Story: Evolving markets and Moldova’s transition to high-value agriculture

Posted on April 22, 2013 by ,

KIN - Winter/Spring 2012-13

Posted on April 22, 2013 by ,

Trip Log: MCC Partnerships for Economic Growth in Moldova and Georgia

Posted on November 4, 2010 by Daniel W. Yohannes, Chief Executive Officer

Late last month, I surveyed progress in two MCC partner countries: Moldova, which is just beginning the implementation of its compact, and Georgia, which is on track to bring its compact to a successful close in the next six months.

In Moldova, I was impressed with the farmers I met in Slobozia-Dusca, a village not far from the capital of Chisinau.  These farmers will benefit from MCC-funded irrigation projects and are already talking about the impact a centralized irrigation system will have on their livelihoods, as it will lower operating costs and allow them to diversify into high-value crop production and increase their yields.  I was particularly moved by my conversation with Iurie Stahi.  He told me he was grateful for America’s assistance from the bottom of his heart, and he explained that, as a result of MCC’s planned investments in the agriculture sector, he intends to plant apple orchards and sell his apples during the winter when they command a higher price, as well as during the summer and autumn seasons.  I’m looking forward to following Iurie’s progress as the Moldova compact ramps up implementation.

In Georgia, I was deeply impressed with the transformative power of a road.  I traveled the Samtske-Javakheti road, which Georgia is rehabilitating with MCC compact funds, from Tbilisi to where it nears Georgia’s border with Turkey and Armenia.  What I saw and whom I met along the way showed me exactly how paving a reliable road is essential for generating economic opportunities. 

I first witnessed this when I met Valodia Mestvirishvili at his trout farm in Algeti, just off the Samtske-Javakheti road.  The agricultural development activity of Georgia’s compact supplied hatchery equipment, oxygen tanks, a transportation vehicle, and veterinary supplies to his farm to raise the trout, and the road rehabilitation funded by the compact provides him much-needed access to markets to sell his product to Georgian retailers and consumers.  Valodia shared with me that his annual trout yield has skyrocketed from 5 to 12 tons.  I am proud of the fact that MCC funding has provided this hardworking entrepreneur the tools he needs to succeed. 

My road trip took me past Georgia’s Lake Sagamo, a place of serene natural beauty.  Against a mountainous backdrop, as the sun was setting and the moon was rising, I planted trees along the Samtske-Javakheti road.  These trees are critical; they provide proper landscaping and better wind protection and they help advance the sustainability of the MCC-funded road.  Tree planting also reaffirms that sound environmental stewardship protecting natural resources goes hand-in-hand with economic development. 

I was particularly pleased to see that MCC’s funding of the Samtske-Javakheti road has enhanced the Georgian people’s accessibility of Vardzia.  Vardzia is home to a cave monastery, an unforgettable historic treasure of great cultural and religious significance dating back to the 12th century.  I learned that, for too long, this part of Georgia was lost to outsiders; the trip to reach Vardzia was treacherous and the roads were literally impassible in some sections.  Buses risked overturning on the dangerously unpaved roads.  Now, the rehabilitated Samtske-Javakheti road is reconnecting Georgians with Vardzia and their heritage, and opening up this area to tourists.  Boosting tourism in this otherwise underdeveloped area is generating economic development and growth vital to the prosperity of Georgians. 

The MCC-funded Samtske-Javakheti road also nears Georgia’s border with Armenia and Turkey in the town of Akhalkalaki.  This once quiet outpost is now bustling with activity, which will increase as a bridge, currently under construction, is completed.  New shops are already opening, and the prospects for increased trade and commerce create further opportunities for Georgians to prosper.

In all these ways, Georgia proves that the MCC model is working well.  Our partnership is creating conditions for sustainable economic growth that are increasing incomes.  As the compact moves toward completion, I am looking forward to the independent evaluations that will assess the impact of our investment.  True to President Obama’s new vision for U.S. global development, what I saw in both Georgia and Moldova already reaffirms for me that MCC practices the principles essential for long-term impact: investing in economic growth, promoting country-led development, demanding accountability and transparency, and delivering sustainable results that matter in the lives of the poor.

World Water Day: Turning on Faucets for the Worlds Poor

Posted on March 22, 2010 by Omar Hopkins, P.D., Associate Director for Infrastructure

When World Water Day was first celebrated in 1993, some 5.3 billion people lived on the planet.  Of these, 512 million lived in sub-Saharan Africa, where only 49 and 26 percent, respectively, had access to an improved water source and sanitation facility.  Today, on the seventeenth World Water Day, the global population includes 6.7 billion people, of whom 818 million live in sub-Saharan Africa, where 58 and 31 percent, respectively, now have access to water supply and sanitation services.  This is a moment to celebrate the additional 223 million sub-Saharan Africans who have access to a water supply and the 120 million who now can access sanitation, but we should also focus on the continuing low rates of access.  While tremendous accomplishments have been made, a great deal of work remains undone. Given the tremendous unmet demand for water supply and sanitation, what is being done to facilitate change and accelerate the rate at which these critical services are provided to a billion or so people globally who lack these critical services?  A difficult problem like this requires innovation, experimentation, and a willingness to take risks to find better solutions. MCC was created as a new approach to development assistance: a firm five-year window for implementation, full commitment of the funds upon compact signing, untied assistance, and host country ownership, including proposal development and implementation.  This approach reflects the best thinking about development assistance, as articulated in the Paris Declaration.  In this, MCCs seventh year, we are looking at some important lessons learned, like carefully integrating social and environmental factors into project design and implementation, identifying innovative contracting approaches that accelerate the project life cycle without sacrificing quality, and promoting private sector participation. MCC works closely with partner countries to identify high value water supply and sanitation projects and water resource management and productivity projects that respond to the countries development priorities.  MCC programs in Lesotho, Mozambique, and Tanzania include MCCs three largest water supply and sanitation projects, covering rural and urban water and sanitation, non-revenue water management, and source development.  In addition, Mali, Burkina Faso, Armenia, Senegal, and Moldova are pursuing major irrigation and water resource management projects.  To date, MCC programs have funded approximately $528 million in water supply and sanitation and $769 million in water resource management and irrigation. MCC partnered with the Government of Mozambique to target a traditionally underserved area: water and sanitation investments in urban areas and small towns.  Secondary urban areas are particularly difficult environments in which to build sustainable water supply and sanitation systems because, by definition, they lack economies of scale, are more remote, have higher costs, have difficulty attracting and retaining staff, and are typically less affluent—all of which have negative implications for sustainability.  Yet, a majority of world population growth will occur in urban areas and much of that will occur in these secondary urban areas.  Addressing the projected water supply and sanitation needs of these communities will be one of the sectors most pressing challenges in the coming decades.  In advancing MCC’s mission of global poverty reduction through economic growth, we will continue to work with partners committed to expanding access to water and sanitation.