Edinet Mayor Leonid Jidacevschii hands the first trade license issued by One Stop Shop On-line to Alexandru Miscenco

EDINET - In Moldova, regulatory reform has become an increasingly popular tool to effectively fight corruption and bribery. When combined with political will and popular support, regulatory reform is almost unbeatable. Step by step local communities and regions are joining the regulatory reform team and tearing down business barriers.

Most recently this was evidenced in Edinet, where a new One Stop Shop On-line for trade licensing opened its doors for business with the assistance of USAID. A One Stop Shop is a non-government managed facility that brings state institutions together in a special network to save business people time, hassle and money. For example, if you want to get the trade license to operate in Edinet you now visit  the One Stop Shop On-line instead going from "pillar to post" in each state office to get the 10 signatures you need to license your business. It used to take you more than three months now it takes only 10 days.  And no more waiting rooms, no more unofficial taxes and penalties, no more uncertainty, and no more fear and confusion.

The change was felt by Alexandru Mişcenco, an Edinet-based retailer who received his trade license at the opening ceremony. Before those members of the business-community, public officials and the press who had gathered for the event he said: "This is not the first license that I received. But it’s by far the most trouble-free one. I recommend you to open a new business just to see how simple is to get a license."

Edinet One Stop Shop On-line is the third facility of this kind to open in Moldova. The first was established in Cahul in May and the second in Hincesti in October. The Edinet office began working in November. All three offices receive technical support from USAID. Other regions are in a hurry to keep pace with these regional reform leaders so another 12 One Stop Shops are due to open by the summer of 2006. The Moldovan government is aiming for European integration, and the One Stop Shops are seen as an important step toward European norms.

Moldovan Ministry of Economy leading the “Join-In” campaign!

"Tired of writing too many reports?" "Tired of staying in too many lines?" "Tired of too many inspections?  These are just a few messages one can frequently see while strolling or driving in Moldova.  Each one ends with, "Fight back!”"

On February 6, the new law on streamlining the legal and regulatory environment for business activity, commonly referred to as the "guillotine law", became effective. For six month, the Moldovan Government has been reviewing and streamlining the Soviet-era legacy of burdensome laws to cut ambiguous, repetitive and ineffective business regulations that encumber investment and enterprise development.

But that has been just the first step in the fight against over regulation and corruption. The next important step was and still is to develop an understanding of regulatory reform among mid-level bureaucrats. To achieve this task, Moldovan citizens and entrepreneurs were called to action through the Join In communication campaign, launched by USAID’s Regulatory Reform for Moldova (RRM) project.

Through caricatures printed on billboards, posters and flashcards, the Join In communication campaign urges citizens and entrepreneurs to get involved and support reform implementation at the grassroots level. It urges them to protect their legitimate business activities from frequent public officials’ interference, counter bureaucratic abuse and question ineffective business regulations that hinder business development. It identifies impediments for business development and calls for action. Endorsed by the Moldovan Government coat of arms, the campaign conveys a strong message: the business is operating within a new legal and regulatory environment.

Billboards are at the core of the RRM communications campaign. Placed in 12 regional cities, billboards reach nearly 150, 000 Moldovans every day. Merely in Chisinau, about 100, 000 people see the Join-In billboards daily.

Since the billboards appeared in Cahul, the business capital of south Moldova, calls to regulatory reform hotlines to request information about entrepreneurs’ rights and report bureaucratic abuse increased by 91 percent in Cahul; in Hincesti, a satellite business center 40 kilometers from Chisinau they went up by 45 percent; and in Ceadir Lunga, the main commercial center for the autonomous region of Gagauzia, a Turkish/Russian-speaking area they increased by 53 percent.

In the new reform awareness program, posters, billboards and flash cards are complemented by online resources. The Regulatory Reform’s website, www.bizreforma.md, provides visitors with access to the texts of laws and regulations affecting business development.  The site also hosts an online registry of updated regulations managed by the Ministry of Economy and Trade with technical and financial assistance from the USAID project.

