SURDP NEWSLETTER January 2015 A quarterly newsletter published by Support to Ukraine s Regional Development Policy (SURDP) - a project funded by the European Union IN FOCUS ХIV International Economic Forum 'Vision 2020: Strategies for Countries, Regions and Business', 27-28 November 2014, Lviv The XIV International Economic Forum Vision 2020: Strategies for Countries, Regions and Business was held on 27-28 November 2014 in Lviv, Ukraine. The Forum was attended by about 300 participants, 50 speakers from 12 countries including investors, academicians, experts, business community, and authorised representatives of embassies, foreign delegations and international financial institutions. The event was organised by EU-funded Project Support to Ukraine s Regional Development Policy, Lviv City Council, Lviv Regional State Administration and Lviv Regional Council. The XIV International Economic Forum brought together many prominent speakers including Vyacheslav Nehoda, Deputy Minister for Regional Development, Construction, Housing and Communal Services of Ukraine, Graham Meadows, former Director-General, EC Directorate-General for Regional and Urban Policy (2003-2006), Colin Maddock, Team Leader, EU Project Support to Ukraine s Regional Development Policy, Philippe Cuisson, Member of Support Group for Ukraine in the EU, General Department of the European Trade Commission, Taras Kachka, Vice President for Strategic Development, American Chamber of Commerce in Ukraine, Andy Kuzich, Business Development Director, PwC Ukraine, James Wilson, Director, EU Ukraine Business Council, and Anatoliy Tkachuk, Advisor to Vice Prime Minister - Minister for Regional Development, Construction and Municipal Economy of Ukraine. Moreover, the Forum was attended by authorised representatives from Embassies of Poland, Slovakia, and Czech Republic to Ukraine, chief officials of consular sections in Lviv and business delegations from Germany and Slovakia. The Project experts took an active part in panel discussions: Decentralisation as an Instrument for Effective Public Governance System in Ukraine and Reform of the State Regional Policy. These discussions were focused on the most urgent regional development issues faced by Ukraine today. The XIV International Economic Forum discussed and adopted the Manifesto New State Regional Policy and Interregional Solidarity. The Manifesto calls upon chief officials of regional state administrations, city / town / village mayors, deputies of local councils and other stakeholders from different regions of Ukraine to become active change agents to promote Ukraine s integ- rity and common responsibility for Ukraine s future, to develop their regions, comfortable and safe environment for our people living in cities and villages. The text In this issue: EU helps to deal with the crisis in the East of Ukraine Approval of Regional Development Strategies in Ukraine s pilot regions REGIONET network continues to develop of the Manifesto is available on Project s website. At the plenary session Vision 2020: Strategies for Countries, Regions and This Project is implemented by a Consortium including:
2 SUPPORT TO UKRAINE S REGIONAL DEVELOPMENT POLICY JANUARY 2015 Business held on 28 November 2014, participants brainstormed on how to transform reform ideas covering different industries and sectors into Ukraine s Modernisation Strategy, multilevel governance and common political will to implement reforms and EU-Ukraine Association Agreement as a chance to change the country for the better. Verkhovna Rada of Ukraine adopts Law On Fundamentals of State Regional Policy The Law of Ukraine On Fundamentals of State Regional Policy has been adopted on 5 February 2015, by Verkhovna Rada of Ukraine. The Law On Fundamentals of State Regional Policy was drafted by the Ministry of Regional Development, Construction, Housing and Municipal Services of Ukraine in 2008 in close consultation with experts from EU-funded technical assistance projects. In fact, regional development laws adopted in 1991 through 2014 would have formed an integral and coherent system based on the list of regional development strategic and planning instruments, institutions which would have shaped and implemented the national regional development policy and related projects, identified and mobilised financial sources for regional development. However, today s laws and regulations adopted by the Government and the President of Ukraine appear to lack harmonization since they are based on controversial concepts, lay down different priorities and provide for different regulatory mechanisms. Since many tasks set forth by