Strasbourg, 7 February 2014

Council of Europe Programme

Strengthening the Capacity of Local Authorities in Ukraine

(Funded by the Governments of Denmark and Switzerland)

Annual Report

January-December 2013

Prepared by: Mr. Andriy Guk, Senior Programme Manager, “Strengthening the Capacity of Local Authorities in Ukraine” Revised and finalised by: Mrs. Alina Tatarenko, Deputy Head, Centre of Expertise for Local Government Reform Approved by: Mr. Alfonso Zardi, Head, Democratic Institutions and Governance, DGII-Democracy

SECRETARIAT GENERAL

DIRECTORATE GENERAL II - DEMOCRACY

CENTRE OF EXPERTISE FOR LOCAL

GOVERNMENT REFORM

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Project title: Strengthening the Capacity of Local Authorities in Ukraine

Project No.: Country/region: Ukraine

Context: In order to strengthen the capacity of

local authorities (LA), Ukrainian government

requested assistance of the Centre of Expertise

for Local Government Reform of the Council

of Europe (CoE) in the field of adaptation and

implementation of innovative European tools

at local and national level. Such tools include:

Legal Support to the Local Self-Government

Reform, Best Practice Programme (BPP),

Strategy for Innovation and Good Governance

in Ukraine (GG/ ELoGE), Local Finance

Benchmarking Programme (LFB), Public

Ethics Benchmarking Programme (PEP),

Performance Management Programme (PMP),

Leadership Academy Programme (LAP), and

Local Government Associations Development

Programme (LGA).

Relevance of intervention:

(1) Decentralisation and creation of a strong and

efficient system of local self-government are

becoming the priority tasks of new state

governance in Ukraine announced in the

Programme of economic reforms in Ukraine

for 2010-2014 “Prosperous Society,

Competitive Economy, Efficient State” and

during the visit of the President of Ukraine to

CoE in April 2010.

(2) The CoE Centre of Expertise for Local

Government Reform is a leading

international institution in the field.

(3) Decentralisation and enhancement of local

self-government is an important element of

strategies of the CoE, the Swiss Agency for

Development and Cooperation, and the

Danish International Development Agency.

The project is a part of a current CoE-

Ukraine Action Plan.

Key results and insights from previous

phases:

- BPP was launched, facilitating

identification, earmarking, dissemination,

and multiplication of the relevant

initiatives; 1 BPP round was organised;

- PMP was launched, performance

management indicators were developed

for such services as “Web-portal of

municipality”, “Centre for administrative

services”, “Tariff policy based on the

dialogue with population”;

methodological recommendations on PMP

were developed and disseminated;

- trainings in the framework of the PEP,

PMP, LFB, LAP and the GG Strategy

involved over 100 local authorities;

- the Academic Board of the National

Academy of Public Administration

(NAPA) approved the inclusion of

Overall goal:

Provide CoE assistance to develop a strong and

efficient system of local self-government through

the implementation of innovative European tools

at the local level.

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optional course on “Leadership in local

governance” in the list of subjects for the

students of “State governance”, “Local self-

government” and “Regional governance”;

- LGA Programme was launched, seminars

for local government associations were

held based on the CoE toolkit and

recommendations;

- LFB was tested in ten pilot municipalities;

- ELoGE benchmark was tested in the

Odesa Oblast Council;

- the training programmes included gender

mainstreaming at local level.

Outcomes (objectives) of the present phase:

1. Ukrainian authorities assisted and

supported in the process of improving the

quality of local governance through the

provided legal support of the CoE and use of

mechanisms offered by the Strategy for

Innovation and Good Governance at Local

Level: national Action Plans, local government

adhesion and improvement, the European

Label (ELOGE).

2. Institutional capacity of LSGAs1 to deal

with their tasks strengthened and improved

through introducing modern management

tools, performance indicators and

benchmarking systems.

Key outputs of the present phase:

1.1. Legal assistance to Ukrainian authorities

ensured and provided in the area of preparation

for the LSG reform and improving the legal

framework taking into account the ECLSG

provisions

1.2. Recommendations developed on the local

authorities’ competencies and budget

management, so that they can handle such tasks

in a democratic, effective and efficient way.

2.1. The Best Practice Programme (BPP) is

introduced and helps to identify, celebrate,

disseminate and replicate good initiatives.

2.2. The performance management programme

(PMP) is introduced and leads to improvement

of local public services through the use of

performance indicators and co-operation among

participating municipalities

2.3. The Local Finance Benchmarking (LFB)

programme is introduced and leads to

improvement of regulations and practice at both

central and local levels

2.4. Leadership Academy Programme (LAP) is

delivered in three annual cycles, each cycle

1 Hereinafter – local authorities which took part in the CoE Programme.

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addressed to two groups of students, institutional

leadership in participating cities is improved.

2.5. LGA Programme is implemented, making

Ukrainian LGAs more effective organisations.

They improve their advocacy and representation

skills; provide training to local authorities based

on the CoE toolkits and recommendations.

2.6. Public Ethics Programme (PEP) led to the

development of the local Codes of Ethics and

Ethics committees.

Target group: LSGAs, LGAs, educational

institutions; central government bodies.

Primary beneficiaries: local communities,

LSGAs, LGAs, students of courses of state and

regional governance and LSG.

Secondary beneficiaries: civil servants,

politicians.

Coordination and synergy with other projects

and actors: The Programme cooperated with the

Swiss-Ukrainian Decentralisation Support

Project (DESPRO), “Improvement of public

services in Ukraine” project of the German

International Cooperation Agency (GIZ),

“Community-Based Approach to Local

Development - ІІ” project of the United Nations

Development Programme (UNDP), “Ukraine

Municipal Local Economic Development”

(MLED) project, and with the regional and

district councils of Ukraine.

Implementing partners:

Minregion, AUC, UAROR, VASSR, Institute

of Civil Society, Centre for Policy Studies and

Analysis, Institute for Budgetary and Socio-

Economic Research (IBSER), Agency for

Legislative Initiatives.

Other partners:

At the national level:

Administration of the President of Ukraine

(APU), Committee for State-Building and Local

Self-Government, Parliament - Verkhovna Rada

of Ukraine (VRU), Ministry of Economic

Development and Trade of Ukraine, Ministry of

Finance, State Foundation for Local Self-

Government in Ukraine, ASTU, NAPA.

