UKRAINE CONFIDENCE BUILDING INITIATIVE II

SEMI-ANNUAL REPORT OCTOBER 2017 – MARCH 2018

SWIFT IV IQC AID-OAA-I-14-00006 TASK ORDER AID-OAA-TO-17-00009

APRIL 2018

This publication was produced for review by the United States Agency for International Development. It was prepared by Chemonics International Inc. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

CONTENTS

ACRONYMS ...... ii PROGRAM DESCRIPTION ...... 1 UCBI II Program Areas ...... 1 NATIONAL AND REGIONAL COUNTRY CONTEXT ...... 3 GRANTS SUMMARY...... 6 ACTIVITY HIGHLIGHTS ...... 7 Objective 1: Increase acceptance of the Ukrainian civic identity based on common values ...... 7 Objective 2. Broaden participation in Ukraine’s reform process ...... 11 Objective 3. Build trust and acceptance of objective pro-reform information ...... 13 PROGRAM EVALUATION ...... 15

i UKRAINE CONFIDENCE BUILDING INITIATIVE II SEMI-ANNUAL REPORT, OCT 2017-MAR 2018 ACRONYMS

ASC Administrative Service Center CoR European Committee of the Regions CSC City Services Center DDGS Direct Distribution of Goods and Services EU European Union FAA Fixed Amount Award FMR Final Monitoring Report IMF International Monetary Fund IT Information Technology M&E Monitoring and Evaluation NGO Non-Governmental Organization NSDC National Security and Defense Council of Ukraine OSBB Apartment Building Co-Owners Association OTI Office of Transition Initiatives PDA Program Development Assistant PDO Program Development Officer RA Rolling Assessment SCORE Social Cohesion and Reconciliation Index SeeD Centre for Sustainable Peace and Democratic Development SO Sub-Objective STTA Short-Term Technical Assistance UCBI II Ukraine Confidence Building Initiative II USAID United States Agency for International Development

ii UKRAINE CONFIDENCE BUILDING INITIATIVE II SEMI-ANNUAL REPORT, OCT 2017-MAR 2018 PROGRAM DESCRIPTION

In April 2017, USAID’s Office of Transition Initiatives (OTI) launched the second phase of the Ukraine Confidence Building Initiative (UCBI II) project focusing on Ukraine's historic democratic transition. While the government has implemented some national level reforms since 2014, threats such as political and social division, an unstable economy and malign Russian influence continue to effect national unity and successful implementation of further reform. The UCBI project was established to complement USAID’s ongoing efforts to support a successful democratic transition and promote national cohesion in the wake of the conflict in the East. The goal of UCBI II is to contribute to efforts that ensure eastern Ukraine has greater confidence in Ukraine’s democratic reform process and European integration. In the past six months, the UCBI II program has expanded visible and tangible public service delivery improvements in eastern Ukraine, galvanized reform and made local government decision making more transparent and inclusive. UCBI II has provided citizens with opportunities to play a more productive role in their communities by supporting civil society efforts to hold the government accountable and by using media as a platform to better disseminate balanced information and amplify public awareness and the impact of reforms. This approach has required significant and ongoing dialogue with host authorities and communities both in and in the regions. UCBI II assistance comes in the form of small, in-kind grants (goods, services, and technical support) and fixed amount awards (FAAs) to a range of partners, including national and local civilian government entities, civil society organizations, and community leaders. UCBI II provides targeted assistance in order to:

● Increase acceptance of a Ukrainian civic identity based on common values; ● Broaden participation in Ukraine’s reform process; and ● Build trust and acceptance of objective pro-reform information.

UCBI II PROGRAM AREAS To achieve program goals, the team has identified three objectives and associated sub-objectives that target critical areas where OTI has a comparative advantage among international donors because of the project’s ability to implement fast and flexible programming. UCBI II’s programming is guided by analysis of local dynamics and geographic regions and activities addressing each sub-objective vary based on the assessed needs and opportunities. The strategic framework prioritizes the following program areas:

1 UKRAINE CONFIDENCE BUILDING INITIATIVE II SEMI-ANNUAL REPORT, OCT 2017-MAR 2018

During the period of October 2017 – March 2018, UCBI II deepened its geographic focus in Donbas ( and Luhansk oblasts) and occasionally supported activities in the neighboring Khakivska, Zaporozka, and Dnipropetrovska Oblasts.

