THE MONTHLY NEWSLETTER OF THE U-LEAD WITH EUROPE PROGRAMME DYNAMICS ISSUE # 7, NOVEMBER 2018

German Chancellor Angela Merkel during her visit to the House of Decentralisation in Kyiv on 1 November 2018. Photo: Yevhen Korol

TABLE OF CONTENTS OPPORTUNITY TO APPLY BEST

Feature: Ukraine’s IT managers con- PRACTICES OF EU MEMBER STATES vene for their fourth forum On 1 November 2018, the House of Decentralisation “U-LEAD with Europe is an important programme that The Interview: Andrej Horvat hosted the German Chancellor Angela Merkel during her gives responsibility back to the people. This is a marathon Decentralisation Dynamics visit to Ukraine. which will take more than a decade to be a success,” Angela Merkel said in her speech. She also wished success Success Story: Support for the amal- The chancellor received a briefing on the decentralisation to all partners engaged in the decentralisation reform and gamation process in Natalynska AH and regional policy reforms in Ukraine and how U-LEAD implementation of U-LEAD with Europe, stressing that the in Kharkiv oblast with Europe supports this process. She was also informed programme demonstrated a good spirit of cooperation. about local and regional operations in all 24 oblasts of Voices of U-LEAD with Europe Ukraine where U-LEAD has established and maintains Local Government Development Centres.

Together with Hennadii Zubko, Vice Prime Minister of Ukraine, Georg Milbradt, Special Envoy of the German Government for the Ukrainian reforms in the areas of governance, public administration and decentralisation, and Dr Annika Weidemann, Deputy Head of the EU IMPRINT Delegation to Ukraine, the U-LEAD management briefed Chancellor Merkel on progress made in decentralisation, Responsible for the publication: regional development, amalgamation of municipalities and sector reforms in education and healthcare. U-LEAD with Europe Programme Bastian Veigel, Kameran Khudur

Editors: Olena Molodtsova Roland Hackenberg

Production and distribution: U-LEAD Monitoring, Visibility and Knowledge Management Team U-LEAD IN THE SPOTLIGHT