At the municipal level: about 270 LSGAs.

Public Service Masters Programme of Ivano-

Frankivsk National Technical University of Oil

and Gas, Lesia Ukrayinka East European

National University, Vinnytsia, Volyn, Ivano-

Frankivsk, Zhytomyr centres of re-training and

advanced training of staff of state authorities,

local government bodies, public enterprises,

institutions and organisations.

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Duration of the phase: 1 January 2013 –

31 March 2014.

Estimated budget of the phase: 711,608 €

(as of April 2013)

Contributions: the Governments of the

Kingdom of Denmark and the Swiss

Confederation via the Swiss Agency for

Development and Cooperation.

Estimated budget of the project

implementation from the first through the last

phase: 1,520,305 €

Strategic Review and Outlook

During the reporting period, from 1 January to 31 December 2013, the Programme

“Strengthening the Capacity of Local Authorities in Ukraine” (Programme) continued

implementation of its objectives in line with the Work Plan approved by the Steering Committee.

Key results and progress of the Programme implementation

1. The Programme provided expert opinions and consultations on the local self-government

reform and territorial organisation of power, revision of the Constitution of Ukraine on LSG-

related issues, draft laws “On the Right of Territorial Communities for Amalgamation” and

“On Co-operation of Territorial Communities”, which were requested by the APU, VRU and

central executive bodies of Ukraine.

2. Ukrainian stakeholders – central and local authorities and their associations, local and

international organisations as well as relevant projects in Ukraine - were provided with a

platform for discussion on conclusions of Recommendation 348 (2013) of the CoE Congress

of Local and Regional Authorities “On local and regional democracy in Ukraine”. In

particular, a presentation and discussion of the monitoring report and the recommendation

was organised with participation of the Congress rapporteurs on Ukraine.

3. Within the framework of implementation of the GG Strategy upon request from the State

Foundation for Local Self-Government the benchmarking of 12 principles of good

democratic governance was ensured in 13 pilot LSGAs as a preparatory step to the

establishment of the national platform of good governance.

4. The manual on “Good governance in Ukrainian municipalities: Council of Europe Best Practice

Programme” prepared following the 2012 Contest was presented and distributed to central

authorities, LSGAs and their associations.

5. The database of the BPP-2013 was developed in line with the CoE methodology, and shared

with the Minregion upon its request. The Ministry used the Programme tools on a permanent

basis, and initiated collection, analysis and dissemination of BPP and programmes at local level.

On 26/12/2013, the Ministry took a decision to continue the BPP using the CoE methodology

in 2014.

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6. Based on the CoE PMP and Norwegian model, 5 PMP networks were created, provided with

a methodological toolkit adapted to the Ukrainian context, exchanged experience and

implemented activities intended to improve the quality of public services. The ministries of

economy and regional development participate in the network activities. ASTU plans to

disseminate the PMP methodology in small towns.

7. The LFB was adapted for use at the level of Ukrainian municipalities. Some LFB is now

being taught at NAPA.

8. Following a request from VASSR, a special round of LAP was organised for the VASSR

members. The LAP included sessions on local finance, inter-municipal cooperation, LSG

reform and gender mainstreaming. Two representatives of the Executive Directorate of the

Association were also trained and can provide leadership training for VASSR members in the

future.

9. CoE toolkit “Modern leadership for modern local government” was tested during a series of

regional LAP trainings in Vinnytsya, Volyn’, Ivano-Frankivsk and Zhytomyr regions. In total

nine LAP trainers were trained by the Programme, a leadership course based on the CoE

toolkit is now offered at the Centre of Re-Training and Advanced Training of Municipal Staff

in Vinnytsya oblast, Volynska Oblast Centre of Re-Training and Advanced Training of

Municipal Staff, and at the Department of Public Administration and LSG of Ivano-

Frankivsk National Technical University.

10. LGAs expanded their networking with foreign partners: they exchanged experiences with the

leadership of LGAs of Bulgaria, Croatia, Poland, Turkey, Moldova, Romania, Slovenia;

concluded co-operation agreements with LGAs from Poland and Moldova; explored

prospects for further co-operation and joint projects implementation; VASSR and ASTU

became associated members of the Network of Associations of Local Authorities of South-

East Europe (NALAS); UAROR, VASSR and ASTU took part in NALAS events.

11. In accordance with the adapted CoE toolkit “Towards a modern Local Government

Association”, and with assistance from European LGAs, the needs and capacities assessment

of Ukrainian LGAs was ensured and proposals were provided to strengthen strengthening

their institutional capacity.

12. Ethical standards were reinforced in the participating LSGAs. In particular, they exchanged

experience on implementation of ethics codes and development of rules of procedure for

ethics committees. The network of partner LSGAs continues its activities; 16 LSGAs

developed and approved codes of ethics.

13. The Programme activities were covered in the government daily Uriadovy Courrier, the

State Foundation for Local Self-Government’s journal Local Self-Government and Regional

Development in Ukraine, the VASSR Bulletin, other printed and Internet publications,

websites, and TV news etc.

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14. The Programme contributed to raising awareness on local government issues by sponsoring

the nomination “We are the local self-government!” in the framework of the annual

international festival “Dytiatko” organised by the Kharkiv regional council.

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Sustainability of the Programme components

Legal Support to the Local Self-Government Reform: it is widely recognised that Ukraine is in

urgent need of LSG reform, the CoE expert appraisals and recommendations disseminated and

handed over to the national counterparts are used by them during the revision of the Constitution

of Ukraine on LSG-related issues, developing the draft Concept of the LSG reform, a range of

the draft laws, including “On the Right of Territorial Communities for Amalgamation” and “On

Co-operation of Territorial Communities”.

Strategy for Innovation and Good Governance in Ukraine: the State Foundation for Local Self-

Government requested support in creation of the national platform of good governance for the

accreditation of ELoGE for Ukraine by the CoE Stakeholders Platform.

Best Practice Programme: the BPP Contest methodology handed over to the Ministry of Regional

Development (following the decision of the Ministry’s Board dd. 26 December 2013 the Contest

will be organised according to the CoE methodology).

Performance Management Programme: 5 PMP networks in 21 pilot LSGAs created following the

Norwegian model continue the operation, effectiveness and efficiency of five public services

chosen continue to improve through the collection and use of performance indicators and

exchanges with other PMP networks. The Association of Small Towns included the

implementation of the Performance Management Programme into its priority activities and will

continue dissemination of the methodology involving its member municipalities.

