This assessment discusses the strategic context and recent developments in relation to human capital in Moldova. It describes the strategic context and presents key data of significance for the interpretation of that context. The assessment identifies a number of challenges for HCD that require attention and that may require the revision of some HCD-related policies to make them more targeted and effective. These challenges include inefficiencies in the allocation and use of financial resources in VET, skills shortages and the underutilisation of human capital potential in the area of digital development.
The assessment analyses two challenges in greater detail, namely the problem of depletion of human capital as a result of (youth) emigration and the wastage of human capital owing to the exclusion of young people from education and employment opportunities. The report establishes that Moldova is already doing a great deal to remedy the negative impact of both problems, but also that the effectiveness of policies and commitment efforts is hampered by the interplay between three major shortcomings: insufficient focus on the specific situation and needs of young people; financial sustainability risks as a result of the heavy reliance on donor support and – even more importantly – donor initiative; and lack of capacity on the part of institutions and their personnel to implement the policy commitments and plans for which they are responsible.
However, the main message and conclusion of this report is not one of deficits and gaps. On the contrary, there is ample evidence that Moldova is in a good position to make rapid progress with most of its strategic priorities concerning the development and use of human capital. It has the necessary network of national institutions and international partners, a remarkable pool of successful projects and good practice within most of them, and a labour market that is ready to absorb a significant number of specialists in future-proof domains such as ICT, eco-friendly agriculture, goods and services. The recommendations in this assessment describe some of the ways in which the ETF considers that Moldova could capitalise on this situation and make tangible progress with its policy commitments.