The continuous flow of information available in various formats, ranging from flashcards for truck drivers to a searchable regulatory database involves citizens and entrepreneurs in the regulatory reform process and helps them to feel part of the initiative.

According to Mr. Ion Chicu of the Ministry of Economy & Trade, the growing public awareness brought about by the Join-In campaign, has increased pressure on public officials to accomplish tangible results in the post-guillotine implementation phase. 

So while the Government is reviewing and streamlining burdensome laws and local public officials are developing an understanding of the benefits of regulatory reform, Moldovan citizens and entrepreneurs are actively joining to "Fight Back!" against official abuse.

The new garbage truck for the town of Stefan Voda

STEFAN VODA - Through hard work and resourcefulness, the 7,779 citizens of Stefan Voda, a community located in southeastern Moldova, have initiated an environmentally sound and comprehensive solid waste management program. The program includes a community-wide education and clean-up campaign, the acquisition of new waste containers, a new garbage truck and the removal of 17 unauthorized open trash dumps around the town. "Improved solid waste management in the town has been a high priority for residents and local elected leaders. Together we have mobilized our efforts to begin to resolve a major problem that has confronted us for a very long time," said Vitalie Rusanovschi, Stefan Voda resident. 

Until very recently, the system of collecting household trash had become sporadic and unreliable. This was due in large part to the deteriorated condition of the community’s two garbage trucks. Both vehicles were over 20 years old and very unreliable. The accumulation of household waste throughout the town posed serious health and environmental risks to the public. "I recall many times when the old trucks were broken down and trash remained uncollected for two or more weeks at a time. On a temporary emergency basis, city hall staff and students were recruited to collect the garbage and private owners of tractors had to be hired at considerable expense to haul it away. This was a terrible inconvenience for those involved and a waste of public expenditures," said Gheorghe Anghel, Mayor of Stefan Voda.

With technical assistance and financial support in the amount of $18,345 from the USAID Local Government Reform Project (LGRP), regular removal of household trash to the town’s new authorized landfill is currently underway. Area citizens and local government officials contributed additional funding in the amount of $5,100 to the project. Volunteers also assisted in repairing a one-kilometer portion of the road that will provide easy access to the authorized landfill for the new garbage truck and other vehicles.

To insure future sustainability of the solid waste management project, a community-wide clean-up campaign and educational awareness program for the public has been initiated. To further remind citizens of the importance of an ecologically viable community, 70 new waste containers and street bins were purchased with National Ecological Fund assistance and have been placed in high profile areas throughout the town for daily use by residents. "This truly has been a community-wide effort," said Mayor Anghel and added, "This joint effort by citizens, local government and USAID/LGRP to implement our community strategic plan has proven that we as a community can resolve the problems if we work together and face them head-on."

Business Woman Svetlana Nani Proudly Showing her Poultry Farm

CHETROSU VILLAGE - In January 2005 Svetlana Nani, a successful businesswoman from Chetrosu village, was able to secure a MDL 500,000 loan (approximately US$40,000) from Banca Sociala under the USAID Loan Portfolio Guarantee Program, which helped her to further develop her poultry business. Banca Sociala is one of the seven financial institutions that have partnered with USAID to receive loan portfolio guarantees that cover 50 percent of the risk of the partner banks in extending loans to small and medium enterprises (SMEs) and farmers. The USAID guarantee enables banks to extend loans to more risky borrowers, such as start-ups and farmers.

In 2002, Nani, a former credit officer, invested all her money in a poultry farm. At first, she employed five workers, but soon nearly the entire village labor force worked at her poultry farm. By early 2005, the business woman owned eight large buildings. Her current output was impressive, but Svetlana knew that market demand was still high. She wanted to buy modern equipment to boost sales, but her own capital was not sufficient for such a large investment, so she turned to Banca Sociala for help. With her loan money, Nani was able to purchase computer-controlled equipment for one of her five hatcheries. This new technology saves chicken feed, shortens the growing period and needs fewer operators. Now, Svetlana’s business flourishes - she provides jobs to 60 people and sells more than 60,000 chickens in a 45-day cycle.