Local Finance Benchmarking Programme: the pilot municipalities are enabled to compare the

efficiency of local finance system, identify strengths and bottlenecks, changes needed cording to

the adapted LFB toolkit. The adapted Local Finance Benchmarking methodology handed over to

the Ministry of Finance. Elements of the Benchmarking methodology integrated into the NAPA

training courses.

Leadership Academy Programme: 9 national LAP trainers continue to deliver trainings based on

the CoE methodology, NAPA developed and continues the course “Leadership in local

government” as well as CPPC in Volynska and Vinnytska oblasts and the Ivano-Frankivsk

National Technical University.

Local Government Associations Development Programme: the national LGAs and the

Association of Small Towns of Ukraine continue to develop modern and effective performance

approaches following the CoE toolkit “Towards a modern Local Government Association”. The

All-Ukrainian Association of Village and Settlement Councils plans to develop the strategy of

“Women’s Section”. Thanks to networking extended the 2 of the Ukrainian Associations develop

joint and very concrete cooperation plans with the Europeans LGAs based on the results of the

needs and capacities assessment held.

Public Ethics Benchmarking Programme: CoE guidelines on public ethics are integrated into the

NAPA training courses “Ethics in state governance,” “Philosophic problems of state

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governance,” “Ethics of managerial activity,” and “Professional ethics: specificity, problems, and

place in the system of ethic knowledge”. 16 pilot LSGAs continue to improve ethics standards.

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Main steering implications for the next period of intervention

No progress was recorded as regards the promotion and implementation of the decentralisation

policy. None of the officially announced reforms of LSG were launched; general Concept of the

reform is still not adopted; none of the texts for which the government and parliament requested

the CoE expertise were adopted; CoE recommendations on relevant draft or prospective

legislation were hardly taken into account. In order to take into account this fact – which may

change in future, should political appetite for reform revive – the Programme should focus more

on the grass-roots awareness-raising, training, and capacity building, to support local democracy

at local level. Dialogue with political authorities and readiness to provide legal advice upon

request will nonetheless continue. It is to be hoped that practical lessons learned from the

implementation of the CB programmes will inspire the modest yet highly needed changes in the

legislation in force that would enable local authorities to perform their tasks even in the absence

of a fully-fledged local government reform.

The Centre of Expertise proposal is to request the Programme extension and concentrate on the

following areas in 2014:

Strengthening of institutional leadership at local level; creation of a national network of

pilot centres of the LAP and relevant trainers, comprehensive and very practical ToT and

a special course on leadership including tools developed specifically for LSGAs.

Identification and dissemination of best practices; support in organisation by Minregion

of Ukraine of a new round of BPP and involvement of new partners to ensure

sustainability.

Promotion of 12 principles of good governance and ELoGE among NGOs, citizens and at

local level, including instruments of PMP, LFB, PEP etc. Change of strategy of work with

LGAs, implementation of the remaining parts of the LGA toolkit.

Training for the young local leaders in preparation of the next local elections (in

cooperation with CoE Congress)

Provision of expertise and legal support in the area of the LSG reform in Ukraine in

cooperation with updated list of the experts and partners. Follow-up on previous

recommendations on the constitutional revision; modernisation of inter-budgetary

relations, revision of the Budget and Tax Codes, inter-municipal cooperation; promotion

of decentralisation of power in line with the provisions of the European Charter of Local

Self-Government.

INTRODUCTION

1.1. Brief description of the Programme and its intervention strategy

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The goal of the Programme “Strengthening the Capacity of Local Authorities in Ukraine” is to

provide support to the establishment of a strong and effective local self-government system

through the implementation of the innovative European tools developed by the CoE Centre of

Expertise for Local Government Reform. The Programme includes a component on “Legal

support to the local self-government reform” to follow up on results of the previous CoE

Programme, “Strengthening Local Democracy and Support for Local Government Reforms in

Ukraine”, which was funded by Sweden, and ended in March 2013.

The Programme strategy is to support the Ukrainian authorities, LSGAs and their associations in

creation of a strong and efficient system of local self-government through:

support to central authorities in development of the national legislation and practice

according to the principles of local and regional democracy set out in the ECLSG;

development, implementation, and institutionalisation of methodologies aimed at

improving the quality of local services, in particular, PMP, LFB, LAP, BPP and PEP;

promotion of 12 principles of good governance and gender equality as cross-cutting

issues;

support to Ukrainian LGAs in building their capacities;

deepening co-operation with national and international partners and other technical

assistance programmes.

1.2. Update on the stakeholders

During the Programme implementation in 2013 the range of its objectives became wider, and it

worked with more stakeholders, such as the APU, VRU (Committee for state-building and LSG),

and the State Foundation for Local Self-Government in Ukraine. The interest and participation of

municipalities increased, 6 more municipalities joined the PMP, 10 more LSGAs joined the PEP,

13 LSGAs participated in the benchmarking of good governance; all Ukrainian LGAs and ASTU

were involved in the Programme activities.

1.3. Evolution of the context

Ukraine has been a CoE member since 1995 and accordingly undertook commitments to observe

CoE standards, including on local and regional democracy in particular by means of

implementation of and compliance with the provisions of ECLSG ratified in 1997.2

The key elements of the context evolution in the field of self-government are covered in

Recommendation 348 (2013) on local and regional democracy in Ukraine adopted by the Congress

of Local and Regional Authorities of the Council of Europe at its 25th session on 31 October 2013.

The Congress, in particular, noted that the President of Ukraine described the LSG reform as one of

the most urgent reforms to be implemented in the country (Item 5.d); the initiatives taken by the

Government with a view of a substantial territorial reform (Item 5.a); adoption of the “Law on

Associations of Local Authorities”, involvement of associations in the process of consultations

and their joint action within the National Congress of LSG in Ukraine (Items 5.b and 5.c);

creation and activity of such coordination and consultative tools as the Constitutional Assembly

and the Council of Regions (Items 5.e and 5.f) and other positive developments.

2 Law of Ukraine “On Ratification of the European Charter of Local Self-Government” of 15July 1997

No. 452/97-ВР.

