Executive Board of the United Nations Development Programme and of the United Nations Population Fund

United Nations DP/DCP/ Executive Board of the United Nations Development Programme and of the United Nations Population Fund Distr.: General (Date) Original: Language NOTE: The narrative should be no more than four pages in length and results and resources framework should be no more than two pages in length. Do not adjust font or margins when completing the document. The evaluation plan should be submitted as a separate document Annual session of (year) (date), (Location) Item (number) of the provisional agenda Country programmes and related matters Draft country programme document for the Republic of Moldova (2013-2017) Contents I. Situation analysis II. Past cooperation and lessons learned.. III. Proposed programme.. IV. Programme management, monitoring and evaluation.. Paragraphs Page Annex Results and resources framework

This Country Programme Document (CPD) 2013-2017 is formulated in partnership with the Government, through extensive consultation with other partners and is in harmony with the country s strategic documents, including the Moldova 2020 strategy. It derives its focus from the agreed outcomes and commitment towards a more coherent UN System as agreed in the UN Moldova Partnership Framework (UNPF) 2013-2017: Towards Unity in Action. The innovative programming and business model makes an ambitious shift in line with the UNDP corporate strategy of Aiming Higher, while building on the success and knowledge gained from ongoing programmes. I. Situation analysis The Republic of Moldova is a lower middle-income country in transition. It s GDP per capita (PPP) stood at USD 3,092 in 2010 1, the lowest in Europe. With a human development index (HDI) of 0.649 in 2011, Moldova is ranked at 111 th out of 187 countries, within medium human development category and below the average for the countries in Europe and Central Asia. The inequalities however further discount the HDI value by 12.2 per cent. Despite the global economic turbulences, the Moldovan economy is the fastest recovering in the region (6.9 percent GDP growth in 2010, 6.5 percent expected in 2011 2 ), yet the growth remains consumption-based and jobless. Absolute poverty significantly decreased from 67.8 per cent in 2000 to 21.9 per cent in 2010, but disparities persist. 80 per cent 3 of poor live in rural areas and are dependent on the shrinking agriculture sector. Labour migration is an important exit strategy for many Moldovans, mostly young people from rural areas. The country has one of the highest levels of migrant workers relative to population 4 and remittances inflow relative to GDP in the world. 5 This development model contributed to poverty reduction, but with huge human and social costs 6 and longer term development constraints (political, economic, and demographic). Progress was made in meeting most of the MDG targets (21 out of 27 targets are on track) 7. However, enhanced efforts are needed to sustain those and reach the targets related to education, combating HIV/AIDS and TB, and access to improved water sources and sewerage. Trends of unequal progress, missing data throughout all MDGs, and disparities around gender and vulnerable groups 8 are also worrying. The democratic political transition remains complex. In three years, from 2009 to 2011, Moldovans went to the polls for five times. Since 2009, Moldovan Parliament has not succeeded in electing president, creating continued uncertainty and political deadlock. European integration is the fundamental policy priority and drives the reform agenda. Despite various ongoing reform attempts, many institutional challenges remain, including modernization of the public administration, its effectiveness and ability to render good public services and advance the European agenda, at central and local levels. Independence, access to and efficiency of the justice system is another challenge, as is the need for effective policies and institutions to prevent and combat corruption. 1 IMF World Economic Outlook Database, September 2011 2 National Bureau of Statistics, IMF forecast, 2011 3 Ministry of Economy, Poverty in the Republic of Moldova, Briefing Note, 2011 4 Estimates for migrants share of working age population vary from 24-40 percent 5 23 per cent of GDP in 2010, BNM 6 2010/2011 NHDR: From Social Exclusion Towards Inclusive Human Development, 2011 7 The Second Millennium Development Goals Report, Republic of Moldova, 2010 8 At issue are categories including persons with disabilities, living with HIV/AIDS, Roma, potentially families with one or more family members living abroad and others as included in footnote 5, page 8, UN Moldova Partnership Framework 2013-2017 2