Since the launch of the first USAID Loan Portfolio Guarantee Program in Moldova in 2000 more than 1,000 loans, totaling over $US 17 million, have been granted to SMEs and agriculture entrepreneurs.

A student’s vision of the school’s new rest room

ORHEI - Every school day, in fair weather or foul, about 1,000 students from the Al. Russo Theoretical Lyceum in Orhei cross the 100 meter divide from their school building to the outhouse pit toilets. In 1995, the school’s heating system failed, causing the water pipes to freeze and burst.  Since then there has been no running water and no functioning student restrooms. According to parents, teachers, and the State Sanitation Service, the use of outdoor toilets, also used by pedestrians from the town market, creates an infectious disease hazard for the lyceum students.  

By 2003, parents and teachers at Al. Russo grew tired of waiting for someone to solve this problem; they formed an Association of Parents and Teachers and directly secured funding from the Orhei City Hall to install an autonomous heating system. Energized by their early success, the Association then applied to the city and a host of donors for support to fix the water system and renovate the lyceum restrooms. "It wasn’t easy. Our project was rejected several times and we thought that this kind of project was not funded in Moldova ", said lyceum teacher Aliona Ghenu.

In December 2004, the vice president of the Association gathered parents and teachers to share information about the new Citizen Participation Program in Moldova , funded by the U.S. Government through USAID, and administered by IREX. "We instantly realized that there was an opportunity for us, and the basic design of the project was unanimously accepted by everyone", said lyceum director Margareta Paiul. "The CPP community forum, moderated by IREX Social Organizer Tudor Golub, showed us what was missing - that the key was to get all the stakeholders in the community to participate."  Citizens, parents, teachers, students, local government, and Peace Corps volunteers joined together to finalize the plan to replace the water system and renovate student restrooms. Citizens are involved in every phase of the project, from design to unskilled volunteer labor (demolition) to planning for sustainable maintenance of the new facilities. In May 2005, the IREX Citizen Participation Program agreed to join the citizens, local and raion administrations, and the Peace Corps in funding the implementation of this project.

"We also made sure that the commitment and participation of citizens, partners and beneficiaries will be long term. We collected letters of guarantee and signed agreements with all our partners, ensuring that our plan for maintaining the water system would be fulfilled", said Constantin Godonoaga, President of the Association of Parents and Teachers. 

By September 1, the Moldovan Day of Knowledge marking the start of the new school term, over 1,000 children and teachers at Al. Russo Lyceum will be able to share in the joy of seeing the result of their long-standing efforts: clean and sanitary restrooms, warm running water, a sense of accomplishment, and revitalized energy to find the next needed project.

An interviewer performs anemia test

CHISINAU - In mid-June the data collection process for the first Demographic and Health Survey (DHS) was launched in Moldova.  By the end of August 2005, interviewers will visit a representative sample of 12,000 pre-selected households in Moldova and collect information from women and men aged 15 to 49 years. 

The data will yield a wealth of information to be used by program managers and policy makers to evaluate current public health programs and assess the demographic situation in Moldova, as well as formulate further developmental strategies and programs. The DHS will address areas such as fertility rates, infant and child mortality rates, child immunizations, antenatal care, delivery and postnatal care. The survey will also provide information on knowledge, attitudes and behavior of respondents on the subject of sexually transmitted infections and AIDS, and prevalence of domestic violence. In addition, anthropometric measures will be taken to assess the nutritional status of children and women; salt will be tested for iodine, and consenting women and children under age five will be tested for anemia. 

The preliminary results of the MDHS will be available in October 2005. In March 2006, a national seminar will be organized to present the final report. The data file from the survey will be at the disposal of any interested institution or individual who would like to undertake additional analyses, both at the national and international levels. 

The MDHS is funded primarily by the U.S. Agency for International Development. Partners and co-sponsors in the project include UNICEF and UNFPA, and Macro International is providing technical assistance to the Center of Preventive Medicine (CPM), the agency under the Ministry of Health responsible for the survey implementation. 