Ukraine s State Regional Development Strategy until 2015 (including reforms of the regional development management system, local self-governance and administrative-territorial system) have not been implemented, a robust, fully functional legal system has not been established to shape and implement the national regional development policy which could contribute to the step-bystep implementation of constitutional provisions to eventually ensure wellbalanced development of Ukraine s regions based on their specifics. Today, when the Law of Ukraine On Fundamentals of State Regional Policy is adopted, the essence of the state regional policy should be rethought and defined as sector-specific policies well-coordinated in space to enhance territorial integrity, overcome regional disparities and ensure adequate standards of living for everyone irrespective of his/her place of residence. The Law of Ukraine On Fundamentals of State Regional Policy lays down new regional development legal framework in Ukraine based on the best European practice and will trigger legislative changes to harmonise legal provisions applicable to regional policy implementation. Notably, with adoption of the Law of Ukraine On Fundamentals of State Regional Policy, the Government has met one of key performance indicators of Ukraine s Regional Policy Budget Support Programme for EUR 55 mln. http://w1.c1.rada.gov.ua/pls/radan_gs09 /ns_golos?g_id=605
JANUARY 2015 SUPPORT TO UKRAINE S REGIONAL DEVELOPMENT POLICY 3 REGIONET Network continues to develop The REGIONET Network launched in 2014 continues to develop in an active way. Professional communication among REGIONET members, partners and prospective consumers of their services is furthered. The Second REGIONET Meeting was held on 26 November 2014 in Lviv, Ukraine, to enhance communication within the Network and to better structure and plan the Network operation. The venue and timeframe of the Meeting coincided with the XIV International Economic Forum held on 27-28 November in Lviv. As a special preference, all members of the REGIONET Meeting were invited to visit the Forum. The Meeting was attended by 61 REGIONET members and representatives of 15 institutional partners plus 70 users who enjoyed live webcasting. As of today, 320 practitioners have submitted their application forms to join the selection process. Five new application forms have been submitted this month. The applicants represent all 27 regions of Ukraine. Thirty-three application forms (10%) have not been accepted due to non-compliance with selection criteria. Of 285 applicants with approved application forms, 134 members (47%) have already completed basic training and acquired the network member status. The remaining 151 applicants are candidates for participation in REGIONET. The majority of them have not completed their basic training yet. The REGIONET recruitment strategy was modified to some extent. Although our recent efforts have been mainly focused on general promotion of the Network, we now make our search more target-oriented and look for regional and community development practitioners who would share their best practice. Based on the findings of our search, we invite target groups or even specific experts to join the selection process. The Second REGIONET Meeting in Lviv, Ukraine, 26 November 2014 Our institutional partners whose circle tends to expand contribute to the development and expansion of the network with ever-growing number of experts and practitioners. For example, the Second REGIO- NET Meeting has been attended by five new prospective network partners. The REGIONET website (http://regionet.org.ua) tends to become the main platform for its current operation. The website is developed in cooperation with REGIONET members and partners in response to practical needs of the Network. REGIONET members have uploaded profiles of 116 products/services on different issues of regional and community development. The services described so far cover all aspects of development: business (12%), investments (10%), development instruments, resources, institutions (10%), projects (11%), strategies (10%), regional and local development (16%), governance (local self-governance, executive authorities) (6%), housing and communal services (2%), democracy (6%), media and communications (10%), international cooperation (3%), human resources (3%), and social services (1%). To promote closer and opener communication among network members, partners and experts, a Facebook closed group was set up - REGIONET Ukraine https://www.facebook.com/groups/regionet. Ninety-seven members have joined the group so