PEER REVIEW REPORT DEMOCRATIC GOVERNANCE IN METROPOLITAN AREAS, FOCUSING ON KYIV REGION Council of Europe 2019 Peer Review Report Democratic governance in metropolitan areas, focusing on Kyiv Region 15 – 17 May 2019 The present report was prepared in the framework of the Council of Europe Programme “Decentralisation and local government reform in Ukraine” in co-operation with the European Committee on Democracy and Governance (CDDG) CONTENTS 1. Introduction 4 2. Background: democratic metropolitan governance in Europe 6 3. Governance of Kyiv and Kyiv Region 10 4. Population, development pressures and travel to work movements 15 5. Focus on thematic areas impacted by growing agglomeration of Kyiv 22 6. Budget 27 7. Progressing the system of metropolitan governance of Kyiv Region 30 8. Recommendations 34 APPENDIXES 37 COUNCIL OF EUROPE PEER REVIEW REPORT Democratic governance in metropolitan areas, focusing on Kyiv Region 1. INTRODUCTION BACKGROUND In 2018, the Council of Europe (CoE) was b. An international Peer Review on requested to provide advice to the Association “democratic governance in metropolitan of Ukrainian Cities and Kyiv City State areas, focussing on Kyiv Region” took place Administration on the improvement of the in Kyiv on 15-17 May 2019. governance, organisation and functioning of local government and public services within the agglomeration area of Kyiv. The Parliamentary Committee on State Building, The objective of the national workshop Regional Policy and Local Self-Government and Peer Review was to provide also requested the CoE expertise of draft Kyiv City State Administration, as well as the Parliamentary Committee on State legislation on metropolitan areas in Ukraine. Building, Regional Policy and Local Self- In response and as part of the Programme Government, the Ministry of Regional “Decentralisation and Local Government Development and the Association Reform in Ukraine”, the following events were of Ukrainian Cities, with concrete recommendations for upgrading the organised: current system, legislation and practice a. A national workshop on “co-operation of governance for metropolitan areas, of communities in metropolitan areas: focusing on Kyiv Region. challenges and possibilities of social and economic development of Kyiv Region”, was held in Kyiv on 4 April 2019; and, THE CHALLENGE Whilst the governance status of Kyiv has been c. As a result, the existing legal status of the discussed for a long time, it remains an urgent City of Kyiv is no longer fit for the purpose project for four inter-related reasons, which for a modern European metropolitan city. the Peer Review Team (PRT) took account of in It is further challenged by the coexistence of the Region (Oblast, in Ukrainian) and their enquiry: the City of Kyiv, with no clear division of a. There is urgent need to seek agreement on responsibilities within the metropolitan metropolitan governance arrangements area between the two entities. for Kyiv Region to provide improved d. And, as a consequence, this is a matter coordination of spatial planning, economic of national interest, for economic and development, housing and infrastructure political reasons, and not only for local investment across the metropolitan area self-government; so national authorities and into the expanding perimeter of the should give priority to the resolution of capital city. the challenges this report has identified. b. This is because the urban agglomeration of Kyiv and Region has grown considerably over the past 25 years. The present territorial organisation of the metropolitan area is no longer appropriate. The outcome is an imbalance between the capital city and its surrounding region with a large number of local self-governing units of various sizes, capacities and legal status. 4 1. Introduction METHODOLOGY Following an introductory meeting with Kyiv on the challenges and possible solutions. The City Mayor, Vitaliy KLITSCHKO, and Deputy PRT considers there are reasons to be positive Head of Kyiv City State Administration, Maryna about the future, especially if actions to build KHONDA, the PRT held a series of interviews in trust, foster collaboration and cooperation Kyiv with: are prioritised, reflecting principles defined a. Officials from Kyiv City Statein section 2.3 below, alongside governance Administration; reform. b. Representatives of local self-governing The Peer Review report is organised around bodies from Kyiv Region; eight sections. Following this Introduction: c. Representatives of State Ministries; Section 2 summarises democratic metropolitan d. National experts on local self-government, governance in Europe, including the three regional development and spatial principal models in European metropolitan planning; areas and the importance