Second Poverty Reduction Support Credit

closed

Closed

This program document presents the Second Poverty Reduction Support Credit (PRSC2) for the Republic of Moldova is intended to bolster and deepen the reform efforts supported by the First PRSC (PRSC1). The credit aims to support Government's efforts to accelerate shared economic growth and improve governance by addressing the efficiency of its expenditure programs and public administration - key elements in poverty reduction. To accelerate economic growth and poverty reduction, the three pillars of the PRSC program support the Government's efforts to: (i) improve the investment climate so as to stimulate a greater private sector supply response; (ii) increase the efficiency and improve the management and allocation of public sector resources to create fiscal space for increased public investment spending; and, (iii) strengthen social protection systems to better protect the poor and vulnerable groups. The primary risk involved to the PRSC2 include: (i) looming elections which may rupture the political consensus that has developed behind the Government's ambitious reform program; (ii) low implementation capacity at the central and decentralized level, though dovetailing the PRSC2 with other Bank Group operations and donor activities that provide support to capacity building helps mitigate this risk; and (iii) destabilizing external shocks, such as another drought, volatile energy and food prices as well as trade restrictions imposed on Moldova exports, could affect economic growth, undermine public finances and delay implementation of poverty reduction measures in the Government's reform program.

FY17 - Education,FY17 - Industry, Trade and Services,FY17 - Public Administration,FY17 - Transportation

World Bank Group

Project

Road, Raw Materials, Forest Products and Packaging, Commercial, Government, Education