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June6,2016

ACrowdfundingPlatformforthe

MoldovanDiaspora

Prepared by Daniel Angel, MarianoBuey Fernández, Silvio Ramirez,Lucia Savchick, Ajita Singh, andNutraweeSungthanu

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TableofContents

ListofAbbreviations.............................................................................................................................3

Acknowledgements..............................................................................................................................4

ExecutiveSummary..............................................................................................................................5

Introduction.........................................................................................................................................7Figure1:TheoryofChange................................................................................................................11

OverviewofReport............................................................................................................................12

Methodology......................................................................................................................................12

ResearchLimitations..........................................................................................................................15InternationalCrowdfundingModels...................................................................................................15

ReturnsbasedInitiatives........................................................................................................................16Figure2:MoldovanInterestRate......................................................................................................18Figure3:MoldovanInflationRate.....................................................................................................18

Long-termInvestmentsandBonds........................................................................................................19Equity-basedModel...............................................................................................................................19Donationsbased:thePeer-to-PeerModel.............................................................................................20Donationsbased:CollectiveFunds.........................................................................................................21

CommunitySelected..........................................................................................................................22GovernmentIdentified......................................................................................................................22

Discussion..........................................................................................................................................23

ApplicationofResearchedModelstotheMoldovanContext.............................................................25MarketingandOutreachStrategy.........................................................................................................25Fundsacquisition...................................................................................................................................28ProgramAdministration........................................................................................................................30Trust.......................................................................................................................................................31

Projectselection................................................................................................................................33Monitoringandevaluation....................................................................................................................36

ChallengesinImplementation............................................................................................................36

Recommendations.............................................................................................................................38ShortTerm.............................................................................................................................................39MediumTerm.........................................................................................................................................40LongTerm..............................................................................................................................................41

NextSteps:RecommendationsforImplementation...........................................................................42

Priortodeployment...........................................................................................................................42

Deployment.......................................................................................................................................42Firstphase:Donations...........................................................................................................................42

Figure4:DonationsModel................................................................................................................44...........................................................................................................................................................44Figures5and6:MarketingandBranding;OutreachandCommunications......................................45...........................................................................................................................................................45

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Figure7:ClientServices.....................................................................................................................46Secondphase:Investments....................................................................................................................46

Figure8:OperatingModel-Investments..........................................................................................47...........................................................................................................................................................47Figure9:WithdrawalOptions............................................................................................................48

Annexes.............................................................................................................................................49

Bibliography.......................................................................................................................................64

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ListofAbbreviationsAMMB AssociationofMoldovansinGreatBritain

ATIC Moldovan Association of Information and CommunicationTechnologyCompanies

BRD BureauforDiasporaRelationsundertheStateChancelleryofRepublicofMoldova

EBRD EuropeanBankforReconstructionandDevelopment

ERCOF EconomicResourceCenterforOverseasFilipinosPhilippines

IDF-OI IndiaDevelopmentFoundationofOverseasIndians

ILO InternationalLabourOrganization

IMF InternationalMonetaryFund

IOM InternationalOrganizationforMigration

JMDI JointMigrationandDevelopmentInitiative

NCFM NationalCommissionforFinancialMarkets

NGO Non-GovernmentalOrganization

ODA OfficialDevelopmentAssistance

ODIMM Moldova’sOrganizationforSmallandMediumEnterprisesSectorDevelopment

OFs-RED OverseasFilipinosRemittancesforEconomicDevelopment

SDGs SustainableDevelopmentGoals

UNDP UnitedNationsDevelopmentProgramme

UNFPA UnitedNationsPopulationsFund

UNHCR UnitedNationsHighCommissionerforRefugees

USAID UnitedStatesAgencyforInternationalDevelopment

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AcknowledgementsThisprojectwouldnothavebeenpossiblewithoutthehelpandsupportofmany individuals.Theauthorswouldliketoextendtheirdeepappreciationtoallofthem.We would like to express sincere gratitude to our advisor, Professor Daniel Naujoks forunfailingfeedback,guidance,andsupport.OurdeepestappreciationisextendedtoProfessorEugeniaMcGillforendlessguidance.Theauthorsaregrateful to the InternationalOrganization forMigrationMission toMoldova.Theteamwould liketorecognizeMr.GhenadieCreţuandMs.AdrianaBarilov fromIOMfortheirinsightfulcommentsandtirelessassistance.FromtheBureauforDiasporaRelationsundertheStateChancelleryofRepublicofMoldova,wewouldliketothankMr.DorinTomaforcriticalinputsintothisresearch.WewouldalsoliketoofferourspecialthankstotheEconomicandPoliticalDevelopment(EPD)Department of School of International and Public Affairs, Columbia University, for logisticalsupportinconductingresearchintheU.K.andMoldova.The team would like to thank all the participants in the interviews and focus groups heldaroundtheworld.

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ExecutiveSummary ThisreportpresentsthemainfindingsfromaresearchprojectconductedfromNovember2015toMay2016.Thisprojectaimsto investigateopportunitiesandobstaclesassociatedwiththedesignandoperationofacrowdfundingplatformasadevelopmenttoolspecificallyaimedatMoldovan diaspora communities. This research discusses the international best practices ofsimilarly-focused diaspora crowdfunding programs; the specific elements, challenges andadvantages of crowdfunding platforms; the implications of adapting such a model to theMoldovancontext;andfinally,recommendationsforintroducingandscalingsuchaprogram.

A team of six graduate-student researchers from Columbia University’s School ofInternational and Public Affairs (SIPA) conducted desk research, culling best practices fromdiaspora-orienteddevelopmentprogramsandtheconditionsunderwhichsuchcrowdfundingmodelscanworkintheMoldovanenvironment.Theteamthenconductedinterviewsandfocusgroups, designed to address key research questions such as the opinions of the Moldovandiasporamembers living in developed countries, their engagement withMoldova, and theirinterestsininvestingindevelopmentendeavors.Researchersengagedwith67membersoftheMoldovan diaspora community through focus groups, individual interviews, and an onlinesurvey.

Theresearcherslookedintomorethan21crowdfundingplatformsimplementedaroundthe world and categorized them into four broad categories: 1) Returns Based Initiatives, 2)Long-term Investments and Bonds, 3) Equity Based Investments, and 4) Donation BasedMechanisms.

In the study of successful platforms within these categories, contextualized to the

Moldovanreality,theteamrecommendsthefollowing:acomprehensivelong-termmarketingandoutreachcampaigndirectedatdiasporacommunities.Asdiasporamembersarelesswillingto channel funds through Moldovan banks and Moldovan financial institutions, establishedelectronic money transfer systems such as Paypal, Western Union or MoneyGram may bepreferable for use in this platform. In regards to administration of a crowdfunding program,diasporamembers living in theU.S.andUKplaceconsiderablyhigher trust inWesternbanksand financial institutions incomparisonwithsimilarMoldovan institutions.Thatsaid, there ismorewillingnesstodonateorinvestinMoldovaifaprogramadministratorispartneredwithaninternational organization or a Western European bank. Moldovan diaspora members alsoexpressed a desire for a personal connection with the program’s administrators. Finally,research also indicates that Moldovan diaspora members have low levels of trust in the

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government and government-run projects. Therefore, they revealed a hesitancy to donate,invest, or contribute to programs or projects that are administered by Moldovan banks orfeatureheavygovernmentinvolvement.

With the intention of utilizing a platform capable of absorbing both donations andinvestments, it is recommended that IOM and its implementing partners pursue a hybridcrowdfundingmodelthatstartswithafocusonchannelingdiasporadonationsintocommunityanddevelopmentprojects,andwhichtransitions intoaplatformthatattractsbothdonationsandfinancialinvestments.Therefore,focusingontrust-buildingmeasuresintheplatformitselfis fundamental. The crowdfunding platform should also maximize transparency and socialimpact to appease fears of corruption and mismanagement. To launch the platform, it isrecommendedtoleverageexisting,establishedcompaniesandtofundsymbolicprojectswithhighvisibility.TheplatformshouldfocusonareassuchasIT,manufacturing,andtheeducationsectors.Thedeepeningofvetting,transparencyandmonitoringandevaluationpractices,alongwiththecontinuousimprovementofcustomerservicemustcontinuethroughoutthelife-cycleoftheprogram.

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IntroductionInternationalmigrationhasbeenoneof thedefining trendsof the21st century. In2015, theUnitedNationsPopulationDivisionestimatedthattherewerenearly244millioninternationalmigrants(UnitedNations2015,1).Therefore,ithasbecomeoneofthecrucialcharacteristicsofour globalizedworld. Since 2011,OfficialDevelopmentAssistance (ODA)has been surpassedsignificantlybyremittances,evidenceofmigration’scriticalimpactontheeconomy.Accordingto theWorld Bank’s 2015Migration andDevelopment Brief, in 2014 total remittanceswere$583billion,morethandoubletheODAintheworldforthesameperiod(Ratha2015,3).

Although the exact impact of migration on national development has been heavilydebated,thereisnodoubtthatthemobilityofmigrantresourceshastheenormouspotentialto assist development efforts, especially in developing economies. For this reason, theinternationalcommunityhasrecognizedmigrationasakeypolicypriority,highlightingitamongothersinGoal10oftheSustainableDevelopmentGoals(SDGs),asoneofthevehiclestoreduceglobalinequality.

Furthermore,theAddisAbabaActionAgendaoftheThirdInternationalConferenceon

Financing forDevelopment (AddisAbabaActionAgenda) stressed that toboost the “positivecontribution of migrants for inclusive growth and sustainable development in countries oforigin”,movement throughout the financial systemmustbeeasedandmore toolsdeployed.One of these strategies is the exploitation of new technologies. Crowdfunding platforms,1defined in this report as the practice of funding a project or venture by raisingmany smallamountsofmoney froma largenumberofpeople, typically via the Internet, isoneof thesetechnologies. Already being implemented in many parts of the world, both generally andspecifically with diaspora, it has great potential in amplifyingmigrants’ positive contributionandinstrengtheningtiesbetweenhomecountriesanddiasporacommunities.Evidenceofthisis that global crowdfunding experienced accelerated growth in 2014, expanding by 167% toreachalittleover$16billionraised,upfromjustover$6billionin2013.In2015,theindustryissettomorethandoubleonceagain,onitswaytoraising$34billion(Massolution2015).

1Formoreinformationondefinitions,structuresandconceptsofcrowdfundingmodelsseeInformationforDevelopmentProgramandWorldBank.2013.“Crowdfunding’sPotentialfortheDevelopingWorld.”http://www.infodev.org/infodev-files/wb_crowdfundingreport-v12.pdf

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Moldova has a large and widespread diaspora community.2 Its approximate 411,000members(ZwagerandSintov2014,26)wereestimatedin2013tohaveremittedapproximately$1.7billionUSD, corresponding to27.4%ofnationalGDP (Prohnițchi and Lupușor2013,16).Consideringthis,theInternationalOrganizationforMigration(IOM)inMoldova,workingwiththe Government of Moldova’s Bureau for Diaspora Relations (BRD), therefore envisions acrowdfunding platform that can effectively gather a large pool of resources fromMoldovandiaspora communities around the world and utilize those resources towards the country’sdevelopment.

By channeling funds through a crowdfunding platform into various development

programs,theimpactofdiasporamembersontheirhomecountrymaybeamplified,leveragingtechnologytocreatenewavenuesforsustainablegrowth.DefiningTargetPopulationandTerminologyDiasporic actors have been defined as all persons who originate from a certain country, self-identifywiththatcountry,andwhomaintainameaningfulculturalandsocialrelationshipwiththecountry (Naujoks 2013, 12). However, from a policy viewpoint, it is generally not possible toidentify theactual relationship individualsandcommunitieshave to their countryoforigin.Thisreport thususes theRepublicofMoldovaGovernment’sdefinitionofdiasporaasencompassingthe citizens of the Republic of Moldova who are staying temporarily or permanently abroad,persons with origins from the Republic of Moldova and their descendants, as well as thecommunitiesformedbycitizensandpersonsofMoldovanoriginlivingabroad.3

Remittances are generally referred to as private transfers frommigrants to their households intheir countries of origin. Statistical definitions of remittances generally includemigrantworkerscompensationfortemporarycontractsabroadandotherinteractionsthatarenotstrictlyspeakingintra-familytransfers,includingsomeformsofphilanthropiccontributions(WorldBank2011,xvi-ii).

Thisreportisnotchieflyconcernedwithremittancesinthestrictsensebutwithdiasporasavings,investments and philanthropic contributions to development projects in their country of origin,Moldova. In this regard, the diasporamember leverages his or her own savings, separate from2Whilethereisnouniversallyaccepteddefinitionofdiaspora,inthispaperwefollowthedefinitionproposedinthehandbook‘DevelopingaRoadMapforEngagingDiasporasinDevelopment:AHandbookforPolicymakersandPractitionersinHomeandHostCountries’,compiledbyIOMandtheMigrationPolicyInstitutein2012:“Emigrantsandtheirdescendants,wholiveoutsidethecountryoftheirbirthorancestry,eitheronatemporaryorpermanentbasis,yetstillmaintainaffective(emotional)andmaterialtiestotheircountriesoforigin.”(IOM.2013."DiasporaandDevelopment:BridgingSocietyandStates.")3VidedecisionoftheRepublicofMoldovaGovernmentno.780of19October2012,article7j.