far, and the FB group tends to grow. In view of professional interests of Network members and social significance of their services, REGIONET formed professional communities within the Network during the reporting period. Such communities will make REGIONET more specific, professional and efficient. Such efforts will ultimately make the Network more attractive for its members and users. The survey completed among Network members, followed by detailed discussions, has defined the list of key social and political issues, possible actions and training needs of every professional community. The second survey among Network members would select one key issue per community, so the communities could focus their efforts on resolving such matters for the next six months. REGIONET will actively develop during the next months. In particular, some events will be held at the network level while the others at the level of professional communities. Year 2015 is expected to be challenging and rich in events for REGIONET especially when
4 SUPPORT TO UKRAINE S REGIONAL DEVELOPMENT POLICY JANUARY 2015 the best practice in regional and local development becomes crucial for a country at its turning point. Therefore, the social demand for successful practitioners in regional and community development is expected to grow. For further information, please contact Ihor Abramyuk, REGIONET Coordinator info@regionet.org.ua, +38 050 374 95 25 Approval of Regional Development Strategies in Ukraine s pilot regions On 17 October 2014, Ivano-Frankivsk Regional Development Strategy 2020 was approved at the session of the Ivano-Frankivsk Oblast Rada. This is the first planning document developed in consultation with EU-funded project Support to Ukraine s Regional Development Policy. Five pilot regions have been selected in total (Ivano-Frankivsk, Kyiv, Poltava, Rivne and Sumy regions) to develop their strategies based on SURDP methodology (For more information, please click on Regional Development Strategies on our website: http://surdp.eu/en/rds). The Ciscarpathian Strategy 2020 sets four objectives for regional strategic development: to enhance economic strength and to develop tourism and recreation sector, rural areas and human resources. Kyiv Regional Development Strategy 2020 was approved on 5 December 2014 by the Kyiv Regional Council at its 44th session. This instrument was developed in line with all programming documents such as Government s political decisions to proceed with regional development reforms, the Law of Ukraine On Incentives for Regional Development, the Procedure for Elaboration, Monitoring and Assessment of Implementation of Regional Development Strategies, and Ukraine s State Regional Development Strategy 2020 approved by the Cabinet of Ministers of Ukraine (Resolution No. 385 dd. August 06, 2014). This instrument has three strategic objectives: Sustainable economic growth based on innovative development of multi-sector economy - High-quality living standards - Preservation and development of areas. Rivne region was the next pilot region which finalised its major planning instrument. Rivne Regional Development Strategy 2020 was approved on 18 December 2014. The Strategy has several focuses in regional development including mobilization of domestic and foreign investments, wider use of alternative energy and energy-efficient technologies, development of human resources, rural development and other objectives. Poltava region has taken up the baton. Poltava Regional Development Strategy 2020 obtained 71 votes in favour and was approved on 16 January 2015 at the plenary meeting of the Twenty-Sixth Extraordinary Session of the Poltava Regional Council. The Region s strategic objectives include development of human resources, more efficient use of regional economic capacity, and rural development. Sumy region is expected to be the next pilot region to adopt its development strategy. The final draft of Sumy Regional Development Strategy 2020 has been already presented and is to be approved by the Sumy Regional Council in the very near future. Unlike the preceding instruments, these Strategies will incorporate Action Plans, i.e. specific project ideas which may be initiated by expert community, civic society or local residents. EU-funded project Support to Ukraine s Regional Development Policy has provided expert, methodological and organizational support to help 5 pilot regions to elaborate their development strategies. To read Pilot Regional Development Strategies, please visit our website: http://surdp.eu/en/news/strategyapproval-5-pilot%20regions (text of Strategies in Ukrainian only).
