Annual Progress Performance Report
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Decentralization Offering Better Results and Efficiency (DOBRE) Annual Progress Performance Report Decentralization Offering Better Results and Efficiency (DOBRE) FY 2018 PROGRESS REPORT 01 October 2017 – 30 September 2018 Award No: AID-121-A-16-00007 Prepared for USAID/Ukraine C/O American Embassy 4 Igor Sikorsky St., Kyiv, Ukraine 04112 Prepared by: Barry Reed, Chief of Party Global Communities 8601 Georgia Avenue Suite 300 Silver Spring, MD 20910, USA Table of Contents ACRONYMS AND ABBREVIATIONS 2 CONTEXT UPDATE 4 EXECUTIVE SUMMARY 5 KEY NARRATIVE ACHIEVEMENT 11 PROGRESS AGAINST TARGETS 46 PERFORMANCE MONITORING 70 LESSONS LEARNED 72 ENVIRONMENTAL MONITORING 72 PROGRESS ON LINKS TO OTHER ACTIVITIES 72 PROGRESS ON LINKS TO HOST GOVERNMENT 74 PROGRESS ON INCLUSIVE DEVELOPMENT 74 FINANCIAL INFORMATION (Required for Contracts Only) 75 SUB-AWARD DETAILS 75 ACTIVITY ADMINISTRATION 76 ATTACHMENTS 78 1 I. ACRONYMS AND ABBREVIATIONS AOR Agreement Officer’s Representative API Access to public information ARC© Appreciative Review of Capacity [Global Communities] AUC Association of Ukrainian Cities CBO Community-based organization CC Consolidated community CEP Community Engagement Program CEPPS Consortium for Elections and Political Processes COP Chief of Party CSO Civil society organization DESPRO Decentralization Support in Ukraine Project DIALOGUE Development Initiative for Advocating Local Governance in Ukraine DOBRE Decentralization Offering Better Results and Efficiency ER Expected Result EU European Union FRDL Foundation in Support of Local Democracy GIS Geographic information system GOU Government of Ukraine GRB Gender Responsive Budgeting [Project] ICT Information and communications technology IDP Internally-displaced person IFES International Foundation for Election Systems ISES Institute for Social and Economic Studies LED Local economic development LEV Local Economic Governance [Project] LG Local government LGBTI Lesbian, gay, bisexual, transgender and intersex 2 LGSO Local government support organization LOP Life of the program M&E Monitoring and evaluation MOU Memorandum of understanding MRD Ministry of Regional Development MSAP/UEK Malopolska School of Public Administration at the Krakow University of Economics NDI National Democratic Institute NGO Non-governmental organization OSR Own-source revenue OTI Office of Transition Initiatives [USAID] PACE Participatory Action for Community Enhancement [GC methodology] PAGE Participatory Approach to Governance Excellence PB Participatory budgeting PMCI Participatory Municipal Capacity Index RCSO Regional civil society organization SDIP Service Delivery Improvement Planning SWM Solid waste management TA Technical assistance ToT Training of trainers UCMC Ukraine Crisis Media Center U-LEAD Ukraine Local Empowerment, Accountability and Development Programme USAID United States Agency for International Development USG United States Government VASSR All-Ukrainian Association of Villages and Rural Settlements WLA Women’s Leadership Academy YLC Youth Local Council 3 II. CONTEXT UPDATE Decentralization reform represents an opportunity to improve how Ukrainian local governments deliver services and respond to citizen priorities and concerns. Kyiv has long dominated the Ukrainian political landscape, with local power distributed among small villages that were largely unable to advocate for their own interests at the regional and national levels. Currently, the decentralization reform continues as the only major reform effort in Ukraine maintaining momentum. In a recent monitoring of the process of decentralization, MRD reported 831 amalgamated communities, established by mid-September 2018. Actually, 126 of those still await for the resolution of Central Election Committee on their first elections. The CEC recently became an issue as they blocked the electoral process in CCs. To unblock this process, the CEC must cancel their previous decision concerning the necessity of an explanation from the Committee of the Verkhovna Rada of Ukraine on questions of legal policy provision and justice concerning the conduct of all-Ukrainian and local referendums in Ukraine. Alternatively, the Verkhovna Rada might consider changing the CEC and forcing a resolution. Hopefully, they will resolve this issue in early October 2018 and proceed with local elections before the end of 2018. MRD considers this the last year of voluntary amalgamation and made a big push to add CCs. The GoU approved prospective plans envision that 1,206 CCs covering 76% of the territory of Ukraine. Currently, CCs cover 35.8% of the UA territory with seven million residents living there, comprising 19.8% of total population of Ukraine. The major political parties in the