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whatmightberoutinelyremittedtofamilymembers,toinvestinasectorordevelopmentprojectinMoldova.Suchcontributionsandinvestmentsmaybenefitthediasporamembersand/ortheirfamilies socially, from the act of contributing to domestic development; concretely, from theenjoymentofsuchimprovementsuponreturntoMoldova;orfinancially,intheformofdividendsorstock.

AcceleratedInvestmentandDevelopmentinMoldovaMoldova has experienced large trends of outward migration, as well as a large inflow ofremittancesfromMoldovanmigrantssettledacrossEuropeandbeyond.Remittanceflowshaveconsistentlycorrespondedtoabout26-28%oftheMoldovanGDPsince2011(NationalBankofMoldova2015).Migrationandmonetarytransfersareextremely importantcomponentsofthe Moldovan economy. In 2015 alone, these funds amounted to 21.8% of Moldovan GDP(National Bank of Moldova 2015, 1). For these reasons, migration and diaspora-relatedactivities are of seminal importance for economic and human development in the country.Savingsareanother importantaspect toconsider,asmigrantswereobservedtosave48%ofaverageannualincomebeforeremittancesinboth2009and2012,remainingconstantdespiteamarkedriseinincomelevels(ZwagerandSintov2014,8).

Diaspora:AnUntappedResourceforMoldova’sDevelopmentTo harness the development potential of private transfers, the Government of Moldovaestablished the investmentprogramPARE1+1,whichattractsmigrants’ remittances into theSmallandMediumSizedEnterprises(SMEs)sectorwithaone-to-onematchingfundsschemefrom the government and donors. During 2014-15, a SIPA workshop team assessed thisprogram and recommended options for introducing a crowdfunding platform to expand theprogram’sfundingbase.However,thePARE1+1programonlycapturescertaincontributions.Itislimitedbyitsexclusivitytodiasporamembersinrelationtonon-migratinglocals(ProhnițchiandLupușor2013,4),requiringproofthatfundsoriginateabroad,andlimitingthenumberofviable businesses that can be financed with its budget (Martinez et al 2014, 48). Acrowdfundingplatformcouldaddressthisgap.FindingaSuitablePlatformforDiasporaContributionsandInvestmentThegoalofapossiblecrowdfunding initiative istocapitalizeonphilanthropicandinvestmentfunds.Thus,thisinitiativeisrootedinthreemainpillars:mobilizationoftheMoldovandiaspora

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communityatthegrassrootslevel;encouragingmembersofthediasporatosaveanddonateinordertocontributetolocaldevelopmentprojects,aswellasinvestinMoldovancompaniesandlocalprojects,throughaweb-basedplatformorexistingcrowdfundingsite;buildingcapacityofthe partners to successfully run local projects in order to attract sustained philanthropy andinvestmentfromMoldovandiasporamembers.

AsillustratedinFigure1,theestablishmentofanonlineplatformcouldworktoconnectmigrantswithopportunitiestodonateandinvestintheMoldovaneconomyhasthepotentialto contribute to development objectives, increase employment opportunities and help putMoldova on a path to sustained economic growth. Assuming that these projects aremarketable, contributions will be channeled into donation and investment based projectsdependingon thenatureof the funds. Effective assessmentof theseprojectswill determinetheir success. This in turn will determine the scalability and market outreach. Presupposingregular and effective monitoring and evaluation of these projects and an increase in trustamongphilanthropistsand investors, collectionof fundsare likely tocontinue togrow.Thus,theestablishmentofanonlineplatformtoconnectopportunitiestodonateand invest intheeconomymightleadtoaforementionedintendedresults.

This report therefore explores what lessons can be drawn from projects around the

world,whatareasofinvestmentanddonationareattractivetodiasporamembers,whatwouldmakethemcomfortableinallocatingtheirresources,andhowthatwillbestfitinwithexistingstructuresinMoldova.

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Figure1:TheoryofChange

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OverviewoftheReportThe remainder of this report is structured as follows: The next section describes themethodologicalbackgroundandthe limitationsoftheresearchandsamplingof interviewees.Basedonanextensivereviewofvariouscrowdfundingmodelsimplementedaroundtheworld,thereportthendescribesthedifferenttypesofmodels.Subsequently,thisreportdiscussestheapplicability, opportunities, and challenges of the different models, in consideration of theinstitutionalandregulatoryframework inMoldova,aswellasspecificresponsesofMoldovandiaspora communities in regard to said models. Lastly, the report will conclude with keyrecommendationsofhowtoapplyacrowdfundingmodelinMoldovabasedonthedeskreviewandfieldwork.

MethodologyAtaGlance

● TimePeriod:123days● Expert Interviews: 10 expert interviews heldwith program practitioners via phone or

Skype● IndividualInterviews:Over35individualinterviewsheldinLondon,8inNewYork,and

15other interviewsheld via Skypewithdiaspora inother areasof theU.K.,U.S., andFrance

● OnlineSurvey:8onlinesurveyresponses● FocusGroups: 2 large focus groupswith 24Moldovan diaspora communitymembers

heldinLondon,England

Thestudywasdividedintothefollowingphases:Phase1.DeskreviewofinternationalbestcrowdfundingpracticesPhase2.DevelopmentofinterviewandfocusgroupdiscussionguidesPhase3.ExpertinterviewswithpractitionersofdiasporacrowdfundingprogramsPhase4.Two-weekfieldworkbyfiveresearchersinMarch2016toconductinterviewswithpotentialpartnersandstakeholdersinMoldova,aswellasinterviewsandfocusgroupswithMoldovandiasporamembersaspotentialtargetpopulationinEnglandPhase5.InterviewsandfocusgroupswithMoldovandiasporamembersresidingintheUnitedStates,UnitedKingdom,andFrancePhase6.Post-fieldworkdebriefinganddataanalysis

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Phase7.RecommendationofacomprehensiveframeworktoIOMthatchannelsdiasporacommunityinvestmentsintolocalsustainabledevelopment

Thisresearch involvedthe investigationandanalysisofmorethan30relevantexistingdevelopment projects such as:Mexico’s 3 for 1 (3x1) and 4 for 1 (4x1), Economic ResourceCenter forOverseasFilipinos (ERCOF) foundation,PinoyWise,OverseasFilipinosRemittancesfor Economic Development (OFs-RED), India Development Foundation of Overseas Indians(IDF),CalvertFoundation’sdiasporainvestmentinitiatives,LiveLebanon,andothers.Researchdidnot focussolelyonpublicandthirdpartycrowdfunding initiatives,butonvariousprivatecompanieswhichoperatecrowdfundingplatformsandaimtosustain localdevelopmentofatargetedcountrysuchas:Kiva,LiveLebanon,Homestrings,amongstothers.AcompletelistofallorganizationscanbefoundinAnnexA.

Questionnairesweredesignedfollowinginsightgainedfrominitialdeskresearch,expertinterviews, guidance from IOM and the team’s academic advisor. A complete list ofquestionnaires is referenced in Annex C. The purpose of this questionnaire was to solicitinformationregarding:

1. Demographics: gender,numberof years spent living/workingabroad,occupation,andeducation.

2. Diaspora Community Engagement: The questionnaire also measured diasporaengagementwiththeorigincountry,includingwillingnesstocontributeinvariouswaystodevelopmentprojects. Intervieweeswerealsoaskedhowoften theycommunicate,orkeeptieswithfriendsandfamilyinMoldova.

3. Moldovan Diaspora Community Investment Interests and Behavior: The questionnairealso included questions to explore Moldovan diaspora investment interests andbehavior. The questions probed for diaspora members’ trust in government andfinancial institutions, risk tolerance, and perception or knowledge of variouscrowdfundingplatforms.

4. Interest in Social Impact Projects: The questionnaire gauged the interviewee’s overallinteresttolend,donate,orinvestinsocialimpactprojects.

IOM provided the researchers with a list of potential contacts in London, which the

researchers utilized to establish interviews. The Embassy and AMMB also provided theresearchers with additional contacts, which established more interviews. The researchersinterviewedover 35Moldovandiasporamembers in London, aswell as participants living inManchesterandOxfordviaSkype.Researchersalsointerviewed8Moldovandiasporamembers

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inNewYorkCity.TheresearchersalsosuccessfullyrecruitedintervieweesinMoldovan-ownedrestaurants in theUK.All interviewquestionnairesandmethodologies received IRB4approvalpriortotheexecutionoffieldwork.

Themajority (75%) of intervieweeswere between 25 and 35 years of age5 andwere

employed invarioussectorssuchas realestate, investmentbanking, informationtechnology,management consulting, and civil service. The team then traveled toChișinău topresent thefindingsoftheteam’s initialdeskreviewandqualitativedatacollectedintheUKtoIOM.Theteamalsoheldover25meetingswithvariousstakeholdersincountrytoobtainfeedbackontheapplicability of various crowdfunding platforms in the context of the project andMoldovaninvestmentclimate.

Theresearchersalsocreatedanonlinesurveyviatypeform.com,toincreasethenumber

of participants in the study and to provide the researchers with more information fromMoldovandiasporamembersontheirinterestindifferentcrowdfundingplatforms.Thesurveyconsisted of 25 questions, a complete list ofwhich is in AnnexD. The survey used snowballsamplingtoreachdiasporamembersinthegreaterNewYorkCitymetropolitanarea,receiving8completeresponses.

FocusgroupsandinterviewsofMoldovandiasporamembersconsistedlargelyofhighlyskilled Moldovans residing in London and the United States. Data suggests that 26% ofMoldovandiasporamembersimmigratedtotheU.K.in2011(IOM2013c,115).Itisimportantto note that 70% of diaspora members residing in the U.K. came for better earningopportunities,and24%forprofessionaldevelopment (IOM2013c,97).TheU.S.hosts10%ofMoldovanslivingabroadandtheirdescendants(IOM2013c,58).

The decision to focus on this particular population, which is not necessarily

representative of the majority of the Moldovan diaspora (for example, the larger majorityresiding in the Russian Federation or Italy) stems from the assumption that those settled inhigher income countries may be more willing to contribute beyond remittances, divertingincome to investments. Moldova’s Extended Migration Profile notes that young MoldovanteachersandresearcherswithhighqualificationstendtoworkintheU.S.,andthemajorityof4TheIRB,orinstitutionalreviewboard,isacommitteeutilizedbyU.S.academicandgovernmentalinstitutionsconductingresearchonhumansubjects.Thisisanethicalreviewboardtoensureallmethodologiesandquestionnairesemployedbyresearchersareinrespectandconsiderationofhumanrightsandethicalconsiderations.ThisresearchreceivedfullapprovalfromtheColumbiaUniversityInstitutionalReviewBoard.5Intervieweeswereaskedtoprovideeithertheirageoraself-identifiedrange.Whilethemajorityofintervieweeswereyoungprofessionals,students,orbusiness-owners,agesrangedfrom23to45yearsold.

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diasporamembersintheU.K.areyoungprofessionalsorstudents(IOM2013c,115).Secondly,theymayalsohaveahigherleveloffinancialliteracy,asmanyMoldovansresidingpermanentlyor semi-permanently in the U.K. or U.S. are familiarized with Western European financialpractices and often work in the financial sector. Thirdly, there might be an increase inMoldovan diaspora members in the U.K. in near future as the U.K. is preferred for highereconomic opportunity and better income compared to other countries (IOM 2013c, 117).Therefore,theresearchassumesthathighlyskilleddiasporamembersmaybemorewillingtodonate or invest inMoldovan economic development. The selection of focus countries alsorespondedtoIOMMoldova’spreferenceforresearchintheU.K.andtheU.S.

ResearchLimitationsThe sample size of the interviews and focus groups conductedwas limited due to the timeconstraints of this study. Thus, the results cannot claim being representative for MoldovandiasporamembersintheUKandtheUS.Inaddition,thereportdoesnotreflecttheinterestsand concerns of Moldovan diaspora members living elsewhere. As mentioned above, themajorityofpersonsoriginatinginMoldovaliveinItaly,Russia,Portugal,andFranceandmanyare not occupied in high-skill occupations (IOM 2013b). However, the research team alsoconducted interviews with Moldovan diaspora members in France and other parts of theUnitedKingdomviaSkypetoincreasethesamplesizeofintervieweesanddiversityofdata.