of building trust and e. District and regional authorities and collaboration going alongside organisational business leaders. and legal change. To understand the impact and consequences Section 3 gives background to the present of the growing agglomeration on the arrangements for the governance of Kyiv and governance of Kyiv Region, the PRT focussed Kyiv Region. on four thematic areas where the provision and effectiveness of service delivery affects Section 4 summarises population changes, the the quality of life of citizens beyond the concentration of housing developments within administrative boundaries of the City of Kyiv, Kyiv Region and travel to work movements into the surrounding Kyiv Region: daily, as well as the urban form of Kyiv Region. a. Economic development and urban Section 5 focuses on the thematic areas planning; covered in the review. b. Transportation; Section 6 provides a short brief on the c. Public utilities; and budgetary position for the City of Kyiv and d. Healthcare. Kyiv Region. The PRT valued the opportunity over two Section 7 sets out steps to progress the system days to meet with different stakeholders in of metropolitan governance of Kyiv Region. the future success of the City of Kyiv and Section 8 summarises the review team Kyiv Region. The review team was left in recommendations. no doubt about the commitment of the Ukrainian stakeholders and appreciated their seriousness and openness during discussions 5 COUNCIL OF EUROPE PEER REVIEW REPORT Democratic governance in metropolitan areas, focusing on Kyiv Region 2. BACKGROUND: DEMOCRATIC METROPOLITAN GOVERNANCE IN EUROPE CASE FOR METROPOLITAN GOVERNANCE National governments in Europe increasingly for a given population size, a metropolitan recognise the significance of metropolitan area with twice the number of municipalities areas as key places for national economic is associated with around 6 per cent lower growth, sustainable development, good productivity. This is because administrative governance and service delivery. Metropolitan fragmentation can, by illustration, obstruct areas are defined by the OECD as a functional transport investments and effective land-use urban area with at least 500,000 inhabitants.1 planning across the metropolitan area, and Larger European countries have different in doing so increase congestion and reduce national models that reflect their own political, the city’s attractiveness to individuals and geographical, cultural, historical and social businesses. The establishment of a governance contexts. Countries, such as France, Greece, body at the metropolitan level may mitigate Italy and the UK define a national policy this effect by half.4 framework towards metropolitan areas. For The expansion of metropolitan areas in recent France, Germany, Italy and the Netherlands, decades is striking and within Europe has metropolitan governance is considered been most marked within Central and Eastern within a regional governance structure, where Europe.5 The physical expansion of urban areas the respective functions and powers of a and growing economic, environmental and metropole and a region are made subject to social interaction between cities and their thorough analysis. surrounding hinterland, requires adopting a The trend over the past ten years is for the spread more dynamic understanding of the city. This is of metropolitan governance arrangements in one about connections and flows through the European countries. This is because there is movements of people moving from home to a clear economic rationale for metropolitan work, home to shop, home to home in housing governance, with a positive association of city move, home to cultural entertainment, as well size with higher productivity.2 These benefits as how businesses relate to their customers, are explained through the agglomeration suppliers and workforce.6 This may only be mechanisms of sharing, matching and learning addressed by collaboration across the different operating within an urban context.3 municipalities that form the metropolitan area. At the same time such productivity To be effective, the OECD suggests that a benefits from size are likely to be offset by metropolitan area governance body should fragmentation of governance (measured by meet four criteria: number of local municipalities within the a. It should cover the central city and a metropolitan area). OECD evidence suggests large share of the remaining parts of the functional metropolitan area; 1 Ahrend R., Gamper C., and Schuman A., 2014a. The OECD metropolitan governance survey. A quantitative description of b. National and regional governments should governance structures in large urban agglomerations. OECD be important actors in the facilitation Regional Development Working