Key messages from the report
- Agriculture plays an important role in Moldova's economy. Approximately 30.5% of country’s work force work in agriculture, while sector contribution to GDP was around 13% in 2014.
- Although financing for this sector has increased significantly in recent years, particularly due to funds offered by international donors, Moldova allocates fewer funds for agriculture than most countries in Eastern Europe, if we consider the ratio between the amount of budget on agriculture in GDP and agriculture’s contribution to GDP.
- Namely the non-agricultural sector had a decisive impact in fighting poverty, with a sector growth in the last decade of 80%, comparing to agriculture’s much more modest progress.
- In recent years, the institutional framework responsible for agriculture has made significant progress, through the establishment of the Agency for Payments and Intervention in Agriculture (AIPA), which took over the vast majority Ministry of Agriculture’s operational activity and the creation of the National Agency for Food Safety.
- The report also details evolutions regarding transparency and budgetary developments in agriculture. The improvements are mostly related to the launch of BOOST database in 2010 and publication of the quarterly and annual reports on Ministry’s budget. Still, the level of budgetary transparency and reporting in agriculture related institutions is rather low.
- The overwhelming majority of public institutions and state enterprises operating in the agricultural sector do not publish activity reports. Of all the related institutions analyzed, only AIPA and Ministry of Agriculture publish such reports, but without being accompanied by any certain narrative analysis.
This document has been published within the project "Budgetary process in Moldova: monitoring transparency and promoting public control", financed by Soros Foundation Moldova.