InternationalCrowdfundingModelsInordertounderstandthestructures,opportunities,andchallengesofexistingcrowdfundingmodels, variousmechanisms implemented around the world were researched, developing acomprehensive review of various initiatives in different countries and contexts. Based on acomprehensive review of global initiatives that aim to harness diaspora resources fordevelopment in their country of origin, this overview focuses on themain characteristics ofseveraloverarchingcategories(seeAnnexE):

• Returnsbasedinitiativeso Long-termInvestmentsandBonds

• Equitybasedinvestments• Donationbasedmechanisms

o Peer-to-Peercontributionso Collectivefunds

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Thefollowingsubsectionsdescribethemajorcomponents,advantages,anddrawbacksofeachofthesecategoriesinturn.

ReturnsbasedInitiatives

Areturns-basedcrowdfundingmodelconsistsofanyplatformthatprovidesafinancialreturntotheinvestor.Themajorcharacteristicofthismodelistheexistenceofanintermediarywhichcollectsandadministersfunds,increasingthelikelihoodofareturntotheinvestor.Typically,areturns-basedmodeltargetedatdiasporacommunitiesoperatesinthefollowingmanner:

There are several benefits to a crowdfunding model based on financial returns.Primarily,thepresenceofanintermediaryincreasestheleveloftrustfortheinvestorandmightprovidemoretransparencytotheplatform.Areturnsbasedmodelplatformcanalsobeusedasasavingstoolforinvestors.Moreover,andperhapsmostimportantly,theinvestorreceivesareturn on their initial investment.While donations-basedmodels - discussed in more detailbelow-arecontingentontheexistenceofasufficientnumberofhigh-networthindividualsordiaspora member with sufficient disposable income to make meaningful philanthropiccontributions,return-basedmodels leveragetheself-interestofmigrantsandtheirfamiliesto

Investorispresentedwithinvestmentopportunitiesintheircountryoforigin

byintermediary

Intermediaryprovides

investorwithinvestmentreceipt

Fundsaretransferredtorecipient

Afterafixedamountoftime,fundsarerepaidwithinterest(minusbrokeragefees)

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accumulatesavingsandtoobtaininterestrates.Inthisregard,inmanymigrants’countriesoforigin, average interest rates for deposits and certain kinds of investments are significantlyhighersuchratesindestinationcountries.Forthisreason,return-basedmodelsaredeemedtoincreasethebaseofdiasporamemberswhocanparticipateinsuchinitiatives.

However,therearesomedrawbackstothistypeofplatform.Thereistherisk,aswith

anyfinancial investment,of losingaportionortotalamountof funds invested.Moreover,aninvestormaybeatadisadvantageorlesslikelytoinvestintheplatformiftheylackthefinancialliteracy to confidently invest.Lastly, depending on the country in which the investment isbased, financial regulations could become an obstacle to the investor as theymay find theprocesstoocomplicatedorcumbersometoinvestin.Thisparticularissueiselaboratedinthesectiononchallengesinimplementationbelow.

Our research indicates this model can be successfully implemented in theMoldovancontextonlywiththeownershipandbrandingofWesternEuropean/EUbanks.This isduetothe low level of trust inMoldovan financial institutions and decreased liquidity ofMoldovanbanks6.Despiteanexceptionallyhighinterestrateofalmost20%(Figure2),manyMoldovansfeel that the riskundertaken indepositing funds intoabank for longer than6months isnotworth the anticipated returns,which decreases funds available on-hand atMoldovan banks.Lack of liquidity for lending has been addressed by some of the programs reviewed. Forexample, the Soro-soro Ibaba Development Cooperative (SIDC), in the Philippines offers aninvestment package, which locks investment for 5 years and guarantees a return of 6% perannum and additional dividend earnings depending on the performance of the investment(SIDC2012).

6Authors’InterviewwithNationalBankofMoldova,23March2016.

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Figure2:MoldovanInterestRate

Source:NationalBankofMoldovaFigure3:MoldovanInflationRate

Source:NationalBankofMoldova

ThemostimportantchallengeregardingtheapplicationofthismodelinMoldovaisthelow level of trust in financial institutions as a whole. Members of the Moldovan diasporaexpressed concern for the validity and trustworthiness of investment vehicles, as well as adesirefortransparencyandastrongvettingprocessforprojects.VeryfewheldbankaccountsinMoldovan institutions (2 out of all surveyed). Unless such issues are properly addressed,diasporamembersmightfeelskepticalandhesitantaboutthismodel.Thistopiciselaboratedinmoredetailinfinalrecommendations.

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Long-termInvestmentsandBonds

A subcategory of the returnsmodel is based on long-term investments. This type of modelconsistsofafinancialdebtinstrument(e.g.bonds)issuedbythehome-countrygovernmentoradevelopmentagencytoraisefinancingfromitsoverseasdiasporamembers.Thepurposeofissuingafinancialdebtinstrument,suchasabond,istorevitalizelevelsofinvestment,skill,anddevelopmentintheplacesinwhichthemigrantsmaintaintiesandalsotoengagemigrantsinthedevelopmentwork intheirnativecountriesbyutilizingtheeconomicandsocialcapitalofthesegroups. Israeland Indiahaveraised$35-40billionusing this instrument (Ketkar,Suhas,andRatha2010,251).

Frequently,fundsobtainedfromthesaleofafinancialinstrumentareadministeredbya

publicentity,privateorganization,oramixturethereof.Fundsaretypicallyusedforfinancinginvestmentprograms in thecountryorcommunityoforiginof the investor.The investorcanthentradetheirinstrumentorwaitforthematurityoftheinstrumenttoberepaid,intheformof capital plus interest.This instrument, as most financial investments, relies heavily on thebuyertoassumetheburdenoftheinvestmentrisk.

Themainincentivestoinvestinadiasporafundsplatformareeconomic(higherratesof

return on diaspora bonds) and nostalgic: for example, the opportunity to contribute to thedevelopment of their community/country of origin and where they may someday return(infoDev andWorld Bank 2013). Also, availability of a reliable source of funding improves acountry’ssovereigncreditrating.SuchisthecaseinIsrael,whereadiasporafundsplatformisadvantageousinthesensethatthecostofraisingfundsislowandiseffectivewhenthelevelofpatriotism, integrity,andstabilityof legalsystemishigh(Ketkar,Suhas,andRatha2010,252-53). Patriotism, in particular, is theprinciplemotivation for purchasingdiasporabonds.Also,the diasporamembers are expected to provide patriotic discounts in pricing these bonds towhichIndiaandIsraelserveasgoodexamples(Ketkar,Suhas,andRatha2010,252).However,it isdifficult tosellbondsattimesofunrest indiasporamember’scountryoforigin,orwhentheissuerisnotperceivedastrustworthy.Therefore,duetothecurrentlevelofuneasinessintheMoldovaneconomywedonotrecommendthepursuitofthismodelatthistime.

Equity-basedModel

Thismodel isbasedon investmentandequity, resemblingasimple investment inacompanyobtainingsharesinreturn.Itallowsinvestorstofundstartupsandexistingbusinessesinreturn

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forequity,meaningastakeofownershipinthebusiness.Fundersthushavepotentialtosharethefutureprofitabilityoftheventure,aswellaspotentiallossofinvestmentduetobankruptcy(infoDevandWorldBank2013,20-24).

Thiswillalsobedifficulttoimplementasthisrequiresstringentenforcementoftheruleof lawandeffectivemonitoringandevaluationofprojects.Thus,a strengtheningof financialregulations inMoldova need to be relevant to promote investments. Also, electronicmoneytransfers of more than 15,000 MDL (764.14 USD) are subject to the present anti-moneylaunderinglaws(SeeChallengesinImplementationforfurtherdetails).Suspicioustransactionsare put on hold by the anti-money laundering watchdogs to check for consistency in pastactivities. These instances allow legal funds topotentiallybe frozen for1month if fundsaredeemed suspicious. Therefore, inspection of transactions suspected of money launderingshouldfocusonfasterandeffectiveresultsbasedonmonitoringandlesstediouspaperworktofosteradesirableinvestmentclimate.

Donationsbased:thePeer-to-PeerModel

Thismodelfeaturesafacilitationofdirectpeer-to-peercontactbetweendiasporacontributorsor investors and local beneficiaries. Programs often build off existing platforms such ascrowdfunding sites to leverage diaspora engagement toward development. They arecharacterizedbypartnershipswithand/or funding froman internationalorganizationsuchasthe UNDP, as well as limited government interaction and financial support, in many cases.These programs therefore often have strong monitoring and evaluation mechanisms forcompleted and implemented projects, utilizing a vetting process and a regular call forapplications.FundraisingtechniquesincludepartnershipswithTVandradiostations,in-personoutreach to wealthy diaspora members and associations, and events to raise funds andawareness for theprogram.Theymayalsohavea trainingcomponent, involvingcivil society,regionalcooperativesandlocalorganizationstosupportprojectsandensureahigherchanceofsuccess.Trainingcanincludebriefingsonfinancialliteracyandgoodbusinesspractices.

The highlight of this model is the transparency and visual update of progress on

projects.Donorsareoftenable to seeexactlywhere the fundsarebeingallocated, forwhatpurpose,andhowmany liveswillbe impacted.Visibilityof theseprograms isenhancedbyacoordinated media strategy utilizing social and personal networks, and promotion of theprograms’accessibilitythroughmobileapplications.Someprogramsinthismodelmakeuseofloans(forgoing interestforthe loaner)toberepaidthrougha localpartner,whichcreatesanopportunityforexploitationoftheloaneethroughengorgedinterestrates.Additionally,these

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projectsoftenrelyonaccessoftheloaneetosufficienttechnicalskillsandequipmenttocreateanengagingandmarketablepitchtodiasporainvestorsanddonors.

Notable examples of the peer-to-peer model are Kiva, Kickstarter, Indiegogo and

Guvern24.Theseexistingonlinecrowdfundingplatformsallowindividualswhohaveabusinessidea,posttheirprojectandtargetfundsonline.Investorsordonorscanthenchoosetoinvestor donate to the project of their interest from the variety of the projects presented in thewebsite.Kickstarter,IndiegogoandGuvern24arepuredonationbasedplatformswheredonorsdonotreceiveanyfinancialreturns,thoughtheymightbeabletoreceivesomerewardsasatoken of appreciation. Kiva varies slightly since lenders have an option to get their principalbackorlendittomoreborrowers.

Theresponsesofdiasporamemberstothismodelwereratherpositive.Manyofthem

have heard of Kickstarter, and Kiva. Some of them have heard of Guvern24, however fewparticipatedintheplatform.Ontheotherhand,themanageroftheplatformemphasizedthesignificant role foreign donations have played in the platforms short existence. Additionally,diasporamemberswerepositivethattheonlineplatformwasabletoincreasetransparencybyprovidingthemwithavisualupdateofprogressofprojects.Atransparentprocessisthemostcrucial factorwhen it comes to theirdecision toeither investordonatemoney. Investorsordonorsliketoseewherethefundsarebeingallocated,forwhatpurpose,andhowmanyliveswillbeimpacted.

Donationsbased:CollectiveFunds

Thismodelisdesignedaroundtheconceptofpoolingindividualcontributionsinordertocreatea source of funds large and stable enough to fully and sustainably finance a project, or tocontributetoitsupkeep.Projectscanbeselectedbythecommunityorbygovernment.Inthecommunity-selectedmodel,adiasporacommunityhasprimaryagencyandprojectsarechosenaccordingtowhatsaidcommunityvaluesorneedsthemost.Therefore, interventionprojectsrange broadly from water, sanitation, education and infrastructure. In the governmentidentifiedoption,thefundsarecapturedforthepurposeofsupportingprojectsthathavebeenidentifiedandprimarilyfundedbyacentralor localgovernmentbody,andinmanycasesareongoingandcontinuinginfrastructureprojectscriticaltolocaldevelopment.

Themainconcernofthecollectivefundsmodelisthetransparencyissuesincediasporamembersultimatelyhavelimitedagencyoverthedirectionoftheprojects.Theywerehesitantto donate money if the government solely managed the funds. They mentioned that theywouldliketoseeclearprogressoftheprojectsandhowthefundsaredisbursed.Interviewed

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diasporamemberswerealsoconcernedabout thecapacityof localgovernment toefficientlymanage the projects. Some of them were more willing to donate to short-medium termprojects,ofwhichoutcomes couldbe seen in1-3 years, rather than long-term infrastructureprojects,popularprojectsinsuchamodel.Afewindicatedthatoverseadiasporacommunitieswould bemore active and engaged if the governmentwasmore committed, supportive andexpressedtheirappreciationfordiasporacontribution.

To elaborate further within this model, we describe two subcategories: community

selected,andgovernmentidentified.

CommunitySelectedThecommunitysubcategoryisdesignedaroundtheconceptofgivingcommunitiesownershipandaprominentroleinthedecision-makingprocessindecidingwhatisneededandhowbesttospendfunds.Therefore,fundsarecollectivelyraisedthroughagroupofdiasporaparticipantsthat have a direct interest and emotional investment in the project’s intervention area. Thedeterminingfeatureofthisprototypethenisthecaptureofmultiplestakeholderstocreateacommonpoolofresources,withtheobjectiveofstartingandcompletingaprojectthatbenefitsthecommunityasawhole.OneofthemostwidelyusedvehiclesforthisisthroughtheuseofHometownAssociations(HTAs),whicharediscussedinmoredetailinthefollowingsection.

