5 YEARS of PARTNERSHIP

Years 15 of Partnership:

a Photo Retrospective

Ukraine 2007 Table of Content:

4 U.S. Ambassador Affirms Continued Support

5 USAID Mission Director: Ukraine Has Made Steady Progress

6 Privatization

8 Agriculture

10 Finance and Banking

12 Business

14 Energy and Environment

16 Local Governance

18 Media

20 Civil Society

22 Political Processes

24 Legal Reform

26 Health

28 Social Assistance

30 Anti-Trafficking

32 hiv/AIDS USAID mission to improve the economic and social well- being of all Ukrainians through democratic processes U.S. Ambassador Affirms Continued Support ince the United States recognized Ukraine as an independent country in January 1992, we have consistently supported Ukraine’s declared intention to Stransform itself into a democratic society with a market economy. The cooperation between our two countries has strengthened and deep- ened over the years to the point where we have a strong strategic partnership. We have encouraged democratic institu- tion building, economic restructuring and business development, and transformation of the country’s health and social welfare system. We have also backed measures to counteract the effects of the Chornobyl nuclear disaster along with building a new shelter for the destroyed reactor. Today we are working with Ukraine to stem corruption. Over the last 15 years, USAID has worked in partnership with public and private Ukrainian institutions to establish democracy and rule of law programs that have helped build and strengthen civil society, the media and a just legal environment. USAID has worked to foster the revamping of Ukraine’s banking and financial infrastructure and development of small and medium business. While businesses have been bolstered through credit and training programs, society has benefited from the introduction of the best international health practices, as well as support for family planning and a foster care system for Ukraine. Together, we have worked to combat HIV/AIDS, the TB epidemic and trafficking in persons. Notwithstanding periodic setbacks, Ukraine has made real progress in achieving the goals it has set for itself. Today it has a vibrant civil society and has held internationally-recognized free and fair elections. Its economy continues to expand. It is on the verge of attaining membership in the World Trade Organization and is strengthening its relations with Europe. Despite the significant advancement of the past 15 years, serious economic and social challenges remain. Implementation of enacted laws has been slow and inconsistent. Widespread corruption hampers the development of rule of law and the growth of business and foreign investment. Wasteful and inefficient energy use reduces Ukraine’s competitiveness in international markets and increases its dependency on imported energy. Tuberculosis and HIV/AIDS continue to plague the country. Although the resolve and fortitude of the Ukrainian people to build a democratic, market-oriented, sovereign state has grown over the years, the process has been more difficult and slower than most international experts and Ukrainians had expected. Nonetheless, notable progress has been achieved. As USAID celebrates 15 years of partnership with Ukraine, the U.S. government reiterates its firm commitment to continued support for Ukraine and its people. We will continue to support the country’s move to strengthen Euro-Atlantic alliances and to provide effective development assistance to the extent our resources allow. Our goal is identical to Ukraine’s: to transform the country into a stable and affluent democratic society. USAID Mission Director: Ukraine Has Made Steady Progress hen the first USAID employees arrived in Kyiv in the spring of 1992, social systems were collapsing, the economy was Wplunging and inflation was on the rise. The government of the newly independent Ukraine, a relabeled but not reformed Soviet apparatus, while publicly espousing democratic principles and free markets, actively sought international expertise. In 1992, USAID signed a bilateral agree- ment on humanitarian, economic and technical cooperation with Ukraine to help the country develop its economic, political and societal potential. USAID and the Ukrainian government identified three strategic objectives: create a broad-based market economy; help to build a participatory democratic political system; and assist in social sector reforms to ease the difficulties of transition, particularly among the most vulnerable members of society. Thus began a 15-year partnership that has endured, animated by the belief that by working together we can forge a secure and prosperous future for all Ukrainians. Since then, Ukraine has seen growth and development, often steady and at times dynamic, albeit not without the occasional hiccup, sporadic backward glance or even some intermittent backsliding. Nonetheless, Ukraine has raised itself from a country that during the early 90s some experts believed was on the brink of collapse to one of the more democratic states of the former Soviet Union, fully fixed on a market economy track and on the verge of membership in the World Trade Organization. USAID is proud that it has provided support where requested in helping Ukraine to attain the many goals it has already realized. The pillars of our development strategy – economic reform, democratization, and social protection – are anchored in the fundamental precept that Ukraine’s most pre- cious resource is its people. USAID’s many assistance programs are tailored to meet the needs and aspirations of Ukrainian men and women. Working with governmental and non-governmental organizations, we have provided farmers with land-titling and marketing skills. We have provided guidance and training to entrepreneurs, and to groups of citizens with a desire to start their own civic groups or non-governmental organizations. We have given humanitarian relief to flood and mine disaster victims, and supported the most vulnerable in society – the young, the elderly and the sick – with special programs. We have also developed special initiatives to fight corruption and the illegal cross-border trafficking of persons. Today we are continuing a concentrated effort to rein in Ukraine’s burgeoning tuberculosis and HIV/AIDS epidemics. This catalogue, which accompanies a photo retrospective titled “15 Years of Part- nership” with Ukraine, gives just an overview of what USAID has done here since 1992. We hope that it will give you a better idea of the extent and depth of the cooperation between USAID and Ukraine. OVERVIEW

n February 28, 1994, representatives of the Government of Ukraine (GOU), USAID, the World Bank, the European Union and the EBRD jointly signed a Memorandum of Understanding (MOU), pledging support for a GOU privatization program. The general objectives were: 1) to distribute shares rapidly andO equitably to the citizens of Ukraine; 2) to develop capital markets and capital market infrastructure; and 3) to rapidly create a critical mass of privately owned enterprises to allow necessary restructuring and modernization to proceed under the direction of new private owners.

OUR PROGRAMS

Mass Privatization (1994-1998)

he Mass Privatization Project contributed to one of Ukraine’s most significant reform ini- Ttiatives – a massive transfer of the ownership of Ukraine’s industrial sector from the state to the private sector. In 1994, USAID together with Ukraine’s Cabinet of Ministers and the State Property Fund developed a program to privatize nearly 10,000 medium and large industrial enterprises by transferring 25% to 100% of their shares to employees, the general public, financial intermediaries and strategic investors. Shares were extended to interested parties in exchange for privatization certificates (vouchers), which were distributed to the general public in a nationwide program. Forty-eight million privatization certificates (PPC) were printed, allowing 90% of the population to obtain certificates and open privatization accounts; 41 million PPCs were invested; 35% of Ukraine’s citizens became shareholders through the mass privatization program.

Z ATION PR IVATI Small-Scale Privatization (1992-1999)

In 1992, the small business sector in Ukraine was virtually non-existent, and the country was lagging behind in market reform as compared to neighboring countries that were going through similar transitions. The goal of the Small-Scale Privatization Project (1992- 1999) was to foster the emergence of a viable private sector in the Ukrainian economy by assisting in the rapid privatization of small state-owned enterprises, mostly in retail trade, and consumer services sectors. The first auction of small-scale objects was successfully held in Lviv on February 20, 1993. This auction was intended to jump-start the process of small-scale privatization in Ukraine and lead to rapid replication of the auction-based Lviv model for the privatization of state-owned small-scale enterprises throughout the country. It was not until the second half of 1995, however, that the small‑scale privatization process gathered momentum. With strong support from the President and Cabinet of Ministers, capable leadership from the State Property Fund, growing support from city officials and growing grassroots approval, by the end of 1995, USAID – through the Inter- national Finance Corporation – had developed auction pipelines in city after city, increased the number of resident consultant teams and finally achieved total coverage of the country including the Autonomous Republic of Crimea and Kyiv. Between 1992 and 1999, USAID helped Ukraine to privatize a total of 50,000 small- scale entities, amounting to almost 90% of those available in Ukraine. 30% of these (15,498) were privatized with direct assistance from the World Bank’s International Finance Cor- poration. The project developed and implemented a highly effective auction-based model, held 1,010 auctions at which a total of 2,979 small-scale entities were sold. In addition, 11,595 enterprises were privatized through employee buyout and 924 through privatiza- PR IVATI Z ATION tion tenders. In recognition of its outstanding success, The Ukraine Small-Scale Privatization Project received the World Bank’s 1998 Award for Excellence as the best technical assistance project implemented within the framework of the World Bank Group.

Land Privatization (1995-2006)

n addition to mass and small-scale privatization, USAID helped the Ukrainian Govern- ment to transform its land regulations through land reform, as well as to privatize grain elevators. A USAID pilot project – the Land Titling and Registration Project (1995-2000) – established a methodology for registration of legal titles, and developed IUkrainian-specific data handling procedures and computer software, which allowed for the electronic registration of land titles. Since the first transfers of agricultural and urban lands to private hands in 1995, more than 1.8 million state deeds were issued to rural inhabit- ants by September 31, 2006. In 2001, Ukraine’s Land Ti- tling Initiative (2001-2006), began conducting a national public education campaign informing rural citizens and landowners of their rights, and established regional Le- gal Aid Centers to provide free assistance. In rural areas, the project contracted with local survey firms to subdivide large tracts of land previously used by collective farms and prepare land titles for rural citizens. In urban areas, project consultants helped assess the value of land parcels, guided entrepreneurs and local officials through the privatization process, and produced title documents. In addition to land privatization, 922 collective agricultural enterprises were restructured into more than 18,000 small and large scale private farms; 89 grain elevators were fully privatized, and 351 were 70% privatized. OVERVIEW

kraine’s agricultural sector with its vaunted fertile black soil, or chernozem, was widely regarded at one time as the bread basket of Europe. Unfortunately, by the 1990s, the sector had become much less fertile than the soil that supported it. In 1993, USAID developed the first of several programs it would implement overU the next 15 years to help Ukraine revitalize this key sector of the economy.

