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Evaluation of the European Commission's Cooperation With Evaluation of the European Commission’s Cooperation with Ukraine Final Report Volume 2: Annexes December 2010 Evaluation for the European Commission Framework contract for Multi-country thematic and regional/country-level strategy evaluation studies and synthesis in the area of external co-operation Italy LOT 4: Evaluation of EC geographic co-operation strategies for countries/regions in Asia, Latin America, Belgium the Southern Mediterranean and Eastern Europe (the area of the New Neighbourhood Policy) Ref.: EuropeAid/122888/C/SER/Multi Request for Service: 2008/166326 PARTICIP GmbH Germany Evaluation of the European Commission’s Deutsches Institut für Entwicklungspolitik Co-operation with Ukraine Germany Overseas Development Institute, United Kingdom FINAL REPORT European Institute VOLUME 2 : ANNEXES for Asian Studies Belgium Istituto Complutense de Estudios Internacionales Spain A consortium of Particip-ADE–DRN-DIE–ECDPM- December 2010 ODI c/o DRN, leading company: Headquarters Via Ippolito Nievo 62 00153 Rome, Italie Tel: +39-06-581-6074 This evaluation was carried out by ADE Fax: +39-06-581-6390 [email protected] Belgium office Square Eugène Plasky, 92 1030 Bruxelles, Belgique Tel: +32-2-732-4607 Tel: +32-2-736-1663 Fax: +32-2-706-5442 [email protected] The evaluation was managed by the Joint Evaluation Unit (EuropeAid, DG DEV and DG RELEX). The author accepts sole responsibility for this report, drawn up on behalf of the European Commission. The report does not necessarily reflect the views of the Commission. Country Strategy Evaluation – Ukraine ADE-DRN Table of Contents LIST OF ANNEXES ANNEX 1: TERMS OF REFERENCE ANNEX 2: INTERVENTION LOGIC ANNEX 3: EVALUATION QUESTIONS, JUDGMENT CRITERIA, INDICATORS ANNEX 4: NATIONAL BACKGROUND ANNEX 5: EC-UKRAINE COOPERATION CONTEXT AND IMPLEMENTATION ANNEX 6: INVENTORY OF EC INTERVENTIONS ANNEX 7: INTERVENTIONS IN BRIEF ANNEX 8: DATA COLLECTION GRID ANNEX 9: ANNEXES TO EQ7 ON ENERGY ANNEX 10: TO WHAT EXTENT HAVE THE RECOMMENDATIONS OF THE PREVIOUS EVALUATION BEEN TAKEN INTO CONSIDERATION ANNEX 11: LIST OF PERSONS MET ANNEX 12: BIBLIOGRAPHY Final Report December 2010 Table of Contents Country Strategy Evaluation – Ukraine ADE-DRN Annex 1 - Terms of reference Final Report December 2010 Annex 1 Annex 1 Terms of Reference EUROPEAN COMMISSION Evaluation of the European Commission’s co-operation with Ukraine Country Level Evaluation DRAFT TERMS OF REFERENCE 2 Mandate and objectives Systematic and timely evaluation of its expenditure programmes is a priority of the European Commission (EC). It is key to account for the management of the allocated funds and for promoting a lesson-learning culture throughout the organisation. The focus is on the impact (effects) of these programmes against a background of greater concentration of external co- operation and increasing emphasis on result-oriented approaches , particularly in the context of the programmes of the Relex Family 1. The evaluation of the Commission’s co-operation with Ukraine is part of the 2009 evaluation programme as approved by External Relations and Development Commissioners. The main objectives of the evaluation are: − to provide the relevant external co-operation services of the EC and the wider public with an overall independent assessment of the Commission’s past and current cooperation relations with Ukraine ; − to identify key lessons in order to improve the current and future strategies and programmes of the Commission. Background Ukraine is considered as a transition country in the OECD Development Assistance committee. According to research conducted in the fourth quarter of 2007, 2.3% of the population lived below the two-dollars-per-day threshold. The Ukraine falls into the category of lower-middle income countries and has been included in the new single list of Official Development Assistance recipients. COUNTRY OVERVIEW Ukraine, Europe's second largest country (603,700 sq km), is situated in the south-eastern part of Central Europe. It borders on Russia, Byelorussia, Poland, Slovakia, Hungary, Romania, Moldova, Bulgaria on land and the Black Sea. Ukrainian geographical localisation influences its political and economical situation. While Ukraine and Russia share common historical origins, the west of the country has close ties with its European neighbours, notably with Poland. Russian influence is particularly marked in the eastern regions where most of Russian minority which makes up about 20% of the Ukrainian population live . Although final independence was achieved in 1991 with the dissolution of the USSR, democracy remained elusive as the legacy of State control and endemic corruption stopped efforts at economic reform, privatisation and civil liberties. A peaceful mass protest, the orange revolution, in 2004 forced the authorities to allow a new internationally monitored vote, won by a reformist slate under Victor Yuschenko, elected president in 2005 for a five-year term. Yulia Tymoshenko two years later became head of government. The basic vision of economic development for Ukraine is shared broadly among its all main political forces. The vision includes a commitment to closer integration with Europe and with the world economy through the World Trade Organization. 