GovernmentIdentifiedAlthoughsimilarlypooledintoacommonfund,thenextsubcategoryofgovernmentidentifiedprogramsrelatestopoolsoffundsthatarecapturedforthepurposeofsupportingprojectsthathavebeenidentifiedandprimarilyfundedbyacentralgovernmententity,and inmanycasesareongoingandcontinuinginfrastructureprojectscriticaltolocaldevelopment.Inthesecasesthefundsserveasacomplementtothecentralorlocalgovernment’sbudget,andtheprojectsthemselvesfitwithinthecountry’sdevelopmentstrategy.Ingeneral,theseprojectsareusuallyinitiativesthatimpactalargeareacoveringasignificantpopulation.

Still,bothofthesemodelshavebeendesignedinawaythatinvolvesthegovernment.

Moreover,thesemodelsgenerallyincludematchingofcapturedfundsbythegovernment,yet,itmightalsoextend tocreatingamore flexible remittanceenvironment; suchaspreferentialtransfertariffs,orincreasedgovernmentprotectionandinsuranceforinvestedfunds.

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Specificbenefitsofthismodelarethat itgivesdiasporatheopportunitytoparticipateand engage in their home country and communities. However, the participation of manyplayerscanmakethismodelinefficientandboggeddownbybureaucracy.Furthermore,duetoheavygovernmentinvolvementinthismodel,thereisariskofpolitically-motivatedmisuseoffunds.Finally,withlittlecommunityinput,thereisnoassurancethattheselectedprojectsarethemostbeneficialandurgentprojectsneededforthetargetcommunities.

DiscussionThe next section will analyze at length how the different components could play out inMoldova,with reference to international bestpractices andobservations from the field. It isvaluableatthispointtohaveageneraldiscussionabouthowtheabove-identifiedframeworksrelatetowhatwillultimatelyberecommendedinthisreport. Although the ultimate objective of the program is the undertaking of an investment-based platform, namely returns based initiatives and/or equity-based models, there is animpressionthatatthismomenttheapplicationofsuchmodelshavelimitedapplicabilityinthecurrent Moldovan climate. With that said, certain concepts and characteristics will beapplicableinthelong-termstages.Theuseofthelong-terminvestmentsandbondsmodelmaybeconsideredpurelydescriptiveintermsofthisreport,asitisnotrecommendedforthispointintime.Inorderforthismodeltobeimplemented,majoreconomicreformshouldbeadopted,alongwithsignificantimprovementsinpublicfaithingovernmentandfinancialinstitutions.

In regards to the returns based model, the country’s current situation makes itnecessarytoconsidersuchamodelonlyoncetheplatformisestablishedandconfidenceinitisachieved.Thisisbecausetheintermediaryhastobebothatrustedinternationalplayeraswellas an institution with firm roots in the country. Furthermore, since returns based modelsassumeacertainlevelofrisk,themultiplicityoffactorsoutsidetheplatform’scontrolmaketheadoption of thismodel too risky for the initial stages. This reasoning extends to the equity-basedmodelaswell.Inaddition,althoughtheequity-basedmodelisavehicletodirectlyfostereconomicdevelopmentdirectlyon theground, itneeds tobewellestablishedandoperatingsmoothly to be effective, evenwhen considering that the timeframe for achieving results isusually longer. Finally, as discussed already, current bureaucratic requirements make this arathertediousendeavor,especiallyintheprospectivelaunchstages.

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Therefore, it is thought that what makes more sense in Moldova at present is acombination of the peer-to-peer and collective fundsmodels. From the peer-to-peermodel,onecantakethefollowing.First,asthismodelisusuallyappliedtolocaldevelopmentprojects,therewillbeadirect linkwithIOMandBDR’simmediategoals.Second,sincetrust isamajorissue,elaborateduponinthefollowingsection,theinclusionofdirectlinksbetweendonorandrecipientwill avoid thepitfallofhaving to relyon theperceived institutionalvoid.Third, thismodel is relevantas it focusessignificantlyonoutreach topotentialparticipants.Fourth, thismodel isalsoattractiveas it isoftenaccompaniedbysomeformoffinancial literacytraining.This is something attractive to diaspora members as well as local Moldovans, and wouldcontributetothesuccessoftheplatform.Finally,takingintoaccountthemodel’slimitationsintermsofprojectselectionandpossibleexploitationbylocalplayers, it isalreadyamodelthathasbeentestedinMoldova,withlocalprojectsinplatformssuchasIndiegogoorKiva,aswellasonthelocalGuvern24platform.

Drawing from the collective funds model, a platform in Moldova could adopt the

following. First, just as in the peer-to-peer model, development seems to fit nicely in suchcrowdfunding platforms. Second, there is the possibility of ensuring some sort of localparticipation that is absent from othermore top-downmodels described. This role by localstakeholdersneeds tobe thoughtout very carefullyas thismightbecomeproblematic ifnotdone correctly. Third, and most importantly, is that matching of funds is a direct way todemonstrate institutional commitment to a project. The government can begin to shednegativeassociationsthediasporamayhave,yetitmightbewisertostartwithaninternationalorganizationat firstbefore thegovernment takesamorecentral role. It is importanthere toconsider the issue of bureaucracy as different types of stakeholders usually adds evenmorestrainingrequirements.

With these general considerations in mind, we now turn to how each aspect of a

platform relates to theMoldovan context, bringing together findings from all aspects of themethodology.Thiswillleadtomoreconcreterecommendationsinthereport’sconclusion.SuccessStory:SmokehouseCaféTheSmokehouseCaféisanAmericanBBQrestaurantstartupinChișinău.TheprojectstartedbyraisingfundsthroughIndiegogo.comin2014.ThecampaignendedinMarchof2015,reaching48% of the funding goal. The remainder of the investment is self-financed. The café is anexample of a successful reward-based campaign, where donors received different giftsdependingontheamountdonated.Forexample,for$75,contributorscouldhavetheirnamesinscribedonthecafé’sinterior,at-shirtfora$40donation,abrandedmugfor$30,andsoon.

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To express their commitment to ensuring transparency, they created an Open SourceEntrepreneurship website to update progress, share their experience, and help otherprofessionalsstartbusinessesinMoldova.

ApplicationofResearchedModelstotheMoldovanContextAfterhavingelaboratedonthedifferentmodelsandavailableoptionsinthepreviouschapter,this section will elaborate on specific areas relevant to the application of those models inMoldova. Drawing on lessons learned from researched programs, and in consideration ofMoldovaneconomic,social,andpolitical realities,acrowdfundingplatformmostsuitablewillbe one which works with current legal and economic constraints and which includes thefollowingcomponents:

● Marketingandoutreachstrategy● FundsAcquisition● ProgramAdministration

o Trusto ProjectSelectiono ProjectAdministration

● Monitoringandevaluation

MarketingandOutreachStrategy

Forthesuccessoftheplatform,marketingfocusedonhuman-to-humanconnectionisvital.Itisalso important to bring advocates in the branding process of the crowdfunding platform toinform and persuade a larger audience. Strong targetedmarketing and outreach strategy isneeded.

Following interviews and focus groups conducted withMoldovan diasporamembers,the team found limited channels of communication between consular services andcommunitiesabroad.ThisisduetothelowcapacityofMoldovanembassiestotrackorregisterMoldovansresidingabroad,whocontactembassiesinfrequently,generallyforconsularservicesortoparticipateinelections.AccordingtoMoldova’sFirstSecretary(Consul)totheUK,VictorHaruta,outreachisfurthercomplicatedbythefactthatmanyMoldovansalsoholdRomanian

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citizenship,astheyfindeasierentrytotheUKonanEUpassport.7APolishthink-tankestimatedthat in 2015, approximately 500,000 Moldovans held Romanian citizenship, potentiallycompromisingcomprehensivegovernmentoutreachtodiasporapopulations (JaroszewiczandCałus2015,6).

Marketingandoutreachforthecrowdfundingprogramcouldbestbeachievedthroughan array of branding and marketing strategies which should include, but not be limited to:socialnetworkingwebsites, culturalevents,diasporaevents,officialdiplomatic channels,andthedevelopmentofa“nationalbrand”andanambassadorsprogram.

A “national brand” understood as applying branding and marketing communicationstechniques to promote a nation’s image or a defining characteristic (Fan 2016, 5-14), wouldbring great benefit to the proposed crowdfunding platformby bringing a senseof pride andunitytotheusersoftheplatform.ThisconceptisdiscussedfurtherinProjectselection.

Moldovan embassies are successful in leveraging diaspora organizations to reach awider network of diaspora members. The major Moldovan diaspora association in London,AMMB,coordinateswiththeembassyandisabletosuccessfullyconnectwithdiasporathroughFacebook. Diaspora members expressed preferences for communication through platformssuch as Viber, Skype, Odnoklassniki, and VKontakte. EstrellaMai Dizon-Anonuevo, ExecutiveDirector of ATIKHA outlined as key to PinoyWISE success the active engagement of Filipinoembassies8. Focus group discussions in London echoed the importance of the embassy’sinvolvementinanysuccessfulplatform.

Thereareseveraldifferentoutreachmethodsutilizedbythestudiedprogramsthatmaybe applicable to aMoldovanmodel. For example, the private company Homestrings, whichserves as an intermediary connecting diaspora investors to for-profit investment projects inAfrica, leveragesmediapartnershipswith theBBC, theWall Street Journal, CNBCAfrica, andothers to reach their targeted audience. This company also conducts conferences,webinars,exhibitions, and networking opportunities to promote their investment portfolio and elicitfeedback from investors. TheMoldovanmodel could benefit from similar partnerships withmediaoutletstopromotetheplatformanditsprojects.7Authors’interviewwithFirstSecretary(Consul)VictorHaruta,MoldovanEmbassytotheUK,21March2016.8Authors’interviewwithEstrellaMaiDizon-Anonuevo,ExecutiveDirectorofATIKHA,1March2016.”

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Moreover, the Calvert Foundation, a nonprofit organization that loans money todevelopment projects and initiated the India Investment Initiative, draws programmatic andstrategic support from USAID, IdEA,W.K. Kellogg Foundation, U.S. Department of State andfromtheMacArthurFoundationfordiasporainvestmentinitiatives.ACalvertFoundationstaffmembernotedthe importanceof thesepartnerships formarketingprogramsandplatforms9.Theprojectadministratorcouldestablishsimilarstrategicpartnershipswithorganizationsthathave a favorable public reputation and utilize those partnerships to help market theircrowdfundingplatformanddrawinterestfromMoldovandiasporamembers.

PinoyWISE,amulti-sectoralnetwork thatprovides financialeducationand training tooverseas Filipinos (OFs) and the families left behind, links OFs with local investmentopportunities in the Philippines. PinoyWISEmarkets investment opportunities through theirmarketplace showcase events, which advertise different development projects to potentialinvestors in thePhilippinesandabroad.Theseeventsprovidebanksandother local financialinstitutions, cooperatives and social enterprises with an opportunity to present investmentoptionsorfinancialproductstodiasporamembersinterestedininvesting10.Moreover,attheseevents,diasporamembersareoffered financial services suchasopeningbankaccounts, asawaytopromotetheuseofformalchannelsforsendingmoney.Thereforetheorganizationofsimilar showcase events, could be a viable option to reach out to Moldovan diaspora andmarketdevelopmentprojects.

Anotherstrategyforoutreachisthecreationofdiaspora-initiatedorganizationsknownas Hometown Associations. This is best exemplified by the case of Tres por Uno inMexico.Takingadvantageof strong communitybonds,bothnational and regional, theseassociationsareahubfor informationandnetworking.Nevertheless, itmustbenotedthatthesuccessofMexicanHTAsisduetothesheervolumeofmigrantsfromMexicototheUnitedStates,strongregional affinity and reliance on consulates and embassies for up-to-date information. ThelatterisasignificantdivergencewiththeMoldovancaseasMexicandiasporamembersdependon their diplomatic representations to navigate a climate of uncertainty and evolvingregulations regarding their citizens’migrant statuses11.Nevertheless, it is possible that theselinks between diaspora members and their home communities will be generated andstrengthenedbytheUNDP’sregionalHTAinitiative,whicharebeingdevelopedandmirroredbyNexus’efforts.

9Authors’InterviewwithSaraGallagher,CalvertFoundation,3March2016.”10Authors’interviewwithEstrellaMaiDizon-Anonuevo,ExecutiveDirectorofATIKHA,1March2016.11Authors’InterviewwithMelissaMartinez,ForeignMinistryofMexico,16March2016.