ZHYTOMYR DECENTRALISATION STAKEHOLDERS DISCUSS IDEAS FOR LOCAL DEVELOPMENT On 16 November, Zhytomyr hosted the forum “Decentralisation: from amalgamation to development” with support from U-LEAD with Europe. BASTIAN VEIGEL The event brought together 200 leaders, representatives of public institutions and business community to exchange experiences of imple- GIZ PROGRAMME DIRECTOR menting development projects. OF U-LEAD WITH EUROPE KYIV E-SOLUTIONS FOR BETTER HROMADA MANAGEMENT On 14 November, U-LEAD with Europe and the Centre for Innovative De- SHARING U-LEAD’S velopment launched the “E-solutions for ” project. The aim of the initiative is to improve quality of management decisions and increase the financial capacity and investment potential of hromadas. ACHIEVEMENTS AND The project received close to 300 applications for participation, with 100 AHs selected as a result. Representatives of the selected hromadas took BEST PRACTICES part in the launch event and discussed their training schedule. KYIV NEW MANUAL ON HOW TO ESTABLISH ASC FROM November was indeed dynamic for U-LEAD with Europe. Not only full SCRATCH IN HROMADAS with regular activities, but also with high-level visits and important A new manual on “How to create an Administrative Services Centre (ASC) in amalgamated hromadas from scratch – the experience of the events. institutional establishment of ASCs within U-LEAD with Europe Pro- gramme” is now available. Presented by Ukrainian Vice Prime Minis- On 1 November, we hosted Angela Merkel, Federal Chancellor of Ger- ter Hennadii Zubko, Sida Programme Director of U-LEAD with Europe Kameran Khudur and the EU Delegation Head of the Operations Section many, who voiced her approval for the decentralisation reform and in Charge of Decentralisation Frederik Coene, the manual is a compre- U-LEAD efforts. hensive guidebook developed by leading Ukrainian experts with recom- mendations on institutional establishment of ASCs in Ukrainian hrom- adas. It is the core manual in the Programme’s support package for On 16 November, U-LEAD with Europe organised an important local improved administrative service delivery. forum in Zhytomyr. Attended by Ukrainian Vice Prime Minister Hen- nadii Zubko and the EU Delegation’s First Counsellor Frederik Coene, KYIV the gathering was a true marketplace of experience, ideas and best ESTABLISHING WELL-FUNCTIONING ASCs IN practices enabled by Zhytomyr Oblast, a front runner when it comes HROMADAS: THIRD SELECTION ROUND to adopting and benefiting from decentralisation. The third round of participant selection for establishing well-functioning ASCs within U-LEAD began on 15 November. During this selection round, up Moreover, other countries and partners are increasingly showing in- to 150 hromadas and small cities will qualify for the opportunity to receive support in improving administrative service delivery by being able to build terest in the progress of the decentralisation reform in Ukraine and and modernise their own Administrative Service Centres. The application U-LEAD’s support to it. On 20 November, Eastern Partnership Am- deadline is 31 January 2019 and hromadas can apply here. bassadors from 18 EU member states visited the House of Decen- tralisation to find out more about our work and the progress of the KYIV reforms. The day after, we hosted representatives of the EU Delega- 18 EASTERN PARTNERSHIP AMBASSADORS VISIT tion to Belarus. And on 22 November, Janek Mäggi, Minister of Public HOUSE OF DECENTRALISATION Administration of Estonia, took part in a round table at the House of The House of Decentralisation hosted 18 Ambassadors for the Eastern Partnership on 20 November during their three-day visit to Ukraine. These Decentralisation to share the Estonian experience. special envoys are nominated by European Union member states to deal with issues related to partnerships with countries at the eastern border With these activities, U-LEAD with Europe not only gives a voice and a of the EU, including Ukraine. Both U-LEAD Programme Directors Bastian Veigel and Kameran Khudur briefed the ambassadors on the progress of face to decentralisation for stakeholders inside and outside Ukraine. decentralisation in Ukraine and the support provided by U-LEAD to the de- By bringing people together for panel talks and forums, like in Zhy- centralisation and regional policy reforms. The visitors also had an oppor- tomyr, the programme helps foster better understanding of the re- tunity to learn more about the decentralisation process on the ground from five heads of amalgamated hromadas. forms and its results, especially at the local level. This builds common ground to share, adopt and ultimately own one joint vision to continue KYIV with this milestone reform. November may have been dynamic but ESTONIA’S MINISTER OF PUBLIC ADMINISTRATION ON the effect of all of these activities will be felt further and longer, when LOCAL GOVERNMENT REFORMS the stakeholders take the ideas and insights they gain back to their On 22 November 2018, Janek Mäggi, Minister of Public Administration of the hromadas, associations, ministries and countries. Republic of Estonia, paid a visit to the U-LEAD with Europe office where he presented insights into local government reform in Estonia and local gov- Especially in light of recent events in Ukraine, it is important to ensure ernment functions. As he described, “Reform was needed. It took 25 years that programme implementation will carry on as usual, to the best of to agree the principles, but implementation itself was quick. We now share a vision we did not have for 25 years.” The result: “In 1991, after independence, our possibilities and as dynamic as ever. Estonia was a country with more than 200 local government units. Now we have just 79.” Read more. UKRAINE’S IT MANAGERS CONVENE FOR THEIR FOURTH FORUM