2 UKRAINE CONFIDENCE BUILDING INITIATIVE II SEMI-ANNUAL REPORT, OCT 2017-MAR 2018 UKRAINE NATIONAL AND REGIONAL COUNTRY CONTEXT

NATIONAL Ukraine's Donbas reintegration law enters into force February 24, 2018 Law No. 7163 on special aspects of state policy to ensure Ukraine's state sovereignty in temporarily occupied areas in Donetsk and Luhansk regions (known as the Donbas reintegration law) was adopted by Ukraine's parliament, the , on January 18, 2018. The law was signed by Ukrainian President on February 20 and entered into force on February 24. The Donbas reintegration law recognizes Russia as an aggressor state carrying out temporary occupation of parts of Ukrainian territory. The law also places responsibility on Russia for moral, financial, or physical damage inflicted on the state of Ukraine, including state authorities and citizens. Additionally, the law gives more power to the , allowing him/her to launch and complete measures to ensure national security and to defend, repel, and deter Russia's armed aggression in Donetsk and Luhansk. Since the law has entered into force, President Poroshenko has emphasized that Ukraine remains "committed to the peaceful settlement of the problem of the liberation of the occupied territories". In March, President Poroshenko announced the completion of the Anti-Terrorist Operation in Donbas and transition to the Joint Forces Operation.

Anti-corruption activists start filing annual asset declarations In March 2017, President Poroshenko passed legislation requiring anti-corruption activists to electronically post detailed income and asset declarations annually, identical to those of government officials the first reporting deadline is April 1, 2018. Activists critical of the government who are subjected to asset declaration requirements have accused the government of using the new regulation to penalize civil society for advocating for government officials to file detailed asset declarations in 2016, which has exposed many politicians and top civil servants’ extravagant wealth. Anti-corruption activists have also voiced concern that declaring their assets could be used as grounds for the government to discredit their work or be used as potential justification for fabricating administrative and criminal cases against them. When the bill was circulated in 2017 prior to passage, it was immediately criticized by the European Union (EU), the Council of Europe, Transparency International, and Freedom House. Since its passage, the law has been regarded as an obstruction to the achievements Ukraine has made in the fight against corruption and as an attempt to intimidate civil society and the significant role it has played in the reform process. The Ukrainian government has repeatedly promised to cancel the income and asset e-declarations requirement for civil society activists but has taken no action to date.

Poroshenko enacts additional measures to counter Russian propaganda Since 2013, Russian media has been disseminating anti-Ukrainian propaganda, which helped set the ground for Russian intervention in Donbas. In response, the Ukrainian government has been monitoring Russian media and sending reports to national security services tasked with closing

3 UKRAINE CONFIDENCE BUILDING INITIATIVE II SEMI-ANNUAL REPORT, OCT 2017-MAR 2018 propaganda outlets in an attempt to limit Russian propaganda. In the last three years, 77 out of 82 Russian TV channels in Ukrainian broadband networks were closed, leaving five channels operational. However, according to the First Deputy Minister of Information Policy in Ukraine, Emine Dzhaparova, Russia is countering Ukrainian actions by broadcasting at least three pro- Russian Ukrainian-language TV channels in their cable broadband networks covering eastern Ukraine. Moreover, Russians and their proxies have turned Ukrainian communications infrastructure into a disinformation tool. “In 2014, when Russians occupied Crimea and went to Donbas, they occupied Ukrainian towers and Ukrainian frequencies and brought Russian propaganda media to Ukrainian frequencies,” Ms. Dzhaparova explained. According to her, there is an urgent need to bring a Ukrainian voice to the region.