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At the same time, the Congress noted “the slow pace of the reform despite the strong statements

made at the highest level of the State, and the new draft laws recentralising competences at the

central level in spite of the aims of the reform” (Item 6.f). In particular, the “legislation … limits

the local authorities’ ability to take decisions and manage their own affairs to “matters of local

importance”“ (Item 6.a); “the absence of a clear division of powers and administrative activities

between central government administration and local and regional authorities” (Item 6.d); “limits

put on local governments’ financial autonomy …, as well as the insufficient concomitant

financing of delegated competences” (Item 6.c); “several towns and cities, including the capital,

have remained without an elected mayor for long periods owing to a gap in the electoral law”

(Item 6.b).

In view of the above, the Congress recommends that the Ukrainian authorities, in particular,

“review their legislation in order to remove the restrictions on the powers of local authorities”

(the Preamble); “reinforce subsidiarity by granting local authorities competence for a substantial

share of public affairs and increase the capacity of local authorities to act, by promoting

voluntary amalgamations between local authorities …, such as, for example, mergers and inter-

municipal co-operation” (Item 7.a); “reinforce the financial autonomy of local authorities and

improve the equalisation system, providing a fair and transparent redistribution of funds, based

on clear criteria and objectives, by including it in the reform agenda” (Item 7.с); “develop

specific strategies, notably by transferring competences to the local level, aimed at revitalising

the peri-urban and rural areas …, and involve local authorities in these geographical areas in the

development of these strategies by the central government authorities” (Item 7.e); “transfer the

competences of the administrations in districts and regions to elected representatives in order to

establish an administration under their responsibility” (Item 7.d); “organise, in the shortest

possible time, elections for mayors in the cities where this post has been vacant for a long time”

(Item 7.b), and, finally, “implement the reform in a timely manner …, if necessary, by a revision

of the Constitution” (Item 7.f).

These conclusions are fully in line with conclusions of the Centre of Expertise for Local

Government Reform, which in its legal and policy advice on the Concept of Local Self-

Government reform, recommended the Ukrainian authorities to urgently implement the planned

reforms. It particular, the CoE experts noted that “all versions of the Concept submitted to CoE

for expertise … represent an adequate basis for the comprehensive reform of LSG; the CoE had

been recommending that the Concept should be adopted at the highest political level without

further discussions and delays. Further improvements and revisions can be made later, during the

implementation phase, and the preparation of relevant legislation” (doc. CELGR/LEX5/2013)3.

The CoE recommendations are also in line with and support the official statements on

decentralisation and local government reform reiterated by the President of Ukraine at a meeting

of the Council of Regions on 26 December 2013.4

3 All Programme recommendations are available online at http://www.slg-

coe.org.ua/category/documents/appraisals/?lang=en 4 President YANUKOVYCH stated: “I am sure that effective decentralisation of power is a guarantee of successful

implementation of the policy of reforms in Ukraine…of course, the economic situation does not let us implement

this reform soon. However, I propose to declare the next year as a year of development of local self-government”.

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Since the end of 2013 the situation in the country has been affected by the political crisis

triggered by the decision not to sign the Association Agreement between Ukraine and the EU.

None of the main actors in place however, be they the government, the opposition, local

authorities and civil society, has called into question the need to strengthen local democracy in

Ukraine. Whichever the outcome of the current situation – hopefully a peaceful and negotiated

one – there is no doubt that a reform of distribution of powers will be needed, which provides

reasons for the CoE to continue working in this field.

One of the main strengths of the present Programme is that the majority of its methods can be

adapted and used within the framework of the current legislation in the municipalities with

different status, population, level of economic development, financial resources. Through its

component of legal support, the Programme promotes continuously the values of decentralisation

and local democracy. It continues awareness-raising measures, provision of expert appraisals,

promotion of co-operation and partnership, preparation of policy advice that can be used for the

implementation of the reforms. The Programme continues to play an important role in the

creation of a climate favourable to the capacity-building of local authorities and to the

modernisation of the LSG system as a whole. It cooperates actively with the relevant structures

of APU, VRU, Minregion and other central executive authorities, LSGAs and associations,

educational, academic, expert institutions and organisations, international projects and

programmes aimed at development of LSG in Ukraine.

The Programme should continue its efforts to assist Ukraine in fulfilment of its commitments to

CoE, in the framework of the CoE-Ukraine Action Plan, especially needed in the year preceding

national and local elections (which might be called earlier). The current situation however

remains fluid and it is difficult to predict how and when it will stabilise. Civil society in

particular is “reorganising” itself and the new actors – whose solidity and credibility needs to be

confirmed – are emerging. The credibility and sustainability of our work will depend in future

also on the choice of new or additional partners (NGOs, associations of local authorities, etc.)

that will meet the standards of transparency, reliability and capacity to deliver.

The Centre of Expertise, in consultation with donors, participating local authorities, and current

partners, proposes extension of the Programme until at least March 2015.

Currently, consultations are underway with representatives of donor countries, and modalities of an

extension of its implementation term are being coordinated. Additional objectives of the

Programme for the additional period are to include assistance with preparation of local leaders,

potential candidates for the forthcoming local elections and support for post-monitoring activity in

line with the provisions of Congress’ Recommendation 348 (2013) on local and regional

democracy in Ukraine, in co-operation with the Congress.

1.4. Strategic link to outcomes of Cooperation Strategy / outcomes at country level

The Programme is run within the framework of the CoE Action Plan for Ukraine for 2011-2014

“Partnership for Reforms”, the priorities of which include strengthening local democracy and

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support for local self-government reforms. More precisely, as mentioned in Section 3

“Democracy”, the Programme intends to give support to Ukraine in the implementation of its other

statutory and specific commitments as a CoE member state, envisaging a set of measures called to

help bring the Ukrainian legislation and practice of functioning of LSGAs and their associations in

line with the CoE standards in the area of local democracy.

The objectives of the Programme fully meet the priorities and objectives repeatedly set by the

President of Ukraine and most recently, on 26 December 2013 during the Council of Regions

meeting that announced 2014 the year of LSG and underlined importance of pilot projects.

The Programme is also in line with priorities of the Swiss Cooperation Strategy “Ukraine 2011-

2014”, which includes public administration reform. The Programme contributes to the

improvement of quality of local administrative and public services, to greater transparency of

local and regional authorities, the improvement of the local finance system, the strengthening of

leadership capacities of local leaders and citizen participation. Outcomes of the LGA and BP

programmes meet the objectives of the Swiss Cooperation Strategy on “Local self-government

and public services”.