1 Directorates General of External Relations, (RELEX), Development (DEV) and the EuropeAid Co-operation Office (AIDCO). 3 After nearly a decade of robust growth, Ukraine's economic crisis is one of the worst in Europe. The national currency, the hryvna , has lost about 40 percent of its value to the dollar since the crisis hit last fall. Furthermore, constant political turmoil has worsened the effect of the global crisis on Ukraine by stalling the implementation of key anti-crisis policies. MAIN FEATURES AND EVOLUTION OF THE COOPERATION Bi-lateral EC cooperation with Ukraine has started in 1991 with declaration calling for an open and constructive dialogue with the EC. First contractual relations were established in 1994 by the Partnership and Cooperation Agreement, entered into force in 1998. On this basis the EU- Ukraine Action Plan has been adopted in February 2005 for the three years period, followed by launch of negotiations for the UE-Ukraine New Enhanced Agreement (NEA). Furthermore, the negotiations have started concerning the core element of NEA, a deep and comprehensive Free Trade Area. The first Country Strategy Paper covers period 2002-2006 (NIP 2002-2003) and provides strategic framework within EC assistance. Under the Country Strategy Paper following priorities have been identified: Support for institutional, legal and administrative reform essential for respect of individual and economic rights, creating framework market economy institutions, industrial restructuring, good corporate governance and improvement of border management and infrastructure; Support to the private sector and assistance for economic development, a key priority of the economic reform programme; Support in addressing the social consequences of transition, improving health systems and anti-poverty social systems as well as supporting development of civil society under the European Initiative for Democracy and Human Rights and support of democratic parliamentary and presidential elections. The second Country Strategy Paper covers period 2007-2013 (NIP 2007-2010) EC assistance for the period 2007-2013 is provided under the new European Neighbourhood and Partnership Instrument (ENPI). The principal objective of cooperation between the EU and Ukraine at this stage is to develop increasingly closer relationship, going to gradual economic integration and deeper political cooperation, including the foreign and security policy. Under the new strategy EC assistance focus on following areas: Priority Area 1 : Support for Democratic Development and Good Governance Sub-priorities: Public administration reform and public finance management Rule of law and judicial reform Human rights, civil society development and local government Education, science and people-to people contacts, exchanges Priority Area 2: Support for regulatory Reform and Administrative Capacity Building 4 Sub-priorities: Promoting mutual trade, improving the investment climate and strengthening social reform Sector-specific regulatory aspects Priority Area 3: Support for Infrastructure Development Sub-priorities: Energy (non-nuclear) Transport Environment in close collaboration with EIB, EBRD and IFIs Border management and migration including re-admission related issues The EU is the largest donor to Ukraine. For the period 1991-2006 EC assistance to Ukraine represents €2413.2 million, including the TACIS programme, macro-financial assistance, and support under thematic budget lines, such as European Initiative for Democracy and Human Rights, and humanitarian assistance provided by ECHO. Although some donors are scaling down their activities, a large number of donor organisations are still active in the country: the World Bank, EBRD, UNDP, USA, Canada and some of EU Member States. In the context of the commitments on Aid Effectiveness and Harmonisation taken in 2005 in Paris, EC will increasingly aim at providing assistance on the basis of sector-wide programme support, including pool funding and budgetary support as appropriate. Scope Temporal and legal scope The scope of the evaluation is the Commission’s co-operation strategies and their implementation during the period 2001-2008 . The Consultants must assess: – the relevance and consistency 2 of the Commission’s co-operation
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