During the reporting period, President Poroshenko enacted a January 26, 2018 decision by the National Security and Defense Council of Ukraine (NSDC) to introduce additional measures to counteract Russia's propaganda aggression. Under the order, the Secretary of the NSDC is authorized to oversee the implementation of the decision by the NSDC.

President signs laws to facilitate development of movie production in Ukraine In December 2017, President Poroshenko signed both the law On Amending the Customs Code of Ukraine on State Support for Cinematography in Ukraine and the law On Amending the Tax Code of Ukraine on State Support for Cinematography in Ukraine. During a meeting with representatives of national television and movie industry, President Poroshenko noted that the law was designed to provide continued support to produce national films, develop the industry, and integrate Ukraine into the world moviemaking space. In the fourth year of a hybrid conflict in eastern Ukraine, this support to the movie industry is part of the country’s strategy to win the hearts and minds of its citizens.

Ukraine adopts crucial healthcare reform On October 19, 2017, the Verkhovna Rada approved the draft law No. 6327 On state financial guarantees for the provision of medical services and medicines in the second reading despite fierce internal opposition. As stated by the healthcare ministry ahead of the vote, the passage of the reform is “a positive sign that Ukraine is moving in the right direction and making progress towards becoming a European country.” The International Monetary Fund (IMF) and Ukraine’s western supporters have backed these health reforms, and the successful vote signaled that Ukraine’s pro-western leadership remain capable of pushing forward with reform efforts, despite growing worries about its commitment and stability.

In the new law, the state guarantees its citizens’ full payment of healthcare services and medications – replacing the remnants of a Soviet system that left Ukraine with one of the highest mortality rates in Europe. To date, a large share of healthcare funding is inefficiently spent and pocketed by vested interests along layers of bureaucracy, leaving few resources for care and medical professionals’ salaries. Patients are often forced to make illegal cash payments to underpaid doctors. With the new law, officials say “financing will follow patients” covered by state medical insurance, and patients will now choose their primary care doctors. As a result, doctors that service more patients will see a boost in earnings.

4 UKRAINE CONFIDENCE BUILDING INITIATIVE II SEMI-ANNUAL REPORT, OCT 2017-MAR 2018 EU, Ukrainian local governments establish partnerships to support decentralization reform On March 8, the EU increased its support to local and regional authorities in Ukraine with the launch of five partnerships between Ukrainian and EU regions and cities. Estonian, German, Hungarian, Lithuanian and Polish communities will share their experience in areas identified as priorities by their Ukrainian partners – drawing up economic-development plans, supporting rural areas, helping small and medium-sized enterprises, boosting tourism, and increasing transparency, the European Committee of the Regions (CoR) reports. The initiative is a part of a broader effort by the CoR to support the decentralization of power in Ukraine, a process that began in April 2014 and consists of a consolidation of local governments, an increase in their funding and the transfer of more authority to them.

DONETSK AND LUHANSK OBLASTS New service center of the Ministry of Internal Affairs In February 2017, a new, modern and “transparent” service center of the Ministry of Internal Affairs was opened in Staroblisk, the third service center established in Luhansk region.1 The service center will provide citizens with more than 100 services, including registration and re- registration of a car, replacement and issuance of driver's licenses, and criminal record certificates. Two noteworthy innovations of the service center are the capacity to respond to online requests for criminal record certificates and an online traffic rules practice test. More than one million hryvnias were allocated from the regional budget and the Ministry of Internal Affairs of Ukraine.

Bakhmut to join the e-Health system will be the first in the Donetsk region to join the Ukrainian electronic healthy (or e- Health) system. The goal of the e-Health system is to transfer all documents and processes of interaction in the healthcare sector from paper to electronic formats. The project currently in the final stage of implementation: the new hardware and network infrastructure, inclusive of a service system backup, has been installed in Bakhmut, which will connect all the medical institutions of the city to each other.