Finally, the Programme corresponds to the objectives of the Neighbourhood Programme 2013-

2017 of the Danish International Development Agency. In particular, the DANIDA priority

“human rights and democracy” includes better ethical standards and good governance.

2. Outcomes achieved during 2013

Outcome 1: Ukrainian authorities assisted and supported in the process of improving the

quality of local governance through the provided legal support of the CoE and use of

mechanisms offered by the Strategy for Innovation and Good Governance at Local Level:

national Action Plans, local government adhesion and improvement, the European Label

(ELOGE).

a) The provided CoE expert support and recommendations on the reform and legislative

issues facilitated activities of the leading institutes of central government responsible for

the development of the national legal framework such as APU, Parliamentary Committee

on State-Building and LSG, ministries of regional development, economy, and finance,

and the State Foundation for Local Self-Government5. Close co-operation with these

institutions made it possible to monitor the LSG development in Ukraine and to ensure

regular consultations between all stakeholders.

b) A set of prepared and presented expert documents (listed in Annex 6), concrete

recommendations and advice on constitutional revision (provisions on local government)

5 Before 2013, the current CoE Programme “Strengthening the Capacity of Local Authorities in Ukraine” did not

deal with issues of legal support. This component was added in April 2013 after the end of the CoE Programme

“Strengthening Local Democracy and Support for Local Government Reforms in Ukraine”, funded by Sweden.

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taken into account at the drafting process of the Concept of local government reform and

territorial organisation of power and some other pieces of individual legislation.

c) The Strategy for innovation and good governance at local level6 promoted through

national benchmarking of the 12 principles of good democratic governance. Background

for preparation of the national platform of good governance and accreditation of ELoGE

for Ukraine by the CoE Stakeholders Platform created.

Outcome 2: Institutional capacity of local authorities to deal with their tasks strengthened

and improved through introducing modern management tools, performance indicators and

benchmarking systems.

a) A system of collection, identification, dissemination of the innovative experience of

LSGAs introduced at the national level. A joint Contest (with CoE) announced by the

Ministry, the “Best practices” section added to the Ministry’s website; creating of a

national database of best practices started. This database to be updated on a regular

basis and used by the Minregion.

b) The quality of public services improved in participating local authorities, performance

networks to exchange and disseminate their PMP experience built, the PMP listed by the

ASTU among its priorities, CoE assistance requested to extend PMP to all medium and

small municipalities.

c) The adapted LFB toolkit and relevant guidelines enabled local authorities to perform

regular monitoring of the efficiency of local finance system, identify strengths and

bottlenecks, changes needed and ways of innovative development. The municipalities

enabled to compare their results and find solutions for specific management problems,

and therefore raise their cost-effectiveness, productivity and efficiency.

d) Institutional leadership in the participating municipalities improved through

implementation of LAP. A course on “Leadership in local government” introduced in

NAPA. A special leadership course organised for local authorities and trainers at

CPPC of the Vinnytsia region. A permanent seminar on “Leadership Academy for

local self-government” organised at the CPPC of the Volyn region. A training course

on “Leadership Academy for LSG authorities” organised at the Department of Public

Administration and LSG of Ivano-Frankivsk National Technical University.

Institutional leadership also strengthened among VASSR executives and 2013 LAP

trainees, which covered gender mainstreaming, financial efficiency, inter-municipal

cooperation, and CoE recommendations on local government reform.

6 See the Congress Resolution 283(2009) and Recommendation 265(2009) on “Good governance: a key factor for

the sustainable economic development of regions”, PACE Resolution and Report 13350 “Good governance of large metropolises” of 4 November, 2013.

More on Strategy is at http://www.coe.int/t/dgap/localdemocracy/Strategy_Innovation/default_en.asp

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e) The capacities of local government associations improved through the implementation

of the CoE toolkit “Towards a modern Local Government Association”. The

associations encouraged to work on the formulation of the strategy, efficient

structuring and management, leadership, financial management, internal control and

transparency, provision of services, capacity-building, lobbying and protection of

interests, awareness-building, networking, personnel management, etc. The strategic

partnerships with associations of the other CoE member countries, such as Bulgaria,

Croatia, Poland, Turkey, Moldova, Romania, and Slovenia established with the

Programme assistance. Ukrainian LGAs became NALAS members.

f) Ethics standards at local level improved and potentially some cases of corruption

prevented through implementation of PEP. Some PEP materials integrated into the

NAPA courses.

3. Outputs and performance according to Work plan for 2013

Outputs related to Outcome 1 - Ukrainian authorities assisted and supported in the process of

improving the quality of local governance through the provided legal support of the CoE and use

of mechanisms offered by the Strategy for Innovation and Good Governance at Local Level:

national Action Plans, local government adhesion and improvement, the European Label

(ELOGE)

1.1. Legal assistance to Ukrainian authorities ensured in the area of preparation for the

LSG reform and improving the legal framework taking into account the ECLSG

provisions. Results:

Appraisal of the draft Concept of the Reform of local self-government and the territorial

organisation of power in Ukraine”, ref CELGR/LEX5/2013 was prepared upon request

from Minregion and submitted to the Ukrainian authorities.

Recommendation on the Revision of the Constitution of Ukraine: Provisions on the

Territorial Organisation of State and local self-government, CELGR/PAD3/2013,

prepared upon request from the Constitutional Assembly and sent to all relevant

authorities.

A round table on “Local Self-Government Reform in Ukraine” was organised on 11

November 2013 in Kyiv. Participants included high-ranking central and local authorities,

local government associations, the EU Delegation to Ukraine, diplomats and

representatives of international organisations. The following CoE documents were

discussed: expert appraisals of the draft Concept, policy advice on revision of the

Constitution, Congress’ Recommendation 348 (2013) and report on local and regional

democracy in Ukraine.

Expert support provided to the preparation of legislation “On the Right of Territorial

Communities for Amalgamation” and “On Co-operation of Territorial Communities”.

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CoE recommendations for improvement of the Ukrainian legislation, support for

decentralisation of power and local self-government reform in Ukraine were presented

upon request from the UAROR during the annual meeting of local authorities (18

September, Sudak).

