PHOTO CREDIT: ALEXANDER GROUSHEVSKY UKRAINE LOCAL GOVERNANCE PROJECT WHOLE-OF-PROJECT EVALUATION Final Report UKRAINE LOCAL GOVERNANCE PROJECT WHOLE-OF-PROJECT EVALUATION Final Report Submitted August 1, 2019 USAID Ukraine Task Order No. AID-OAA-M-13-00011 Contract No. GS-10F-0294V This publication was prepared by Social Impact for USAID/DRG and USAID/Ukraine by Social Impact as part of the Democracy, Rights, and Governance – Learning, Evaluation, and Research (DRG-LER) activity. Contact: Social Impact, Inc. 2300 Clarendon Blvd., Suite 1000 Arlington, VA 22201 (703) 465-1884 Program Manager: Sierra Frischknecht, [email protected] DISCLAIMER The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. USAID.GOV UKRAINE LOCAL GOVERNANCE PROJECT EVALUATION | ii TABLE OF CONTENTS Abstract v Acronyms vi Executive Summary vii Evaluation Purpose and Questions .................................................................................................................. vii Background and Context ................................................................................................................................... vii Evaluation Methods and Limitations ............................................................................................................... viii Findings and Conclusions .................................................................................................................................. viii Recommendations ................................................................................................................................................xi I. Evaluation Purpose and Questions 1 Evaluation Purpose ................................................................................................................................................1 Evaluation Questions ............................................................................................................................................1 II. Project Background and Context 2 III. Evaluation Methodology and Limitations 4 Methodology ...........................................................................................................................................................4 Analysis .....................................................................................................................................................................5 Risks and Limitations.............................................................................................................................................6 IV. Findings and Conclusions 7 Findings for EQ 1 ...................................................................................................................................................7 Conclusions for EQ 1 ........................................................................................................................................ 12 Findings for EQ 2 ................................................................................................................................................ 12 Conclusions for EQ 2 ........................................................................................................................................ 17 Findings for EQ 3 ................................................................................................................................................ 19 Conclusions for EQ 3 ........................................................................................................................................ 22 Findings for EQ 4 ................................................................................................................................................ 23 Conclusions for EQ 4 ........................................................................................................................................ 24 Findings for EQ 5 ................................................................................................................................................ 25 Conclusions for EQ 5 ........................................................................................................................................ 27 V. Recommendations 30 Recommendations for EQ1 .............................................................................................................................. 30 Recommendations for EQ2 .............................................................................................................................. 30 Recommendations for EQ3 .............................................................................................................................. 31 Recommendations for EQ4 .............................................................................................................................. 32 Recommendations for EQ5 .............................................................................................................................. 32 VI. Lessons Learned 33 VII. Annexes 34 iii | UKRAINE LOCAL GOVERNANCE PROJECT EVALUATION USAID.GOV TABLES AND FIGURES Table 1: Interviews by Respondent Category (not including survey respondents) 4 Table 2: Most Important Factors for LGP Framework by Survey Respondents 7 Table 3: Changes Occurred as a Result of Decentralization Reform by Survey Respondents (%) 9 Figure 1: LGP Activities and Intended Results 3 Figure 2: Data Collection Locations, April 2019 5 Figure 3: LGP Hypothesis 7 USAID.GOV UKRAINE LOCAL GOVERNANCE PROJECT EVALUATION | iv ABSTRACT This final whole-of-project evaluation of the Local Governance Project (LGP) examines the soundness of the LGP theory of change, collaboration among USAID implementing mechanisms, and possible adjustments to USAID/Ukraine’s approach to supporting local governance in Ukraine. LGP was launched in 2015 with three activities: Policy for Ukraine Local Self-Governance (PULSE), Decentralization Offering Better Results and Efficiency (DOBRE), and Municipal Finance Strengthening Initiative-II (MFSI-II). Using a mixed-methods approach, the evaluation team reviewed relevant documents, surveyed key informants and residents of assisted municipalities, and interviewed 156 key informants during three weeks of fieldwork in 21 municipalities across seven oblasts. The evaluation concluded that the development hypothesis is largely valid and could be further refined. LGP helped to strengthen local governance in Ukraine through its three activities and made significant progress toward realizing expected results. USAID/Ukraine provided support for creating a legal basis for consolidation; providing technical advice for central, regional, and local authorities; and introducing practical models and tools at the municipal level. However, there was not close cooperation between the two main activities, PULSE and DOBRE, in helping local governments manage resources and services effectively. Additional support in development and adoption of the local governance strategy is needed, and the evaluation identifies five areas for future assistance. This report concludes with 17 recommendations for future USAID support for local governance in Ukraine, including further support for decentralization legislation and municipal capacity development; better coordination between USAID implementers and with other donors; and expanding LGP support to more municipalities. v | UKRAINE LOCAL GOVERNANCE PROJECT EVALUATION USAID.GOV ACRONYMS ACTC Associations of Consolidated Territorial Communities AUC Association of Ukrainian Cities CDCS Country Development Cooperation Strategy CMU Cabinet of Ministers of Ukraine CSO Civil society organization CTC Consolidated territorial community DDRU Decentralization Delivering Results for Ukraine DESPRO Swiss-Funded Support to Decentralization in Ukraine DOBRE Decentralization Offering Better Results and Efficiency Project EITI Extractive Industries Transparency Initiative EQ Evaluation questions EQUI Evaluation Quality, Use, and Impact ET Evaluation team FSLD Foundation in Support of Local Democracy GC Global Communities GoU Government of Ukraine GSI Gender and social inclusion IBSER Institute for Budgetary and Socio-Economic Research IDP Internally displaced person IREX International Research & Exchanges Board KII Key informant interview LGP Local Governance Project LM Line ministry MFSI Municipal Finance Strengthening Initiative Project MoF Ministry of Finance MRD Ministry of Regional Development, Construction and Municipal Services of Ukraine MSAP/UEK Małopolska School of Public Administration at the Kraków University of Economics PEA Political economy analysis PAD Project Appraisal Document PD Project Description PLEDDGE Partnership for Local Economic Development and Democratic Governance PPB Performance program budgeting PULSE Policy for Ukraine Local Self-Governance Project PwD Person with disability SBO Social Boost SI Social Impact SME Small and medium enterprise SOW Statement of Work VRU Verkhovna Rada of Ukraine (Ukrainian Parliament) UAH Hryvnia (Ukrainian Currency) UCMC Ukrainian Crisis Media Center U-LEAD Ukraine–Local Empowerment, Accountability, and Development Programme UNDP United Nations Development Programme USAID U.S. Agency for International Development WOPE Whole-of-Project Evaluation USAID.GOV UKRAINE LOCAL GOVERNANCE PROJECT EVALUATION | vi EXECUTIVE SUMMARY EVALUATION PURPOSE AND QUESTIONS