Donbas decentralization challenges Thus far, only nine of 42 planned amalgamated communities have been established in Donbas – a process which began in 2015. In communities that have amalgamated, elected officials stress the positive effects of this on their communities; for example, during a forum in November 2017, newly elected officials of the amalgamated communities announced that the allocation to their local budgets had doubled because of the amalgamation process, and that the community was now able to decide how to spend the local budget independently from the central government. However, in locations where new territorial communities have not yet formed, communities are resisting decentralization reform. The central government has said that they will forcibly carry out the amalgamation process if it is not finalized by the end of 2018.

1 According to the Regional Service Center of the Ministry of Internal Affairs in the Luhansk region

5 UKRAINE CONFIDENCE BUILDING INITIATIVE II SEMI-ANNUAL REPORT, OCT 2017-MAR 2018 GRANTS SUMMARY

Between October 1, 2017 and March 31, 2018, UCBI II initiated a total of 43 activities, including sub-grants, short-term technical assistance (STTA), and direct distribution of goods and services (DDGS) for a committed total of $2,655,548.96.

9 9

7 7

6

5

Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18

Figure 1 Number of grants cleared: October 2017 - March 2018

$533,453.80 $506,707.36 $490,789.59 $479,766.05

$367,677.48

$277,154.68

Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18

Figure 2 Dollar amount of grants cleared per month, October 2017 - March 2018

6 UKRAINE CONFIDENCE BUILDING INITIATIVE II SEMI-ANNUAL REPORT, OCT 2017-MAR 2018 ACTIVITY HIGHLIGHTS

UCBI II works primarily in eastern Ukraine, focusing on population centers in the regions close to the conflict which have been targeted by external aggression. The primary focus of the program is the government-controlled areas of Donetsk and Luhansk oblasts, while also seeking to access people across the line of contact through activities. During the reporting period, the project issued grants to non-government organizations (NGOs), civic initiatives, state and local authorities, and other organizations on the international, national, and local levels. UCBI II activities work towards the following objectives:

OBJECTIVE 1: INCREASE ACCEPTANCE OF THE UKRAINIAN CIVIC IDENTITY BASED ON COMMON VALUES Expanding engagement in modern Ukrainian culture and common values among more diverse groups: UCBI II works to build and strengthen a community of young, reform-orientated Ukrainians in eastern Ukraine. This community has organized around the civic values of social engagement, creativity, innovation, tolerance and respect, and is the core of a growing pluralism noted in the Social Cohesion and Reconciliation Index (SCORE).

Creative spaces and hubs in eastern Ukraine: There are more Russian-leaning residents in Ukraine’s Donbas region than in other regions, and many are skeptical of the country’s direction. The population is aging, and there are few opportunities for young people who can be drivers of reform across Ukraine. To address these issues, UCBI II has helped to establish a network of creative spaces in the East where young, reform-minded Ukrainians can participate in activities that help foster their Information Technology (IT) skills, incubate small businesses, and come together to improve public spaces in their cities. These hubs and creative initiatives also serve as resource centers for activists and youth through the organization of training, workshops, and community development initiatives.

During the reporting period, UCBI II worked with a youth hub in Kramatorsk to provide workshops on topics such as entrepreneurship, leadership and team-building; support cultural events and study tours to learn about social activism; and create volunteer opportunities for young people interested in getting involved in their community. A team of volunteers was drawn together by a UCBI grantee to provide different kinds of assistance to the most vulnerable families in the community – for example repairing a family’s kitchen and brick oven. This small youth hub’s sub-activity has inspired 15 volunteers to provide much needed relief to four families in the Kramatorsk area. These initiatives help expand the community of people who embrace tolerant civic values in areas most skeptical of Ukraine’s transition.

UCBI II success with volunteer camps: Recent interviews by an independent research firm indicate that most participants of a series of volunteer camps have already and intend to continue volunteering in their community beyond the scope of the UCBI II-supported initiative. The UCBI II partnership with the grantee mobilized hundreds of volunteers from eight locations across Ukraine to revitalize public spaces or help vulnerable members of the community. Many of the

7 UKRAINE CONFIDENCE BUILDING INITIATIVE II SEMI-ANNUAL REPORT, OCT 2017-MAR 2018 participants traveled to other parts of the country to demonstrate the power that youth leadership and teamwork can have in building a Ukrainian unity.