Since 2009, human rights have been a central part of the public agenda. Even with the progress in improving the legal framework, a range of reforms remain outstanding. Limited institutional capacity precludes human rights protection in many areas, including the struggle against torture and related treatment, discrimination and domestic violence. The frozen conflict in the Transnistria breakaway region continues to be a threat to the stability of Moldova and the development gap with the rest of Moldova is increasing. Political dialogue has been restarted and it is highly unlikely that open conflict will reemerge. The reintegration of the country remains a high priority for the Government. While the policy foundation for gender equality is well-established and laudable, patriarchal norms are resistant to change. Policies are not sufficiently backed by resources for full realization and political and economic empowerment of women 9. Moldova is energy resource poor country 10 with high level of energy losses, and low affordability of heat services 11. Energy efficiency and use of renewable energy sources is therefore a strategic priority. High dependence on agriculture and predominance of rural poverty make the people and economy highly vulnerable to climatic conditions. 12 Extreme weather events are projected to be more frequent and affect a large number of people. Resilience to climate change challenges is limited as are the disaster risk management capacities at various levels. Intensified actions are needed to meet the ambitious international commitments for climate change adaptation and mitigation 13. II. Past cooperation and lessons learned A comprehensive Assessment of Development Results was conducted in 2011, in a harmonized manner with the evaluation of UNDAF. Some of the forward-looking findings and lessons distilled from these and other reviews include: UNDP s advantage of speed in acting and flexibility in adjusting, as well as its credibility, has led to 17 percent of technical assistance in Moldova going through UNDP alone 14. Rapid programme expansion has given UNDP s voice legitimacy and leadership in donor coordination and access to the top levels of the government. UNDP is among the key partners and the main UN agency supporting the aspiration to create a modern European public administration and advance on diverse reforms. Capacity development support brought favorable results to nearly all ministries, specialized bureaus and Central Electoral Commission. In some areas, move from conceptual design to practical implementation has been slow, especially in tough or politically sensitive reform areas. The neutral role of UNDP has been a key element behind the access needed to implement successfully confidence-building measures in the Transnistrian region, where other international organizations have faced difficulties. 9 Only 22 per cent of parliamentary seats are held by women; gender gap in income is around 24 per cent. Source: NHDR 2010/2011. 10 Imported energy accounts for 97 per cent of total consumption. Source: National Bureau of Statistics, Energy Balance, 2010. 11 Lowest quintile of Chisinau population spent on average 26.2 per cent of household income on heating expenses (in Romania about 14 per cent), Household Budget Survey, 2009. 12 Annual losses from natural hazards are estimated at 3.5-7 per cent of GDP. Source: World Bank, Rural productivity in Moldova Managing Natural Vulnerability, 2007. 13 While associating with Copenhagen Accord, Moldova announced the target of at least 25 per cent reduction compared to the 1990 levels by 2020. 14 Paris Declaration Survey, State Chancellery, 2011 3

UNDP has also been a continuous source of support on local self-governance and decentralization policies. The many successes of UNDP s persistent effort have affirmed that strengthening of local governance works in the Moldovan context and is efficient in bringing benefits to local communities. Accelerated efforts to implement the decentralization strategy and improve local service delivery are however vital. UNDP has made important contributions to the improvement of the policy, legal and institutional framework for advancement of human rights in Moldova, as well as for strengthening of capacity to report on the fulfillment of international commitments. UNDP has played a critical role, together with other UN agencies, to advocate for change and address key gender and women s empowerment issues. While steps taken are laudable, there is a need to further strengthen human rights and gender mainstreaming actions. UNDP s lead in bringing UN agencies together resulted in many joint programmes of critical importance to Moldova to bring about better results, which would not have been possible alone. This is one of the reasons for the interest for a more coherent UN. During transition