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#4 (308), 6 February 2006 A publication of the International Centre for Policy Studies ICPS newsletter ® World class city government has arrived. Now it needs to be promoted Contemporary methods of municipal government that focus on residents as consumers of services, systems for evaluating satisfaction with the services Moreover… provided, indicators of progress in achieving strategic municipal goals, and Moreover… is a new column in the icps computerized municipal government—all these are already working in , newsletter that will briefly inform readers and not in , but in the small city of Komsomolsk in Poltava. With the about current ICPS activities and update assistance of specialists from the “People’s Voice” project, separate municipal you on various research projects government systems were combined and a new list of indicators was developed undertaken by ICPS and other events that to evaluate the performance of all municipal services. The experience gained in are not always covered. While this project was recently presented at a conference dedicated to transferring Komsomolsk’s successful municipal the experience of Komsomolsk to other cities in Ukraine government experience was being presented: A new, result driven approach service sector, the use of financial and • The Bill “On protection against racial, human resources allocated for the purpose, national and ethnic discrimination” At one time, under the old public and the costs per product/service unit. This that was developed by ICPS specialists bureaucracies in Western European and submitted to the in countries and in the US, like public approach also makes it possible to continually evaluate the extent to which December 2005 is being studied by the administration systems in the former Rada’s Expert Review Department. socialist countries of Central and Eastern public services match the needs of the population. The results are expected to come out by Europe, local governments functioned apart 10 February. from the needs of their communities, in a Komsomolsk: A state of the art • “The Future of the Ukrainian Economy” “just follow the rules” mode. To some is the working name of a large scale extent, this system worked fine when municipal management system study ICPS specialists are currently governments were not faced with especially A little over 50,000 people live in developing. This research was complex tasks, but worked on fairly Komsomolsk, although it was only founded commissioned by a well known standardized objectives where sticking to in the 1960’s. The city is unique for the Ukrainian company and the final report the rules was considered more important relative youthfulness of its residents—the will be submitted to the client in March that efficiency or effectiveness. average age is 37—and the creative 2006. By contrast, the main objective of local thinking of its managers—they have been • ICPS completed the first version of a governments in countries with modern, deliberately introducing modern principles model for public oversight of Budget democratic systems is to provide quality of municipal government for many years. spending. ICPS is now waiting for services to the general population and materials from its foreign partners on By early 2005, three modern systems were businesses. One component of this Budget oversight in cities in being used to run Komsomolsk: a strategic approach is to identify the goals and results Kazakhstan and Macedonia. planning system, a program targeted system of government activity and to make • ICPS’s main defense and security for forming the municipal budget, and a decisions based on information about the specialist Viktor Chumak is currently in quality management system that followed extent to which these have been reached. Poland heading a delegation of Such an approach is known in the world as ISO standards. All three systems worked in Ukrainian government officials and NGO “results based management.” parallel and helped to focus the local specialists to study Polish experience government’s activities better. implementing migration policy, signing Results based management is focused on readmission agreements with the EU clearly identifying anticipated results and However, it was becoming evident that they and detaining illegal migrants. indicators that will confirm them, did not form an integrated whole. For one • developing and implementing measures to thing, the parallel operation of three ICPS is continuing to process materials achieve these results, monitoring on a management systems led to additional from a roundtable called “The Metals regular basis, and making policy decisions administrative work. As a result, it was hard Business in Ukraine: Is there any based on information about the degree to to monitor effectively. The city government future?” The discussion among interest groups took place at ICPS on 31 which the results have been reached. recognized that the situation was January. A summary of the conclusions Although this kind of approach does not unsatisfactory and, jointly with the will be published in future issues of the guarantee improved public services, it “People’s Voice” project, they began to Newsletter and the complete report will certainly makes it possible for managers to integrate the three systems, including their be available on the ICPS website. track the attainment of stated goals in each various indicators. The new, integrated management structure understands the need to change the style in Komsomolsk now looks like this: the of management and who wants his fellow Big changes in the ICPS city’s overall strategy and objectives guide citizens to be given better services. Supervisory Board the work of the local government and all • It is better to start reforming the City Hall activities are financed under During a December meeting, the ICPS municipal budget programs, while the government with a municipal Supervisory Board approved changes to its quality management (QM) system checks development strategy