Social innovation festival: During the reporting period, UCBI II continued working with local organizations in Ukraine to implement a series of cultural and activism activities in the East aimed at exposing people to Ukrainian culture and igniting social engagement. In , UCBI II supported a social innovation festival with a proven format of combining a cultural program with a platform for innovative exchange of ideas on social and civic activism. The festival was designed to build networks and inspire civic engagement amongst young Ukrainians. From late September through December 2017, the grantee organized a festival for social innovation and alternative music that took place from December 01 – 03, 2017, accompanied by ten promotional Plan B Festival in Kharkiv, December 2017 events in Kharkiv, Dnipro, Lviv, and Bakhmut as well as a broad media outreach campaign. Approximately 1,500 people attended the festival’s day programs, while approximately 4,000 people attended the night programs.

The results from 35 interviews conducted by an independent research firm indicate the festival had the desired effect on many attendees. Two-thirds of attendees interviewed indicated they saw new opportunities for civic engagement in their community as a result of the festival, while half of the interviewees reported feeling personally empowered to change something in their community because of their festival experiences.

Showcasing creative community revitalization in the East: Working with local NGOs, UCBI II has engaged communities in eastern Ukraine in developing new, creative visions for the future development of their cities. Program activities have helped activate the creative potential of local communities and supported urban and cultural development efforts while fostering cooperation amongst government officials, entrepreneurs, activists and NGOs. Grantees have analyzed different aspects of various cities’ identity, culture and urban development – using a variety of methods including desk research, interviews, mapping and touring – to identify potential improvements related to city efficiency, public spaces and communication. th On February 8 , UBCI II collaborated with a UTOPIA Exhibition “Transformation of Kyiv-based NGO to open a new art exhibit in the Ukrainian East” Kyiv featuring art installations that tell the

8 UKRAINE CONFIDENCE BUILDING INITIATIVE II SEMI-ANNUAL REPORT, OCT 2017-MAR 2018 story of the improvement efforts that have been ongoing in six communities in eastern Ukraine over the past year. Approximately 400 people attended the opening event of the exhibit, which included discussion around the installations. This activity made progress on UCBI’s goal of building a creative, tolerant community of forward-leaning activists to revitalize culture and break down regional stereotypes.

Support to OSBB reform efforts: continues to be a leader in reform and civic engagement – not only in the Donbas, but nationally. For example, in 2006, Ukraine’s parliament approved the creation of private, citizen-initiated housing associations, known in Ukrainian as Apartment Building Co-Owners Associations (OSBBs) as an alternative to management by government- contracted management companies that were known for their corruption and inefficiency. The OSBB management model stimulates citizen engagement in managing local affairs and is an important step in democratizing local governance. In 2015, a law was passed requiring all apartment owners in multi-apartment buildings to decide on how to manage the communal spaces of their buildings and adjacent territory. Since 2016, UCBI has been encouraging the conversion of high-rise building management to the community-led OSBBs to remain in compliance with national law and to take advantage of this option. With UCBI’s assistance, Mariupol is now rated second nationwide in the number of conversions to OSSBs, having converted building management over to 500 OSBBs.

In January, UCBI II supported a friendly courtyard beautification competition, which brought together OSBB activists and neighbors to decorate Mariupol courtyards with light displays. Over 100 individuals from OSBBs in Mariupol registered to participate. By providing OSBB registrants with interactive and entertaining opportunities to engage with each other, this activity resulted in establishment of new relationships between OSBB activists and neighbors; improved cohesion, mutual support and cooperation among Mariupol community members; and increased citizen involvement in social activism by. Further, the activity emphasized the value of grass-root initiatives, and community members expressed their readiness to contribute to activities in the future. Finally, the activity contributed to OSBB reform promotion efforts, increasing people’s loyalty to civic initiatives, interaction with local authorities and reducing paternalistic attitudes to the government.