OUR PROGRAMS

Farmer-to-Farmer Volunteer (1993-present), Agribusiness Development (1993-2000) mong the first of those projects were a farmer-to-farmer volunteer program and an agribusiness development effort, which gave the country initial exposure to West- ernA technologies and know-how. U.S. volunteers provided hands-on training and assistance to Ukrainian farmers and helped to organize field days, while many U.S.-based agricultural multinationals worked coop- eratively with implementers on initial investments. It’s often the little things that turn out best. Among USAID’s largest initial successes during this time was an effort to stimulate milk collection. USAID’s Agri- business Development Program helped to organize milk collection points all across the country, where individual villagers could sell milk to commercial dairies. Private sources of milk quickly replaced collective farms as dairies’ prime suppliers. Today, 85% of milk supplies come from private sources, compared to a mere 5% in 1993.

Agricultural Policy (1997- 2004; 2006-2007)

A key moment for Ukrainian agriculture occurred in 1999 when President Leonid Kuchma issued a decree disbanding the collective farm system and calling for full privatization of the agricultural sector by 2005, a policy change that USAID’s Agricultural Policy Project had actively supported. The project helped to change Ukrainian agriculture in AGRICULTURE three significant ways: it convinced the government to (1) give up on collective farms and agree to move forcefully to privatize agricultural lands; (2) stop subsidizing farmers with seed, fertilizer, implements, etc; and (3) reduce interest subsidies to collective farms. It was also crucial in developing the grain warehouse receipt system.

Ukraine Commodities Exchange (1995-1999)

In 1995 USAID began a project to develop a transparent grain market. That activity helped develop sustainable agricultural associations to represent the interests of private agricultural businesses and farmers. Three of those organizations exist to this day: the Ukrainian Grain Association, the Union of Agricultural Commodities Exchange of Ukraine, and the Ukrainian Agricultural Confederation. Included in the vast privatization effort underway in Ukraine in the 1990s was a project to put grain elevators in private hands. By 1999 it had led to the privatization of 480 out of 560 state-owned grain elevators. With privatization moving apace, USAID undertook a program to allow farmers to store their harvest safely and use it as collateral for badly needed loans. Today the Grain Warehouse Receipts System (GWRS) provides for secure, safe and reliable storage of grain and oil seeds and allows farmers to use the inventory they store in silos to access credit. Since 2004, $700 million has been supplied in grain trade and production credits. The GWRS has increased access to over $3 billion of credit annually, and paved the way for adoption of numerous reforms for Ukraine to join the WTO.

Agricultural Land Titling and Registration (1995-2006)

USAID’s initial work in this area was a project to get collective farms to become more business-oriented. When it became obvious that most of the collective farms were far too debt-ridden to become commercially viable, the project transformed itself into a land titling effort. The initial project ended in late 2000 and was followed by the Ukraine Land AGRICULTURE Tiling Initiative. The 11-year effort developed the legal framework for land privatization, put 1.8 million land titles into the hands of private farmers by 2007, and created a legal aid network for new land owners across Ukraine.

Agricultural Marketing (2003-2007)

n 2003, USAID turned its attention to developing agricultural markets for small scale producers. Its Agricultural Markets Project successfully began to stimulate development of a market for fruits and vegetables and a system to efficiently Iget them to market. One major impact was to use registered wholesalers and processors versus open air markets, which moved the sector out of the shadow economy. As a result, the amounts of fruits and vegetables sent for processing began to increase, and that growth has been sustained ever since at about 20% annually. The project also developed a functioning market information system (MIS), which today provides product pricing information to wholesalers, and serves not only Ukrainian producers, but also Moldova, Georgia and Russia. Through technical assistance in crop selection, marketing and sales, the project helped private farmers, corporations and associations, in increasing domestic fruit and vegetable production. More importantly the quality of the produce has been improved significantly to meet new market-driven standards.

Agricultural Extension Services (1998 to 2005)

One successful technology transfer project USAID undertook was to provide support for the adoption and implementation of a land grant university model. Initially undertaken in Vinnytsia Oblast, and then extended to Khmelnytsky and Cherkasy Oblasts, the program provided support for agricultural extension agents in over 90 raions, which were backed up by research and teaching staff of agricultural universities. The project led to the adoption of an extension services law and government funding for an extension services agency for all of Ukraine. OVERVIEW

o become more integrated into the global economy, Ukraine realized that it needed to create a financial system that was compatible with a market economy. For example, in the former Soviet Union what had been called banking was primarily a mechanism for transferring financial resources from a central budget to Tcomponent units. Thus, Ukraine began creating a market-oriented financial system virtually from scratch. This required that Ukraine develop the basic legal and regulatory framework and institutional infrastructure. Government supervision had to be developed, while out- dated accounting regulations had to be replaced by international accounting standards that adhered to market principles.

OUR PROGRAMS

Banking Sector Reform (1993-2005)

Beginning in 1993, USAID in coordination with the International Monetary Fund (IMF), provided technical assistance to the National Bank of Ukraine (NBU) for the development of a Western system of monetary policy instruments and operating procedures. USAID, working in close collaboration with the IMF, the World Bank, and the NBU, helped Ukraine’s Parliament to develop several important laws on banking, including the Central Bank Law and the Law on Banks and Banking. After passage of these laws, USAID consultants assisted the NBU Bank Supervision Department in developing commercial bank regulations and supervision procedures to promote sound bank management. In particular, USAID assisted the NBU’s Bank Supervi- sion Department to establish risk-based bank supervision to ensure effective protection of bank deposits along with increased access to bank finance. To develop an independent capacity for basic banking education, USAID helped establish a training center, supported by the NBU. To modernize Ukraine’s banking back office systems, USAID worked with the NBU in developing an electronic payments system for the NBU, which reduced payment transfers from weeks to minutes, and on a “contingency backup system,” which is an essential part of modern central bank operations. After the 1998 banking crisis, the NBU developed deposit insurance to increase confidence in the banking system, which led to a significant increase in client deposits.

Financial and Capital Markets (1994-present)

USAID initially supported financial and capital market reform though the implementation of a World Bank financial structural adjustment loan. USAID programs in support of financial and capital markets development began in earnest in 1996 with the establishment of an over-the-counter stock electronic trading system (PFTS) for Ukraine, which began operations in July of that year with eight companies listed. USAID also helped establish independent share registrars and a PFTS broker-dealer association (PFTSA). By early 1998,

FINANCE & BANKING PFTS trading volume had reached $50 million per month, up from $2.7 million per month at its inception. In 2006, a new securities law allowed the licensing of the PFTS as a fully functioning stock exchange. Its standards, internal controls, and arbitration procedures have made it the dominant market in Ukraine. Today it handles more than 90% of all securities transactions occurring on the registered market in Ukraine. In 1995, USAID supported the development of Ukraine’s securities and stock-market supervisory agency (SSMSC), and USAID advisors began working with Ukraine’s newly 10 established Securities and Exchange Commission. In 1997, USAID helped the SSMSC to open a public information center, which has played a vital role in developing accounting and financial disclosure legislation, state regulation of the securities market, unification of market oversight authority, requirements that large firms use independent registrars, and

regulatory requirements that all professional market participants must meet. Today the FINANCE & BANKING Securities and Exchange Commission is developing a new electronic disclosure system to help investors obtain information on various securities in real time. Also in 1997, USAID helped to establish an International Securities Union (MFS), es- sentially a private national depository system created by investment bankers and dealers involved in the securities market. Today USAID is supporting the merger of the MFS with the state-owned National Depository in accordance with best international practices. Fi- nally, USAID has worked to stimulate the non-state pension system by helping to develop the Ukrainian Association of Investment Businesses and to make the work of the Financial Service Regulator, which oversees non-state pension funds, more effective.

Access to Credit (2004-present)

Since 2004, USAID has actively assisted Ukraine in increasing access to credit for small and medium enterprises, municipalities, and prospective home owners. Through its Com- mercial Law Center and Access to Credit Initiative, USAID has helped establish a mortgage industry, municipal debt market, financial leasing and credit bureaus. It has also developed new, investment-grade financial instruments eligible for pension fund investment, including mortgage bonds, municipal bonds, and equities.

Accounting Standards (1996-present)

ince 1996 USAID has worked to raise Ukraine’s accounting standards and help the accounting profession to develop. SUSAID has supported the introduction of international accounting standards, including translation of International Financial Reporting Standards, and con- sulted on formulation of supportive legislation, along with the creation of accounting associations that are promoting international accounting standards, practices, principles and ethics. In June 1997, USAID extended support for implementing international accounting standards to the National Bank of Ukraine. That year, 42 bank trainers completed a course in basic banking functions in cooperation with USAID and the International Management In- stitute. Today programs continue in developing accounting experts who know and adhere to international standards. USAID has also worked to help implement international financial reporting standards. In 2001, USAID launched the first internationally recognized accounting education, ex- amination, and certification program based on international standards and offered ina local language. Since the inception of the Certified International Professional Accountant (CIPA) program, more than 2,300 Ukrainians have become certified accounting professionals. Ninety percent of these professionals are women who are getting jobs, getting promotions and raising their quality of life because of the CIPA program. 11 OVERVIEW

Business development in Ukraine has been a USAID priority for well over a decade. USAID business development programs have been working to improve the business climate by reducing unneeded government regulations and improving economic and business conditions to draw both domestic and foreign investment; providing technical assistance for skills training and improving microeconomic conditions; and providing access to financial resources.

