USAID Builds Transparency in Moldovan Governance from the Local Level Up

Snap shot of the LGRP Mayors at their last quarterly meeting Chisinau - August 20, 2007. When the 120 Mayors of the USAID Local Government Reform Project (LGRP) assembled for their quarterly meetings, it was a spirited occasion with many discussions on their shared civic agendas.  But at their final meeting on March 15, an unusual silence settled in.  Anatol Moldovan, Mayor of Ialoveni, stated what was on the minds of many: "The LGRP is really ending, after seven years of partnership and virtually living with us – all partner communities.  This partnership was like the air to us, air we need to live.  And the time has come, the time when we have to be on our own, supported by the knowledge that we gained from cooperation with LGRP." USAID launched the Local Government Reform Project, implemented by the Urban Institute, in February 2000.  The project sought to improve local governance, management of local public finances and delivery of municipal services in Moldova.  Methodology included the application of transparency principles through citizen participation and automated municipal budgetary accounting.  Partner communities throughout Moldova were selected by their demonstrated initiative and commitment to change.  With public buy-in, communities outlined strategic plans for the first time, identifying the most important challenges facing their communities.  Concurrently, the LGRP fiscal improvement team designed an Integrated Municipal Financial Software (IMFS) and provided training to municipal accountants.  After a competitive selection process, demonstration projects were implemented by partner communities with the financial assistance of LGRP.   The LGRP broke new ground in Moldova by tangibly establishing civic participation and transparency in local governments.  During the course of the project, over 200 public hearings were held on strategic and budgetary plans and attended by more than 17,000 concerned citizens.  LGRP provided office equipment and software to all partners and delivered over 2,300 days of training.  In the area of municipal services, 156 small demonstration projects – from improving school heating systems, to rebuilding community centers, to providing community street lights – valuing $3 million dollars were successfully implemented.  These projects alone improved the daily lives of more than 250,000 Moldovan citizens. At the central level, LGRP collaborated with the Moldovan government to strengthen local autonomy and governance through advocacy and technical assistance.  LGRP also built the capacity of NGOs and municipal associations to promote their stakeholder’s interests; organized national symposiums for water suppliers; and supported mayors and municipal accountants through quarterly trainings. There are also other visible accomplishments.  The IMFS software license was provided to the Ministry of Finance and was adopted as standard for accounting of Moldova budgetary organizations.  The Mayors of LPRG partner communities have become more knowledgeable in legal and fiscal issues related to their daily work and stronger and better advocates for their electorate, most of them winning re-election in the 2003 and 2007 elections.  Collaboration with international donor organizations has led to continued financing of the LGRP best practices program by the Council of Europe and additional LGRP components by UNDP.  Perhaps the highest of all accomplishments was expressed by Iuri Tap, Mayor of Floresti, when he said: "I am grateful for all the support LGRP has provided me and my community over the years.  And I am even more grateful for being treated as an equal partner and friend, not just a recipient of assistance." In the seven years of implementation, the USAID Local Government Reform Project developed trust and real partnership with 120 partner communities, impacting the lives of thousands and changing the understanding of what local government can do for the people, with the people.

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