Improve optimism about the economic transformation among key stakeholders: Anxiety about the future of the economy is resoundingly the main concern in the Donbas region – influencing opinions about the direction of the country. To counter this, UCBI II is empowering young people, universities, and forward-leaning local governments to present a new vision for the economy, based on the values of innovation, Holiday Fair "Malanka Fest" self-reliance, and entrepreneurship. Social entrepreneurship fair: With support from UCBI II, an NGO and youth center organized the first social entrepreneurship fair in Kostyantynivka, on January 20, 2018. The fair

9 UKRAINE CONFIDENCE BUILDING INITIATIVE II SEMI-ANNUAL REPORT, OCT 2017-MAR 2018 attracted hundreds of residents to learn about new businesses in their community, and some businesses sold food and souvenirs at the fair. The festival also included music and theater performances, which helped to draw crowds and generate enthusiasm for the event in the small city. Participants, volunteers and attendees of the event expressed excitement at the success of the event and view it as opening new possibilities for entrepreneurship and volunteerism. Innovation hubs to support entrepreneurship in the East: To help encourage more people to engage in the opportunities offered by the innovation economy in Ukraine, UCBI II supported the establishment of two new creative entrepreneurship hubs in Kramatorsk and . These hubs are designed to help nurture and support to residents who are starting or exploring creative small businesses. In addition to offering co-working space and some specialized equipment, the hubs have the capacity to conduct comprehensive training, learning, and event networking, and have engaged nearly 500 existing and prospective entrepreneurs in becoming part of the innovation economy in northern Donetsk oblast. Through this activity, the grantee is promoting and improving optimism about the economic transformation among key stakeholders in northern Donetsk oblast, and increasing interest among young Ukrainians in becoming part of Ukraine’s innovation economy.

10 UKRAINE CONFIDENCE BUILDING INITIATIVE II SEMI-ANNUAL REPORT, OCT 2017-MAR 2018 OBJECTIVE 2. BROADEN PARTICIPATION IN UKRAINE’S REFORM PROCESS Improve local government service delivery in key reform areas: While the slow pace of reforms frustrates Ukrainians across the country, eastern Ukrainians are most skeptical that the agenda set off by the Maidan will result in tangible improvements. Opinion polls show that they are the least willing to sacrifice for reforms and most dissatisfied with the efforts of national leaders. Demonstrating reform in these parts of Ukraine is essential to ensure that the East is supportive of the direction of the country toward European integration.

Support to Administrative Service Centers: UCBI II is linking eastern Ukrainians to their government in positive ways by helping local authorities provide improved and more transparent streamlined services to its constituents through improved Administrative Service Centers (ASCs). Improved experience at ASCs – including improved business processes to reduce wait time, automation of payment to reduce corruption, and improved customer service – is a way to demonstrate tangible advances by local government to its citizens. More than one million people are using UCBI II-supported

ASCs annually.

During the reporting period, the program conducted an evaluation of the effectiveness of UCBI’s support to ASC service delivery improvement and the effect of ASC improvements on perceptions of the reform process through a local service firm. According to results of a survey conducted in January 2018, 80% of customers report an improved experience with the ASCs supported by in eastern Ukraine. Those that have used the new ASCs in the Donbas are 40% more likely to say service delivery by local authorities has increased compared with non-users. In cities with new ASCs, most residents indicate the new ASCs are the preferred method of securing administrative services over other available options. Moreover, over 60% of interviewees gave credit to either “local authorities” or the “government” for new ASCs, which

11 UKRAINE CONFIDENCE BUILDING INITIATIVE II SEMI-ANNUAL REPORT, OCT 2017-MAR 2018 indicates UCBI II’s success in improving citizen confidence that the government is making progress on the reform agenda.