OUR PROGRAMS

Small- and Medium-sized Enterprise Support (1994-2004)

usiness skills development and legal/regulatory reform were at the core of the objectives pursued through USAID’s NEWBIZNET and BIZPRO programs. From 1994 through 2004, BUSAID provided training to businesses in basic business skills. In 1994, NEWBIZNET began working with private business service providers to increase SME understanding of market principles and operations, and to foster the use of modern, market-based business management principles. USAID assistance in business legal and regulatory reform began in 1994 in the regions by establishing groups of businesses and organizations that had com- mon goals and/or business interests, typically trade organizations, industry support organizations, chambers of commerce, and groups of linked businesses. The goal was to improve the local enabling environment. Business associations were very weak and not able to fulfill their typical role in a market economy, so BIZPRO focused on improving their

BU SINESS operations and helping them engage in advocacy on a limited basis. It provided operational subsidies, training and advocacy support. It also helped build a Business Association Net- work to improve cooperation and information exchange among associations. The network grew from 60 initial members to over 600 members today. In 1998, USAID began limited work at the national level with the newly created State Committee for Enterprise Development. BIZPRO provided computer equipment, training, study tours and business environment analyses.

Business Investment & Loans (1994 -present)

Created in 1994, the Western NIS Enterprise Fund (WNISEF) was capitalized with $150 million through USAID funding. The Fund has provided companies in fast growing sectors with the capital and management tools needed to evolve from entrepreneurial ventures into professionally managed companies. The stake in these companies has ranged from 25 to 100%. The Fund has actively taken part in developing company operations and management. By making investments and loans, creating new financial institutions and supporting businesses, the Fund has attracted additional equity investors and yielded additional borrowing capacity for the portfolio company. The cumulative investment commitment of WNISEF in the region has totaled $125.4 12 million in 34 companies while the Small Business Loan Fund has provided $3.8 million in loans and leases to 81 companies, for a total investment in Ukraine and Moldova of over $129 million. These companies include: AVK confectionery, Shostka Dairy, ProCredit Bank, Shvydko, EcoProd, International Mortgage Bank and others. In 10 years, the Fund has raised $132 million for the new private equity fund, Emerging Europe Growth Fund. The fund was able to get commitments from 74 investors who had never before invested in Ukraine.

Micro, Small & Medium Enterprise Lending (1997-2005)

Micro and small enterprises (MSE) in Ukraine faced numerous challenges, including an almost total lack of access to credit from the banking system. In a combined effort, USAID, the European Bank for Reconstruction and Development and the German-Ukrainian Fund established the Ukraine Micro Lending Program (UMLP) in 1997. The nine Ukrainian banks which continue to participate in UMLP have disbursed over 190,000 loans to micro and small enterprises for a total volume of more than $1 billion. A strong emphasis was origi- nally placed on assisting women entrepreneurs, who comprise over 50% of the banks’ client base. Ninety percent of the loans disbursed were micro loans with an average BU SINESS loan amount of $3,300. The program introduced agricultural and rural lending in which it granted nearly 700 loans at a value of almost $2.4 million. Although USAID concluded its technical assistance in September 2005, the program is fully self-sustaining as every dollar invested has brought an additional $183 for Ukrainian SMEs. By 2005 year, the program has secured or created approximately 280,000 jobs. In 2001, UMLP established a special microfinance bank, ProCredit Bank, which has demonstrated the great potential of MSE lending in Ukraine. ProCredit has set up 59 branches across Ukraine, disbursed more than 143,000 loans to micro, small and medium- sized enterprises for a total amount of nearly $820 million.

Business Education in Ukraine (1999-2005)

ne of USAID’s economic development priorities has been to strengthen business-management programs atO Ukrainian schools, institutes and universities, to produce a new generation of business managers. The USAID-funded Ju- nior Achievement Program provided economic education for Ukrainian students enabling them to explore career opportunities and develop hands-on experience in the operation of a business enterprise. Over 30,000 secondary school students have studied the Junior Achievement “Applied Economics” course in more than 500 secondary schools in Ukraine. Two USAID projects, Ukraine Business Management Strengthening (1998-2001) and the follow-up Business Management Education in Ukraine (2001-2005), worked to strengthen undergraduate and graduate business management education at selected Ukrainian universities and business schools. Special attention was given to developing the MBA and PDS programs, and developing partnership relationships with business. As a result, over 4,000 faculty and administrators participated in training activities and over 1,000 Ukrainian professors were trained in Western methodologies of teaching the latest management disciplines. 13 OVERVIEW

he energy sector of Ukraine is a vital part of the Ukrainian economy. USAID activities have worked to achieve a commercially profitable, efficient and environmentally sustainable sector to substantially increase Ukraine’s independence from fuel imports. TUSAID environmental programs worked to promote sound environmental management for sustainable development through activities that: 1) strengthened Ukraine’s policy, legal and regulatory framework; 2) involved citizens and NGOs in environmental decision-making; 3) increased environmental investment and promoted environmentally sound technologies; and 4) improved environmental management at public and private facilities.

OUR ENERGY PROGRAMS

Power Sector Restructuring and Privatization (1997-2003)

In 1997, USAID focused its programs on power sector restructuring, and improving energy production and conservation. With U.S. support, a competitive wholesale electricity market was introduced in Ukraine. USAID also helped establish the National Electricity Regulatory Commission of Ukraine (NERC). USAID assisted NERC in issuing licenses for generators and distribution companies, as well as in developing a new system of tariff collection and fund administration. USAID also assisted the Parliament of Ukraine in developing two energy-related pieces of legislation – on the NERC’s political and economic independence and on an electrical wholesale market. USAID assisted the State Property Fund and the Ministry of Fuel Energy in developing transparent and internationally recognized rules and regulation for privatization for power distribution companies (OblEnergos). Six OblEnergos were sold to qualified foreign strategic investors in 2001.

Energy Training and Partnerships (1993-2001)

USAID established the U.S-Ukraine Utility-to-Utility Partnership program to stream- line metering, billing and collections, and to introduce an international accounting system, financial management and business planning. Extensive training was a major feature of USAID’s energy program. A Management Training Unit within the Sectoral Coordination Center on Personnel established by the Ministry of Energy trained about 1,800 professionals, including directors of power distribution companies and power generation companies. A specially designed Energy MBA program provided 182 energy professionals with essential skills in management and accounting. After completing the program, over 62% of Energy MBA graduates have received promotions within energy companies.

Energy Efficiency (1994-2007)

USAID also concentrated on promoting energy efficiency. A USAID municipal energy efficiency program was set up in six Ukrainian cities – Lviv, Rivne, Khmelnytsky, Lutsk, Ter- nopil, and Slavutych – to support energy efficiency program development at the municipal level. Energy efficiency equipment was installed in schools and hospitals with USAID co- ENERGY & ENVIRONMENT financing. USAID also worked to improve the efficiency of heat and water supply to resi- dential customers. In 1994, USAID carried out an energy efficiency and reliability program 14 to improve the reliability of Kyiv Heat and Power Plant No.5; combustion efficiency at five other power plants; and energy efficiency at five industrial plants. In 2006, USAID launched a new industrial energy efficiency project to reduce Ukraine’s ENERGY & ENVIRONMENT dependence on imported natural gas. The project provides technical expertise and solutions for low-cost financing to selected industrial energy consumers for implementing energy efficiency improvements. USAID is working to partner Western energy services companies with Ukrainian counterparts to develop energy efficiency projects, and improve the competitiveness of Ukrainian industry. The best energy efficiency practices will be disseminated to other industrial companies. Project experts have conducted enterprise energy audits, and a trade mission of Western ESCOs visited Ukraine to learn about partnership opportunities. In conjunction with low-cost financing from the US Ex-Im Bank, and other international and national financial institutions, it is expected that the effort will result in energy efficiency improvements in at least 10 industrial plants.

OUR ENVIRONMENTAL PROGRAMS

EcoLinks (1999-2003) and Local Environment Actions (2000-2003)

he USAID EcoLinks (1999- 2003) program promoted market-based solutions to environmental prob- Tlems by supporting partnerships between Ukrainian businesses, local governments and associations, and their counterparts in the U.S. or within the region. EcoLinks awarded partnership grants and quick response awards to focus on energy efficiency, global climate change and initiatives. USAID also assisted seven Ukrainian communities in identifying and addressing their most important environmental problems through development of Local Environmental Action Programs (LEAPs). LEAPs built partnerships among citizens, authorities and industry to reduce local environmental threats to human health and the ecology by leveraging over $450,000 in local funds; promoted public participation in local environmental decision-making; and increased access to environmental information. USAID’s Ukrainian Land and Resource Management Center (1999- 2005) assisted Ukraine in developing the use of remote sensing, geographic information systems (GIS), digital mapping, Internet, and other information technologies for effective public policy development and decision-making. ULRMC assisted Ukraine in applying these technologies to manage Carpathian forest resources; biological diversity in the Azov/Black Sea Corridor; fires and flooding in and around the Chornobyl Exclusion Zone; flooding in the Tysa River basin, etc. The U.S. Geological Survey and ULRMC, with USAID support and in cooperation with the State Water Management Committee, installed satellite transmitting and receiving stations in the Tysa River Basin, which has improved data collection for flood forecasting and monitoring. Ukrainian specialists were trained in equipment operation and mainte- nance, and in data processing for monitoring via the Internet and radio communication networks. The public on-line Library on Environmentally Sound Development (www.elesd.kiev. ua) was established with help from the National University of “Kyiv-Mohyla Academy” as an independent source of information on a wide range of USAID-funded training and programs. 15 OVERVIEW

Ukraine’s democracy needs to develop a transparent, consensus-based intergovernmental system that ensures independent revenues for local governments. For this to occur, local governments must become autonomous. Because the central government still dictates many local budgets, municipal governments lack incentives for effective, cost-sensitive budgeting, planning and monitoring. Local government officials also need to gain experience in key public administration areas, such as human resource and financial management.

