Participatory Governance in Rural Development: Evidence from Ukraine

A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Kvartiuk, Vasyl Research Report Participatory governance in rural development: Evidence from Ukraine Studies on the Agricultural and Food Sector in Transition Economies, No. 78 Provided in Cooperation with: Leibniz Institute of Agricultural Development in Transition Economies (IAMO), Halle (Saale) Suggested Citation: Kvartiuk, Vasyl (2015) : Participatory governance in rural development: Evidence from Ukraine, Studies on the Agricultural and Food Sector in Transition Economies, No. 78, ISBN 978-3-938584-84-2, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), Halle (Saale), http://nbn-resolving.de/urn:nbn:de:gbv:3:2-50273 This Version is available at: http://hdl.handle.net/10419/123504 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Vasyl Kvartiuk • Participatory governance in rural development in rural • Participatory governance Kvartiuk Vasyl In der Schriftenreihe Studies on the Agricultural and Food Sector in Transition Economies werden durch das IAMO Monographien und Studies on the Agricultural and Food Sector Tagungsberichte herausgegeben, die sich mit agrarökonomischen in Transition Economies Fragestellungen zu Mittel- und Osteuropa beschäftigen. Wissen- schaftlern,In der Schriftenreihe die in diesem Studies Bereich on fo therschen, Agricultural steht die and Schriftenreihe Food Sector als in DiskussionsforumTransition Economies offen. werden durch das IAMO Monographien und Tagungsberichte herausgegeben, die sich mit agrarökonomischen Fragestellungen zu Mittel- und Osteuropa beschäftigen. Wissen- Inschaftlern, its series dieStudies in diesem on the Bereich Agricultural forschen, and stehtFood dieSector Schriftenreihe in Transition als Vasyl Kvartiuk EconomiesDiskussionsforum IAMO publishes offen. monographs and proceedings focusing on agricultural economic issues specific to Central and Eastern Europe. Participatory governance in rural development This series offers a forum to researchers studying this area. In its series Studies on the Agricultural and Food Sector in Transition Evidence from Ukraine Economies IAMO publishes monographs and proceedings focusing on agricultural economic issues specific to Central and Eastern Europe. This series offers a forum to researchers studying this area. Leibniz Institute of Agricultural Development in Transition Economies ISSN 1436-221X ISBN 978-3-938584-84-2 ISSN 1436-221X ISBN 978-3-938584-84-2 78 Participatory governance in rural development Evidence from Ukraine Studies on the Agricultural and Food Sector in Transition Economies Edited by Leibniz Institute of Agricultural Development in Transition Economies IAMO Volume 78 Studies on the Agricultural and Food Sector in Transition Economies Participatory governance in rural development Edited by Leibniz Institute of Agricultural Development Evidence from Ukraine in Transition Economies IAMO Volume 78 by Vasyl Kvartiuk IAMO 2015 Bibliografische Information Der Deutschen Bibliothek Die Deutsche Bibliothek verzeichnet diese Publikation in der Deutschen Nationalbibliografie; detaillierte bibliografische Daten sind im Internet über http://dnb.ddb.de abrufbar. Bibliographic information published by Die Deutsche Bibliothek Die Deutsche Bibliothek lists the publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available in the internet at: http://dnb.ddb.de. This thesis was accepted as a doctoral dissertation in fulfillment of the require- ments for the degree "rerum politicarum" by the Faculty of Law and Economics at Martin Luther University Halle-Wittenberg on 23.01.2014 Date of oral examination: 30.06.2014 Supervisor and Reviewer: Prof. Dr. A. Balmann Co-Reviewer: Prof. Dr. C. Becker Co-Reviewer: Prof. Dr. M. Petrick Diese Veröffentlichung kann kostenfrei im Internet unter <www.iamo.de/dok/sr_vol78.pdf> heruntergeladen werden. This publication can be downloaded free from the website <www.iamo.de/dok/sr_vol78.pdf>. 2015 Leibniz-Institut für Agrarentwicklung in Transformationsökonomien (IAMO) Theodor-Lieser-Straße 2 06120 Halle (Saale) Tel.: 49 (345) 2928-0 Fax: 49 (345) 2928-199 e-mail: [email protected] http://www.iamo.de ISSN 1436-221X ISBN 978-3-938584-84-2 AKNOWLEDGEMENTS It is an exciting day when after most of the hard work on this monograph is done I can finally draw attention to the special people who made it a reality. Three years ago I could only dream about this day and now I cannot believe that I am at the point of this accomplishment. Here I would like to point out all the individuals who helped making this possible. First of all, I distinguish separately my supervisor, colleague and friend Dr. Jarmila Curtiss whose support and advice made this study possible. My deepest gratitude goes to her! Not only she invested enormous efforts in reviewing my work along with spending long hours of constructive and motiva- ting discussions but also she gave me moral support during the hard times of the PhD experience. Jarmila has been a role model for me in professionalism, persistence, motivation and social competence. Furthermore, I would like to thank Prof. Dr. Alfons Balmann and PD Dr. Vladislav Valentinov for providing me an opportunity to work on my PhD dissertation in the Leibniz Institute of Agricultural Development in Transition Econo- mies (IAMO). I appreciate the fantastic working conditions that were made available to me. It is imperative to distinguish Jun.-Prof. Dr. Martin Altemeyer-Bartscher, Dr. Claudia Becker, Prof. Dr. Thomas Herzfeld and Prof. Dr. Martin Petrick who provided remarkable support at the final stages of the dissertation. This dissertation would not be possible without great efforts of these colleagues. Separate thanks goes to the IAMO administration for doing a great job assisting with complicated logistics of this study and contributing to the wonderful atmosphere in the institute. I would like to distinguish Angela Scholz, Gabriele Mewes and Heike Lehmann for their great help with organization of logistics for the data collection in Ukraine. Work in IAMO and living in Halle would not be as fantastic as it is without my colleagues and dear friends Aaron, Diana, Giorgi, Gulmira, Ilkay, Ivan, Katharina, Markus, Nizami, Suhaib, Viola, Zigggi, and many others who have made the PhD experience superb. I would like to especially thank Carla for being there for me and making this period of my life unforgettable. Last but not least, I would like to express my endless gratitude to my family for a great support and patience. ii Acknowledgements The dissertation was prepared with generous financial support from the Volks- wagen Foundation within the framework of the Schumpeter Fellowship granted to PD Dr. Vladislav Valentinov on "Third Sector Organizations in Rural Develop- ment: Theoretical and Empirical Analysis". Vasyl Kvartiuk December 2014 ABSTRACT This study deals with the current challenges of participatory governance and community-driven development (CDD) in the transition countries of the Former Soviet Union (FSU). Despite the fact that these approaches were developed in the early 90s major development agencies initiated their implementation in the FSU transition countries over a decade later. Until now there have been no major studies examining the impact of participatory and community-based approaches in this context. Particular features of the FSU transition countries including centralized governance systems along with the specificity of the population’s beliefs and mental models may introduce additional challenges in the participatory governance arrangements and implementation of the CDD projects. It is, thus, of an imperative importance to understand the scope of the newly created governance arrangements within these frameworks and evaluate their impact on local development goals. In order to approach this objective this study utilizes Ukraine as a case study representative of the broader spectrum of the FSU countries. Furthermore, I, first, provide a detailed literature overview of local public finance situation in Ukraine in conjunction with existing governance arrangements in the context of local public goods provision. It appears that Ukrainian governance structures up to this day follow Soviet hierarchical scheme when there is a strict subor- dination between the governmental tiers which can interfere in the affairs of the lower ones due to poorly defined jurisdictions. Consequently,

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