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The outreach practices of the UNDP-run crowdfunding platform Live Lebanon, areparticularly noteworthy. Live Lebanon dedicates significant resources to outreach with asecondary purpose of high-level fundraising. Meetings are held in countries with a largediaspora population to solicit investment and identify leaders to become “GoodwillAmbassadors”.Theseambassadorsareresponsibleforfundraisingaswellasawarenessraising.ConcertsandLebanesecelebritiesarealsousedtopromotetheprogramin-country.Withthatinmind, theMoldovanmodelcouldcreatean“ambassadorship” initiative.Thiswouldmainlyconsist of creating a network of highly recognized individuals who would advocate for theprogram,muchliketheexistingUNDP’sgoodwillambassadorsprogram12.Theutilizationofthisstrategywillraisethevisibilityoftheprogramandthecountry,incentivizingnotonlyMoldovanmigrants,butanyinterestedthirdpartytoinvestintheprogram.

Fundsacquisition

For the successful acquisition of international funds from diasporamembers, regulations ontransfers and receipt of foreign funds are of paramount importance to the success of theplatform. Regulatory risks should be mitigated by the government for the platform to besuccessful.

AccordingtotheMoldovanAssociationofInformationTechnologiesCompanies(ATIC),

manyMoldovansforegotheuseofdebitandcreditcards,preferringtousecashinstead13.TheNEXUSmarket analysis echoes these findings, estimating that 54% ofmigrant households inMoldovakeeptheirsavingsprimarilyincash(ZwagerandSintov2014,92).This,coupledwithfield research suggesting that electronic money transfer systems such as Paypal, WesternUnion, and MoneyGram are favored payment systems by diaspora members, there isopportunitytoincentivizeMoldovansbackathometouseformalfinancialchannelstobroadenthereachoftheproject.

Asthepeer-to-peer(P2P)transfercapabilitiesmentionedabovearelimitedinMoldova,

theteamsuggestsusingalternativeplatformstosecurefunds.OnealternativetoP2PtransfersisPayNet,aplatformsimilartoPaypalwhichisfullylicensedandsupervisedbytheMoldovanNational Bank. PayNet is a service provider that offers e-transfer services as well asmobilebanking servicesat lower fees.Clients can credit theirPayNetaccountwith cashor link it to

12Forfurtherinformationpleasevisit“GoodwillAmbassadors.”UNDP.http://www.undp.org/content/undp/en/home/ourwork/goodwillambassadors.html13Authors’InterviewwithOleseaVieru,ATIC,23March2016.

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theirbankaccountorcreditcard.TheservicealsofunctionswiththeMoldovangovernment’sMpaysystem,Russianbanks,andWesternUnion,makingitfavorabletobeusedasacollectionchannelinacrowdfundingplatform.14

Several internationalprogramsmayprovideattractivealternativestochannelingfundsthrough banks. For example, the Calvert Foundation acquires funds by selling communityinvestment notes to its investors. A community note is a debt security instrument whichprovidesafixedrateofinterestforthetermofthenote(CalvertFoundation2015).Therefore,Moldovan diaspora members could be offered to channel their funds through the CalvertFoundationoranon-banking,non-governmentalorganizationwithasimilarsetup.

Anotheroptionistoestablishaschemeinwhichfundsarematchedbygovernmentorprivate institutions.ProjectsusingthisschemeincludeMexico’sTresporUnoandOFs-RED inthePhilippines.Amatchingschemehasalreadybeen implemented inMoldovabyPARE1+1.Thismodelhelpsachievefinancingbenchmarksfasterandgivesdonorsandinvestorsasenseofmutualparticipationandresponsibility.Additionally,agovernment-sponsoredsystemhas thepotentialtoofferlowertransferfees.

Mobile platforms allow for outreach to a greater donor base bymaking the platform

accessible to Moldovans at home and abroad, as well as those interested in investing orcontributing toMoldovandevelopment.Forexample,LiveLebanonusesamobileapplicationfor Apple and Android devices so users around theworld can donate towards developmentprojects in Lebanon more easily. Considering the high degree of connectivity, and internetspeedinMoldova,mobileplatformsmayprovetobeveryeffectiveincapturingfunds.

By collectingandholding fundsuntil theproject reaches its targeted fundraisinggoal,

Kivaisabletoearninterestondonationsmadethroughtheirwebsiteuntiltheyarereleasedtothebeneficiary.TheearnedinterestsallowKivatoabsorbtransferfeesandcurrencylossesinrepayment of loans. This particular scheme is profitable and makes donations easier byreducing risks undertaken by the contributor, but requires a significant amount of trust andlegitimacy from the intermediary. To undertake such a program in Moldova, the teamrecommendsafinancialintermediarybasedinternationally,ratherthaninMoldova,mitigatingconcernsofgraftandcorruption.

14Authors’InterviewwithPaynet,24March2016.

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ProgramAdministration

Anentity separate fromprogramadministrationmaybeengaged inmarketing andoutreachstrategies of the crowdfunding platform, but if it is responsible for acquiring internationalfunds, it isalso required toadminister the funds inanefficientmanner togainandmaintaintrust from donors and investors and tomaintain transparency. Focus groups and interviewswithdiasporamembersinLondonindicatedthatdiasporamemberswouldbemorewillingtodonate or invest in Moldova if the program administrator is partnered with internationalorganizations or European banks and to a lesser extent, Moldovan banks with EuropeanpartnerssuchasProCreditBankorMobiasBank.

A significant difference of opinion exists in regard to trust in local and regional

government,andinnationalgovernment.Althoughourfocusgroupdiscussionsdonotclaimtobe representative, our focus group discussion analysis suggests extremely low trust inMoldovannational government, to anextremity that somediasporamembersmaynot evenconsider a platform with the government as administrator. However, in-country interviewssuggest localgovernmentsmayholdgreatertrust,andthereforelocally-focusedprojectswithregionalgovernmentinvolvementmaybeapossibility.However,thelowcapacityoftheselocalgovernmententitiesshouldbetaken intoconsiderationasasignificanthindranceandfurtherinvestigatedbeforemovingforwardwithanypartnership.Therearemechanismsavailableforachievingthistypeof localownership.Forexample,Mexico’sTresporUnoachievesthiswithdiasporamembershavingadirect stake in theprogram’sadministration,giving themavoiceand decision-power in operational aspects. This provides transparency and a sharedaccountability.

Oneimportantelementthatwasoutlinedbybothdiasporamembersandinstitutionsonthe ground is that Moldovans need to feel a personal connection with the program’sadministrators. This means that they require access to information on the entity or personrunningtheprogram.Moreover,the investor/donorexpectstohavemechanismsavailabletoaddresstheirconcerns.

Anexampleof a successfuluseof customer serviceandaccountabilitymechanisms isThamel International Nepal. Their model relies heavily on trust and relationship building.Thamel started as a website offering “nostalgia” items. Leveraging the reputation and trustgained by selling goods Thamel was able to expand their offering to other services. Thereasoningbehindthisapproachtotheremittancebusinesswassimple:“Purchasingarelativelylow-cost gift on Thamel.com entails lower risk than entrusting a regular and important

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remittancepayment toanunknown intermediary” (Orozco2008,77). InotherwordsThamelprovidesaccountabilitytoitsclientsprovidingthemwithatrustworthyintermediarymitigatingtheDiaspora’s naturalmistrust. Thamel also takespicturesof thebeneficiaries and the gifts,reinforcing the trust deposited on them by the Diaspora member who purchases on thewebsitetool.ArobustcustomerserviceisanotherofthetoolsusedbyThameltobuildtrust.

From the Thamel and other mentioned experiences and research we can infer thatsuccessfulprogramadministratorwill:

1. Provideclear,concise,andfrequentlyupdatedinformationonprojectsorinvestments;2. Beheldaccountablefortheprogram;3. Enjoyagoodreputation;4. Offerrobustcustomerservice.

Trust

“I'mhappytoconsidersuchinvestmentsifthefollowingcanbeprovided:transparencyoffundsusedandresults,appropriateoversight,professionalmanagement,aguaranteeagency.I'mnotwillingtoinvestinMoldovaatthistimewithoutthebackingofaguaranteescheme”15AccordingtoTransparencyInternational,acorruptionwatchdog,Moldovaranks103outof168analyzed countries on the Corruption Perceptions Index (Transparency International 2015)16.With the recent banking scandal, trust in Moldova’s institutions, specifically in the financialinstitutions has significantly declined. 100% of focus group respondents and intervieweesdisplayed a low level of trust in the government and government-run projects. Discussionsconducted with diaspora members revealed hesitancy to donate, invest, or contribute toprogramsorprojectsthatareadministeredbyMoldovanbanksorthegovernmentduetothewidespreadissueofcorruption17.

Another method to address trust issues in Moldova is to provide reassurance topotentialdonorsandinvestors.Forexample,theCalvertFoundationestablishes legitimacybyadvertising on their website that the Foundation has held an above 99% repayment rate to

15Authors’OnlineInterviewwithDiasporaMembers.”16TheCorruptionPerceptionsIndexisacompositeindexrankingperceptionofpublicsectorcorruption,drawingondatafromexpertandbusinesssurveyscarriedoutbyavarietyofindependentandreputableinstitutions.Scoresrankfrom0to100,with0beingmostcorrupt.Moldovascoreda33in2015.17Authors’InterviewwithMoldovanDiasporaMembers,AssociationofMoldovansinGreatBritain,18March2016.

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their investors since 199518. However, a Calvert Foundation representative mentioned thatalthoughsomeprojectsdefaultedon their loans, theFoundationwasable to repay investorstheirlossestomaintainthecredibilityoftheorganization19.Therefore,afinancialintermediaryorprogramadministratorabletoprovidethislevelofinsurancetoinvestorscouldsignificantlyincreaseinvestments.

Another action to boost legitimacy and trustworthiness is to involve an internationalinstitutiontoselectprojectsortoadminister,manage,andoverseethefunds,asmentionedbyseveraldiasporainterviewees20.Forexample,OFs-RED’spartnershipwithUNDPlegitimizesitsprogramandhelpsassuagetrustissuesinthePhilippines.MoreinformationregardingOFs-REDand their partnership is available in the below case study: Involvement of Local Authorities.AnotherexampleisthatofJointMigrationandDevelopmentInitiative(JMDI)operatedbytheUNDPalongwithfiveotheragencies—IOM,InternationalLaborOrganization(ILO),theUnitedNations High Commissioner for Refugees (UNHCR), the United Nations Population Fund(UNFPA)andUNWomen.Similarly,thesepartnershipshelplegitimizeandincreasethetrustofJMDI.

CaseStudy:InvolvementofLocalAuthoritiesThe Overseas Filipinos Diaspora Remittances for Development (OFs-RED) Project: Building aFuture Back Home, another program in the Philippines, established the local migration anddevelopment council of Ilocos Norte (MD-MDG Council) as a multi-channel mechanism forreaching out to Overseas Filipinos and diaspora associations. The council includesrepresentatives from local and national government, the private sector, academia and otherNGOs in the province of IlocosNorte. The program is intended to address the needs of thecommunity and facilitate dialogue between stakeholders concerned with migration anddevelopment.Thecouncilfunctionsasatrust-buildingplatformamonglocalstakeholdersanddiasporamembers.

18Forfurtherinformationpleasevisithttps://www.vested.org/about.19Authors’InterviewwithSaraGallagher,CalvertFoundation,3March2016.20Authors’InterviewwithMoldovanDiasporaMembers,AssociationofMoldovansinGreatBritain,18March2016.

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ProjectselectionBefore international funds are sought through a legitimate and transparent process, theprogram administrator - with or without the help of other entities such as private orinternational agencies - must select viable projects which will attract diaspora donations orinvestments.

ThemethodologyforselectingprogramsthatwillbeofferedtothepubliciskeytotheEconomic Resource Center forOverseas Filipinos’ (ERCOF) operations. ERCOF’s selection andvettingprocessfocusesmainlyonfindingopportunitiesthatarebotheconomicallysoundandhaveasocialimpact.ERCOFselectsreliableinvestmentoptionswhiletheorganizationworkstomitigate the risk involved with the investment. This approach is considerably slower incomparison toothers studied,butensuresahigher rateof success.Allprogramsofferedaresimple programs which require minimal education. Interviews with diaspora members havealmostunanimouslyexpressedthattheprogramsofferedshouldbevettedandselectedwithduediligence.21 Forexample, Live Lebanonmaintainsa robust vetting system forprojectsbyputtingoutcallsforproposals.Thisaidsinatransparentandfairprocess,butmayinhibitmanyprojects from being introduced to the platform. Selecting programs in a way that ensuressuccessand transparency is critical toachieving support from thediaspora thusensuring thesustainabilityandsuccessoftheproposedinitiative.

Although a majority of the interviewees expressed favorability for nationwidedevelopment initiatives, some interviewees did express interest in regional or localdevelopment initiatives.Mexico’s 3x1 and 4x1 are intended to attract diasporamembers toinvest in development projects in their native communities within Mexico. Therefore acrowdfundingplatforminMoldovacouldalsopotentiallyattractdiasporamemberstodonateorinvestindevelopmentprojectsifthetargetedareafordevelopmentislocatedintheirnativevillageorcommunity.

