 103 501 302 -5,1 Soroca 827 114 463 250 873 117 493 263 5,6 s. Ciocana Chisinau 815 142 467 206 833 118 494 221 2,2 Singerei 776 102 473 201 816 85 525 206 5,2 Balti 773 76 480 217 794 82 497 215 2,7 Edinet 729 114 461 154 771 102 516 153 5,8 Ungheni 672 78 392 202 734 112 416 206 9,2 Ciadir-Lunga 675 79 440 156 724 93 479 152 7,3 Orhei 689 83 352 254 701 74 347 280 1,7 Cahul 693 139 347 207 695 136 332 227 0,3 Drochia 704 100 394 210 684 122 384 178 -2,8 s. Botanica Chisinau 694 94 390 210 676 87 397 192 -2,6 Calarasi 645 68 374 203 626 71 404 151 -2,9 Hincesti 562 102 281 179 572 94 297 181 1,8 Soldanesti 550 67 335 148 553 87 316 150 0,5 Stefan-Voda 570 93 301 176 521 91 279 151 -8,6 Falesti 510 83 289 138 497 71 301 125 -2,5 Comrat 438 52 289 97 446 39 281 126 1,8 Donduseni 351 63 196 92 340 51 209 80 -3,1 Cimislia 296 39 188 69 317 32 203 82 7,1 Medici 108 9 66 33 90 9 49 32 -16,7 TOTAL 14021 2014 8165 3842 14127 1973 8334 3820 0,8 Source: RCVME

192 Annual Social Report 2009

Annex 16. Distribution of people with primary disability by nosologic forms, age, and disability degree, 2009, persons Including age Disability degrees Women Men

Nr. Diagnosis Total Gr. Gr. Gr. I II III Under 29 years 30-39 years 40-49 years 50-56 years 57 years 50-60 years 62 years 1. Tuberculosis 618 108 139 189 21 5 152 4 22 533 63 1.1 Pulmonary tuberculosis 597 107 136 182 20 5 144 3 20 515 62 Extra respiratory 1.2 21 1 3 7 1 - 8 1 2 18 1 tuberculosis 2. Malignant tumours 2733 122 207 575 505 331 766 227 751 1769 213 Endocrine, nutritional and 3. 878 55 78 249 221 43 213 19 30 522 326 metabolic diseases 3.1. Diabetes 654 43 54 154 155 38 191 19 29 397 228 3.2. Thyroid disorders 151 9 17 58 53 5 9 - 3 81 67 Mental and behaviour 4. 1060 263 217 253 137 13 164 12 71 788 201 disorders 4.1. Schizophrenia 322 97 93 85 25 3 18 1 11 297 14 Diseases of the nervous 5. 1358 109 168 419 217 53 356 36 123 657 578 system Disease of eye and 6. 796 93 64 152 77 103 184 123 202 192 402 annexes Diseases of the circulatory 7. 2862 26 92 515 564 239 1186 240 437 1767 658 apparatus Chronic Rheumatic 7.1 195 6 23 60 38 8 57 3 4 141 50 coronary diseases 7.2. Hypertensive diseases 550 1 13 122 186 15 206 7 4 315 231 7.3. Ischemic heart disease 725 4 13 116 90 44 407 51 20 531 174 7.4. Cerebral-vascular diseases 1105 6 25 162 215 162 396 139 375 595 135 8. Respiratory diseases 306 11 20 70 76 7 111 11 2 189 115 9. Digestive diseases 1018 22 95 317 193 42 338 11 172 607 239 9.1. Liver cirrhosis 727 9 59 220 141 39 249 10 164 460 103 9.2. Chronic hepatitis 197 4 21 68 41 3 60 - 1 88 108 Diseases of bones and 10. joints, muscles and 1155 73 123 314 256 55 298 36 41 541 573 connective tissue 11. Traumatic injuries 893 136 150 229 87 16 255 20 73 536 284 11.1 Accidents at work 22 1 4 8 3 - 6 - 1 11 10 Professional diseases and 12. 2 ------2 - - - 2 poisoning Diseases of urinary and 13. 189 28 33 61 31 2 32 2 32 99 58 genital system 14. Other diseases 259 28 43 64 36 6 70 12 17 134 108 15. TOTAL 14127 1074 1429 3407 2422 915 4127 753 1973 8334 3820 15.1 Women 5877 414 578 1548 2422 915 - - 717 3497 1663

193 Annual Social Report 2009

Annex 17. Repeated disability, 2008-2009, persons

2008 2009 Increase RCVME Total Gr. I Gr. II Gr. III Total Gr. I Gr. II Gr. III 2009/2008, % Soroca 3843 210 2729 904 3769 198 2667 904 -1.9 Calarasi 3020 270 2182 568 2894 244 2129 521 -4.2 Drochia 2714 201 1716 797 2510 184 1536 790 -7.5 Edinet 2438 186 1996 256 2497 211 2012 274 2.4 Orhei 2573 178 1518 877 2430 169 1436 825 -5.6 s. Centru Chisinau 2304 198 1327 779 2429 192 1452 785 5.4 s. Botanica Chisinau 2710 295 1563 852 2403 237 1418 748 -11.3 Ciadir-Lunga 2163 172 1612 379 2369 148 1849 372 9.5 Cahul 2349 201 1267 881 2368 164 1222 982 0.8 Singerei 2501 183 1761 557 2350 221 1654 475 -6.0 s. Riscani Chisinau 2520 265 1786 469 2259 245 1615 399 -10.4 Ungheni 2184 169 1323 692 2012 149 1236 627 -7.9 s. Ciocana Chisinau 2282 217 1491 574 1997 182 1264 551 -12.5 Soldanesti 1906 161 1287 458 1960 159 1402 399 2.8 Balti 1856 135 1341 380 1918 138 1400 380 3.3 Stefan-Voda 2144 263 1300 581 1852 191 1103 558 -13.6 Comrat 1696 115 1228 353 1782 95 1311 376 5.1 Hincesti 1704 138 935 631 1779 149 1038 592 4.4 Falesti 1674 135 1148 391 1504 105 1090 309 -10.2 Donduseni 1567 119 1095 353 1347 104 960 283 -14.0 Cimislia 1383 99 960 324 1247 68 872 307 -9.8 Doctors 205 13 125 67 200 5 129 66 -2.4 TOTAL 47736 3923 31690 12123 45876 3558 30795 11523 -3.9 Source: RCVME

194 Annual Social Report 2009

195 Annual Social Report 2009

Com. 2772 Tipărit la Întreprinderea de Stat “Tipografia Centrală“,

“Century International “Century International “International Diamond Platinum Quality ERA Platinum Quality ERA Star for Quality”, Paris, 2003 AWARD”, Geneva, 2002 AWARD”, Geneva, 2002

MD-2068, Chişinău, str. Florilor, 1 Tel. 43-03-60, 49-31-46

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