The Programme provided training for the students of the Ukrainian School of Political

Studies (26-29 September) on the subject of “Promotion of reforms of decentralisation of

power and local self-government. Standards and recommendations of the Council of

Europe on local democracy” and “Challenges and prospects of the administrative and

territorial reform in Ukraine”. The session was organised upon request of one of

Ukraine’s leading think-tanks, the Agency for Legislative Initiatives, to promote the

establishment of democratic values in Ukrainian society.

The Programme experts participated in the round table “Development of local democracy

and self-organisation of the population.” (20 November, Kyiv, organised by the VRU

Committee for State-Building and LSG). The issues discussed included regulatory and legal

framework for direct democracy, local referendums, general assemblies of citizens, the

place and role of public hearings in efficient LSG, institute of local initiative and its place

among direct democracy forms, improvement of regulatory and legal framework of the

procedure of establishment, organisation and activity of bodies of self-organisation, CoE

standards, etc.

1.2. The tools of the Strategy for Innovation and Good Governance at Local Level

implemented, benchmarking of 12 good governance principles, preparation for setting up

the national platform of good governance ensured. Results:

The benchmarking of 12 principles of good democratic governance was completed in 13

pilot LSGAs, in cooperation with the State Foundation for LSG.

The workshop on “Introduction of the National Good Governance platform” was held on

3 December 2013 with participation of the State Foundation for LSG and pilot LSGAs. It

discussed implementation issues of the Strategy and ELoGE in Ukraine.

Outputs related to Outcome 2 - Institutional capacity of local authorities to deal with their tasks

strengthened and improved through introducing modern management tools, performance

indicators and benchmarking systems

2.1. The Best Practice Programme (BPP) is introduced and helps to identify, celebrate,

disseminate and replicate interesting initiatives. Results:

A manual on “Good governance in Ukrainian municipalities: Council of Europe Best

Practice Programme” was prepared, presented and distributed among central and local

executive authorities, LSGAs and their associations, projects and programmes.

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A 2012 BPP Conference and an award ceremony were organised on 30 April 2013 in

Yalta. The event was attended by about 60 participants, including mayors, and local

authorities from participating municipalities, the leadership of the Minregion, the State

Foundation for Local Self-Government in Ukraine, the Verkhovna Rada of the

Autonomous Republic of Crimea (VR ARC), national LGAs, CoE experts and

Secretariat, and SDC. 18 finalists of the 2012 Contest received awards and diplomas in

three nominations: “Efficient management and provision of public services”, “Support for

local enterprise”, “Experience of raising investments and implementation of grant

programmes”.

A platform for the 2013 BPP was created with participation of the VRU, the Minregion,

Mineconomdevelopment, State Foundation for Local Self-Government in Ukraine,

NAPA, all-Ukrainian LGAs - AUC, UAROR, VASSR, ASTU, SDC in Ukraine, UNDP,

GIZ, Swiss-Ukrainian Decentralisation Support Project in Ukraine DESPRO and the

Programme experts.

An awareness-building campaign was held for the 2013 BPP: a series of regional

informational workshops were held in Crimea (29 April), Lviv Oblast Council (22 May),

Kharkiv Oblast Council (24 May) and the Minregion (7 June) involving, respectively, the

LSGAs leadership from all regions of Ukraine and the Minister of Regional Development

Mr Temnyk. The brochure with information on the Contest 2013 was prepared and

disseminated.

The number of the BPP Contest participants increased by 230% compared to 2012.

Experts of the 2013 BPP Selection Committee assessed 264 applications from LSGAs of

all levels, and identified 41 finalists in three nominations: “Co-operation of communities:

joining efforts and resources”, “Local resources: search and mobilisation to the benefit of

community”, “Participatory democracy: citizens participation”. The database of the

Contest was shared with the Minregion.

The Final Conference and an award ceremony of the 2013 Contest took place on 16

December 2013 in Kyiv, with participation of the Ministry, the VRU, Ambassador of

Denmark, SDC, and CoE Office in Ukraine. The Ministry took a decision to co-organise

the Contest in 2014.

BPP implemented and handed over to the Minregion for 2014, its results are used by the

Ministry in the decentralisation reform preparation process and improving the national

legislation and LSG practice.

2.2. The Performance Management Programme (PMP) introduced and leads to

improvement of local public services through the use of performance indicators and co-

operation among participating municipalities. Results:

PMP indicators were collected and analysed in 15 municipalities in the areas of “Web-

portal of municipality”, “Centre for administrative services”, “Tariff policy of LSGA

based on the dialogue with population”. The analysis of the indicators demonstrates

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gradual improvement of the quality of services provided by the participating

municipalities via web portals, centres of administrative services. The effect of

introduction of the PMP in those domains is demonstrated, in particular, by the results of

the 1st National contest of implementation of projects in the field of electronic

governance held on 29 October in Kyiv by the State Agency for Science, Innovation and

Informatisation. The Programme partners received awards: Slavutych municipal council

in the category “Electronic tools of territorial community management” and “Electronic

services”; Ivano-Frankivsk municipal council’s project on electronic queue in the

category “Electronic services”; Berdyansk municipal council in the category “Electronic

democracy”; Voznesensk municipal council’s portal won in the category “Electronic tools

of territorial community management”. In 2013, six municipalities joined PMP; ASTU

also reported its willingness to continue PMP activities as an additional service for its

members.

Activities under the PMP in coordination with the ministries of economy and economic

development were extended to two additional services: “Amenities” and “Monitoring of

implementation of strategic city plan”. In course of the Programme activities, five

networks were created based on the Norwegian model (one network per service).

Working meetings with participation of the Programme experts were held with the

network members in Ukrainka (5 July), Slavutych (24-25 October), Chuhuyiv (19-20

November), Pyriatyn (10 December). Recommendations on performance management

and a technical assignment for the development of the “PMP indicators” were prepared,

presented and distributed among LSGAs.

2.3. The Local Finance Benchmarking Programme (LFB) is introduced and leads to

improvement of regulations and practice in both central and local government. Results:

LFB was adapted with account of the recent changes in the budget and tax legislation of

Ukraine, the system of state finance and local powers, and the results of piloting in ten

municipalities (Zhytomyr, Korosten, Vinnytsya, Sumy, Kupyansk, Chuhuyiv,

Yuzhnoukrayinsk, Enerhodar, Melitopol, Boryspil).

Round table on the LFB was held on 13 December in Kyiv; it was attended by

representatives of the ministries of regional development and finance, and pilot

municipalities.