The interviewees and focus groups also expressed a great interest in a developmentprojectthatpromotestheinformationtechnology(IT)sectorinMoldova.TheAICTnotedthatdespite having one of the fastest andmost connected internet services in theworld, the ITsectorinMoldovaisnotfullydeveloped.Forexample,JAVAandothersoftwareprogramsarenotincludedintheITcurriculumintheuniversitiesinMoldova22.Therefore,aprojectfocused

21Authors’OnlineSurveywithDiasporaMembers22Authors’InterviewwithOleseaVieru,ATIC,23March2016.

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on strengthening the IT sector could be extremely successful in attracting interest andpromotingdevelopment.

NEXUSmarketresearchrevealedthatdiasporashowincreasedinterestinsectorssuchas manufacturing, construction and service industries. A decreased inclination was showntowards investing inagricultureandrealestate(ZwagerandSintov2014,xiii).Thissentimentwas echoed in our focus groups, where participants expressed an interest in investing ordonating in projects that are related to education, entrepreneurial skill building, andinformationtechnology.Decreasinginteresttowardsrealestateandinfrastructureprojectswasshown. Interestingly, there were differing opinions regarding investment in agriculturalprojects.Whilemany intervieweessaidtheywouldnot invest inagriculture,somerecognizedthe opportunity for export-oriented agricultural products such as wine and fruit. However,these products are not competitive in the global market as many of the farms have lowproductioncapacityanddonotmeetEuropeanregulatorystandards23.

As the vetting and selection process is conducted, projects with an emotional

componentmaybesomewhatappealingtoMoldovandiaspora.Thereisevidencethatdiasporawill support popular initiativesof public interest. VictorChironda,who led the crowdfundingproject to renovate the main plaza in Central Chișinău through Indiegogo, stressed thatMoldovans immediatelymobilizedboth locally, andabroad to support the initiative24. This isespeciallythecasewhenthereisanappealtohelpfinancepleasatthepersonallevel,suchaspaymentofmedicalexpenses.OneexamplewasasuccessfulinitiativeledbyElenaDragalintocollect backpacks for the children of Moldova, which attracted a significant amount ofcontributionsthroughFacebook.25However,theteamdoesnotrecommendthepromotionofprojectswhicharenotself-sustaininginthelongrun,suchasfundraisingforpersonalexpensesormedicalbills.ProjectAdministrationSuccessofinitialprojectsiscrucialwhenthecrowdfundingplatformislaunched,astheplatform’slongevityandscalabilitydependsonthesuccessofthefirstfewprojectsthatwillhelpbuildtrustamongdonorsandinvestors.Thusprojectshavetobeadministeredinawaythatprovidesdiasporamemberswithanincentivetocontinuedonatingorinvestinginfuture.

23Authors’InterviewwithBusinessAdvisoryServices,EuropeanBankforReconstructionandDevelopment,23March2016.24Authors’InterviewwithVictorChironda,25March2016.25Authors’InterviewwithElenaDragalin,17March2016.

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Transparency has been identified as one of the most important factors in project

administration. This should be addressed in the initial processes of project selection. Forexample,toensurefairnessinchoosingvendors,thereshouldbeatransparenttenderprocesstoavoid favoritismandprovideassuranceofadequateanti-corruptionmeasures. Inaddition,project administrators should keep contributors informed with frequent project updatesthroughoutimplementation.Lastly,andinconsiderationofhowdelicatethehandlingoffundscan be, the final aspect to consider is the availability of all transaction records to track howfundsarebeingspent.

Frequent and timely updates such as reports and pictures from the recipient of thefunds can promote transparency and enhance credibility of the platform. An outstandingexample of such report mechanism is Kiva, where the owner of the project is able to postpictures or other visuals related to the progress of the project on thewebsite. At the sametime,donorscanusethesameplatformtorequestupdatesoraddressanyconcernstowardsthe owner of the project. Thismechanism leverages social pressure to serve as an informalmonitoringmechanism.

A possible stakeholder, mentioned by UNDP and other institutions working on theground, is the Moldovan Orthodox Church, due to its significant role in Moldovan society.Besides the local government, they areoftenoneof the fewactive institutions, especially inrural or remoteareasof the country. In addition, active administrationofprojects is alreadyoneof theiractivities.Althoughtheyhavetraditionally focusedeffortsontherepairsof theirown buildings, they have also collected donations for community-based charities andphilanthropy projects. Therefore, theymay be a beneficial partner in raising funds for localdevelopmentprojects.Theirrelativelyhighstandingwiththegeneralpubliccouldalsoprovidelegitimacyandtrustworthinesstoacertainextent.Forexample,arecentopinionsurveyshowsthatnationally, 67%ofMoldovanshavea favorable viewof theMoldovanOrthodoxChurch,with a slightly lowernumberof 63%approval inChișinău (International Republican Institute,BalticSurveys,andTheGallupOrganization2016,14).Therefore,churchescouldpotentiallybean interestingpartner for consideration in implementing some local projects, but shouldnothave any significant or central role in the overall administration of the platform due tocorruptionscandalsandpossiblealienationofpopulationswhodonotlookfavorablyuponthechurch.

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Monitoringandevaluation

Periodic and thorough monitoring and evaluation (M&E) is essential in any developmentprogram. The most successful crowdfunding platforms implemented M&E processes thatenabled the program to avoid previous mistakes. For example, Homestrings monitors itsinvestments on a monthly and quarterly basis. Frequent reporting provides investors withinformationabouttheprogress,achievementsandneedsoftheproject,creatinglegitimacyandtrust in both the project and the administrator. Updated information allows the projectadministrator to adjust the project if needed, and allocate resources efficiently to attain theprogram’sgoal.

Usually,theM&Eofadevelopmentproject isconductedexternallybyathirdpartytoensure that theM&E isnotbiased. Itwouldbebeneficial to theprogramfor theM&Etobeconductedbyareputableinternationalorganizationsoastoprovideanextralayeroftrust,butalsobecauseoftheextantorganizationalcapacitytoperformthesetasks.

ChallengesinImplementation

Thefirstmajorchallengeliesingainingtrustfromthediasporamembersandpotentialdonorsattheearlieststage.GiventhatmanydiasporamembersareaccustomedtosavinginfinancialinstitutionswithintheEuropeanUnion,NorthAmericaorRussia, itmaybedifficulttoattracttheirsavingsintoMoldovanbanksinashortspanoftime.RaisingMoldovanbankingstandardstomorecloselyresemblethoseofthecountrieswherethediasporaresidewillhelpovercomethischallenge.

Secondly, high transaction fees pose a serious threat to the success of the project. Ascheme to lower the cost of money transfers should be devised in order to ensure thesustainabilityoftheproject.Additionally,actionstoincentivizetheadoptionofformalfinancialsolutions, by not only the migrants and their families, but by the Moldovan population ingeneral,shouldbetakentoattaina levelof formaleconomicactivity thatensuresscalability,sustainabilityandfavorableconditionsfortheplatformtooperateinthelongterm.

Current platforms in Moldova may be too dependent on the international banking

system.Thismeansthatbynothavinganindependentsetuptoreceivefunds,contributionsarediluted by exchange rate conversions and banking fees as they pass through the system toreachtherecipient.This isthecasewiththerecently launchedGuvern24.mdplatform,whichsuffers from uncertain and often discretionary fees. As donations coming from abroad are

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transferredinwhicheverdefactomethodtheirbanksandcardsofchoicehave,Guvern24.mddoesnotrecievethetotalsumofthedonationsandhasnowayoftellinghowmuchtheywillreceive ineach transaction26.Settingaside issuesof solvency, theopacityof thisprocess isafactortobeavoidedinanyimplementationofacrowdfundingplatform.

Moldovan specific economic factors, while not under the influence of the program

manager,butwhichshouldneverthelessbetakenintoaccountarethefollowing:thehighandfluctuating inflation rate, ease of doing business in Moldova, accessibility to credit, thereputationoftheMoldovanfinancialsector,andlaxapplicationoffinancialregulations.

According to the National Commission for Financial Markets (NCFM), there are astaggering number of microfinance institutions around the country . Currently, theseinstitutionsarelooselycontrolled,astheyarenotrequiredtohavealicense,andarenotfullysupervised by the NCFM or the Central Bank. Without proper supervision, microfinanceinstitutionsdonothaveupperlimitsonloanorinterestrates,andarethereforeabletolendatabove-marketinterestrates,whicharenearlyimpossibletorepay.Thisstuntsbusinessgrowthanddiscouragesborrowing.

Nevertheless,theseinstitutionsmaypotentiallybeutilizedasafinancialintermediary,ifcorrectly utilized andmonitored.However, in order to feasibly usemicrofinance institutions,reformsintheregulatoryframeworkarenecessary.Withproposedlegislationaddressingnon-banking financial institutions currently working through the parliamentary process, we seepotentialformicrofinanceinstitutionsinthefutureasanalternativetousingMoldovanbanksasintermediaries.

26Authors’InterviewwithElenaZgardan,Guvern24,24March2016.

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RecommendationsInconsiderationofthesuccessesandfailuresofinternationallystudiedframeworks,theuniqueperspectives and needs of Moldovan diaspora communities, the economic and investmentclimate,andinconcertwiththerequestsof IOMMissiontoMoldova,wemakethefollowingrecommendations.

This report divides recommendations into short-term, medium-term and long-term.Furthermore,basedonanalysisonhowbest togainwidespreadconfidenceand findaspacewithinMoldova, recommendations will focus on how best to implement a donations basedplatform in the short-term, and then how to transition into the implementation of aninvestment-basedmodel. Althoughmodels usually focus on one or the other,meaning thathybridsarerareasshownbythereviewofbestpracticesworldwide,thereareafewideasofhowthismightlook.

Through an analysis of Moldova’s economic profile and its various economicdifferentials in addition to field research,we envision themost promising areas onwhich tobase the model and secure support from diaspora members - as well as the multiplestakeholdersinMoldova-tobetheIT,manufacturing,andeducationsectors.

Diaspora members are the most favorable target population for donation andinvestment inMoldova, as they enjoy a familiaritywith local cultural and business contexts,lowering barriers which traditionally impede international investment. Additionally, theengagement of diaspora networks inMoldovan economic development has the potential toripple inmagnitudebytransferof informationtothoseintheircountriesofdestination.Withthesuccessfulimplementationofaplatform,diasporacommunitiesmayencourageadditionaldonationsor investments from thosewhomaynototherwisehavea connection toMoldova(LeBlang2010, 584-600). In considerationof this potential for increased scalability, the teamalso recommends the selection of projects which may be attractive to international donorsoutsidethediaspora.

Whiletheimplementationofhometownassociationshasshownsomesuccessinothercountries,ourresearchhasshownthattheMoldovandiasporagenerallyprefersacountrywideapproachwithnospecific regionalor local focusotherthantheparticularityof theeconomicactivity. Diaspora members did not express any propensity for donation or investment inconnectionwith their citiesor townsoforigin.Rather, someemphasizedaneed forunifyingprojectsthatprovideacountrywidebenefitandsenseofidentity.

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Inorder toachievesustainability in the long termtoproduceapositive impact in the

country’seconomicandsocialdevelopment,theintendedcrowdfundingplatformwillneedtobeslowlybutsteadilydeployed,achievingsmallbutmeaningfulmilestones.Ourdeskresearchandfieldstudy,haveshowntheneedforacautiousapproachdividedintoshort,midandlongterm phases, rather than a “shock” approach, where the platform is deployed with fullcapabilitiesinthenearfuture.

ShortTerm

Actions taken in the short termarecrucial toensure the future successof theplatform.Thedevelopmentofwebandmobileplatforms,mitigationofregulatoryrisks,designofinternalandexternalmechanisms to select the projects, aswell asmonitoring and evaluation processes,while establishing meaningful partnerships are the immediate actions that would beundertakenbytheprojectadministrator.Withoutneglectingthedesignandimplementationofa communicationsandmarketing campaign intended topromote theprojectandbuild trust,robustcustomerservicepracticesshouldalsobedeveloped.

Web andmobile platforms could result from partnership with existing crowdfundingplatforms.Partneringwithanexistingplatformnotonly shortens thedevelopment time,butalsoensures continuous IT support. The successofprojectsdependson the funds channeledthroughtheplatform,whichinturnreliesonasolidandtrustworthyITfoundation.Attachingtheprogramtoanexistingandreputableplatform,allowstheprogramtobecomeassociatedwiththeplatform’sbrand,thusprovidinganextralayeroftrusttotheendeavorandloweringmarketingcosts.

Regulatory risks are not to be taken lightly and need to be addressed before thebeginningofanyinitiative.Theharmoftheproject’sreputationinanywaythroughneglectofregulationriskwillproducealevelofmistrustnoteasilyovercomeorreversed.

