Socio-Economic: Economic Growth and Poverty Reduction

The transition was accompanied by growing economic disparities and an increase in the social exclusion of various groups. Therefore, UNDP has supported a two-fold national poverty reduction strategy: programmes aimed at improving economic growth and social inclusion with a focus on creating jobs; and social assistance for most vulnerable groups (e.g. children, youth, elderly, Roma) consistent with the EU accession guidelines. This strategy also aligned the MDG campaign with the EU social inclusion agenda and assisted in building national capacity to monitor progress in eradicating poverty.

UNDP has supported the government’s efforts to address the problems facing youth who have been in correctional facilities and orphanages. By providing specific services, such as career counseling, vocational training, IT and entrepreneurship skills, UNDP aids their social reintegration through a network of youth centres. Many unemployed and post-institutional young adults found employment opportunities in construction, while revitalizing Romania’s urban cultural heritage.

In order to support the government’s strategy for improving the situation of Roma, UNDP implemented community-based projects that promoted partnerships between local authorities and Roma. The project encouraged active participation of Roma in economic, social, cultural, and political life. Such initiatives included upgrading small infrastructure, providing vocational and entrepreneurial training, and income generating activities that created employment for this minority group.

On the growth side, UNDP has been focusing on Small and Medium Enterprise (SME) development and foreign direct investment (FDI) promotion in under-served regions. Development of the SME sector will contribute to poverty reduction by creating jobs and improving people's living standards. UNDP’s strategy for SME sector envisaged unleashing entrepreneurship and business development services, by setting up a network of business incubators. These incubators give know-how and funding to dozens of start-up ventures in disadvantaged areas. As for the strategy to increase foreign trade and capital inflows to regions with economic potential and low investment, UNDP trained local authorities to attract both direct foreign investment and EU structural funds.

Sustainable Public-Private Partnerships (PPP) are valuable arrangements for infrastructure rehabilitation and development. UNDP supported this effort by building capacities for local authorities and by ensuring a transparent and effective financial management of PPPs. This initiative is being implemented with multinationals under LA21 project in several Romanian cities. Global Compact is taking it another step forward.