CHISINAU - During the past decade, Moldova has made significant progress concerning the devolution of state-held land property to private owners. A cornerstone in the economic transition process, the process of privatization needs to be followed by steps ensuring secure land tenure and the development of the land market. However, in spite of the remarkable success of the land reform process, land fragmentation emerged as a side effect with detrimental implications for private and public investments and a sustainable economic growth. Market-based land consolidation is necessary to address these issues and to effect a viable land market development.

On July 8, 2005 a National Conference on THE NATIONAL PROGRAM FOR AGRICULTURAL LAND CONSOLIDATION was organized by The Ministry of Agriculture and Food Industry of the Republic of Moldova, in cooperation with the USAID’s Land Privatization Support Project (LPSP).

The conference provided an analysis of current problems and prospects for Moldovan agriculture, focusing on existing constraints to market-based land consolidation and the lack of mortgage lending programs. A set of recommendations on the National Program for Agricultural Land Consolidation was prepared for the Government and released to the public.

This conference, organized at the initiative of the Ministry of Agriculture, is an example of the positive shift in government policy in the agricultural sector, and constitutes a break from previous attempts to implement state-driven land consolidation. This conference is evidence of the Government’s overall commitment to reform, and its results are another step towards building an effective market economy in Moldova.

An inspector testing the milk quality

DURUITOAREA NOUA - Milking a cow is part of 60-year old Valentina Voloshenovskaia’s daily routine. To her, like to many of her fellow villagers in Duruitoarea Noua, milk is an essential product vital to every household. But Ms. Voloshenovskaia never thought that milk might also provide additional revenues for her family. "Who would think that I could become an entrepreneur at my age," she says with a smile.

A couple of years ago, Valentina joined Lactica, a milk cooperative in the neighboring village of Cuconesti. Since 2001, USAID's PFAP Program began helping rural entrepreneurs and land owners unite in business cooperatives like Lactica. Most importantly Lactica pays regularly for the milk provided. "Because we have two cows, we get a lot of surplus milk. Depending on our household needs, sometimes we sell more, other times - less. On average, we make approximately 25-30 lei per day, which is very good for us," says Valentina with satisfaction. 

In 2003 the Lactica cooperative won a $10,000 Private Farmer Assistance Program (PFAP) grant to purchase modern milk collecting and cooling equipment, allowing the cooperative to store fresh milk longer, meet government required hygiene levels, and more importantly, deliver a better price to cooperative members. Since then, the cooperative has achieved impressive growth, making it the largest milk collecting cooperative in northen Moldova with 17 milk centers. Lactica's milk sales have increased from $8,600 in 2002 to $547,000 in 2004.

To date 180 business cooperatives have been registered, with 15,541 members.        

Moldovan clinicians debating over the primary goals of the Federation of Moldovan Legal Clinics

COMRAT - On May12, 2005, four Moldovan legal clinics gathered in the southern Moldovan city of Comrat, where they adopted the Declaration on Creation of the Federation of Moldovan Legal Clinics. The Moldovan Legal Clinics, three of which are funded by the USAID’s Rule of Law program implemented by the American Bar Association/CEELI program, have two important goals: to teach law students practical lawyering skills and ethical values, and to provide quality legal assistance to poor and socially disadvantaged persons who cannot otherwise afford to pay for legal assistance. 

The founding members of the newly-created Federation represent all regions of Moldova: the Chisinau Legal Clinic in the center, the Balti Legal Clinic in the north, the Tiraspol Legal Clinic in the Transnistria region, and the Comrat Legal Clinic in the south. The Federation has set several ambitious goals: stimulate an exchange of information and experiences among the clinics; represent and lobby the interests of the Moldovan legal clinics in relations with Moldovan state authorities and law faculty administrations country-wide; and closely cooperate with Moldovan legal aid and human rights organization, and refer clients’ cases to these organizations and centers as appropriate.