Itisrecommendedthatforprojectselection,anapproachlikethatemployedbyERCOFbe adopted, one inwhich the vetting itself is sourced to an external thirdparty. The carefulselection of the first projects offered on the platform is key to long-term success. Theseprojectsshouldbeabletoprovideahighprobabilityofsuccess,withaquickoverallduration.Inlater stages, the projects could prospectively be longer in duration, yielding results in themediumandlongterm.

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Thefirstbatchofprojectsofferedshouldbeprojects inwhichadonation,ratherthaninvestment, is solicited.Ona later stage theplatform shouldoffer investmentopportunities,whenreputationandtrustareestablished.

Strategic partnerships with new media outlets will be beneficial for branding andmarketing purposes. The usage of existing resources like Moldovan diaspora memberassociationsabroadsuchastheAMMBintheU.K.andMoldoveniinOlandaintheNetherlands,arelow-costandhigh-impactstrategiestomarkettheplatformandbuildtrust.Thesamecouldbesaidoflinkingtheprojecttoexistingstart-upsinMoldova,inordertocraftsuccessstories,buildinglegitimacyandtrustintheplatform.

As the first projects are offered and funds disbursed, it is necessary to have wellestablishedperiodicalupdatesontheprojects’advancements.Thisneedstobepublishedinaneasilyaccessible formatandregularlyupdated tomaintain the trustand tocontinuebuildingupon it.Thiswillhelpsmooththetransitionto the investmentphase,whichwilloccur in themediumterm.

MediumTerm

After theprogram iswell establishedandhas successfully implemented several projects, themodelmay transition from a solely donation based platform into onewhich also offers thepossibilitytoinvestinprojects.In transitioning from donation to investment based platforms, two general alternatives areidentified:

1) The encouragement of return donation through a favorable investmentopportunity. For example, contributors could initially donate funds to the start-upstages of a business, and after sufficient time has passed for the business to reachprofitability, initial donors would be offered favorable or advantageous investmentterms. In this manner, those who have provided the seed money for a business orprojectmay stopat thedonation level,or choose to continue supporting theventure(thus boosting it further) by enjoying privileged access to shares or investmentopportunities. The challenges in this approach is that it might limit the scope of theplatform to projects which are solely profit-oriented, neglecting important projectarchetypesthathavethepotentialofcontributingtodevelopmentnotdirectlyrelatedtoeconomicgrowth.

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2) Analternativeoption is then to focuson trust-buildingand initial successesof

projects through the platform. After widely advertising successful projects, and onceparticipants are at ease with the framework, there can be a gradual inclusion ofinvestmentprojectsalongsidethedonationbasedones.

LongTerm

In the longterm,whentrustandreputationhavebeen fullyestablished, theplatformshouldaimforself-sustainabilityandscalability.Atthisstagetheprogramadministratorwillnotneedtoscoutforprojectsbutwillacceptnewproposalswhereonlyvettingisneeded;andscalabilitybeing thepotential toscale themodelandexpand it intosectorsof theeconomyother thanthosewherethediasporashowedprimaryinterestinparticipating.

Thecontinuationofcommunicationandmarketingcampaignswillbekeyintheselaterstages. This will also open the possibility of appealing to donors and investors with noMoldovanoriginsorties,utilizingthereputabilityandtrackrecordofsuccessesachievedbytheplatformasmainincentives.

Thedeepeningofvetting,transparencyandmonitoringandevaluationpractices,alongwith the continuous improvement of the customer service, are actions that must continuethroughout the life of the program. These are twoof the pillars onwhich themuchneededtrustisbuilt,andthatifabandoned,couldjeopardizetheentireplatform’sefforts.

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NextSteps:RecommendationsforImplementation

PriortodeploymentBeforestartingoperations,stakeholdersmustdecidewhetherthefinancialintermediaryshouldbebasedinMoldovaorinanothercountry.Thiscarefulselectionofjurisdictionwilldeterminehow cumbersome the operation of the program will be, as well as the applicable taxationpolicies,andanyotherregulatoryriskinherenttotheoperationofthemodel.

With regulatory risks are taken into account andmitigated, stakeholders should startestablishingpartnershipswiththepotentialorganizationsandindividualstobeinvolvedintheprogram. As explained in the above sections, the program calls for the formation ofpartnerships in order to fulfill different roles and attain success in the development efforts.Thesepartnershipsinvolvenotonlymultilateralorganizationsandindividuals,butalsorefertothedigital platform tobeusedas an interfacebetween thediasporamembers andprogramadministrators.As recommendedabove, thereareseveralwell-reputedcompaniesalready inoperation (such as Kiva, Homestrings, or Indiegogo, for example), which can bring brandrecognition and experience to the program. However, we do not presume to recommendpartnershipswithanyparticularcompanyorentity.

Thedevelopmentofproject selectionmechanismsand standards shouldoccurbeforethe launchof theplatform.Diasporamembers identified transparencyas theirchiefconcern.Thereforeclear,well-explainedmechanismsofselection,controlandadministrationarewhatisneededtobedevelopedtoensuremaximumparticipationfromdiasporacommunities.

Deployment

Firstphase:Donations

Once theprocessesaredesigned, thepartnershipsestablishedand the regulatory risks takenintoaccount,theprogrammaybedeployedandreleasedtothepublic.

Thefirstphaseoftheprojectwillbebasedondonations.Theaimofthisfirstphaseistogive diasporamembers the chance to familiarize with the program, while at the same timegainingtheirtrust.Inordertoachievethesegoals,it iskeytoselectprojectsthathaveahigh

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chance of initial success. Asmentioned in the above sections, the success and level of trustgeneratediskeytoensurethesustainabilityoftheproject.

Duringthefirstphase,theplatformismanagedbytheprogramadministrator,withorwithoutatechnologicalpartner.Thefundsarechanneledthroughtheplatformanddistributedto the projects.Monitoring and Evaluation is conducted by the selected partner throughoutimplementationoftheprojects.Theprogressoftheprojects,aswelloftheirevaluations,areperiodically communicated to the diaspora members on the digital platform or throughadditionalmarketing.

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Figure4:DonationsModel

The supporting platforms are also deployed during this stage, understood as supportingstructures the marketing and branding campaigns, the outreach mechanisms and clientservices.

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Figures5and6:MarketingandBranding;OutreachandCommunications

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Figure7:ClientServices

Secondphase:Investments

Oncetheprogramisdeployed,donationshavebeenchanneledandtrustgainedfromdiasporamembers,itcantransitionintoahybridmodelinwhichdonationsandinvestmentscoexist.Thesameplatformutilizedforthedonationsmodelswillbealteredsoastoaddtheoptiontoinvestin certain projects. These projectswill be selected andmonitored according to the selectionmechanismsdevisedattheearlystagesoftheprogram.

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Figure8:OperatingModel-Investments

Itiskeyforthisstagethatthesupportingstructuresputinplaceinthefirstphasearedeepenedandstrengthenedsoas toensureasecure flowof fundsboth fromdiaspora investors totheprojects,andfromtheprojectstothediasporainvestors.

Diasporamembersshouldbeofferedthreedifferentoptionswhenitcomestotherentobtained by their investments. The first option will be to reinvest the money in the same

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project or in a different one, boosting impact. The second option should be to deposit themoneyinaMoldovanbankaccount,withpreferentialinterestrates,andataselectedintuition,whichwillfollowtransparentproceduressoastoensuretheleveloftrust.Thethirdalternativeis to return the funds and gained capital at their country of residence. Even though thisalternativeisgoodtohaveasanoption,wedon’trecommenditasasustainedpracticegiventhat itwill lessenMoldova’seconomicdevelopment,as ittakesfundsoutofthecountry,andthusfromtheproductivecycle.

Figure9:WithdrawalOptions

The funds will be administered by the different projects which will report to themonitoring and evaluating partner, and the program administrator. In this way the localownershipisensured,aswellastheappropriatecontroloftheproject.Thereportingschemealsohelpstoleveltheleveloftrustdepositedbythediasporamembersintheprogram.

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Annexes

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AnnexA

CrowdfundingPlatformsResearched:

● CalvertFoundation’sIndiaInvestmentInitiative● IndianDevelopmentFoundationofOverseasIndians(IDF-OI)● Mexico’sTresporUno● Mexico’sCuatroporUno● Homestrings● KIVA● PinoyWISE● OverseasFilipinosRemittancesforDevelopment(OFs-Red)● SorosoroIbabaDevelopmentCooperative(SIDC)InvestmentPrograminAgriculturefor

OverseasFilipinos● LiveLebanon● ISupportJamaica● IndiegogoGenerosity● ProgramonAttractingRemittancesintotheEconomy(Pare1+1)● Guvern24● Homestrings● MigFunder● Zafen● infoDev’sEntrepreneurshipProgramforInnovationintheCaribbean(EPIC)● VillageBankCambodia● Narwi● EconomicResourceCenterforOverseasFilipinosPhilippines(ERCOF)

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AnnexBGuidedExpertInterviewQuestionnaireDate:________________________Location:________________________Interviewer:________________________ResearchedProjects-InterviewQuestions

1. Howwastheideafor[projectname]conceived?Wasitbuiltoffofasimilarprojectormodelpreviouslyused?

2. Couldyoupleaseexplainwhatmade[projectname]successfulorismakingitsuccessful?Arethereanyprerequisitesforsuccess?Howdoyoumeasurethesuccess?

3. Couldyoupleasetellmemoreabouthowdifferentactorsandstakeholders[mentiontheprojects’sactors]worktogether?

4. Arethereanyotherstakeholdersyouthinkareimportantorinfluentialinthesuccessof[projectname]?

5. Howdoyoupromotepartnershipanddiasporaengagement?6. Howdoyoumarketyour[projectorproduct]?

CHALLENGES

7. Howhasyourteambeentacklingthesechallenges?8. Ifyouhadtorestartyourproject,whatwouldyoudodifferently?9. Canyoutellmeaboutanunavoidablecircumstancethatledtothefailureofany

project,orprojectgoal?10. Doyouthinkthereareanyalternativewaysindesigningorimplementing[project

name]forittobemoresuccessful?REPLICABILITY

11. Doyouthink[projectname]canbeimplementedelsewhereorcanbeconsideredasauniversalmodel?

12. Whatarethecommoncharacteristicsofthesesuccessfulprojectsthatcanbeemulatedinotherpartsoftheworld?

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EXPERIENCEWITHOTHERPROJECTS

13. HasyourorganizationeverworkedorcomeacrossinstitutionsthathaveworkedwithinMoldovaorEasternEurope?

14. Doyouhaveanopinionontheapplicabilityof[projectname]inrelationtoacountrylikeMoldova?

TECHNOLOGY

15. Whatrecenttechnologieshaveyouexplored(platforms,apps,mobile,etc.)?Whathasbeentheopportunities?Whathasbeenthechallenges?

POSSIBLEPARTNERS

16. IfyouworkinaPrivate-PublicPartnership(PPP)scheme,whathasbeentheadvantages?Thedrawbacks?

17. IfyoudonotworkinaPrivate-PublicPartnership(PPP)scheme,wouldyouconsiderthis?Why,orwhynot?

SUSTAINABILITY

18. Whatistheapproximateretentionrateoftheproject?Inotherwords,whatistheprobabilitythataparticipantremains/investsagain?

19. Howareyouguaranteeinglong-termsustainabilityinyourprojects?Haveyoudesignedanyspecificstrategies?

LEGALMATTERS

20. Whatanti-corruptionandanti-moneylaunderingmechanismshaveyouimplemented?IMPACT

21. Howmanyjobshasthisprojectcreated?22. Howmuchfundshasthisprojectcreated?

EXPANSION

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23. Areyouthinkingofscalinguptheproject?24. WhatwastheIMPACTofyourprojectonthelocaldevelopmentofthecountry?What

doyouseeasthereturnoninvestment?(Ifthisisthegoaloftheproject)MONITORINGANDEVALUATION

25. Howdoyoumonitorandevaluateyourcurrentprojects?26. Howwillyougoaboutmonitoringandevaluationoftheseupcomingprojects?

SELECTIONOFPROJECTS27.Howdoyouselectprojects?28.Howdoyouensureprojectswouldresonatewellwithdiasporamembers?29.Howdoyouvetprojectsthatwillbeimplementedontheground?