Verkhovna Rada appear uninterested in making any significant legislative changes to the decentralization framework prior to the 2019 elections. No party appears interested in giving the current President any momentum on this issue. This means certain key issues will languish. For example, while discussion about the nature and role of Rayons increased in 2018, the VR made no movement to taking action about them. Earlier in 2018, MRD and others openly talked about moving from the voluntary to mandatory phase but this subsided toward the end of FY 2018. Many DOBRE CCs attempted to expand based on the law passed by the VR in 2017. However, Oblasts (and in some cases Rayons) refused to allow additional villages and settlements to join these existing CCs. DOBRE raised the issue in some Oblasts and with MRD but nothing improved. CCs like Mirivska, Sofiivska and Kamyanomostivska have waited a year and a half with no resolution. MRD and the GoU openly endorse larger CCs but unless they solve this issue, they will slow the decentralization process. The MRD issued statistics with a figure of 2565 Starostas across the country with 777 elected, or 30.3%. Own Source Revenues continued showing growth with projected UAH 231 bln until the end of 2018, increasing total share to 7.1% in their budgets. For the period of January – August 2018 communities already generated UAH 148.7 bln of own revenues. 4 In 2018 as compared to 2014 state support of community development and their infrastructure buildup has increased by 39 times. In addition, subvention for construction, reconstruction, repair and maintenance of local public roads amounting to UAH 11,5 bln is envisaged for 2018. Sectoral reforms continue to lag. The Rada approved the health reform (no longer decentralization) and this rolled out in January 2018. They created 87 hospital districts, with three oblasts still having no districts at all. On Education, most CCs continue to leave open very small schools. 4114 classes with less than 10 students still exist, 1632 out of those are located in the CCs. 677 hub schools have been created, with 279 are located in consolidated communities. The Government continues to hope basic economics will force CCs to consolidate schools. They simply cannot afford keeping such small schools open but CCs still resist. Although late in the year, DOBRE noticed some Mayors now openly talking about the high cost of keeping such small schools open. III. EXECUTIVE SUMMARY Over FY 2018 DOBRE moved forward significantly with the work plan and saw partner communities, make demonstrable progress toward achieving stated objectives. The A section below outlines key performance achievements over the last year. A. Key Narrative Achievements DOBRE hosted a major two-day Strategic Development and Investment Forum in late October 2017. The first day explored strategic planning and implementation of strategies. It included substantive discussions about relevant issues for about 250 participants from DOBRE CCs of both cohorts and other key stakeholders. The Forum’s second day, the “DOBRE Investment Hub”, looked at CCs and investments and investors. It included substantive discussions among CCs and investors on all aspects of the investing process, including critical analysis of potential investments, how to communicate investment potentials and a look at specific sectors. This included about 250 participants and the opening featured Deputy Prime Minister Zubko and the USAID Mission Director. DOBRE created a separate web page for the event, gathering all the materials of the Hub, available via the following link. Over the period of January 28th - March 11 2018 a new social, informational and entertainment TV series "Hromada for a Million" broadcast nationwide on 1+1 TV Channel. The show gathered 15.6 million viewers, including nearly 9.6 million unique viewers (according to statistics provided by 1+1 TV Channel). Currently, you can find all episodes of the TV show on YouTube. You can access the shows and viewing statistics in Ukraine and English here. DOBRE program empowers youth in good governance and integrity through model community simulation. DOBRE convened 60 youth activists from partner communities for the five-day youth leadership school DOBRE-LID (Leadership, Ideas, Democracy) in partnership with USAID’s ENGAGE and SACCI Programs, and the Ministry of Youth and Sports. During the 5 training sessions youth leaders gained hands-on experience in good governance and integrity approach towards it, did first steps in governance-related career paths through DOBRE-designed simulation of the model CC council work. Youth learned why and how they can engage in implementing or improving governance practices in their communities, generate and design ideas leading to projects for community development, providing them