of Moldova towards European integration, the UN agencies continue to have an important role to play in Moldova and are asked to act in a more coherent manner. The role and position of UNDP as the largest agency is crucial in achieving this objective. III. Proposed programme The rapidly changing environment, Moldova s European aspirations, and its international commitments -- including the MDGs -- set the stage for deep, transformative change in Moldova. These efforts are needed to make current progress irreversible, and enhance its growth in an inclusive, equitable, and sustainable manner. While supporting Moldova s transformation and European integration path, UNDP will contribute to genderdifferentiated human development outcomes. UNDP will lead the integrated UN effort in development of capacities critical for the democratic governance and respect of human rights, promotion of balanced, inclusive and green development as well as sustainable and resilient management of resources and adaptation to climate change. Dynamic and innovative modalities will be used to lay the ground for system-wide transformations. Opportunities to link and simultaneously address social inclusion priorities, economic opportunities and environmental sustainability will be sought. The potential of green economy and efficient use of resources for sustainable growth will be demonstrated through integrated initiatives tailored to the Moldovan context. Support for analytical leadership for policy options to priority and off-track MDG + sectors will complement national capacity to monitor their impact. Private sector engagement in development will be promoted, such as in renewable energy and modernization of the social sectors. Capacities for integrating human rights-based approach and gender mainstreaming in policies will be further strengthened. Civil society, academia and media will be empowered to facilitate and promote the public interest and responsible civic activism (especially among youth), as well as to play a leading role in the social behavior change. Learning from and sharing the successful experiences of Moldova with other countries, including via regional partnerships, East-East cooperation and mobilization of innovative sources, will be undertaken. The transformative potential of information and communication technologies will be used for catalytic e-governance initiatives and e- services for citizens socio-economic empowerment. Particular focus will be given to equality, empowerment of women, non-discrimination and social inclusion of the most vulnerable. The ambition will be to engage in the Transnistrian region in the same manner as in the rest of the country. Effectiveness will also be enhanced as result of a stronger unity in action by the UN family, by maximizing the synergy and expertise of the UN. In the area of Democratic Governance, Rule of Law, Equality and Human Rights, UNDP will focus on accelerating complex justice, public administration and decentralization reforms. Support will be provided to partners to move from policy and legislative 4

formulation to practical implementation, prioritizing reforms related in particular to European integration. UNDP will also support national capacities to implement the recommendations arising from Moldova s first Universal Periodic Review (UPR), as well as other international reviews. In doing so UNDP will aim to contribute to advancing realization of human rights, and increased efficiency, transparency and accountability in governance and service delivery. UNDP will promote Inclusive Development and Social Inclusion and work to further reduce poverty and urban-rural disparities, and improve socio-economic conditions, particularly among the most vulnerable. The focus will be on: (i) stimulating a more equitable local and regional development, especially in the MDG + priority areas, (ii) promoting local opportunities, particularly agriculture-based initiatives aiming to reduce emigration pressure through income-generating and employment opportunities for youth, the vulnerable, and social groups at risk of exclusion, (iii) targeting inter-linkages of the key sectors (governance, social, economic, environment), (iv) expanding confidencebuilding measures in the Transnistria region and serving as knowledge hub for development assistance in the region, with the aim inter alia that enhanced socio-economic development of the Transnistria region facilitates the reintegration objectives of the country. As concerns Environment, Climate Change and Disaster Risk Management, UNDP will support policies and capacities for sustainable management of the environment and natural resources at all levels. In doing so, the programme will focus on institutional strengthening, implementation capacities, access to information, effective