USAID and the Economic Development of the Republic of Moldova: Contributions, Impact and Future Perspectives

Abstract

In the context of Moldova’s evolving development landscape, international assistance has played a vital role in supporting structural reforms and economic modernization. Among the key development partners, the United States Agency for International Development (USAID) has maintained a significant presence for over three decades. The study quantifies the role and impact of USAID assistance in the Republic of Moldova over the past 30 years in building a modern country with the potential to integrate into the global market, a process marked by significant economic and political changes and obstacles. The research aims to assess the contributions of USAID in strengthening strategic sectors, enhancing institutional capacities, and facilitating the modernization of Moldova’s private sector. Employing a mixed-methods approach—combining documentary analysis, statistical review, quantitative survey, and impact evaluation—the study provides empirical evidence on USAID’s transformative influence in key domains such as ICT, sustainable agriculture, textiles, tourism, and winemaking. Drawing on both official statistics and primary data from 80 surveyed beneficiaries, the research highlights the catalytic role of USAID in fostering innovation, digitalization, and export capacity, especially among SMEs. Furthermore, the study analyses the systemic risks associated with the agency’s announced withdrawal in 2025, underlining vulnerabilities in institutional resilience, employment, and green transition efforts. The findings offer a solid empirical basis for policy formulation, advocating for diversified international partnerships and adaptive strategies to mitigate development gaps. This contribution fills an important gap in the literature by providing a contextualized and data-driven evaluation of external assistance effectiveness in an emerging economy. UDC: 341.232.2:[330.34:332.02](478); JEL: F35, O19