How will digitalisation affect society general digital transformation, not only as a method of reforming in Ukraine? What changes and public administration with the help of digital technologies. “All challenges will it bring? These were investments in e-governance need to be associated with the two of the key questions asked on 1 broader digital transformation of society. A digital strategy for and 2 November at the 4th Forum any ministry or government agency should focus on how citizens for IT Managers of Ukraine that and businesses that are impacted by government can benefit brought together up to 300 public more from this strategy,” said Viik. sector IT managers to discuss how rapid development of digital The two-day forum discussed the next steps of developing technologies is influencing public e-governance in Ukraine and the EGOV4UKRAINE project also sector operations. presented the status quo of two large-scale IT development projects that support decentralisation processes and As Oleksandr Ryzhenko, Head of the e-governance in Ukraine: the Trembita secure data exchange State Agency for e-Government of system and the Vulyk information system. Ukraine, concluded, the forum opened new horizons for developing and promoting EGOV4UKRAINE is currently finalising the first round of piloting e-governance in Ukraine. “Along with our the Vulyk information system in ten Administrative Service Trembita partners Ukraine has done a lot by developing Centres (ASCs) and is preparing the integration process for receives a secure data transfers between government agencies, small ASCs. Trembita has been delivered to the State Agency for warm round of modernising public services and opening data. Many tasks are e-Governance of Ukraine and is awaiting security certification to applause. still in process, and the forum is a great opportunity for sharing start integration of state authority databases, which will allow for Photo: EGOV4UKRAINE information with IT directors as our first partners for accelerating e-services to be developed. e-governance development in Ukraine,” said Ryzhenko. The Forum for IT Managers was organised by the State Agency Keynote speaker Linnar Viik, Programme Director of the for E-Governance of Ukraine and EGOV4UKRAINE, part of e-Governance Academy (Estonia), emphasised in his speech U-LEAD with Europe’s Support to Improved Administrative that it is time to think about e-governance as a driving force for Service Delivery.

THE U-LEAD WITH EUROPE INTERVIEW ANDREJ HORVAT MOVING TOWARDS DEPUTY GIZ PROGRAMME DIRECTOR OF U-LEAD WITH EUROPE CAPABLE HROMADAS

You’ve been working in Ukraine for more than In your opinion, what are the main a year. How would you describe the decentra-lisation changes that challenges the decentralisation Q: you have been able to observe at the local level? Q: process faces in Ukraine? It is hard to judge after only a year, but the energy in the leadership of new lo- Decentralisation is currently in the situation William Shakespeare would have cal communities is visible. There is optimism among local people about their penned as “To Be or Not To Be”. The future of decentralisation, and with that of future. This reminds me a lot of my own country, Slovenia, when it became the whole country, is in the hands of the Ukrainian people. independent and prepared for EU accession. At the local level, however, the main challenge is in getting processes under- Opening physical borders is important but opening borders in our heads even way that will make the reform sustainable. It is important to implement activ- more so. I contributed to that 20 years ago in Slovenia and I can observe a ities contributing to social and economic development. Here, one of the big- similar situation here in my work with U-LEAD with Europe. gest challenges for economic development in newly amalgamated hromadas is enforcing rule of law.

U-LEAD with Europe is supporting a number Currently, Ukrainian AHs and municipalities participate in P2P of actions aimed to strengthen capacities of amalgam- cooperation and study visits. How do they stand to benefit from ated hromadas (AHs). What are the main areas? How do this sort of cooperation? What is important for establishing Q: you share expertise? Q: cooperation with EU countries’ local governments and regions? With a wide range of new responsibilities, AHs face challenges in fulfilling their These sorts of instruments provide unique opportunities to AHs not only to tasks effectively. We help them live up to their tasks – from reorganising their learn best European practices, but also to develop sustainable partnership. waste management and reducing energy costs to improving social service pro- Throughout the year, we have piloted peer-to-peer cooperation between three vision or bringing together strategic and spatial planning. AHs and two regions in Ukraine with three EU member state municipalities and two regions. Additionally, we have held almost 30 study visits with more than As part of a total of 13 actions, we pilot capacity development measures in over 500 AH representatives. Our experience shows that successful cooperation 400 AHs. Through training of trainers and Thematic Support Packages, the syl- requires knowledge of the strengths and needs from an AH, and the vision of labus and lessons learned are distributed throughout Ukraine. We also support change it wants to achieve. We believe these instruments will help Ukrainian hromadas with effective project development that will bring positive change in hromadas establish long-term cooperation with European peers. people’s lives.