Establishment of City Services Center and competencies assessment center: UCBI helped launch the first Mariupol ASC in 2016, which serviced nearly 200,000 residents in its first year and provided physical evidence that reform is taking place at the local level. Building on the success of this ASC, the Mariupol City Council – with financial assistance from the Mariupol Development Fund – decided to launch a second city services center (CSC) together with Ministry of Interior in Donetsk region to further expand citizens’ access to efficient governmental services. In addition to the 190 services currently provided by the ASC, the CSC provides services related to vehicle registration, issuance of driving licenses, transport technical inspection, certificates of The new City Services Center in Mariupol non-conviction. Through a limited scope in- kind grant, UCBI II helped the Mariupol City Council to increase and efficiently deliver basic government services by equipping the new CSC with furniture to support 30 workspaces for CSC staff. This activity, complemented by customer service and standards training for CSC staff, aimed to improve perceptions about the delivery of basic government services and transparency in Mariupol. During the first two months of operation, the CSC has served almost 7,300 customers. CSC staff have conveyed about their enhancement and efficiency in operational processing after their training on customers services standards. Also, they acknowledged that their professional responsibility increased because they feel they are reform implementers.

During the reporting period, UCBI II also supported the launch of the competencies assessment center, with a goal of assessing, recruiting and training civil servants based on a pilot assessment and training program for 150 present and prospective civil servants, teachers/school administrators in Mariupol. The project also aims to advocate for the institutionalization of a new assessment approach for all civil servants across municipal institutions in Mariupol that will improve the quality of services delivered. The assessment with an accuracy of almost 90% allows local governments to assess the competency of a candidate. Thus, the employee's strengths are revealed, which makes it possible to create professional development plans. The municipality of Mariupol is the only one in Ukraine to use this methodology. Increase perception of citizen oversight/participation in local government decision making: A new class of civil society has emerged in the target communities and is changing perceptions of the role of citizens in government decision making. UCBI II continues to engage with these groups and aid them achieve visible and relevant victories, simultaneously enhancing their credibility and reach.

Increased transparency of city council meetings and votes: During the reporting period, UCBI II launched a new initiative to provide seven city councils in Donetsk and Luhansk Oblasts with electronic voting systems and digital video recording equipment. Electronic voting equipment

12 UKRAINE CONFIDENCE BUILDING INITIATIVE II SEMI-ANNUAL REPORT, OCT 2017-MAR 2018 allows city councils to quickly tabulate votes and post results on their websites to increase transparency and accountability. The video equipment permits for discussions on the chamber floors to be televised live or archived online for public use. This new initiative builds on the appreciation expressed by citizens and council members for similar packages of equipment provided to four cities in 2016, improving the transparency, accuracy and awareness among residents of local government decision-making.

Increase citizen understanding of reform among key groups: Local governments in eastern Ukraine are demonstrating improvements in services for their citizens as well as greater transparency in decision making. However, these improvements are not being linked to the broader reform effort, and greater efforts to communicate this are needed in order for eastern Ukrainians to feel that their country is moving in the right direction.

Trainings for OSSBs: The OSBB is the most effective means for ensuring that housing owners preserve housing stock and create energy efficient improvements essential for more comfortable living conditions. However, OSBBs often lack the legal and technical knowledge as well as skills necessary for effectively supporting their housing association operations. Through an in-kind grant, UCBI II supported a series of trainings and activities to representatives of OSBBs on how to manage efficiently their housing stock, resulting in modernized and cost-effective buildings. For example, OSBB representatives are learning to make their buildings more energy efficient and how to apply for state loans to finance such improvements, which results in reducing Training for OSBB representatives in Bakhmut residents’ costs. The grantee also plans to gather participating OSBBs, municipal officials, and others interested from the region to discuss energy efficiency improvements. As a result of this activity, targeted OSBBs will have experienced firsthand the benefits of OSBB management, and Bakhmut, a key Donetsk community close to the contact line, will serve as an example of how national reforms can translate into accessible

and attainable improvements in people’s daily lives.

OBJECTIVE 3. BUILD TRUST AND ACCEPTANCE OF OBJECTIVE PRO-REFORM INFORMATION Increase production of diverse, tailored pro-reform content on local and national media: To address this issue, UCBI II has undertaken several initiatives with national and local media to enhance effective communications with the East.