A manual on LFB in Ukrainian municipalities was prepared and presented to LSGAs,

their associations and the Ministry of Finance.

2.4. Leadership Academy Programme (LAP) is delivered in three annual cycles, each

cycle addressed to two groups of students, Institutional leadership in participating cities

improved. Results:

A full LAP round was implemented for the VASSR: three 3-day sessions for two groups

of local authorities from rural municipalities were held on 6-11 July, 19-24 September

and 25-30 November. 42 village mayors from all regions of Ukraine, members of the

20

association’s board and its Executive Directorate received the CoE certificates. During

the training, its participants learned about the best European practices, good governance,

PMP, LFB, IMC, gender mainstreaming, and CoE recommendations on local government

reform in Ukraine.

The manual on “Leadership in local government” was finalised and recommended for

publication by the NAPA Academic Board Decision. It was integrated into the course on

“Leadership in local government”. In September-November, first full-time students of the

NAPA Institute of Civil Service and Local Self-Government took this course.

A ToT (training of trainers) course on leadership was organised for the trainers from

Vinnytska and Volynska, regions and in the Ivano-Frankivsk National Technical

University. A regional network of training centres that teach LAP was established.

The Vinnytska region CPPC hosted 8 training sessions using the LAP methodology: on 7

August - within the framework of the “Municipal University of Vinnytsia Municipal

Council” for the municipal council officials; on 14 August – women- leaders of public

organisations; on 10-11 September, 1-2 October, and 23- 24 October – for the mayors of

villages and settlements. On 4 September, the Academic Board of Vinnytska CPPC

approved the LAP for local authorities at the CPPC.

The Volynska region CPPC hosted 2 LAP sessions: on 28 October – for local authorities

of the region, on 11 December – for the authorities of Volodymyr-Volynskyi municipal

council. On 12 November, the Academic Board of the Volynska CPPC approved the plan

for 2014 the permanent LAP seminar and the development of the manual on “Leadership

Academy for officials and council members”, to improve leadership skills for local

authorities of the region.

The Department of Public Administration and LSG of Ivano-Frankivsk National

Technical University of Oil and Gas hosted a LAP-based session on 16 November for

local authorities and Master students majoring in “Territorial governance and local self-

government”, “Personnel management” and “Administrative management”. On 18

November the CoE Programme received a request for co-operation on further

development and introduction of the LAP course at the University.

2.5. LGA Programme is implemented, making Ukrainian LGAs more effective

organisations. They improve their advocacy and representation skills, provide training to

local authorities based on the CoE toolkits and recommendations. Results:

Visits of the leadership of local government associations were organised to Romania (18-

20 February VASSR), Moldova (26-27 April, VASSR and ASTU), Poland (15-16

October, VASSR and ASTU), Croatia (24-28 September, VASSR, UAROR, ASTU),

Slovenia (6-8 December, VASSR, ASTU). Visits of the leadership of the Romanian

Association of Local Communities, the Union of Rural Communes of Poland, the CALM

and the National Association of Municipalities of Bulgaria to Ukraine were also

organised. Following those visits, VASSR concluded a co-operation agreement with

21

CALM and signed a declaration of co-operation with the Union of Rural Communes of

Poland; ASTU concluded a co-operation agreement with CALM; Ukrainian associations

were invited to and participated in the International Municipal Fair NEXPO-2013.

In co-operation with ASTU, the 8th Annual conference of small towns of Ukraine “Small

towns as the focus of reform of local self-government and territorial organisation of

power in Ukraine” was organised on 4-5 July in Ukrainka. The event was attended by the

leadership of LGAs from Romania, Poland and Moldova. CoE recommendations on the

draft Concept of local government reform, draft laws “On the Right of Territorial

Communities for Amalgamation” and “On Co-operation of Territorial Communities”

were presented and discussed with the Conference participants (about 180 persons,

including the leadership of APU, Minregion, AUC, UAROR, VASSR, SDC in Ukraine).

The second day of the Conference focused on CoE capacity-building activities and tools.

The Programme organised a visit of the Ukrainian LGAs (VASSR, UAROR, ASTU) to

the International Municipal Fair NEXPO-20137 on 25-27 September. Following the

preparatory work and consultations between the Ukrainian delegation and NALAS

leadership, NALAS Committee of Liaison Officers accepted the Ukrainian associations to

the network of associated members.

On 6-7 December, the leadership of VASSR and ASTU visited NALAS Committee of

Liaison Officers and introduced their associations at the meeting. On 7 December,

NALAS Committee of Liaison Officers took a decision to grant the Ukrainian

associations the status of associated members and invited them to join further activities of

the Network.

On 18-23 November 2013, in co-operation with the leadership of LGAs from Bulgaria

and Poland, the needs and capacities assessment of the Ukrainian LGAs (AUC, UAROR,

VASSR) was held according to the CoE toolkit “Towards a modern Local Government

Association.” The experts identified priority areas and developed recommendations on

how to improve institutional capacity of LGAs.

2.6. Public Ethics Benchmarking (PEB) Programme implemented that supports the

integration of ethics standards in LSGAs, strengthens public ethics and increases co-

operation level and exchange in the area. Results:

The codes of ethics were prepared and the ethics committees were created in 16 LSGAs.

Ten more LSGAs expressed their interest in using CoE recommendations to strengthen

ethical standards at local level.

The questionnaires on public ethics were adapted in line with the legislation.

Benchmarking of ethical standards was held in 15 LSGAs. The results were presented at

the workshop on the “Improvement of standards of public ethics in the Ukrainian local

7 NEXPO-2013 gathers representatives of LSGAs, their associations, business and international institutions for

exchange of best LSG practices, establishment of co-operation, coverage and discussion of current tasks and

challenges faced by local and regional authorities. The key organiser of the event is the NALAS network.

22

self-government authorities” held on 9-10 December with participation local authorities,

experts and specialists from NAPA, the Ivano-Frankivsk National Technical University,

and the Lesia Ukrayinka East European National University.

CoE proposals and guidelines were used by NAPA to update its courses on “Ethics in state

governance,” “Philosophic problems of state governance,” “Ethics of managerial activity,”

and “Professional ethics: specificity, problems, and place in the system of ethic

knowledge.”