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AnnexC

GuidedQuestionnaireforInterviewsandFocusGroupsIOM-SIPAProject:ChannelingRemittancesintoLocalDevelopment:DevelopingaCrowdfundingPlatformforDiasporaContributionDate:________________________Time:________________________Location:________________________Interviewer:________________________ID:_____________Introduction—Hi,weareresearchersfromColumbiaUniversity,NewYork.Thankyousomuchfor your time, we really appreciate it. We have looked at other countries, companies, orinternational organizations that have established online platforms to connect developmentprojectsor investmentopportunitiesforbusinesseswithemigrantanddiasporacommunities.Currently,weworkwiththeInternationalOrganizationforMigrationtofindoutifanyoftheseplatformsaresuitabletoconnectMoldovansresidingabroadandopportunitiesinMoldova,aswellaswhatkeycomponentsofsuchprogramsshouldbe.Inthisinterview,wewouldliketolearnfromyourperspectives,interests,andexpectationsoninvestinginlocaldevelopmentinMoldovaandmakingdonationsfordevelopmentprojects.Please rest assured that this information is solely for our research purposes and it will notimpactyourworkorlifeinanyway.Allnotesofthemeetingsandyourindividualanswerswillstaywithus andweassure you thatwewill notmention yournameanywhere inourwork.Pleasedon’thesitatetointerruptusatanytime,andtostoptheinterviewifyouwantto.PreliminaryInformation/Icebreakers1. Howlonghaveyoulivedherein[country]?2. HowoftendoyouconnectwithfriendsandfamilybackinMoldova?3. Throughwhatmeanse.g.visiting,telephone,Facebook,Skypeorothersocialnetworks?4. DoyoueverthinkaboutreturningpermanentlytoMoldovaatsomepoint?5. Howlongdoyouthinkwillyoubeinthiscountry?

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RETURNMODELSIn order to incentivize the diaspora to save and invest in Moldova, we are thinking aboutvarious models that can efficiently channel remittances and savings into Moldovan localdevelopment projects that offer savers interest rates. So, please tell us more about yourexperiencesandpreferencesinsavingandinvestingthroughbank’sfinancialproducts,suchasbonds,orinotherfinancialinstitutions.6. Howdoyousaveyourmoney?[Probefor:Inasavingsaccountathome?InaBritishbank?“Underthemattress”?Inthestockmarket?]7. WhatwouldmakeyoucomfortableandinterestedinsavinginMoldovanbanks? [Probefor:Highinterestrate]●Lowerfees●Specialbenefits●Specialconditionsforloan●CredibilityMicrofinanceiswhenaninstitution,usuallyatthelocallevel,givessmall loanstopeoplewhowishtostartorexpandtheirbusinesses,buthavetraditionallybeenunabletogainaccessfromamore traditional institution; for example,when awomanwants to start a food street cartbusinessandreceivesthefundstobuythecartandthepermits.8. Would you be interested in savingmoney in a financial institution thatwould give aguaranteedannualinterestrate,butwouldusethemoneytogivemicroloans?Whatwouldmakeyoucomfortablesavinginthismanner?(Probes-involvementofaninternationalorganizationoracrediblefinancialinstitution)9. What opportunities or challenges do you see in investing through banks andmicrofinanceinstitutions?a.Banksin[destinationcountry]?

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b.BanksinMoldova?Apartfromfinancialinstitutions,wearealsoconsideringpromotinginvestmentincooperatives,whichisabusiness,farm,orotherorganizationsthatareownedandrunjointlybyitsmemberswhoallsharetheprofitsandbenefits.10. Whatdoyouthinkaboutthis?Doesitinterestyou?Ifyes,inwhatscenariodoyouthinkyouwouldinvest?11. Doyou think it isworth trying inMoldova?Are thereanychallengesoropportunitiesyouareawareof?12. Thereareinvestmentprojectswheretheinvestorhastheopportunitytodonatepartoftheirreturnintodevelopmentprojectssuchasinfrastructure,healthandeducation.Therefore,ifthereisanopportunitytodonateacertainsmallpercentageofyourinvestmentreturns(thatyouwouldgetfromyoursavings)intodevelopmentprojectsinMoldova,wouldyoubewillingtodonate?COLLECTIVEFUNDSWe would now like to shift our conversation to another alternative that may also work inMoldova, which are collective or pooled fund. Basically, collective funds pool individualcontributionsinordertocreateapotoffundslargeandstableenoughtofullyandsustainablyfinanceaproject,ortocontributetoitsupkeep(Kiva/guvern24.md)13. Have you ever donated toMoldovan development projects through any websites ororganizations?14. Ifnot,whatwouldcompelyou to invest indevelopmentprojectsathome?Are thereanyreservationsyouhave?15. Areyoufamiliarwithplatforms/websitesforpeopletopoolfundsintoagreatvarietyofprojectsandinterests?-ExplaintheIndiegogo,Kickstarter

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-Then,movetoKIVAmodel16. Haveyouhaveeverheardaboutorusedthecrowdfundingsiteguvern24.md?17. Wouldyouinvest/donateintoMoldovanprojectsusingacrowdfundingplatform?18. If investing, would you like to have the operating organization bring you vettedopportunities and let you choose from them (egHomestrings or Kivamodel)?Orwould youprefertodonatetotheorganizationingeneralandletthemadministerthefundsastheyseefit?19. IfyouweretodonateyourmoneytofunddevelopmentprojectsinMoldova,whatkindofprojectsyouwouldliketosee?[Probe for: agricultural investment projects, small business development, and infrastructureprojects]DIASPORAENGAGEMENT&HOMETOWNASSOCIATIONSHometownassociationsarelooselycreatedgroupsoflocalindividuals,whethermigrants,localcommunity members or both, who come together to create and strengthen bonds to theirhome country, and begin to leverage their resources, experience and contacts to advance acommon goal. In terms of migration and development, they have functioned as arepresentative body of the community, chosen projects that are ofwidespread interest andbeentothesourcetochannelfunds.20. ArethereanyotherMoldovandiasporaassociations/organizationsherethatyouarefamiliarwith?21. What would make you comfortable and willing to donate through hometownassociations?22. Are there anyother roles you thinkhometownassociationsor diasporaorganizationsshouldplay?COMMUNICATIONS

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23. Haveyoueverattendedanyconference/events/roadshowsheldforMoldovandiasporacommunities?24. Whatchannelsdoyouusuallygetinformationregardingdiasporaevents/benefit/otherinformatione.g.onlinemedia,publicity,TV,radio,events?25. Haveyoueverheardofanysuccessstoriesofdiasporasortheirrelativesusingthecrowdfundingplatform?26. WhatwouldbethebestwaytocommunicatewithyouandotherMoldovandiasporacommunitiesin[city]?CLOSINGQUESTIONS/REMARKS27. IfIOMandBureauofDiasporaRelationslaunchesaninitiativetomorrow,wouldyouconsidersupportingacrowdfundingplatformorprogramasawaytoinvestinthelocaldevelopmentofMoldova?28. Ifyes,whatwouldmakeitamoreattractiveinvestmentforyou?29. WouldyourecommendacrowdfundingplatformtootherMoldovanslivingabroad?Thankyouandmentionoffollow-up

Again,thankyouverymuchforyourtimeandforsharingyourthoughtsandinsights

withus.Yourfeedbackandinsightswillbeincrediblyinvaluabletoourresearch.Wearehappytoansweranyremainingquestionsyoumayhave.Iftherearenofurtherquestions,wewishyouapleasantdayandappreciateyoutakingthetimetohelpuswiththisprocess.Formoreinformationandfollow-uppleaseemail:sjr2171@columbia.edu

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AnnexDOnlineSurveyQuestions

https://moldovateam.typeform.com/to/qIac9W

GeneralInformation1.HowlonghaveyoulivedhereintheUS?2.ForhowlongdoyouthinkyouwillbeintheUS?3.DoyouplanonreturningpermanentlytoMoldovaatsomepoint?4.HowoftendoyouconnectwithfriendsandfamilybackinMoldova?

How/throughwhatmeans?RETURNMODELSInordertoincentivizediasporatosaveandinvestinMoldova,wearethinkingaboutvariousmodelsthatcanefficientlychannelmoneyyousendhomeintoMoldovanlocaldevelopmentprojectsthatmightofferspecialinterestrates,forexample.5.Howdoyousaveyourmoney?

InanAmericanbankaccountInaMoldovanbankaccountInaEuropean/otherbankaccountInstocksandbondsIdonotkeepmymoneyinabankatallEverythingIearnIsendhomeorusetopaymyownbillsOther

6.WhatwouldmakeyoucomfortableandinterestedinsavinginMoldovanbanks?

SpecialbenefitsBank'sreputationSpecialconditionsforaccessingtoloansLowerFeesOther

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Microlendersgivesmallloanstopeople,tostartorexpandtheirbusinesses,thathavetraditionallybeenunabletogainaccesstoamoretraditionalfinancialinstitution;forexample:whenahairdresserwantstosethisownshopandreceivesaloantohelpwithstartupcosts.

7.Wouldyoubeinterestedinsavingmoneyinafinancialinstitutionthatwouldgiveaguaranteedannualinterestrate,butwouldusethemoneytogivemicro-loans?IfYES,Whatwouldmakeyoucomfortablesavinginthismanner?8.Whatopportunitiesorchallengesdoyouseeininvestingthroughbanksandmicrofinanceinstitutions?Apartfromfinancialinstitutions,wearealsoconsideringpromotinginvestmentsincooperatives,whicharebusinesses,farms,orotherorganizationsthatareownedandrunjointlybyitsworkers/memberswhoallsharetheprofitsandbenefits.9.Whatdoyouthinkaboutthis?Doesitinterestyou?Ifyes,inwhatscenariodoyouthinkyouwouldinvest?10.Thereareinvestmentprojectswhereyouwouldhavetheopportunitytodonatepartofyourreturnsintodevelopmentprojectsinareassuchasinfrastructure,healthandeducation.Therefore,ifthereisanopportunitytodonateacertainsmallpercentageofyourinvestmentreturns(thatyouwouldgainfromyoursavings)intodevelopmentprojectsinMoldova,wouldyoubewillingtodonate?COLLECTIVEFUNDSWewouldnowliketoshifttoanotheralternativethatmayalsobesuccessfulinMoldova:collectiveorpooledfunds.Basically,collectivefundspoolindividualcontributionsinordertocreateapotoffundslargeandstableenough,tofullyandsustainablyfinanceaproject,ortocontributetoitsupkeep.Forexample:Kiva(www.kiva.org)orGuvern24(www.guvern24.md)11.HaveyoueverdonatedtoMoldovandevelopmentprojectsthroughanywebsitesororganizations?

Ifyes,throughwhatplatform?Forwhattypeofproject?Beasdetailedasyoucan.

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Ifnot,whatwouldcompelyoutoinvestindevelopmentprojectsathome?Arethereanyreservationsyouhave?

12.Areyoufamiliarwithplatforms/websitesforpeopletopoolfundsintoagreatvarietyofprojectsandinterests?13.Haveyouhaveeverheardaboutorusedthecrowdfundingsiteguvern24.md?14.Wouldyouinvest/donanteintoprojectsinMoldovausingacrowdfundingplatform?

Ifyes,whatkindsofprojectswouldinterestyou?Ifnot,whywouldyouhesitatetodonate?

15.Ifinvesting,wouldyouliketohaveanorganization(public,privateormultilateral)bringyouvettedopportunitiesandletyouchoosefromthem(asifitwereafixedmenu)?Orwouldyouprefertodonatetotheorganizationingeneralandletthemadministerthefundsastheyseefit?

BringmescreenedandvettedprojectsIwouldn'tliketoinvestatall.I’dratherdonateandlettheadministerfundstothemostdeservingprojects

16.IfyouweretodonateyourmoneytofunddevelopmentprojectsinMoldova,whatkindofprojectsyouwouldliketosee?DIASPORAENGAGEMENT&HOMETOWNASSOCIATIONSHometownassociationsarelooselycreatedgroupsoflocalindividuals,whethermigrants,localcommunitymembersorboth,whocometogethertocreateandstrengthenbondstotheplacetheyarefrom,andtostartleveragingtheirresources,experienceandcontactstoadvanceacommongoalorobjective.Intermsofmigrationanddevelopment,theyhavefunctionedasarepresentativebodyofthecommunityofmigrants.17.ArethereanyMoldovandiasporaassociations/organizationsintheUSthatyouarefamiliarwith?18.WhatwouldmakeyoucomfortableandwillingtodonatethroughahometownassociationorthelocalMoldovanorganization/association?

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19.Arethereanyotherrolesyouthinkhometownassociationsordiasporaorganizationsshouldplay?20.Haveyoueverattendedanyconference/events/roadshowsheldforMoldovandiasporacommunities?

YesNo

21.Throughwhatchannelsdoyouusuallygetinformationregardingdiasporaevents/benefits/oranyotherinformation?22.Haveyoueverheardofanysuccessstoriesofdiasporamembers,oroftheirrelativesusingcrowdfundingplatformstostartabusinessorfundaproject?

YesNo

23.Ifyes,whatwastheprojectabout?ClosingQuestions24.IfIOM(InternationalOrganizationforMigration),theUNandtheMoldovanBureauofDiasporaRelationslaunchesaninitiativetomorrow,wouldyouconsidersupportingacrowdfundingplatformorprogramasawaytoinvestinthelocaldevelopmentofMoldova?Whyorwhynot?25.WouldyourecommendacrowdfundingplatforminplacetofostereconomicdevelopmentinMoldovatootherMoldovandiasporamembers?Yes/No

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AnnexE:MainCharacteristicsandPhasesofCrowdfundingModelsThefollowingflowchartoutlinesthethreemajorcategoriesofcrowdfundingplatforms,andtheircommonstepsintheprojectcycle.

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