JANUARY 2015 SUPPORT TO UKRAINE S REGIONAL DEVELOPMENT POLICY 5 European Union helps to deal with the crisis in the East of Ukraine In early October, the EU announced the allocation of 17 million to support communities affected by the ongoing conflict. Local governments individually or in cooperation with NGOs were encouraged to request grants for recovery purposes, which could total between 200,000 and 2 million. These funds are being distributed as part of the longterm programme, Support to Ukraine s Regional Development Policy (SURDP). I don t need to speak about the needs, which are very much beyond the available budget of Ukraine, but here we have means to support local governments with assistance, explains Berend de Groot, Head of Cooperation of the EU Delegation to Ukraine. This is non-repayable assistance ; local communities will receive these funds as grants, which they will not need to give back, explains Myroslav Koshelyuk, Ukraine s deputy minister of regional development. The program will help Ukraine in dealing with the current crisis situation, Ukrainian official says. Bernard De Groot and other EU Delegation experts explained the details of the application process to Ukrainian local authorities. To participate, local authorities had to submit an expression of interest and a project proposal by October 31, 2014, according to information at the EU Delegation to Ukraine web-site. The duration of each project must be between 6 and 18 months. At least 10% of the costs of the project proposal should be covered by the applicant from its own budget, says Dominik Papenheim, sector manager of the EU Delegation, adding that in exceptional and welljustified cases a waver might be considered. Tetiana Shulha, sector manager of the EU Delegation, explains that the assistance will focus primarily on infrastructure recovery (repairing and building temporary or permanent lodgings for internally displaced persons), access to public services (heating, water supply, electricity, healthcare, education, etc.), employment for internally displaced people, and the promotion of their economic activity in host communities. Another important part of the project is the reconciliation and peaceful coexistence of internally displaced persons within the host communities, Shulha says. The local governments of Kramatorsk, Slovyansk, Mariupol and other crisisaffected cities are especially encouraged to apply for the grants, says Shulha, adding that the programme will primarily focus on communities that have suffered from the conflict but that are now under the control of the Ukrainian authorities. Unfortunately, we cannot work in the area of anti-terrorist operation, she adds. Background Eligible authorities must submit a request for the available EU support, which can range from a minimum amount of 200,000 to a maximum of 2 million. The grant should be intended to cover at least 50% of the total eligible costs of the proposed project. At least 10% of the eligible costs must be sourced by the applicant from its own budget. In exceptional and well-justified cases, a waver to the latter condition might be considered. For more information, please, visit the announcement on the EU Delegation website. http://eeas.europa.eu/delegations/ukr aine/press_corner/all_news/news/201 4/2014_10_07_1_en.htm.
6 SUPPORT TO UKRAINE S REGIONAL DEVELOPMENT POLICY JANUARY 2015 EU supports Decentralisation and Regional Policy reforms in Ukraine with 55 millions On 27th November 2014 Commissioner for European Neighbourhood Policy and Enlargement Negotiations, Johannes Hahn, and Valery Pyatnitsky, Acting Minister of Economic Development and Trade of Ukraine, signedfinancing Agreement to launch a new programme "Support to Ukraine's Regional Policy". The programme will support Ukraine's Decentralisation and Regional Policy reforms with 55 million euros. The EU funds will support the implementation of the State Regional Development Strategy 2020, which was approved by the Government of Ukraine on 6th August 2014. Commissioner Hahn pointed out: By good chance, my first financing agreement with Ukraine is on a subject very close to my heart. As a former Commissioner for EU Regional Policy, I know how crucial this area is to the competitiveness and prosperity of any country. With this agreement, the EU commits to support Ukraine's Decentralisation and Regional Policy reforms. The EU funds will support all three objectives of the Ukrainian State Regional Development Strategy 2020, namely competitiveness of regions; territorial socio-economic cohesion and effective State Governance of Regional Development." Support to Ukraine's Regional Policy will result in improved Regional Policy legislation, the provision of stable and predictable financing for regions and municipalities, a strengthened financial autonomy of local authorities, higher competitiveness of regions and improved territorial socio-economic cohesion. The funds will be paid in four tranches to the Ukrainian State Budget between 2015-2018. Background Regional Development has been a priority in EU-Ukraine cooperation in the past six years. The EU has been supporting Regional Policy in Ukraine with various programmes and projects, the Support to Ukraine's Regional Policy being the most recent one, to be delivered through Budget Support, Technical Assistance and Twinning with Member States administrations. Regional Policy has become one of the most important policies also in the EU. It has brought significant and tangible results in areas such as infrastructure, job creation, innovation and reduction of disparities between different European regions. Cohesion Policy, as part of the Regional Policy, has played