Questions prepared by: Karen Madoian DECENTRALISATION

DYNAMICS ІСТОРІЯ УСПІХУ PRESIDENT POROSHENKO: REGIONAL AUTHORITIES SHOULD DEVELOP A lesson in a renovated classroom at the school in Natalyne village. PERSPECTIVE TERRITORIAL DEVELOPMENT PLANS Photo: Alla Chemerys FOR 2019-2021

“It is necessary to overcome chaos in implementing the regional de- velopment policy. Therefore, I set a task for the regional authorities HOW HAS AMALGAMATION to develop plans for the perspective development of territories for 2019-2021, discuss them with public and hromadas, and approve CHANGED THREE VILLAGES them at the hromada level’, said the at the Re- gional Development Council meeting on 12 November. According IN KHARKIV OBLAST? to , availability of such perspective plans with approved projects and financing mechanisms will significantly in- Prior to amalgamation, the territory of Natalynska AH (Kharkiv oblast) was in crease investment attraction prospects of the territories. a state of decline. The utility systems in three villages were in no working or- der and social facilities in a state of disrepair. The budget was only enough to WHAT ARE THE MAIN TASKS FOR pay the council employees’ salaries. In 2017, the village councils of Natalyne, Popivka and Kobzivka made the decision to amalgamate. Experts from the DECENTRALISATION IN 2019? Kharkiv Local Government Development Centre provided legal and adviso- ry support and participated in public debates to inform residents about how “In 2019, we must formulate perspective plans, regional develop- amalgamation would secure the future for their territory. ment strategies, create conditions for hromada amalgamation and accession, adopt the essential draft law #8051 in Parliament “On the One year after amalgamation took place in October 2017 to form Natalynska Principles of Administrative and Territorial Structure” that will free amalgamated hromada, local residents now feel the changes. The AH budget the country from the Soviet system and allow hromadas to build a has increased tenfold by over UAH 90 million. The AH administration can now completely new territorial system in Ukraine,” said Hennadii Zubko, provide funds to repair communal infrastructure. UAH 10 million have been Vice Prime Minister of Ukraine, on 16 November. According to him, allocated from the local budget to repair road sections most in need of main- the next 2019 local elections in AHs should be held simultaneously tenance, particularly the routes leading to schools. UAH 3 million came from with the parliamentary elections. the state budget in the form of infrastructure subsidies.

“In 2015, I was an opponent of the reform. And now I’m sorry for that, because if we had amalgamated then, we would have done three times more. Now I am satisfied with our work, satisfied with the possibility to work for our people,” says Violetta Borovska, head of Natalynska AH.

U-LEAD VOICES

“The manual on institutional establishment of ASCs con- “One of the inalienable components of the decentralisation tains valuable practical information for hromadas that have progress is the reorganisation of administrative service limited access to knowledge and lack qualified personnel delivery systems at the local level. A functional Adminis- to establish and operate ASCs. The manual offers options trative Service Centre (ASC) can improve the lives of resi- for addressing challenges, detailed descriptions of best dents by bringing authorities closer to people and making practices when establishing ASCs and document samples the system transparent, accessible, inclusive and service to help hromadas make fast and efficient decisions.” oriented. It strengthens governance and accountability at local level.” Valentyna Poltavets, Executive Director Hugues Mingarelli, of the Association EU Ambassador to Ukraine, of Amalgamated Hromadas Head of the EU Delegation to Ukraine

“The key word is accountability. This is why the European Union supports decentralisation in Ukraine. Amalgamation and ASCs are successful, and our U-LEAD with Europe pro- gramme provides training to local specialists”.

Frederik Coene, First Counsellor, Head of Section “Economic Cooperation, Social and Regional Development”, EU Delegation to Ukraine

This publication has been produced with the assistance of the European Union and its member states Denmark, Estonia, Germany, Poland and Sweden. The contents of this publication are the sole responsibility of its authors and can in no way be taken to reflect the views of the European Union and its member states Denmark, Estonia, Germany, Poland and Sweden.

© U-LEAD with Europe, 2018

Websites: u-lead.org.ua, decentralisation.gov.ua Phone: (+380 44) 581 27 99 Facebook: facebook.com/ULEADwithEurope Email: [email protected] Address: House of Decentralisation, 20 Velyka Zhytomyrska Street (4th floor), Kyiv 01001, Ukraine