public participation and behavior change. Ongoing successful work in the field of biodiversity and ecosystem service conservation will continue. UNDP will support government capacities to respond better to climate change and disasters with adequate policies, institutions and coordination mechanisms. Local capacities will be strengthened to assess, adapt to, and reduce climate risks as well as to prepare for and respond to disasters. UNDP will promote greening economic development and scaleable models for energy efficiency and access to clean and affordable energy as a basis for the creation of sustainable markets for renewable energy production and efficient consumption. IV. Programme management, monitoring and evaluation When Aiming Higher, innovation and joint UN programming will be fundamental. UNDP will strengthen cross-practice and cross-agency collaboration, including the work on human rights mainstreaming with the OHCHR under the Human Rights Adviser modalities. Changes will be made to respond to requirements for new capacities and ways that the Office is structured and programmes are led. High quality national staff will be engaged and additional expertise will be brought in to support the strategic technical capabilities. National implementation will be prevailing modality, with direct implementation used on an exceptional basis, to be further elaborated as individual programmes are appraised. UNDP will continue to provide implementation support services to Government and as invited will invoke fast track procedures if needs arise for rapid response to crisis. To further strengthen national ownership, the use of national systems in programme implementation will be expanded and support provided to partners in its implementation. Together with the State Chancellery, the National Coordinating Authority, UNDP will exercise joint ownership and mutual responsibility for the programme. This will include joint resource mobilization efforts targeting traditional and emerging development partners. The main planning and reporting instrument will be the UN Common Action Plan and the projects annual work plans designed in close cooperation with national partners and other UN Agencies. An annual programme review will be done within the UNPF review process and each outcome will be evaluated at least once during the programme cycle. The monitoring and evaluation capacities of the office and of partners will be strengthened, including by supporting data availability, reliability and timeliness. 5

DP/DCP/ ANNEXRESULTS AND RESOURCESFRAMEWORK ANNEX: RESULTS AND RESOURCES FRAMEWORK NATIONAL PRIORITY OR GOAL: Responsible and Efficient Public Administration COUNTRY PROGRAMME / UNDAF OUTCOME # 1.1: Increased transparency, accountability and efficiency of central and local public authorities. Outcome indicator: Level of confidence in public institutions. Related Strategic Plan focus areas: Democratic Governance GOVERNMENT PARTNER CONTRIBUTION OTHER PARTNER CONTRIBUTIONS UNDP CONTRIBUTION INDICATOR(S), BASELINES AND TARGET(S) FOR UNDP CONTRIBUTIONS INDICATIVE COUNTRY PROGRAMME OUTPUTS INDICATIVE RESOURCES BY OUTCOME (US$) Continue public administration and decentralization reforms, enact policies to reform public service. EU implements the Comprehensive Institution Building Initiative. USAID and Sweden supports institutional development. Provide advice and support capacity for reforms. Bring regional knowledge on managing change and EU agenda. Indicator: Confidence in public institutions; Baseline: Government: 23%; Parliament: 19%; LPAs: 47%; Target: 45%; 40%; 60%. Oversight strengthened and capacity developed for efficient, transparent and accountable public service and human rights respect at all levels. 1,300,000 30,000,000 NATIONAL PRIORITY OR GOAL: Protection of Human Rights COUNTRY PROGRAMME / UNDAF OUTCOME # 1.2: State bodies and other actors effectively promote and protect human rights, gender equality and non-discrimination, with particular focus on marginalized and vulnerable. Outcome indicator: Share of human rights treaty body recommendations implemented. Related Strategic Plan focus areas: Democratic Governance Enhance legal and institutional framework and take measures to redress the human rights situation. EU, along with other development partners supports the Government to advance realization of human rights agenda. Support capacity to prevent discrimination and violations, including for persons with disabilities. NATIONAL PRIORITY OR GOAL: Equitable and Corruption Free Justice Sector Indicator: Share of human rights treaty body s recommendations implemented timely; Baseline: UPR Report; Target: UPR recommendations implemented. Policies in place, institutions and civil society able to prevent and fight discrimination, ensure social inclusion and rights of people with disabilities. 800,000 3,700,000 COUNTRY PROGRAMME / UNDAF OUTCOME # 1.3: Justice sector actors better able to provide access to justice, conduct proceedings, and deliver effective human rights remedy in compliance with international HR law. Outcome indicator: Level of public confidence in the justice system. Related Strategic Plan focus areas: Democratic Governance Implement justice reform: accessible, EU provides budgetary support and technical Develop capacity and provide advice for Indicator: # of negative European Court of HR Procedures for efficient pre-trial investigation 800,000 6

