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Thursday, August 24, 2017

World Bank improves social safety net in Moldova

The World Bank recently said that Moldova's social assistance programs have grown in effectiveness since the bank began supporting the country in 2010.

Moldova spends a comparatively high amount on social assistance, though its safety net has remained somewhat weak. The World Bank supported programs to help more accurately and efficiently identify the genuinely needy.

The Moldovan government launched policy reforms and used the existing Ajutor social program as the base for integrating an overall safety net. Funds from the International Development Association were used on a results-based financing approach, releasing funds only when specific targets were met.

The World Bank said that 50,000 households received monthly benefits in 2012. The reforms increased the program's coverage of the lowest quintile from 14 percent in 2010 to 19 percent in 2012. The share of benefits going to the poorest 20 percent of the population consistently exceeded 70 percent, demonstrating improvement over the previous year.