a key role for the 12 Member States that joined the EU in 2004 and 2007. Regional Policy covers 45 per cent of the EU's 2014 overall budget. For more information Delegation of the European Union to Ukraine: http://eeas.europa.eu/delegations/ukrai ne/press_corner/all_news/news/2014/2 014_12_02_01_en.htm Ukrainian delegation joined the 12th European Week of Regions and Cities in Brussels The European Week of Regions and Cities OPEN DAYS is one of major annual regional development events in Europe. It is a platform where government officials and representatives of local self-governments, experts and researchers from Europe s regions meet and share their best practice and know-hows in regional and urban development. In 2014, the European Week of Regions and Cities brought together some 6,000 representatives from Europe's regions and cities under the headline Grow together Smart investment for people. The Ukrainian delegation was represented by government officials and members of all-ukrainian associations of self-government bodies. In his welcoming word, Johannes Hahn, EU Regional and Urban Policy Commissioner, underlined the importance of the Solidarity Policy to achieve the targets in job creation and strengthening sustainable development process for the next decade. Ukraine and the EU Committee of the Regions have agreed to establish a joint working group to implement decentralization reforms in Ukraine. In particular, this working group would facilitate implementation of the reform and EU practical support to local governments. The Ukrainian Delegation demonstrated its commitment to make cooperation with the EU Committee of the Regions more active especially to implement joint projects focused on a stage-by-stage adaptation of the decentralization reform at the local level. For more information, please visit http://ec.europa.eu/regional_policy/ope ndays/od2014/index.cfm
JANUARY 2015 SUPPORT TO UKRAINE S REGIONAL DEVELOPMENT POLICY 7 Review Effectiveness of Actions to Support Depressed Regions in Ukraine Challenges and Opportunities is now completed For complete version of the review, please visit our website: http://surdp.eu/en/news/effectiveness-of- Actions-to-Support-Depressed-Regions. Review Effectiveness of Actions to Support Depressed Regions in Ukraine Challenges and Opportunities has been completed as part of EU-funded Project Support to Ukraine s Regional Development Policy. The objective of this review was to analyse current approaches to overcoming regional disparities and give recommendations to Ukraine s Government on how to implement more efficient mechanisms to address these challenges. The review had two major goals: - To present a comprehensive analysis of the Law and the current situation with depressed regions including interviews with key stakeholders - To develop an analytical report Effectiveness of Actions to Support Depressed Regions in Ukraine Challenges and Opportunities As a part of this Review, experts have analysed the Concept of State Regional Policy 2001, the Concept of State Regional Policy 2008, the Law of Ukraine On Incentives for Regional Development (2005), draft Law of Ukraine On Principles of State Regional Policy, and Ukraine s State Regional Development Strategy 2020 approved on 6 August 2014 by the Cabinet of Ministers of Ukraine. Regional and local development professionals wanted! Selection of professionals to join REGIONET is under way. Now, with the improved procedure, application forms may be submitted 24/7. Applications will be assessed for eligibility criteria within 15 days upon receipt. Based on assessment results and interviews with some prospective applicants, eligible professionals will become REGIONET candidates, could have their personal profile on the REGIO- NET website and join remote basic training (not limited in time). Upon successful completion of basic training, a candidate becomes a REGIONET Network participant. For more details about the selection procedure, please visit REGIONET website and click Join us button http://regionet.org.ua/ua/dolychutusya_10. html#page_title Regional Development Library is now fullyfunctional via SURDP website The Regional Development Library is a unique database containing information necessary for any stakeholder involved in the regional and urban development process in Ukraine. A user has access to information systematized by sections: General, Strategic Planning, Project Approach and Attraction of Investments. The RD Library offers e-books in Ukrainian, Russian and English and will be updated regularly. http://surdp.eu/rd-library The European Union is made up of 28 countries and the people of those countries. It is a unique political and economic partnership founded on the values of respect for human dignity, freedom, equality, the rule of law and human rights. Over more than fifty years we have created a zone of peace, democracy, stability and prosperity on our continent while maintaining cultural diversity, tolerance and individual freedoms. The EU looks to share its values and achievements with neighbouring countries and peoples and those farther afield.
8 SUPPORT TO UKRAINE S REGIONAL DEVELOPMENT POLICY JANUARY 2015 The EU Delegation has prepared the infographics in Ukrainian explaining how the EU, its institutions and Member States help regions and people, who suffer from the consequences of the conflict in Eastern Ukraine. The infographics focuses on major forms of this assistance, mentions major partners, through which it is delivered and provide the detailed breakdown of these amounts. View the original inal size: http://surdp.eu/en/news/eu- assistance-for-ukraine-helping-- to-deal-with-the-crisis-in-the-east