DP/DCP/ efficient, independent, transparent justice to ensure rule of law and human rights. assistance for the Justice Sector Reform, complemented by USAID, NORLAM, COE and Sweden. observance of human rights in legal practice/policies, access to/execution of justice. judgements waiting for effective resolution; Baseline: 187; Target: 100; Indicator: Public confidence in justice system; Baseline: 2011: 24%; Target: 34% respecting human rights in place. National system for preventing torture and illtreatment ensures rights of detainees. NATIONAL PRIORITY OR GOAL: Poverty Reduction. Quality Public Services. Sustainable Economic Growth. Power decentralization 8,200,000 COUNTRY PROGRAMME / UNDAF OUTCOME # 2.4: People have access to more equitable sustainable regional development, economic opportunities - innovation and agriculture in particular - and decent work. Outcome indicator: Level of absolute and extreme poverty. Related Strategic Plan focus areas: Poverty eradication and achievement of internationally agreed development goals, including the MDGs Create enabling environment for local/ regional development, and stimulate job creation. EU supports economic competitiveness, social stability, confidence building and regional development. WB supports building human capital. Develop local capacities in public service delivery and employment/business opportunities, including Transnistria region. Indicator: Small Areas Deprivation Index; Baseline: North 472; Target: 10% increase. Indicator: # of projects in Transnistria region (incl. gender sensitive); Baseline: 36; Target: 125 Capacity developed for better local services and support income generation in rural areas. Stronger partnerships with business and communities of Transnistria region. 2,500,000 29,600,000 NATIONAL PRIORITY OR GOAL: Improved environment protection and sustainable use of natural resources, reduced environmental degradation and negative impacts of economic activities, and improved access to information, environmental education and behaviour COUNTRY PROGRAMME / UNDAF OUTCOME 3.1 - Improved environmental management in significantly increased in compliance with international and regional standards. Outcome indicator: Surface of protected areas managed in line with international standards; Related Strategic Plan focus areas: Environment and sustainable development Implement Environment Strategy, integrate environment aspects in all sectors. EU, WB, IFIs, support upgrade of environment infrastructure and legal framework in line with the EU acquis. UNEP, FAO, UNECE will complement. Provide advice and enhance capacity for environmental management in line with EU/international requirements. Indicator: Surface of protected areas managed in line with international requirements; Baseline: 4.65%; Target: 7 %. Enhanced capacities for environment, biodiversity and ecosystems management in line with EU/international requirements. : 1,700,000 : 7,000,000 NATIONAL PRIORITY OR GOAL: Promoting the principle of Sustainable Development through Green Economic Development; Increase energy efficiency and share of renewables, reduce green house gas emissions COUNTRY PROGRAMME / UNDAF OUTCOME: 3.2 - National policies and strengthened capacities enable climate and disaster resilient, low emission economic development and sustainable consumption. Outcome indicator: Share of renewable energy in the gross domestic consumption; Related Strategic Plan focus areas: Environment and sustainable development 7

DP/DCP/ ANNEXRESULTS AND RESOURCESFRAMEWORK Commit to climate change adaptation, energy efficiency actions. Implement Hyogo Framework for Action. EU, EBRD, Sweden, WB support energy sector reform. WB supports adaptation in agricultural and water sector. Support innovative climate change adaptation/mitigation, energy efficiency and disaster risk management. Indicator: Share of renewable energy in consumption; Baseline: 5%; Target: 11%; Indicator: DRR and Adaptation Strategies in place; Baseline: 0; Target: under implementation. Capacities of partners enhanced to design policies and implement measures on climate change, energy efficiency and disaster risk management. 1,400,000 16,000,000 6