OUR PROGRAMS

Municipal Finance and Management (1994-present)

fter a 1993 municipal development assessment, USAID initiated the Municipal Finance and Management (MFM) Project to assist cities in developing local self- government. The legislative effort culminated in the development of a separate statute in Ukraine’s Constitution guaranteeing local self-government. The proj- Aect also began to address the poor state of municipal utilities and the need for reform and restructuring. It was instrumental in organizing cooperation among the various towns and cities in what would eventually become the Association of Ukrainian Cities (AUC). The MFM project also made the first inroads into the computerization of Ukraine’s city halls in two pilot projects in Lviv and Kharkiv (later extended to seven cities), and introduced techniques and systems for municipal budgeting, finance and management. In 2000, a USAID-funded computerized budget model helped 48 Ukrainian cities (representing 44% of all cities with a population of 50,000-1 million) improve their financial management and transparency. In 2001, USAID launched the Municipal Budget Reform Project to develop a transparent intergovernmental system of finance as a source of independent revenues for local governments. Initially, USAID helped the Ministry of Finance, and oblast, raion and city financial departments throughout the country to design and implement a formula-based methodology for budget transfers, Over 800 financial officers representing all 686 independent local budgets of Ukraine were trained on implementation of the new financial system. In 2003, a priority was placed on providing more direct support to municipalities. Today, municipal governments are improving budgeting and financial management capacity through training and organizational changes. Many municipalities have created alternative Performance Program Based (PPB) budgets to par- allel their traditional ones in order to allocate limited resources more ef- fectively. It has helped cities to repair roads and provide kids school chairs. A total of 1,907 local government LOCAL GOVERNANCE officials and citizens representing 33 cities have been trained in PPB and its implementation. Earlier on, USAID has placed an emphasis on modernizing city services. In 1995, a first-ever initiative to modernize municipal transportation involved the purchase of new trolley-buses for nine Ukrainian cities to improve urban public transportation. The project resulted in a 40% general increase in capacity and increased revenues. 16 The Association of Ukrainian Cities (1993-present)

The AUC, established in 1992 and modeled after the U.S. National League of Cities, began with 40 cities and today is composed of mayors from over 500 cities. It immediately became engaged in lobbying the central government for greater decentralization of government with an agenda covering municipal services, intergovernmental relations, and financial

and policy issues. Since then, it regularly holds training programs on various themes, and GOVERNANCELOCAL disseminates local government best practices to its members. The AUC contributed input to the new Constitution adopted in June 1996, and worked on the Local Self Government bill, which was passed in 1997. In 2001 it successfully lobbied for a new Budget Code, providing municipalities more revenue stability and fiscal autonomy. The AUC supports local public sector associations and legislative advocacy for government decentralization.

Local Economic Development (2004-present)

The Local Economic Development (LED) Project continued USAID assistance to local governments in strategic planning and project implementation; capacity building of local government service organizations to support city initiatives in economic development; training of professionals in investment promotion and attraction; and supporting improvements to the legal and regulatory environment for LED. Today almost 300 cities actively use advisory boards with citizen participation to work on city development plans. Nearly 130 cities are using strategic action plans and/or business plans for investment purposes, and a like number regularly use transparent competitive bidding to procure equipment and services. Ninety-two cities improved the delivery of municipal services, and 192 cities make use of financial analysis models for planning.

Communal Services Restructuring and Reform (1997-present)

In 1995-1996 USAID began directly addressing the problems associated with under- funded and overburdened municipal utilities services providers, initially through the Lviv Vodokanal (water system) project, which focused on restructuring water and heating provision systems in Lviv, including the construction of a water pumping station. The project resulted in improvements in water supply to about 50,000 citizens. In 1999-2000 the project was rolled out to eight Ukrainian cities to improve their technical, financial and management capacity, significantly improving water quality (a 7% improvement for one city) and reducing energy consumption (25% for one city). In 2000, a new Tariff Reform and Communal Services Enterprise Restructuring Project focused on reorganizing utilities to make them more efficient and financially self-sustainable, as well as raising tariffs to cost recovery levels. It encouraged transparency and public participation in policy setting and oversight. In 2002, as a result of a joint effort with the Ministry of Economy and the State Com- mittee for Construction, Architecture and Housing Policy, a new regulation on setting tariffs was developed and approved that set incentives for vodokanals to reduce operational costs and improve efficiency, and provided for public participation in the tariff-setting process. USAID is working to implement market mechanisms to further improve management and service delivery of water and district heating systems, change management and technical policies and develop long term strategic plans for capital improvements and service upgrades. Stakeholder Committees are working to supervise the public participation process through focus groups, public forums, and public hearings. Most participating cities have already increased tariffs by 30-50%, close to cost recovery levels. Payment collection rates for customers at all participating enterprises have increased by 10-30% bringing payments close to cost-recovery levels. 17 OVERVIEW

ver the past 15 years USAID has provided more than $45 million in technical assistance, training, financing and limited commodities to foster the development of Ukraine’s independent print and broadcast media. It has also provided around $30 million to public education media projects. Initial inroads were successfullyO made in developing an open, competitive media market, but back-pedaling began at the end of the 1990s as an authoritarian presidency pressured journalists and the media to reflect a singular political and policy position. The mass demonstrations and political turmoil of December 2004 – the Orange Revolution – saw Ukraine’s mass media find its own voice once again. While it still remains vulnerable to political manipulation, today Ukraine’s mass media is as free as it has ever been and among the most free in the post Soviet space.

OUR PROGRAMS

Broadcast Media Development (1993-2007)

SAID has promoted the development of a free, empowered and pluralistic mass media in Ukraine since 1993 through its independent media programs. It establishedU the International Media Center, which worked to improve access to information for Ukrainians and to promote open communication policies. In 1996, together with Internews Network, USAID helped to create In- ternews-Ukraine, which in the last decade has provided instruction to more

M E D IA than 4,000 media representatives in 280 training programs, and produced more than 460 television and 1,550 radio programs. That same year the International Media Center created STB, the first independent satellite television station in Ukraine.

Print Media Development (1996-2007)

USAID’s Pro-Media program, which began in October 1996, supported development of Ukrainian print media through training and seminars and by providing access to the Internet, library resources and educational literature for journalists, students, and staff of university journalist departments. During the project’s first phase, press centers in Kyiv and Crimea were established. During the second phase, which began in 1999, a Legal Defense and Education Program was created, and the program began to provide internships for journalists and media managers, and consultations to media outlets. Also at this time, a dozen textbooks were published on various themes for print journalists and media managers. Most recently, the print media development program has instituted a journalist exchange program within Ukraine, which pairs media outlets throughout Ukraine for training and mentoring of their respective journalists. A Print Journalism Training Program also was established to support regional print media outlets. For the past eleven years, the print development program has conducted more than 500 training programs for more 18 than 4,000 representatives of hundreds of mass media outlets located throughout Ukraine. In 2003, USAID launched the Strengthening Independent Media in Ukraine (U-Media) program in partnership with other international donors and local organizations, to spur print media development. U-Media has focused on reforming the legal environment to protect free speech and fair professional media practices; strengthening the financial viability of independent media by building local management and commercial capacity; and developing journalistic skills. Today, the U-Media program provides support to Internews-Ukraine, the Independent As- sociation of Broadcasters, Telekritika, Media Law Institute, the Legal Defense Education Program, Ukrainian Association of Press Publishers, the Association of Independent Regional Press Pub- lishers, the Crimean Information and Press Center, and the Regional Print Development Institute. Jointly with the International Renaissance Foundation, it also provides grant support to multiple Ukrainian media organizations through the Open Media Fund. M E D IA

Reform Education Project (1993-2007)

The Ukraine Market Reform Education Program (UMREP) (1993-2001) began as a general public awareness campaign to explain the unfamiliar concept of a market economy to Ukrainians. In 1994-1996, the project supported the Ukrainian government’s mass privatization program. In 1997, USAID expanded the project to include public education for a broad range of privatization and post-privatization issues. Topics included macro-economic reform, capital markets development, and social welfare restructuring. The program assisted public and media campaign efforts in support of land, pension and tax reforms and green rural tourism, and included training for about 2,000 journalists. Hundreds of Ukrainian government counterparts and NGO partners went through UMREP media relations and public speaking training. The project also established 25 press clubs that continue to operate today as registered NGOs, two TV programs, three radios shows and two telephone hotlines. In addition, it began production and distribution of periodicals, and organization of special events at the local level, such as information fairs and town hall meetings. UMREP received numerous Ukrainian and international awards, including the 1997 Creativity in Public Relations Award, one of the most prestigious awards in the public relations industry. UMREP took first place in the “International PR” category from among a distinguished group of finalists that included the Discovery Channel and Owens Corning. The Ukraine Reform Education Program (UREP) succeeded UMREP in 2002, expand- ing its activity into the social and democracy sectors. Utilizing television, radio, print, telephone, the Internet and press clubs, UREP conducts nationwide public education activities to promote awareness and participation by Ukrainian citizens in economic, social and democratic reforms. The program assists Ukrainians in understanding reform issues, such as small and medium-sized business development; agricultural reform, including land titling; social sector restructuring, including pension and health sector reforms and the control of Avian Flu; municipal and administrative reforms; tax and fiscal reform; energy sector restructuring; environmental protection; anti-corruption initiatives; voter awareness; and more. UREP is implemented by the Center for Ukrainian Reform Education (CURE), a Ukrainian non-profit non-governmental organization. 19 OVERVIEW

ince 1993, USAID programs have made significant contributions to Ukraine’s now vibrant and increasingly sustainable civil society. USAID has supported the development of a wide variety of non-governmental organizations (NGOs), such as civic groups, associations and non-partisan think tanks. USAID programs have been in- Sstrumental in developing the capacity and advocacy skills of NGOs, creating a more conducive environment for NGOs through regulatory efforts, and helping the third sector to establish a domestic funding base. USAID support has enabled NGOs to better advocate for their constituencies on social, democratic and economic issues, and increase citizen participation in public life.

