Project Description-Romania



The Romanian Labor Redeployment Program (LRP) was a multilaterally funded development program, financed in part by the US Agency for International Development (USAID), US Department of Labor (USDOL), World Bank (WB) and the Romanian Ministry of Labor and Social Solidarity (MMSS) and implemented by USDOL contractor, Worldwide Strategies Inc. (WSI). The program operated from 1997-2002 and was designed as a social safety net for redundant (displaced) workers due to the then newly elected Government of Romania’s 1997 reform program of privatization, restructuring and liquidation. The LRP provided services to workers and communities heavily affected by unemployment and mass layoffs, as well as technical assistance to governmental institutions responsible for dealing with unemployment, labor market adjustment and workforce development.

The World Bank, USDOL, USAID and Government of Romania (MMSS) agreed to joint funding of project, consisting of three main components:

a) Technical Assistance to Ministry of Labor and National and Local Agencies of Employment to build institutional capacity to respond to layoffs and provide active employment services to unemployed workers.
b) World Bank funded program to finance services (called Active Employment Measures Program – or Active Measures) for displaced workers, administered through the National Agency of Employment. Fund totaled $8.5 million for 6 types of services for workers.
c) Grants program to targeted communities, heavily affected by unemployment, for 35 Local Economic Development (LED) projects in targeted areas leading to job creation, workforce development and economic growth.

Combined, results of the Labor Redeployment Program include, but are not limited to, the following:

· 80,282 targeted workers (including defense) participated or served in services (prelayoff services, active labor market programs and economic development projects)
· 18,635 Jobs Created
· 4,105 New business start-ups
· 3,673 partners and clients from local agencies of employment trained (or participated in info session) in prelayoff services, active labor market measures, local economic development and media/public information training
· Of which, 1,385 partners trained in local economic development
· 644 public and private institutions assuming responsibility for implementing worker adjustment programs (active labor market measures and local economic development)
· 317 Local Agency of Employment staff trained and participating in 3 national taskforces
· 35 LED projects, funded and completed – of which 24 are active at project completion
· Total value of local contributions to LED projects was $839,864 – representing an 80% match to donor money
· 23 Small business loans disbursed with 100% repayment rate, to date
· 6 new policies or regulations proposed and subsequently enacted to support implementation of worker adjustment programs within Romanian institutions
· 1 new NGO created (“MODEL") to continue to champion efforts of workforce and community adjustment programs in Romania.


Success Stories

Highlights of Institutionalization and ongoing activities

 

Links:

www.model.home.ro