Moldova is a country in Eastern Europe and a former Soviet republic. In 1992, a year after the fall of the USSR, USAID started working with the country to facilitate the state’s transition, including ending extreme poverty, supporting democracy and advancing resilience and security. Since then, USAID programs in Moldova have amounted to $2.5 billion with focus on both rural and urban areas. 

Despite these efforts, poverty remains a serious issue, particularly in rural regions. For example, last year the Southern region experienced an absolute poverty rate of 51.4%, while the capital region, with better opportunities, reported a significantly lower rate of 14.6%.

These challenges make USAID programs particularly important, and the following are some of the most notable USAID programs with poverty reducing effects.

The Moldova Competitiveness Enhancement Program (MCE)

The Moldova Competitiveness Enhancement Program (MCE) was a large investment aiming to integrate Moldova with European markets. It aimed to increase competitiveness of Moldovan producers through various improvements in the business environment. The profits have far exceeded the project’s cost of $37 million as the World Bank estimated them to be between $69 million to $93 million in value added exports.

The improvements included facilitated access to finance, help in meeting western production standards and major investments in tourism, wine and clothing industries.

The program also improved access to MSTQ (Metrology, Standardization, Testing and Quality) services which enabled small and medium sized enterprises to increase revenues and create jobs, directly contributing to poverty reduction. On top of that, it provided targeted assistance to female entrepreneurs, ensuring inclusive growth. 

Notably, the program supported more than 60 Moldovan wine producers in meeting global food safety certificates, consequently helping them access higher-paying markets which boosts incomes for families in rural areas dependent on wine making. The World Bank evaluated the efficiency of the program as substantial, emphasizing the positive effects of USAID.

Energy Security of the Republic of Moldova

The ongoing energy security program in Moldova aimed at addressing humanitarian and economic issues. While the donors have continued to support the program beforehand, the U.S. marked a major milestone in 2022 directly after the Russian invasion of Ukraine, by promising $300 million in aid to improve energy security which DW described as “a major issue in Moldova.”

The U.S. embassy in Chisinau aimed to cover the following using the funds

• Direct support to relieve Moldovans of record high electricity costs ($80 million).
• Development of power plants projects to diversify power supply. This includes an ambitious new high voltage line between Romania and Moldova for energy security and European integration ($135 million).
• Enhancement of Moldova’s ability to produce energy from alternative sources ($85 million).

Officials in the U.S. and Moldova planned the money to support economic development and energy security while promoting sustainability through integration of renewable energy, which also helps protect low-income households from future energy shocks. Importantly, the energy security program directly contributed to lower electricity costs, which alleviates poverty as it reduces economic strain on low-income families. 

According to the UN, during the 2022-2023 and 2023-2024 winter seasons, the average energy poverty rate in Moldova fell from 89% to 81.3%. While this improvement reflects the UN’s targeted support, USAID’s efforts in the energy infrastructure and affordability during the same period likely contributed to this positive outcome, helping low-income families manage the rising costs of living.

Inclusive and Participatory Processes Project (IPP)

Among the USAID programs in Moldova, the IPP has focused on democracy strengthening and greater overall participation in decision-making which can be poverty reducing. USAID started the project before the 2020 presidential election in Moldova to ensure transparency and accountability of the vote.

The financial assistance allowed easier election tracking for voters in real time, it provided political training for all parties and notably helped improve the electoral system which managed to withstand a cyberattack on election day. The funding also focused largely on educating voters through sponsoring 25 candidate debates and supporting a government exchange program which educated more than 500 Moldovans on the electoral process. 

The fund also created equal opportunities for citizens through increasing access to polling stations for all. Vasile Savca, the monitor of accessibility in Causeni – a city in Moldova – spoke positively about recent changes saying “I am glad to notice the House of Culture in my village has become more accessible lately … We shall remind the society that people with disability have equal rights as all citizens.” Crucially, the IPP helps ensure that government resources reach communities in need, through transparent and accountable elections, thus indirectly supporting poverty reduction. Moreover, the IPP helps ensure that policies and budgets better address economic needs through increased participation of marginalized populations in elections.

Life After USAID Suspension

Sadly, in 2025 the U.S. Congress voted to reduce the international aid fund, consequently cutting funding for USAID programs in Moldova. Due to that, the government will not be able to undertake many projects and will have to suspend many others. This, for instance, includes the earlier mentioned high voltage line between Moldova and Romania.

However, residents have generally positive feelings towards the aid and they praised USAID programs in Moldova such as the creation of the national wine brand. Despite this setback, people stay optimistic and while American money has been helpful now Europe has stepped up to fill in the gap. For instance, Moldova.org, a feminist news page tackling sensitive stories had three European NGOs pay salaries of their workers for around 3 months after the USAID budget cut.

Ana Gherciu, the director of development of the site, is confident that “there are solutions” to the issue. They are far from being the only case and the attempts to secure aid from other sources are becoming a countrywide pattern. Even the government announced that it is seeking European funding for the power line. In the face of this challenge, Moldovans are staying hopeful and resourceful as they have experienced themselves the positive impacts of humanitarian aid.

– Karol Hejduk

Karol is based in London, UK and focuses on Good News and Politics for The Borgen Project.

Photo: Wikimedia Commons