OUR PROGRAMS

Eurasia Foundation (1993-present)

orking through the Eurasia Foundation (EF) since 1993, USAID has invested more that $42 million in grants, Wloans and technical assistance for local initiatives, with a good portion going to NGO development and assistance. In partnership with the National Univer- sity of Kyiv-Molyla Academy, USAID helped to establish the Economics Education and Research Consortium, a high-quality master’s degree program in economics. The EERC has recently become the Kyiv School of Economics, and now receives funds from diverse sources, including from private Ukrainian donors.

Counterpart Alliance for Partnership (1997-2002)

The Counterpart Alliance for Partnership (CAP), which began in 1997, was designed to support NGO capacity building and enhanced civic participation. The project spurred development of a broad range of civil society organizations (CSOs), including those supporting vulnerable segments of the population, such as children and youth, the disabled, CIVIL SOCIETY the elderly, and the drug and alcohol dependent. CAP also supported environment and youth leadership development, and HIV/AIDS prevention and public health efforts. In addition, it was engaged in developing a legal and regulatory environment conducive to NGO development.

Partnership for Reform in Ukraine (1998-2002)

Partnering with think tanks has been a critical component of USAID’s civil society efforts. The Partnership for Reform project improved the ability of non-governmental, public policy organizations to promote political and economic reform through research, development, advocacy and project implementation, and allowed them to provide the public and government officials with information on critical issues facing Ukraine in its democratic and economic transition. It helped qualified organizations with project grants, training, 20 networking opportunities and technical assistance, and linked Ukrainian think tanks with counterpart organizations in Central and Eastern Europe and the United States.

Polish-America-Ukraine Cooperation Initiative (PAUCI) (1997-2005)

In 2006, the Poland-America-Ukraine Cooperation Initiative (PAUCI) successfully became a self-sustaining NGO after seven years of USAID support. It was begun in 1997 to draw Poland and Ukraine closer. PAUCI’s founding purpose was “to strengthen the emerging cooperative relationship between Ukraine and Poland, and to take advantage of acquired expertise and lessons learned in Poland’s successful transition to a free‑market democracy.” Through the course of the program, PAUCI supported 406 Ukrainian and Pol- ish organizations, which conducted some 189 partnership projects and activities supporting PAUCI’s goals of influencing civil society and free-market development. Thousands of Ukrainian local officials, scholars, NGO activists, and business leaders visited Poland to gain CIVIL SOCIETY exposure to its democratic system, civil society and free market at work.

Ukrainian Citizens Action Network (2002-2007)

he Ukrainian Citizens Action Network (UCAN) program has provided grants, technical assistance, training and networking resources to a wide range of civil society organizations in all oblasts of Ukraine since 2002. It reaches out to citizens through community partnerships, constituent outreach and youth leader- Tship activities to develop advocacy skills and build the financial and organizational capacity of NGOs. The program also supports technical assistance aimed at improving the legal and regulatory framework for civic activism in Ukraine. Today, UCAN works to strengthen CSOs to advocate on a wide range of social, democratic and economic issues and increase citizen participation in public life. UCAN also supports a broad network of CSOs to reduce stigma and discrimination for people living with HIV/AIDS. Through 2006, UCAN had awarded 272 grants totaling $5,346,364 to Ukrai- nian CSOs, which enabled them to better advocate for their constituencies, broaden and deepen their impact, and share successful strategies with other organizations.

Corporate Philanthropy (2006-2007)

UCAN continues to promote social entrepreneurship as a means for organizations to raise money to support their missions. In 2006, UCAN became a partner under the Global Development Alliance (GDA) project “Corporate Philanthropy: supporting good practices and transparency in Ukraine” with a goal of increasing philanthropic activities among business in Ukraine. The project expects to increase philanthropic activities through innovative practices that reinforce the principles of openness and transparency. By introducing concrete mechanisms that businesses can further develop and by sustaining philanthropic activities in an open and transparent manners, the project is working to ensure the continued existence of a strong and vibrant civil society to provide critical social services, represent citizen’s interests, and work alongside business and government. 21 OVERVIEW

SAID has been supporting democratic political process in Ukraine since 1992, focusing primarily on development of strong, broadly based and well-organized political parties, improvement of legislative processes, and strengthening of civil society. To respond to the need for strengthening policy formulation and cohe- sionU in government, USAID has recently increased the emphasis on democratic governance within its political process programs to further develop Ukraine’s government management capacity and bring qualified young leaders to the ranks of Ukrainian civil service through international trainings and government-to-government exchanges.

OUR PROGRAMS

Political Party Building and Development (1992-present)

USAID’s political party building and development programs have provided assistance to democratic political parties and civic advocacy groups to boost their organizational capacity to recruit and mobilize supporters and to build coalitions on the national and regional level. Since 1992, USAID has conducted training programs for political parties, youth, women and locally elected officials across Ukraine. Activities include training seminars

OCESSES for a broad spectrum of parties, as well as individual consultations for party leaders and ongoing party development consultations. The program has trained elected officials, including Members of Parliament, on constituent outreach, has worked with politically active women to strengthen their advocacy skills, and has provided technical assistance to youth NGOs to promote leadership and develop campaigning skills. USAID has also assisted in developing non-governmental election monitoring structures, engaging significant numbers of domestic observers to monitor the 1999 and 2004 Presidential elections, and the 2002 and 2006 Parliamentary elections. To respond to the need for strengthening policy formulation and cohesion in government, USAID has increased the emphasis on democratic governance within its political process programs by increasing Ukraine’s government management capacity and preparing young interns to be civil servants.

Parliamentary Development (1994-present)

USAID began working with Ukraine’s Verkhovna Rada in 1994. One of the earliest USAID Parliamentary Development programs helped to expose the Rada to democratic legislative traditions and achieve a more effective, independent and representative legisla- ture. An essential and extensive undertaking early-on was the development of a new set of Rules and Procedures, which supported a more open, multi-party parliamentary system. There was also an early program to develop a library of reference manuals, scholarly legal journals and casebooks of Western law and legislation, which included the development of a computerized legislative data base. In 1998, USAID began concentrating on making the Parliament’s work more efficient and effective by developing an internal management system; improving executive/legisla- P O L ITICA L PR tive relations, which had always been rather strained and were deteriorating in 1998; and increasing feedback and access to the system for Ukrainian citizens. In 2000, the Rada instituted legally mandated public hearings and monthly Government Days. Public hearings were designed to allow citizens to have their voices heard in the matter of legislation, while Government Days were an effort to tighten the relationship between the work of the Cabinet of Ministers and the Parliament and make the government more responsive to the public and the Parliament. 22 Also in 1998, to address the challenges associated with a high 40% election turnover rate among MPs, USAID helped to initiate a Newcomers Training, which consisted of a series of briefings on the legislative process and the workings of the Rada. In 2000, with USAID support, the Parliament opened a press center – another step in making the legislative body more transparent and accountable. Soon thereafter, a Parlia- ment website appeared on the Internet, and while initially there were two different elec-

tronic sites, an internal one for MPs and an external one for the general public, with time L PR P O L ITICA they were combined. Among the longest-lasting of USAID projects is the Parliament Internship Program. In 13 years, more than 700 young interns have taken advantage of the opportunity to work within the walls of the Rada, in committees and with members of Parliament in a host of support roles, including as committee clerks and aids to MPs. Up to 40 percent have continued to work either in Parliament or in another branch of government after their internships have been completed.

Electoral Processes (1994-present)

ince 1994, USAID has assisted both the Government and people of Ukraine in making elections more fair, open and transparent. USAID has worked with the Central Election Com- mission, parliamentary Scommittees, and NGO election watchdogs to provide basic institutional and capacity development assistance in elections administration, observation and voter education. Before the March 2002 parliamentary elections, USAID conducted the first-ever election commissioner mass train- OCESSES ing, with more than 15,000 commissioners and a like number of party election observers nationwide trained and provided with instructional aids. An effort was also made to focus the attention of the Central Election Commission, political parties and the individual candidates on election litigation and case adjudication through the development of a variety of publications in this area. In the lead-up to the difficult 2004 presidential election, USAID in partnership with Ukrainian NGOs trained over 100,000 election commissioners, and ensured that instructional materials were available to virtually all 33,000 polling sites. Major judicial training gave judges the tools to adjudicate more than 150,000 election cases and complaints in what became the most litigious Ukraine election to date. Additional training, capacity building and institutional advisory services to the CEC continued through the March 2006 parliamentary elections, deemed largely free and fair by all major international observer missions. Most recently, USAID made a major contribution to the development and adoption of a National Voter Registry Law, passed in February 2007. In 2004, USAID also supported the largest elections observation effort in the world in the last decade, which was carried out by the European Network of Elections Monitoring Organizations (ENEMO), a coalition of professional election monitoring NGOs from 17 countries of Europe and Eurasia. 23 OVERVIEW

SAID has provided support for development of rule of law and other legislative areas since 1993 through several rule of law projects, a Commercial Law Project and to some extent through its Parliamentary Development Program. While the latter has been geared more toward providing know-how and expertise in parliamentaryU procedure and staff development, all these programs have supported development of important pieces of legislation, such as the Civil Code. USAID also played a particularly important role in facilitating the adoption of the Constitution in 1996 by acting as a disinterested broker.

