Public Administration Reform
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PUBLIC ADMINISTRATION REFORM REPORT ON IMPLEMENTATION OF UKRAINE’S 2016-2020 STRATEGY FOR PUBLIC ADMINISTRATION REFORM IN 2018 1 TABLE OF CONTENTS 2 Foreword 3 Abbreviations 4 Introduction 12 Overall progress in PAR Strategy implementation 14 Reform area 1. PAR Strategic framework 25 Reform area 2. Strategic planning, policy development and coordination 32 Reform area 3. Civil service and human resource management 46 Reform Area 4. Accountability – organization, transparency, oversight 50 Reform Area 5. Administrative services delivery and administrative procedure Annexes 64 Annex 1. Report on delivery of the PAR Strategy Implementation Plan in 2018 98 Annex 2. Achievement of PAR Strategy performance indicators 103 Annex 3. Data on RSP recruitment in 2018 104 Annex 4. In-service training of civil servants in 2018 Report Implementation of Ukraine’s 2016-2020 Strategy for Public Administration Reform in 2018 2 FOREWORD Effective governance is a crucial pre-requisite for the successful competitive state working in the interests of citizens and securing their welfare and safety. With strong intention and commitment to reset and revamp the obsolete post-soviet administration and strengthen capacity of public institutions, the Government is implementing a comprehensive public administration reform in accordance with the European principles of good governance. The chief focus of the reform is on robust and sound decision-making by the government, building professional civil service, implementation of e-governance and delivery of accessible services to citizens. The reform kick-started in 2016 with the adoption of the new Law on Civil Service and comprehensive Strategy for Public Administration Reform in line with the OECD/ SIGMA Principles of Public Administration. The years of 2017 and 2018 were marked by active phase of the reform involving reorganization of ministries, launch of new policy development and strategic planning directorates, civil service recruitment via transparent competitions on career.gov.ua platform, and roll-out of over 100 e-services for citizens and businesses. In 2018, OECD/SIGMA experts performed a comprehensive assessment of public administration and produced recommendations that were taken as a base for the revised PAR Strategy. Accountable and transparent public administration is an important pre-requisite of Ukraine's European integration, crucial for building a strong European democracy. I would like to take the opportunity to express sincere gratitude to our European partners for the comprehensive support to this reform. I also would like to acknowledge colleagues, civil society experts and all who contributed to pushing forward one of the most vital reforms in Ukraine. There are still many tasks and objectives ahead requiring our consolidated efforts and commitment. OLEKSANDR SAENKO MINISTER OF THE CABINET OF MINISTERS OF UKRAINE Report Implementation of Ukraine’s 2016-2020 Strategy for Public Administration Reform in 2018 3 ABBREVIATIONS CEB Central executive body CMU Cabinet of Ministers of Ukraine DG Director General EU European Union HRM Human resource management HRMIS Human resource management information system ICT Information communication technologies LSG Local self-government NACS National Agency of Ukraine on Civil Service OECD Organization for Economic Cooperation and Development PAR Public administration reform RDO Reforms Delivery Office RSP Reform staff positions SCMU Secretariat of the Cabinet of Ministers of Ukraine SIGMA Support for Improvement in Governance and Management Programme Report Implementation of Ukraine’s 2016-2020 Strategy for Public Administration Reform in 2018 4 INTRODUCTION WHY PUBLIC ADMINISTRATION REFORM REMAINS AMONG THE GOVERNMENT'S TOP PRIORITIES? The year of 2018 was the third year of a challenging path towards building of transparent, open and accountable public administration that provides quality services to citizens. Public administration reform (PAR) continues to be one of the most vital structural reforms in Ukraine. The ability to implement changes intended to secure competitiveness of the country, attraction of investment and creation of jobs depends on public administration's capacity to develop and implement effective policies while minimizing administrative burden. Modern, transparent and accountable public administration is key to building citizens' trust to the state. Good governance is also instrumental in fighting and eliminating corruption. Moreover, PAR is part of implementation of the EU-Ukraine Association Agreement. The current PAR was launched in 2016 after enactment of the revamped Law on Civil Service. The PAR Strategy and its Implementation Plan are based on the European Principles of Public Administration defined by OECD/SIGMA1. In 2018, Ukraine's public administration was assessed against these principles for the first time, and even though in many areas the situation in Ukraine was found to be comparable with the EU candidate states, the SIGMA baseline measurement identified deficiencies and challenges that need to be addressed WHAT IS THE ULTIMATE GOAL OF PAR IN UKRAINE? The Principles of Public Administration defined by OECD/SIGMA have been foundational for the PAR Strategy since its initial adoption in 2016. They not only service as technical beacons but guide towards concrete goals and objectives that need to be attained in order to modernize public administration in Ukraine bringing it in line with the European benchmarks. The PAR Strategy has five reform areas with identified specific objectives, which, rather than being isolated, are closely inter-relate and enhance one another. For example, elaboration of robust strategies requires skilled civil servants, citizen- oriented services are impossible without sound business processes in the back- office. On the higher level, participation of various stakeholders in policy-making cannot take place in a system that is not transparent, open and accountable. 1 SIGMA stands for Support for Improvement in Governance and Management, and is a joint initiative of the European Union and the OECD that, inter alia, assesses quality of civil service, public governance and service delivery all over the world, thus playing a considerable role in decisions about EU financial assistance and investment. Report Implementation of Ukraine’s 2016-2020 Strategy for Public Administration Reform in 2018 5 INTRODUCTION In the area of policy development and coordination, the reform targets introduction of state-of-the-art procedures, tools and technologies for policy analysis and strategic planning as well as development of relevant capacity and corporate culture. The goal is to involve various society groups in policy planning and implementation, leading to inclusive development, social justice, saving of resources, European integration and other objectives identified and promoted at political level. The PAR Strategy rests on the belief that quality of policies and legal certainty have direct impact on quality of life and competitiveness of the economy. In the area of service delivery, PAR focuses on tangible improvement of quality of services delivered to citizens and businesses. Annually, millions of users request and receive administrative services, and their experience as users to a large extent conditions their attitudes and confidence in the state. The main ambitions in this area are achievement of transparency and predictability of public administration procedures, open government data, reduced bureaucracy, and convenient and accessible services for citizens. Good quality and accessible services have the potential to improve the image of the state in the eyes of citizens, businesses and investors as well as significantly reduce corruption by eliminating respective loopholes. In the area of civil service and human resource management, PAR seeks to ensure that public administration has highly-skilled workforce capable of supporting ministers in effective policy-making. Government is one of the country's major employers and as such should be able to attract the best talent committed to serving society. To this end, the government strives to become an attractive employer, using modern HRM tools, but first of all it requires development of service-oriented culture in public administration. In order to build accountability, PAR involves creating organizational structures and internal business processes that would enable effective management and most efficient use of resources. This means that the government machinery will perform only those functions that cannot be performed better by the market, and on the right level of governance. Thus, ministries should focus on policy- making, delegating policy implementation and state property management to subordinated bodies or local self-governments. Each institution should plan its work on the basis of societal expectations, be accountable for outcomes and possess sufficient operational discretion as to achievement of set goals and targets. This requires effective internal processes such as delegation of decision-making to the appropriate level, most cost- effective performance of functions, for example, by centralizing operations similar for a range of institutions. Report Implementation of Ukraine’s 2016-2020 Strategy for Public Administration Reform in 2018 6 INTRODUCTION It is important that implementation of this agenda has strong political leadership, effective communication, coordination and support to institutional capacity that make up institutional