“Economic Models of Aid Effectiveness in Moldova” — research paper by Berlin Policy Hub fellow published

In their research paper, Sergiu Gaibu, Program Director at the Moldovan think tank Expert-Grup, and Theocharis Grigo­riadis, Assistant Professor at Freie Univer­sität Berlin, analyse the effec­tiveness of EU devel­opment aid to Moldova and the key challenges to be met in deliv­ering it.

According to the authors the analysis suggests that aid commit­ments and the number of aid projects are conducive to higher levels of socio-economic devel­opment. The results for aid disbursement indicate a similar trend, even though they are less robust. The EU devel­opment aid appears to be effective in the medium and long-run, especially if Central European donors like Austria, Slovakia and Romania are involved. Furthermore, the study found that aid disbursement in Moldova is much lower compared to aid commit­ments, revealing a large unexplored potential of EU devel­opment aid in Moldova, which is mostly due to gover­nance issues. Thus, the authors argue that the EU should foster transna­tional partner­ships that bypass central government budgets and strengthen the imple­men­tation of projects at the local level in cooper­ation with subna­tional admin­is­trative bodies and local civil society.

The research paper has been elabo­rated and published in the framework of the Berlin Policy Hub. The project is part of the “Europeanization beyond process”-Initiative. It is supported by the Open Society Founda­tions and aims at fostering the network between researchers from Eastern Partnership countries and their EU counterparts.