OUR PROGRAMS

Commercial Law Development (1995-present)

o promote the growth of Ukraine’s commercial sector, USAID has provided Textensive support in creating a transparent and efficient commercial law framework. The aim was to make commercial entities more competitive and to provide needed resources for economic growth, while eliminating obstacles for potential investors. In 1995, USAID began fo- cussing on two important areas: collateral and bankruptcy. To help stimulate the credit market in Ukraine, USAID developed a collateral pledge registry to track the material guarantees that backed loan ex- tensions. This assistance was done in collaboration with both the National Bank of Ukraine and the Ministry of Justice. USAID supported the development of a computerized pledge registry from conception to implementation, which included helping to shepherd needed legislation through Ukraine’s Parliament, and supporting the development of software and the purchase of required hardware. LEGAL REFORM Also in support of a credit market, USAID provided technical assistance and international legal expertise on a new bankruptcy law for Ukraine. The bankruptcy law that was eventually developed transformed the bankruptcy process from a liquidation procedure to a financial restructuring. USAID also helped Ukraine’s banking system to develop a Bankruptcy Agency and an Association of Anti-Crisis Managers to help with financial restructuring process. In order to increase Ukrainian capacity to address legal and regulatory reform, in 2000 USAID established the Commercial Law Center (CLC), a Ukrainian NGO. CLC has worked closely with the Government of Ukraine and private stakeholders to develop needed legislation to move Ukraine to a free market economy. Today the Commercial Law Center continues to pursue that goal by organizing roundtables, seminars and trainings to address legal, judicial and bailiff issues. During nearly seven years of work, the CLC has provided expertise in consulting and legislative development in the passage of the Civil Code, 24 the mortgage law, enforcement laws and loan/leasing laws. The CLC was instrumental in reforming the Commercial Court system through adoption of a Case Management System and Judicial Database and the development of a Registry of Judicial Decisions for Ukraine’s High Economic Court. In the area of regulatory reform, USAID’s most recently intensified its work in the regions while developing the Law on Regulatory Policy in the Sphere of Economic Activity. Efforts to create one-stop shops (OSSs) for business registration led to work on permit issuing OSSs and support to government agencies for development of the Permit System Law.

Rule of Law (1993-present)

n the period between 1993 and 1999, USAID’s work in developing rule of law included LEGAL REFORM three areas of programming: strengthening core legal institutions, targeted support for the reform of the legal framework and building civil society participation in legal reform. USAID’s early Rule Iof Law project purchased computers for the courts, brought numerous judges to the U.S. for training programs, helped to build libraries in the High- er Arbitration and Supreme Courts, and also helped those courts to conduct training programs and develop judicial training centers. USAID also supported a second rule of law program to improve the capacity and com- petence of judges and lawyers; strengthen environmental law reform and advocacy efforts; and support legal education reforms. This program helped establish 14 new legal clinics through direct financial, programmatic, and administrative assistance. It benefited 35 clinics through conferences, trainings and seminars. Within the project, USAID introduced two textbooks on clinical legal education that have since been endorsed by the Ministry of Education, an Internet resource for clinics, a “street law” manual and two Regional Training Centers. In many ways, this assistance was instrumental in developing Ukraine’s nascent legal clinic movement and setting up a network of public advocacy centers. The Rule of Law project also was instrumental in providing software and technical assistance to Ukraine’s Judicial Branch in developing a Case Law Management System. A pilot project was the first effort to track court cases internally from the moment a complaint was filed to its resolution. Regardless of successes in specific areas, the overall slow pace of judicial reform in Ukraine in the 1990s, and a constantly increasing level of corruption, created disincentives for a larger assistance effort. Yet, with the new possibilities for reform after the events of December 2004, USAID launched a new rule of law/anti-corruption project. The new project, which began in late 2006, will 1) support and build consensus for judicial reform strategy, organizing immediate assistance in the judicial system, drafting policy and amend- ing relevant key legislation; 2) facilitate adoption and implementation of new laws and regulations; 3) train new administrative court judges and staff; 4) implement new procedures for selecting, appointing and promoting judges; and 5) improve the budget process. 25 OVERVIEW:

SAID is partnering with Ukraine to improve its health care system, and set health standards and create systems that would give Ukrainians better information and empower them to make their needs known. The goal of USAID programs has been to generate demand for services that meet international standards,U and develop the quality and professionalism of medical workers. OUR PROGRAMS

Tuberculosis Prevention and Control (2000-present)

In 2000, USAID launched a project to combat the growing spread of tuberculosis (TB) in Ukraine. The pilot program, based on a WHO-recommended Directly-Observed Treat- ment, Short-Course (DOTS) strategy, was launched in Donetsk oblast. By 2005, treatment success rates in Donetsk were reported at 70%. Public awareness campaigns have enhanced responsible anti-TB behavior within the Donetsk population and resulted in a two- fold increase of TB-infected persons reporting to medical facilities, with a case detection rate of 50%. More than 4,300 doctors have been trained in internationally recognized best practices for TB prevention and control. The Donetsk region has reached and maintains TB treatment cure rates of 68% and has improved detection rates from 52% to 62%. The pilot DOTS program introduced in Donetsk oblast is currently being rolled out to five additional oblasts to cover 40% of Ukraine’s population by 2008. USAID is supporting TH local governments and civil society organizations to implement DOTS services. USAID’s Health Policy Initiative has led to a Ministry of Health-approved national TB policy based on DOTS. Controlling the escalating TB epidemic is a priority.

Maternal, Child and Reproductive Health (1995-present)

mproving reproductive health was and remains one of USAID’s main focuses. USAID goals for maternal, child and reproductive health have been to: decrease reliance on

HEA L abortion as a method of family planning; enhance promotion of good maternal and infant health care; create a legislative/regulatory and analytical environment; and increase Ipublic participation in policy and decision-making. The first USAID project in Ukraine was instituted in 1995 by the Women’s Reproduc- tive Health Initiative (WRHI). The program addressed issues on reducing abortion and improving access to safe reproductive and maternal health services by creating women’s health clinics, updating clinical and counseling skills, and improving the availability of high- quality contraceptives to consumers. The program developed model family planning and maternity care services in seven Ukrainian cities. It also developed and implemented sustainable strategies for improving Ukrainian reproductive health service delivery and updating clinical skills through clinical counseling/training courses. During the first five years of the project’s work, abortion rates dropped 50%. Modern maternity care curricula were introduced in medical educational institutions, and revised clinical services were tested in medical schools in several regions. Current USAID maternal, child and reproductive health programs continue to strive to improve access to high-quality services, including maternal/infant care, further reduce abortions and increase usage of modern family planning methods. USAID assists the Minis- try of Health and local governments in developing appropriate supportive legal/regulatory/ operational policy frameworks. In 2000 and 2006, USAID was an important contributor to the successful formation of Ukraine’s five-year National Reproductive Health programs. 26 In 2002, USAID launched a Maternal and Infant Health project to introduce and promote modern maternal and infant care, and improve counseling, delivery and child care services to HIV-positive pregnant and post- partum women and their children. The project also has shown the ability to eliminate hypothermia in newborns, increase normal deliveries and decrease C-sections, while increasing deliveries attended by partners.

Health Partnerships program (1998-2004)

The Health Partnerships Program, a community-based primary health care program, was initiated in 1998 to create partner relations between Ukrainian and American health facilities, educational institutions, and health-focused, non-governmental organizations in order to develop joint health programs that matched the needs of a particular Ukrainian community. The partnerships involved a multidisciplinary approach and provided training, HEA L including exchanges between U.S. and Ukraine in modern preventive medicine, usage of new equipment, training in clinical procedures and curative protocols and standards. As a result, 12 family medicine clinics providing integrated health services were opened in Kyiv, Lviv, Donetsk, Odesa, Zakarpattya and Kharkiv Oblasts. Today, family medicine providers are better-trained and offer broader services, which has lowered the number of patient referrals to more costly specialists from over 60% of patients in 2000 to a mere 26% in 2003. In addition, five Women’s Wellness Centers, which include Breast Health Units, six Neonatal Resuscitation Training Centers and three Ukrainian National Emergency Medical and Disaster Medicine (EMS) Training Centers were established. TH

Breast Cancer Assistance (1996-2001)

USAID launched a comprehensive breast care program in 1996 to improve services and access, particularly for those exposed to the 1986 Chornobyl accident. The program provided clinical and laboratory training, including proper clinical breast examinations and diagnostic procedures, and established mammography screening services, which have tested 70,000 women to date. Better public understanding of breast self-care and the im- portance of screening was a critical component of the educational aspect of the program. The program introduced modern chemotherapy protocols and breast tumor management, and developed psychosocial support services for enhanced patient well-being. In 1998, the Chernihiv Mammography Screening Center was established, and Breast Health Units were also opened in USAID-supported Women’s Wellness Centers. A breast cancer survivors’ network has been successful in establishing services for patient support and community awareness.

Chornobyl Childhood Illness (1998-2002)

To improve health care in the Chornobyl-affected areas, USAID initiated a project to support the training of physicians in the latest methods for detecting thyroid cancer in children, as well as for psychiatrists and psychologists in the management of children with psychological illnesses. USAID opened five U.S.-Ukrainian medical centers for screening adolescents for thyroid tumors and psycho-social illnesses. Each clinic was equipped with a mobile diagnostic laboratory for expanded coverage in rural areas. 27 OVERVIEW

USAID has been working to assist those most impacted by Ukraine’s economic transition - the elderly, youth, the disabled, the unemployed, and those affected by disasters. From 1994 to 2005, USAID shipped and distributed over $144 million in humanitarian and NGO capacity building equipment and supplies.