Positive storytelling of local successes: During the reporting period, in collaboration with one of the largest national news broadcasters, UCBI II produced several short positive stories about residents in the Donbas that have succeeded in overcoming the many challenges in the region in order to move themselves, their communities, or the country forward. For example, one episode highlights how an IDP family from occupied Donetsk established a farming business after applying

13 UKRAINE CONFIDENCE BUILDING INITIATIVE II SEMI-ANNUAL REPORT, OCT 2017-MAR 2018 for international grants; another tells the story of a woman whose initiatives helped repair a local school and inspired her community to invest their own time and resources in developing park grounds for children and families. During the broadcast, live ratings have increased, indicating the story kept its audience and added to it as people turned on their televisions or changed to the channel. The short stories are also posted online and gathered as many as 5,000 views in seven hours on YouTube, almost 200 shares on Facebook, with many comments on both platforms once posted. These stories air weekly and forty-eight episodes in total are planned over the next 6 months.

Social media platform with positive stories: Another successful media project supported by UCBI II is #ShoTam (What’s There in English). #ShoTam is a multi-platform social media engine that is providing positive stories about Ukraine on social media platforms such as Facebook. The platform focuses on covering success stories of regular Ukrainians, their ideas that got recognition, startups that became a real business model, new movements in the East and possibilities of idea development close to the conflict zone. The platform generates posts with videos and photos that highlight examples of progress in Ukraine and creates a space for conversation about these changes. In over just five months, #ShoTam has collected about 30,000 followers on Facebook. While it varies from post to post, the ratio of positive to negative reactions to changes in the country has been a healthy mix of roughly 70-30. The platform has been successful in generating constructive conversation around issues and in providing an alternative to the negative narratives about eastern Ukraine that are constantly promoted in the media.

14 UKRAINE CONFIDENCE BUILDING INITIATIVE II SEMI-ANNUAL REPORT, OCT 2017-MAR 2018 PROGRAM EVALUATION

Monitoring and evaluation (M&E) is an integral element of UCBI II’s performance management system; critical for learning, adaptability, accountability and impact. UCBI II is consistently analyzing activities from various sources, including feedback provided during monthly site visits performed by staff, regular M&E meetings, findings from independent monitoring firms contracted by UCBI II, and media monitoring. Information gathered by UCBI II staff and by external evaluators is examined by the project management and used to make strategic decisions.

During the past six months, the team conducted on average 28 site visits per month. Information collected through site visits and the third-party M&E (phone interviews with beneficiaries, focus group discussions) helped to finalize final monitoring reports for seven completed activities.

UCBI II also conducted a public opinion survey in 11 cities of Donetsk and Luhansk regions. The survey included questions such as the visibility of positive changes in Ukraine and in these specific communities, improvements in state service delivery, citizens’ engagement in civic and social activities, trust in local and national media, and access to employment and new economic opportunities. These findings informed further program planning discussed during UCBI II’s Rolling Assessment held in early February 2018.

UCBI II conducted an internal review of activities that improve local government service delivery in key reform areas. The review highlighted that UCBI II support to local administrations in improving service delivery has to date significantly improved citizens’ experience, resulting in changes in attitude amongst local government staff, as well as increased responsiveness to public requests. Citizens positively regard local government’s efforts to implement reforms and deliver public services. The findings have informed program planning for the next period. UCBI II started an internal review of activities designed to expand engagement in modern Ukrainian culture and common values among more diverse groups, which will be concluded during the next reporting period.

Through the third-party M&E activity, UCBI II launched a study regarding the perception of the Donbas in Ukrainian society and the perception of Ukraine among the inhabitants of the Donbas, informing a potential social bridge between people. The Institute of Information and “Kalmius” group will use the findings to develop policy papers on the Donbas re-integration to Ukraine and communicate them to the Government, decision-makers, experts and the wider public on national level.

During this period, UCBI II focused its efforts on national wide data-collection for the SCORE index Phase II led by Centre for Sustainable Peace and Democratic Development (SeeD); survey results will be released in summer 2018.

15 UKRAINE CONFIDENCE BUILDING INITIATIVE II SEMI-ANNUAL REPORT, OCT 2017-MAR 2018