that prioritizes all membership. The Executive Committee the quality of services provided with budget subsequent steps. elected four new members to the Supervisory Board: money. • The city’s goals and the criteria for their • David Elder, Adjunct Professor, To oversee the effectiveness of the newly implementation need to be determined Queen’s University, Canada; established system, local government and and a system for internal reporting on • project specialists have developed a new these criteria organized. Vladyslav Kaskiv, Advisor to the , PORA leader; set of indictors what combines the old • There needs to be support for feedback • municipal strategy indicators, the program within the government as well as from Ksenia Liapina, Verkhovna Rada Deputy targeted budget indicators, and the QM the community regarding the quality of (Nasha Ukrayina); system indicators. At least three indicators services and public expectations. • Yuriy Yakusha, Deputy Executive Director were established for each strategic and for Ukraine, International Monetary • The city has to invest in the professional operational goal and related budget Fund. programs. These indicators make it possible potential and development of its human to evaluate how effectively a specific goal resources. After discussions with members who have is being reached, the quality of this not been able to participate actively, 10 • The city can either turn to professional effectiveness, such as its compliance with individuals have resigned from the ICPS consultants or study best practice in established standards, and its quantitative Supervisory Board: other cities on its own and gradually effectiveness, such as the cost of a • Inna Bohoslovska, President, adjust that experience to its own particular service. Viche Ukrayiny Fund; circumstances. • Because of the large number of Jim Bown, General Director, indicators—Komsomolsk has more than 400 There is a high likelihood that changes that The Deane Group; indicators for its strategy and program are introduced at the management level will • Anatoliy Halchynskiy, Director, National targeted budget and more than 150 improve the quality, efficiency and Institute for Strategic Studies; effectiveness of all services provided to indicators for the QM system—and the • Jaroslaw Kinach, Member, Supervisory residents of Komsomolsk. Because this considerable document flow in the Board, XXI Century Investments; performance monitoring system, it was project laid a proper foundation for • Vitaliy Melnychuk, Vice President, decided to develop special software to management, there is reason to hope for KINTO Investment; record, save and present monitoring results. improved results in the provision of specific The database of all indicators will public services. However, to make this really • Svitlana Oharkova, General Director, eventually be accessible to all staff in the happen, a sense of responsibility for high Techno Ukraine; municipal Executive. quality services needs to be conveyed from • Serhiy Romaniuk, First Deputy Economy top officials to middle managers and to the The updated system of indicators became Minister of Ukraine; actual providers of services. the basis for the socio economic • Alex Sundakov, Executive Director, development strategy for 2006–2011 that The “Results&Based Municipal Government” Castalia Ltd; was approved by the Komsomolsk City conference took place on 25 January 2006 • Dusan Vujovic, Country Manager for Council in late 2005. in Komsomolsk, Poltava. Some 80 Ukraine, the World Bank Group; representatives of local governments, NGOs, Komsomolsk shows the way for • Myron Wasylyk, Managing Director, international donors, and academia PBN, a public relations firm. other Ukrainian cities attended. Komsomolsk is one of the six cities As the highest ICPS governing body, the participating in the “People’s Voice” project The experience of Komsomolsk can easily be Supervisory Board is in charge of making (http://pvp.org.ua) that is financed by the transferred to other Ukrainian cities. decisions regarding the ICPS strategy and Canadian International Development Agency Because of its modular principle, of evaluating the Centre’s performance. (CIDA) and the World Bank and implemented Komsomolsk’s approach can be applied Meetings are held twice a year, during jointly by the International Centre for Policy stage by stage or as a single program, which the Supervisory Board approves the Studies (ICPS) and PADCO, a US consultancy. depending on the institutional capacity of Centre’s financial and activity reports. The goal of this project is to improve the a given city to introduce innovations. Currently, the Supervisory Board consists quality of services provided by local Six main conclusions can be drawn from the of 15 members who are top Government governments to their populations. For more officials, VR deputies, international process of implementing new management information, contact the ICPS manager methods: specialists, ambassadors, and for local development projects, Volodymyr representatives of business and • Any reform of a city’s management Hnat, by telephone at (380&44) 484&4409 academic circles. system starts with a mayor who or via e&mail at [email protected]. icps newsletter is a weekly publication of the International Centre The International Centre for Policy Studies is an independent research for Policy Studies, delivered by electronic mail. organization whose mandate is to promote the introduction of public To be included in the distribution list, mail your request to: policy concepts and practices in Ukraine. This is achieved by [email protected]. increasing the know how of key government officials for policy icps newsletter editor: Yevhen Shulha ([email protected]) choices, formulation and debate, and the awareness of the public at Phone: (380 44) 484 4400. Fax: (380 44) 484 4402. large of the benefits of policy. English text editor: L.A. Wolanskyj Address: vul. Pymonenka 13A, Kyiv, Ukraine 04050 Articles may be reprinted with ICPS consent. Web site: http://www.icps.com.ua/eng/