OUR PROGRAMS

Community and Humanitarian Assistance (1994-2004)

or 11 years, USAID provided humanitarian aid in response to emergency situations through the Community and Humanitarian Assistance Program, which included relief for floods in Transcarpathia in 1998, 1999 and 2001; the Zasyadko Mine explo- sion in 2001; and the Lviv air-show accident of 2002. FUSAID also addressed the critical needs of vulnerable groups, with over $100 million worth of supplies from the U.S. Department of Defense and other donors distributed to vulnerable groups throughout Ukraine via local Ukrainian NGOs and social service providers. The joint effort provided over $9 million worth of clothing, bedding, furniture and footwear to the 280 orphanages and boarding homes under the jurisdiction of the Ministry of Social Protection. Within the framework of the All-Ukrainian Assistance to Schools Project, USAID supplied 371,596 meters of high-quality blue, wool-blend cloth, which was sewn into approximately 135,000 school uniforms. The uniforms were distributed free of charge to the most-needy students in board-

ASSISTANCE ing schools and orphans in secondary and vocational schools. In commemoration of the 10th anniversary of the Chernobyl disaster in 1996, the USAID distributed over $11 million worth of humanitarian aid to Chernobyl victims. From 1994-2001, USAID also delivered 752 containers with relief supplies to 1,086 NGOs, 1,260 educational institutions, 811 hospitals and 174 governmental and non-governmental rescue teams. Over the years, USAID has worked to strengthen social service NGOs and help them to become providers of humanitarian assistance within their communities, and to play a vital role in providing supplies and services that the government no longer could.

SOCIA L Ukraine Social Sector Restructuring (1995-2001)

In 1994, monthly payments by households for housing and utilities covered less than 5% of the costs of providing these services. The balance was covered through large subsidies paid from the State Budget to communal services enterprises, and amounted for three- quarters of the State Budget deficit. To assist the Cabinet of Ministers and the State Committee for Housing and Municipal Economy (now the Ministry for Housing and Communal Services) USAID launched its Social Restructuring Project. The education and training program took more than 100 na- 28 tional and local government officials to the U.S. to view how utility services were managed there. This led to the passage of a decree decentralizing responsibility for pricing utility services from the Cabinet of Ministers to oblast and local administrations. The second part of the reform process was to support the GOU’s program to eliminate direct subsidies for communal services through implementation of the first Ukrainian targeted social assistance program. This process began in May 1995 and was backed by the creation of a targeted subsidy program for low-income families, which opened 756 local offices around Ukraine. More than 1,000 computers were installed in these offices, and special software tools were developed, tested and implemented. Ukraine then managed to SOCIA L move from 40% cost recovery in 1995, to 80% in 1996, and to 100% in 1999. The program helped more than 3.6 million low-income families in 1997 alone. Price increases enabled by the limited subsidy program, have resulted in GOU budget savings of over $1 billion per year on average.

Pension Reform (1996-2004)

t the request of the Government of Ukraine (GOU), in 1996 USAID advisors began addressing Ukraine’s need for pension system reform by helping Ukraini- an officials develop new pension-system alternatives with appropriate regulatory support and training for government officials. In 1999, USAID helped design a pensionA reform strategy for Ukraine and continued to support efforts to establish a legal framework for a reformed three-pillar pension system. In 2000, USAID helped the GOU ASSISTANCE complete two draft pension reform laws – the “Law on Mandatory State Pension Reform Insurance” and the “Law on Non-State Pension Provision.” USAID also provided assistance to the Pension Fund of Ukraine (PFU) to determine its financial soundness, expand ele- ments of the PFU nationwide, develop software to assure the system’s effective automa- tion, and establish a PFU website. USAID also helped develop a public education campaign for parliamentarians, journalists and the general public, producing brochures, booklets and statistical bulletins devoted to all aspects of pension reform. In 2001, USAID provided assistance to reform Ukraine’s public pay-as-you-go pension system and introduce private pension insurance. USAID helped the GOU stabilize the current public pension system and lay the foundation for a voluntary private pension industry. Critical pension reform laws - on “Mandatory State Pension Insurance” and on “Non-State Pensions” were adopted by the Verkhovna Rada and approved by the President in July 2003. The new three-tier pension system became effective on January 1, 2004. In 2003, USAID helped to establish the State Commission for the Regulation of the Financial Services Markets to supervise private pension funds, insurance companies, credit unions and mutual funds. More than 50 Non-State Pension Funds have been established since the passage of the law, accumulating approximately UAH 100 million to date.

Orphans & Vulnerable Children (2004-2007)

An estimated 100,000 children in Ukraine live outside of family care, with the majority found in state institutions. USAID’s Families for Children Program (FCP) promotes family care models for vulnerable children, including HIV- affected children. In collaboration with the Ministry of Family, Youth and Sports, FCP has developed guidelines on foster care; provided psychosocial support services to 970 children and 593 families; established 17 community groups; trained 92 regional trainers on foster care who have trained 220 prospective foster parents. 29 OVERVIEW

SAID’s initiatives in anti-trafficking have been part of the U.S. Government effort to address the criminal trade in human beings, particularly the exploitation of young women and girls, but also men. While estimates vary, tens of thousands of women are thought to have been illegally trafficked to, from and through UkraineU over the last several years, many ultimately coerced into the sex trade or compul- sory labor. USAID’s efforts have supported and complemented those of other international donors, civil society organizations and NGOs.

OUR PROGRAMS

Trafficking Prevention (1998-2002)

USAID began working in anti-trafficking in June 1998 after a January 1998 conference of the NIS-U.S. Women’s Consortium, which represented 300 women’s organizations from Ukraine, Russia, Central Asia, the Caucasus and the U.S. The conference voiced alarm over the growing number of human rights violations associated with trafficking in persons. In response, USAID helped to develop a program that addressed the susceptibility of Ukrai- nian women to trafficking, including lack of economic opportunity and violence against women. The project trained women at risk in identifying and creating viable economic opportunities for themselves; increased crisis prevention services; and raised awareness and a response to the trafficking problem in communities in Ukraine. The project opened Women for Women Centers across Ukraine, which accepted more than 45,000 women for consultations from 1998-2004, trained nearly 40,000 in basic employment and life skills, and enrolled 18,000 in technical skills courses. More than 30,000 were also trained in violence and trafficking prevention skills.

Women’s Economic Empowerment (WEE) (1999-2002)

USAID instituted a Women’s Economic Empowerment (WEE) project in 1999 as an effective model of trafficking prevention that addressed the root causes of the problem. The success of new businesses created through WEE and the work of the Women’s Busi- ness Services Centers with media have been important tools in combating trafficking and spreading the message to young women that there are opportunities in Ukraine for employment. It also helped to increase the role of women in the development of Small and Medium Enterprises (SMEs), and created employment opportunities for vulnerable women.

ANTI-TRAFFICKING The program assisted Ukrainian women in obtaining business, entrepreneurship and job-retraining skills. Project activities included long- and short-term training, access to credit for women-owned businesses, and grants to NGOs that supported women in business. Women’s Business Support Centers (WBSCs), providing long-term business courses, were opened in Kharkiv, Donetsk, Chernihiv, Ivano-Frankivsk, Mykolaiv and Simferopil. Under the WEE project, more than 12,000 women from urban and rural areas were trained to organize and manage small businesses, and more than 15,000 additional women received job counseling as walk-in clients at the WBSCs. Of the more than 2,000 women who completed long-term training through March 2004, 30% created new businesses or expanded existing ones. All 1,024 businesses opened by graduates of various WEE project 30 components were still operating a year later, and 90.7% were still operating after two years. They created 2, 339 jobs, with every woman entrepreneur creating more than two new jobs, 66% of them for women. Over 20% of the graduates of the long-term training course found employment during the first year after graduation. The WEE “Credit Union Program” has supported access to micro-finance for woman-owned businesses. A quarter of the women completing WBSC’s long-term training course became clients of the WEE

associated credit unions. Through the program, 966 loans totaling $957,309 were made. ANTI-TRAFFICKING The average repayment rate was approximately 99 percent, with no delinquencies.

Anti-Trafficking Initiative (2002-present)

his initiative seeks to reduce trafficking in persons (TIP) in Ukraine by increasing awareness of TIP among governmental and community leaders, service providers and the general public. It also informs and motivates risk groups, primarily women and children between the ages of 12 and 25 years, on how to protect them- Tselves. The program assists victims and ensures their rehabilitation, and strengthens the coordination of national and regional programs. To- day government and community leaders, service providers and the general public are better aware of how to identify trafficking and traffickers, and risk groups have more information with which to become acquainted with ways to protect themselves. Today, most Ukrainians, including men looking for work abroad, women and children, can better identify the indications of TIP; situations where risks are high for TIP; measures they can take to protect themselves; and services that are available for anti-TIP throughout Ukraine provided by civil society groups working hand in hand with local government authorities. A second goal of the initiative is to assist victims affected by TIP with their physical and mental rehabilitation and reduce the social, psychological, and economic burden of TIP on families and communities. By educating GOU officials, service providers, and NGOs to actively identify and assist victims of TIP, the project increased the percentage of victims assisted in selected regions and improved the percentage of victims that successfully rein- tegrated over time. This also had the long-term effect of reducing the rate of re-trafficking of women and children. USAID has been working with the Ministry for Family, Youth and Sports as the lead agency within the Government of Ukraine (GOU) to facilitate national, regional, and local councils to coordinate and monitor implementation of the Comprehensive Program to Combat Trafficking in Persons in Ukraine. 31 OVERVIEW

kraine has the most severe HIV/AIDS epidemic in Eastern Europe and Central Asia. At the end of 2005, an estimated 377,600 Ukrainians were living with HIV. By 2014 it is estimated that 3.5% of Ukraine’s adult population, or 820,000 people, may be living with HIV if current trends continue. Only one in six of the estimatedU HIV-infected populations has been tested for the disease. Stigma and discrimination against persons living with HIV/AIDS by medical and other professionals is a major barrier to accessing information and services. Ukraine’s HIV/AIDS epidemic is further complicated by one of the most serious Tuberculosis (TB) epidemics in Europe. Thirty percent (30%) of HIV patients have active TB, and 60% of AIDS deaths are due to TB.

