Evaluation of DFID Country Programmes Romania 1997-2003

Executive Summary

This evaluation examines the Department for International Development (DFID) country programmes in Romania between 1997 and 2003. During this period, Romania underwent significant political and economic transition, moving from a centralized communist system toward a market economy and European Union accession. DFID's programmes aimed to support this transition through institutional strengthening, economic reforms, and social development initiatives.

Historical Context and Programme Development

Following the 1989 revolution, Romania faced enormous challenges in transitioning to a democratic system and market economy. By 1997, when DFID established its country programme, Romania had made progress in political liberalization but lagged behind other Central and Eastern European countries in economic reform and European integration.

DFID's engagement in Romania was strategically positioned to support the country's EU accession aspirations while addressing critical development challenges. The programme evolved significantly between 1997-2003, adapting to Romania's changing needs and development priorities.

Programme Components and Objectives

Programme Component	Main Objectives	Key Activities
Institutional Reform	Strengthen public administration and governance institutions	Civil service development, policy formulation support, decentralization
Enterprise Development	Foster private sector growth and competitiveness	Small business support, banking sector reform, foreign investment promotion
Sectoral Support	Improve delivery in key public services	Agricultural reform, health system strengthening, child protection reform
Regional Development	Promote balanced regional economic growth	Infrastructure improvements, development planning capacity building

Institutional Reform Component

The institutional reform component represented a significant portion of DFID's assistance to Romania. This component aimed to strengthen governance institutions and improve public administration capacity. Key initiatives included:

• Civil Service Reform Programme: DFID provided technical assistance to Romania's Ministry of Public Function in implementing civil service reforms. This support contributed to the establishment of merit-based recruitment, transparent promotion systems, and standardized training for civil servants.
• Decentralization Support: Assistance was provided to strengthen local government capacity through training programmes for local officials and development of inter-municipal cooperation mechanisms.
• Public Financial Management: DFID supported improvements in budget formulation, execution, and oversight processes at both central and local government levels.

Enterprise Development Component

Supporting private sector development was central to DFID's strategy in Romania, recognizing that economic growth was essential for poverty reduction and social development. The enterprise development component focused on:

• Small and Medium Enterprise (SME) Development: DFID implemented programmes to improve access to finance for SMEs, strengthen business advisory services, and develop institutional capacity for SME support.
• Banking Sector Reform: Technical assistance was provided to strengthen banking supervision and commercial banking operations, contributing to greater financial sector stability.
• Business Environment Improvement: Support was given to regulatory reform initiatives aimed at reducing barriers to business formation and operation.

Sectoral Support Initiatives

DFID's sectoral support targeted critical areas where interventions could yield significant development benefits. Notable initiatives included:

• Agricultural Reform: Support was provided to Romania's Ministry of Agriculture in developing land market policies, restructuring state farms, and establishing agricultural support services.
• Health System Strengthening: DFID worked with the Romanian Ministry of Health to develop health policy capacity, improve health financing mechanisms, and strengthen primary healthcare delivery.
• Child Protection Reform: A significant child welfare reform programme was implemented following international attention to conditions in Romanian institutions. This programme supported deinstitutionalization efforts, development of alternative care services, and strengthening of child protection authorities.

Programme Impact and Effectiveness

Institutional Reforms

DFID's support for institutional reforms yielded significant results. The civil service reform programme contributed to:

• Reduced political influence in civil service appointments
• Improved professionalization of the civil service
• Enhanced policy development capacity across ministries
• Greater transparency in human resource management

The decentralization initiatives helped establish more effective local governance structures, though results varied significantly across different regions. Progress in public financial management reforms was notable at the central government level, with implementation challenges continuing at local levels.

Enterprise Development Results

The enterprise development component contributed to a more dynamic private sector in Romania:

• SME support programmes helped create and sustain thousands of small businesses, generating employment opportunities
• Banking sector reforms contributed to increased stability and growing credit availability to the private sector
• Regulatory simplification initiatives reduced the administrative burden on businesses
• Foreign investment promotion efforts contributed to Romania's improved standing as an investment destination

Sectoral Impacts

Among the most impactful interventions was DFID's support to child protection reform. This programme contributed to:

• Reduction of children in institutional care by over 50%
• Development of community-based alternative care services
• Strengthening of child protection systems at national and local levels
• Improved standards of care for children remaining in institutions

Agricultural reform support facilitated the transition to a market-based agricultural system, though progress was slower than in other sectors due to the complexity of land privatization and the need for substantial structural adjustments.

Challenges and Lessons Learned

Implementation Challenges

The evaluation identified several challenges encountered during programme implementation:

• Political constraints: Changes in government and political priorities sometimes resulted in inconsistent commitment to reform agendas.
• Administrative capacity: Limited implementation capacity in Romanian institutions slowed the uptake of programme initiatives.
• Coordination issues: Achieving effective coordination with other donors and government departments proved challenging in some cases.
• Staff turnover: Frequent changes in counterpart staffing affected programme continuity and knowledge transfer.

Strategic Lessons

Important lessons emerged from the Romania experience that informed DFID's approach to transition countries:

• Technical assistance is most effective when combined with strong political commitment to reform.
• Long-term engagement is necessary for institutional reforms to show results, requiring sustained donor commitment beyond typical programme cycles.
• Building local implementation capacity is as important as developing policy frameworks.
• Addressing social dimensions of economic transition is essential for sustainability and public support for reforms.
• Regional considerations are important, particularly in countries preparing for EU accession.

Contribution to European Integration

DFID's programmes in Romania significantly contributed to the country's European integration process. The support for institutional reforms, regulatory alignment, and administrative capacity building directly addressed requirements for EU accession. Particularly valuable were:

• Support to institutions implementing EU acquis communautaire
• Technical assistance for meeting EU structural fund criteria
• Help in developing administrative capacity for EU membership
• Regional development initiatives that helped address EU concerns about regional disparities

DFID maintained close coordination with other donors supporting Romania's EU accession process, particularly the European Commission and World Bank, ensuring complementarity and avoiding duplication.

Conclusions and Recommendations

DFID's country programme in Romania during 1997-2003 successfully supported the country's transition to a market economy and democratic society. The programme demonstrated particular effectiveness in institutional capacity building, child protection reform, and enterprise development. While implementation challenges were encountered, the overall impact was positive and contributed significantly to Romania's development trajectory and EU accession process.

Recommendations for Future Programming

The evaluation offered several recommendations for DFID's future engagement in transition countries:

• Emphasize long-term capacity building approaches that complement policy reforms
• Focus on reducing implementation bottlenecks rather than primarily on policy development
• Increase attention to regional disparities within countries
• Strengthen mechanisms for ensuring local ownership and sustainability of reforms
• Develop more flexible programme designs that can adapt to changing political environments

The Romania experience demonstrated that targeted international development assistance can effectively support countries in transition, particularly when aligned with national objectives, sustained over sufficient time, and focused on building domestic implementation capacity.