Moldova - DPO2

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The development objective of Second Development Policy Operation Project (DPO-2) for Moldova is to support efforts of the government of Moldova to improve the business climate, promote financial sector stability and development, and improve the equity and efficiency of public expenditure . This operation supports the efforts of the Moldovan authorities to address key constraints to inclusive and sustainable growth. Accordingly, the operation is built around three pillars, which are also the program development objectives. The first pillar seeks to strengthen the regulatory framework to improve predictability of the business environment, facilitate competition, and reduce regulatory compliance costs. The second pillar aims at strengthening financial sector stability, promoting transparency of shareholding, and easing conditions for access to finance. The third pillar, focusing on the quality of public spending, seeks to improve the public investment management (PIM) framework, make investment subsidies in agriculture more efficient and equitable, and improve the coverage of well-targeted social assistance programs. The reform program builds on strong complementarity with other World Bank Group instruments in Moldova, including investment projects and analytical and advisory activities. In addition, although not a formal continuation of the previous program, the first two pillars of this series support the implementation of select laws supported by the Competitiveness DPO (approved in FY13).