OUR PROGRAMS

HIV/AIDS Prevention and Awareness (1998-present)

USAID has been providing funds to assist Ukraine in its fight against HIV/AIDS since 1998. From 2000 to 2004, the International HIV/AIDS Alliance’s program was the only USAID-funded program addressing HIV/AIDS issues in Ukraine. Because of the escalating HIV/AIDS epidemic and its potential for significant economic, political and social impact, USAID identified Ukraine as one of 23 priority HIV/AIDS countries in 2002. In January 2004, USAID launched a new five-year HIV/AIDS Strategy for Ukraine, which aimed to: 1) promote, facilitate and adopt protective behaviors; 2) strengthen skills of partners to plan, manage and evaluate HIV/AIDS programs; and 3) reduce stigma and discrimination. Today, USAID and the International HIV/AIDS Alliance continue the effort to decrease HIV transmission. The goal is to reach at least 60% of the high-risk population with effective, high-quality information and services to prevent injecting drug and sexual transmission of HIV; increase the accessibility of high-quality care and support; and strengthen the prevention-care continuum, primarily through voluntary counseling and testing and strengthening the abil-

HIV / AI D S ity of local communities to address the HIV/AIDS issue. USAID programs work with over 100 local HIV-service NGOs, and grants to NGOs have doubled coverage of HIV prevention and information services to the most at risk populations in the regions, from 12% to 25%. Together with the Ukrainian government, USAID has supported 55 HIV voluntary counseling and testing centers, where 15,000 people have been counseled and tested under a new national protocol that meets international standards. The Alliance has established a National HIV/AIDS Information Center that provides information resources to a broad range of clients, including NGOs, health and social service providers, persons living with HIV/AIDS and decision-makers. Recognized as a leader in HIV/AIDS activities in Ukraine, the Alliance was selected, in March 2004, as the principal recipient to manage the $92 million initial Global Fund grant to Ukraine to increase access to HIV treatment, prevention and support activities and, in 2006, a second much larger Global Fund grant to further increase access to services for the most marginal and high-risk populations of injection drug users, sex workers, men who have sex with men, prisoners and street children. In 2006, USAID developed a public-private partnership with IREX and the NGO, Trans- 32 national Partnership Against AIDS (TPAA) entitled the Ukrainian Media Partnership to Combat HIV/AIDS (UMP). UMP is working to mobilize mass media to improve awareness among the general public and specific target groups about HIV/AIDS and ways to prevent infection. The project is designed to bring an internationally recognized best-practice model of HIV prevention and anti-stigma information campaign to Ukraine, drawing on the unique experience that TPAA has acquired while developing a similar model in Russia.

Strengthening the Policy Environment (2005-present)

USAID’s Policy Project remains the primary supporter of efforts to improve HIV-related policy making, planning and management at the national and oblast levels. This has included the establishment of a National Coordinating Council for HIV/AIDS and TB and specific working groups addressing laws, regulations and policies affecting such issues as transmission from mother to child, voluntary counseling and testing, HIV-TB co-infection and other issues. The Council is essential for the strategic and effective delivery of HIV/ AIDS information and services. USAID has also joined UNAIDS in support of the development of one national monitoring and evaluation system based on international standards and indicators. HIV / AI D S

Reducing Stigma and Discrimination (2004-present)

ince 2004, USAID has provided extensive support to efforts to reduce the stigma and discrimination that prevent people living with HIV/AIDS from us- Sing the health and social services they need to lead productive lives. In Crimea and Donetsk, USAID-funded activities have reached nearly 400,000 people in workplaces, and health, social and educational institutions with peer training to prevent HIV/AIDS stigma and discrimination. Other public events and media campaigns have reached nearly 3 million Ukrainians.

Preventing Mother-to-Child Transmission (2004-2007), Preventing Abandonment of HIV-Infected Children (2005-2007)

USAID is also working to prevent mother-to-child transmissions (PMTCT) in pre- and post-natal clinics and maternity hospitals. It has provided support to more than 80 health facilities and trained more than 400 doctors and midwives in PMTCT, and provided 45,000 pregnant women with access to quality HIV counseling and testing, as well as to PMTCT services when needed. Through cooperation with community-based support groups, HIV- positive mothers and their families receive longer-term care and support that allows them to provide proper care to the children they bear. A national protocol on antiretroviral treatment for HIV-positive pregnant women and women in labor has been developed and adopted by the Ministry of Health of Ukraine. Other USAID projects are seeking to assure that children affected by or infected with HIV are cared for in a family environment. One activity is working in three pilot oblasts – Kyiv, Donetsk and Simferopol – to prevent abandonment of HIV-affected children by building systems, capacity and commitment to keep children born to HIV-positive mothers within the biological family environment. Another project works with Ukrainian organizations to identify adoptive or foster families for children who cannot stay with their biological families or to place them in family-type homes. 33 Photos and Captions: cover (from the top to the bottom):

An enthusiastic group from the CSO Znayu displaying promotional materials. (Photo: Courtesy of Freedom House)

Kherson farmer Viktor Poleshchuk feeds his flock. (Photo: Hanna Hopko)

Maria Yarmakova with her husband Nikolai after delivery of their newborn at the Saki Rayon Maternity Hospital in Crimea. (Photo: Oleksandr Golubov)

p. 3 - A woman examines her title to a parcel of land (Photo: Larissa Pisku- nova)

p. 6 - A stop frame from a privatization PSA in which Yuriy Yekhanurov, the Head of the State Property Fund, encourages Ukrainians to use their privatization certificates (Photo: Courtesy of UREP)

p. 7 - A woman receives title to a parcel of land through USAID’s Land Titling Project. (Photo: Courtesy Land Titling project).

p. 8 - Corey Rosenbush, a Farmer-to-Farmer program volunteer, displays strawberries harvested at a farm in Izmail, Odesa Oblast in June, 2005. (Photo: Pavel Melesh)

p. 9 - Ready to go to market! (Photo Courtesy of Agricultural Marketing Project)

p. 11 - Attendant waits to register exam-takers at the CIPA-CAP exams on November 17, 2006 (Photo: Taras Vorobets)

p. 12 - Made in Ukraine: The Trademark Défilé event presented Ukrainian apparel brands. (Photo: Tetyana Dudka)

p. 13 - Participants of the 2004 Summer Teachers’ Academy in Sudak discuss new approaches to MBA curricula. (Photo: Oleksandr Sydorenko)

p. 15 - A new source of fresh water (Photo: Courtesy of Local Environment Action Program)

p. 16 - Zhytomyr’s youngest residents enjoy art class on new chairs provided by the local government. (Photo: Valeria Kotlyarenko)

34 p. 18 - Learning how to operate a camera. (Photo: Oleksandr Makarenko) p. 19 - A Kherson resident reads a fresh issue of the Vhoru newspaper. (Photo: Maksym Solovyov). p. 20 - Aspiring craftsmen learn pottery basics during the Ivano-Frankivsk Craft Fair. (Photo: Lua Pottier) p. 21 - A group of sight-impaired people explore a cave near the Dnister River. (Photo: Wayne Curley) p. 23 - Do not vote blindly! (Photo: Yana Novosyolova) p. 24 - U.S. Ambassador William Taylor and Acting Chief Judge of the Economic Court Serhiy Demchenko announce the launch of the Registry of Judicial Deci- sions. (Photo: Olha Myrtsalo) p. 25 - Sarny Region is a corruption-free zone. (Photo: Serhiy Ovchinnikov) p. 27 - Maria Yarmakova with her husband Nikolai after delivery of their newborn at the Saki Rayon Maternity Hospital in Crimea. (Photo: Oleksandr Golubov) p. 28 - Students of the Kherson Boarding School for Orphans enjoy their new uniforms. (Photo: courtesy of Community and Humanitarian Assistance Pro- gram) p. 29 - Olena Roshke, a foster mom from the Father’s House Charitable Founda- tion, with her foster daughter. (Photo: Anatoliy Fedortsiv) p. 30 - Tetyana Zhohalko, owner of a Chernihiv arts and craft gallery, shows a wooden candlestick, the handiwork of her husband (Photo: Larissa Piskunova) p. 31 - A stop frame from a Trafficking in Persons PSA in which a flight attendant warns Ukrainians about the dangers of trafficking in persons. (Photo: Courtesy of IOM) p. 33 - IRD volunteers at a World AIDS Memorial Day street campaign in Crimea, May 21, 2006. (Photo: Elena Shevchenko) back cover - Exposing the world. (Photo: Oleksandr Makarenko)

35 U.S. Agency for International Development

19 Nyzhniy Val St., 04071 Kyiv, Ukraine Phone: +380 (44) 537-4600 Fax: +380 (44) 537-4684 http://ukraine.usaid.gov