Communication component

The Programme web site http://www.slg-coe.org.ua/ was re-designed and updated. Most of the

partners and stakeholders are using the web site to download the documents and capacity-

building tools prepared by the Programme. The legal appraisals prepared by the earlier

Programme “Strengthening local democracy and support for local self-government reforms in

Ukraine” (2010-2013, funded by Sweden) are also kept on this site. The Programme updates and

information appear on the official web site of the CoE Office in Ukraine

During the year, more than 350 reports on the Programme activities were prepared and covered

on TV, Internet, radio, and in the newspapers. Over 130 media reports appeared at the national

level. The Programme news appeared on web sites and newspapers of the national authorities

such as the Cabinet of Ministers of Ukraine, Mingregion, and Parliament.

The promotional animation video on the 12 principles of good governance created in 2012 was

widely disseminated and received very positive feedback.

Horizontal cooperation and synergies with other international stakeholders

The Programme took over the organisation of regular donor coordination meetings from the

earlier “Strengthening local democracy” Programme. On 21 May the donors meeting was

organised with the participation of Ms Maryna Stavniychuk, Advisor to the President, Head of

the Main Department of Constitutional and Legal Modernisation of APU, Secretary of the

Constitutional Assembly, and Mr David Zhvania, Head of the Parliamentary Committee on State

Building.

Co-operation and synergies with the other international projects working in the field of

decentralisation and local governance were ensured though participation in the common

discussions, events, and coordination of activities.

Programme staff

The local team in Kyiv consists of three CoE staff members: Senior Programme Manager Andriy

Guk; Programme Manager Olga Shevchuk; and Programme Assistant Kateryna Sasina. The

Programme team works in coordination and consultations with the Head of the CoE Office in

Ukraine Vladimir Ristovski, Deputy Head of Office Оlena Lytvynenko and the Centre of

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Expertise for Local Government Reform, Directorate General for Democracy and Directorate

General of Programmes of the CoE General Secretariat in Strasbourg.

The following experts worked on the implementation of the Programme:

Item Programme

component

Local expert International expert

1. Legal Support to

Local Self-

Government

Reform

Anatoliy TKACHUK

Yuriy HANUSHCHAK

Vladyskav FEDORENKO

Vadym PROSHKO

Valentyna POLTAVETS

Viktor TYMOSHCHUK

Oleksandr VRUBLEVSKYI

Gérard MARCOU, France

Robert HERTZOG, France

Pawel SWIANIEWICZ, Poland

Diane BUNYAN, UK

Bernd SEMMELROGGEN,

Germany

2. BPP Ihor ABRAMYUK

Vadym PROSHKO

Valentyna POLTAVETS

Eduard RAKHIMKULOV

Marharyta YURCHENKO

Viktor LIAKH

Olena SAYENKO

Oleh KOVAL

Olesea CRUC, Moldova

3. GG Strategy Eduard RAKHIMKULOV

Ihor HRYTSYAK

Vadym PROSHKO

Nadiya PUSTOVOITOVA

Harald BALDERSHEIM,

Norway

4. LFBP Vyacheslav ZUBENKO

Oleksandrа CHURKINA

Andriy KORNIYENKO

Gábor PÉTERI, Hungary

5. PEP Tetyana VASYLEVSKA

Viktor TARAN

Michelle WITTON, UK

Hendrik BRUNING, The

Netherlands

6. PMP Vadym PROSHKO

Valentyna POLTAVETS

Serhiy PANTSYR

Viktoriya KOLTUN

Yaroslav RABOSHUK

Volodymyr PROSKURNIN

Chris VAST, The Netherlands

Jon BARBER, UK

7. LAP Oleksandr MESHALKIN

Hryhoriy BORSHCH

Svitlana KHODAKOVA

Liudmyla MATIASHCHUK

Eduard RAKHIMKULOV

Svitlana KORENKOVA

(TYMCHENKO)

John JACKSON, UK

Katalin PALLAI, Hungary

Richard DION, Germany

8. LGAs

Development

Programme

Ihor ABRAMYUK Ginka CHAVDAROVA,

Bulgaria

John JACKSON, UK

24

Alba DAKOLI WILSON,

Albania

Lessons learnt

Key lessons learnt in the course of the Programme implementation in 2013:

The CoE Programme produced some very important and positive outcomes and outputs in

2013. However, despite continuing official rhetoric, the government keeps delaying the

decentralisation and local government reform in Ukraine, which seriously slows down the

process of democratic development and modernisation. All CoE recommendations

provided to Ukraine over the past 6 years remain relevant.

The Programme’s cooperation with the Presidential Administration, the Constitutional

Assembly, Parliament, and relevant ministries remains an important factor and a channel

of promoting CoE values and standards. However, continuing lack of political initiative

suggests that additional partners (such as civil society) and new, more effective strategies

be identified and pursued at both central and local level.

The local government associations have become more aware of the need for reform,

especially after working closer with the CoE programmes and developing further their

networks with the other European associations. They have also strengthened their

capacities and gained more knowledge about innovative capacity-building tools offered

by CoE and best practices developed at home and abroad.

The individual municipalities which participated in the Programme so far proved to be

interested, engaged, and very motivated. The results produced by the capacity-building

components of the Programme were successful overall, even under the difficult

conditions of re-centralisation policies adopted by the government in 2013. Thus the

capacity-building should be continued and expanded in the future.

The establishment of a true local democracy depends strongly on the understanding,

willingness, and capacity of local authorities to break free from the current system of

political dependency and centralised public management. Therefore, a focus on the

preparation for the next local elections is very important. A new generation of candidates

for the positions of elected local officials should be trained so that they would have a

good understanding of European standards and practices and capacity to work with and

make use of tools based on those standards.

The current political crisis, which began in November 2013, triggered the emergence of

new, very diverse and active civil society, prepared to defend European values and aware

of the importance of local democracy. Subject to the positive and peaceful settlement of

the crisis, this new strand of civil society activists should be acknowledged and ways and

means of involving it into the Programme in 2014 should be activated.

25

The strategic approach of the Programme should be more bottom-up, as the results at the

local level can be achieved relatively fast and can influence national polices.

Cooperation and coordination with other local government projects (especially with the

new EU projects on local budgets and local development) should be enhanced to increase

efficiency of the Programme in 2014.

It is likely that reforms be engaged in the course of 2014 in order to provide a response to

the demands that emerged so strongly in civil society and found also the requests and

statements from parliament at the end of 2013 and beginning of 2014. Legal advice will

be necessary and shall be provided upon request.