Sectoral Working Group on Decentralization and Regional Development

1. 1
ADMINISTRATIVE TERRITORIAL
REFORM AND DECENTRALIZATION
LEGAL FRAMEWORK
Decentralization
and Regional
Development
Sectoral Working Group on
During the period of June-December 2020, focus was put on assisting Minregion and its Office for Reform Support
in implementing the Operational Plan 2020-21 and on the completion of the territorial administrative reform after
local elections of October 25, 2020. This assistance was heavily focused on amending the legal and regulatory
base to secure sustainability of the new local self-governance system.
Following the adoption of the State Regional Development Policy, it was decided to make Regional Development
a more prominent thematic area within the SWG. In this context, in June 2020 the EU Delegation in Ukraine
became a co-chair for the Regional Development “wing” of the SWG Decentralization and Regional Development.
In December 2020, in line with the principle of annual rotation, Canada replaced Sweden as a SWG co-chair for the
Decentralization “wing”.
During the period of June-December 2020, four meetings of the general Sector WG and 19 meetings of technical
WGs took place.
As a result of its meetings the WG discussed a number
of legislative amendments that have budgetary
implications for LSGs with the following main
outcomes:
Some technical recommendations provided to the
draft law “On Amendments to the Budget Code of
Ukraine to align the provisions of budget legislation
with the completion of administrative-territorial
reform", in particular, on strengthening the financial
capacity of local self-government bodies, the clear
distribution of expenditures on delegated and own
powers, introducing gender aspects in budgeting
and generation of a revenue base for local budgets
to perform local government functions;
Review and discussion of U-LEAD/ GIZ suggestions
on redistribution of competencies based on the new
administrative-territorial structure of Ukraine
submitted to Minregion;
LOCAL SELF-GOVERNMENT
FINANCES AND BUDGETING
2
In November 2020, the WG focused on discussing
legislative changes needed for the completion of the
territorial administrative reform and further imple-
mentation of decentralization, including a need to
adopt: the draft law No3651-d which is critical for
conducting the first sessions of local councils to
address issues of succession, budgets, re-registration
procedures; the draft law No4298 which settles the
powers of local state administrations under the current
Constitution of Ukraine; the draft law No2194 which
reinforces the fundamental principle of the universality
of local self-government; the new draft law “On Local
Self-government” which is crucial for ensuring that new
powers and responsibilities are transferred to local
self-government. The WG also supported finalization of
relevant proposals to Constitutional amendments
elaborated by a special WG with the involvement of the
LSG Associations.
Decentralization
Digest #10
June-December 2020

2. 3 LOCAL DEMOCRACY
The WG provided inputs into the Concept on
Amendments to the Laws of Ukraine “On Local
Self-Government in Ukraine” and “On Local State
Administrations” related to alignment with the
principles of local democracy stated in the European
Charter on Local Self-Government and redistribution
of competencies. In particular, recommendations
were elaborated on local councils’ accountability for
functioning and transparency of decision-making,
such elements of direct democracy as public
consultations, civic initiatives and public audit, and
the status of village administrators (starosta). The WG
members also actively participated in consultations
related to the National Strategy for Civil Society
Development formulated by the Secretariat of the
Cabinet of Ministers of Ukraine and supported
Minregion’s work on drafting the Resolution No711 in
relation to citizen participation in local development
planning.
On the request of Minregion and in the context of
its work on the Concept on Local Integrated
Development Planning, the WG has worked
intensively on reviewing existing concepts and
regulations related to planning (spatial planning,
mid-term planning, strategic socio-economic
planning, etc.) and providing recommendations on
their synchronization.
4LOCAL DEVELOPMENT
5.1 Administrative Services
5PUBLIC SERVICE PROVISION
On the eve of the local elections of October 2020, and
after, the WG on Communication supported Minregion
in defining new communication priorities and aligning
the efforts of Minregion and development projects
around those. These priorities included: finalization of
regional amalgamation plans, forming sustainable
hromadas, re-distribution of competencies between
LSG and territorial state administrations, introduction
of forms of direct democracy in line with the updated
legislation. The WG has also discussed joint measures
linked to supporting LSGs in addressing COVID-19
pandemic challenges.
6.1 Communication
The WG members discussed the “Knowledge
Management Portal”, a platform launched by the
National Agency for Civil Service Training on
professional training of civil servants, heads of local
state administrations, their deputies and local
government officials, its potentials and current
limitations. Minregion has launched consultations with
WG members and the National Agency on a joint
electronic tool for monitoring provision of training to
LSGs (as well as local governmental bodies) by various
international technical assistance projects and
programs.
6.2 Training System
and Knowledge Management
6COMMUNICATION, TRAINING SYSTEMS
AND KNOWLEDGE MANAGEMENT
In order to facilitate openness of educational activi-
ties, the WG on Administrative Services, headed by the
Ministry of Digital Transformation, focused on establi-
shing a system of coordination of information related
to provision of (re)training to Administrative Service
Centers by development projects across the country,
including, in particular, those improving the quality of
service for TSNAP visitors.
Support to Minregion in preparing suggestions to
amendments of the Tax Code of Ukraine towards
strengthening LSG revenue base;
Support to Minregion in formulating proposals for
draft State Budget 2021, mainly related to subsidies
for health, education and infrastructure and
inter-budgetary transfers;
Recommendations to the draft law "On local
self-government in Ukraine" and some other
legislative acts of Ukraine on decentralization and
delimitation of powers of local self-government
have been provided.
Decentralization
and Regional Development
July-December 2020

3. Decentralization
and Regional Development
The WG provided its proposals for amendments to the
law "On Local Self-Government" and the Budget Code
related to gender equality-responsive local governance
and budgeting. It has also reviewed the methodology of
institutional gender equality capacity assessment,
conducted at Minregion, and four pilot regional state
administrations and amalgamated territorial commu-
nities with the support of the UN Women and National
6.3 Gender
Democratic Institute. The WG members participated at
the stakeholders and expert discussion “Gender data at
regional and local levels for gender-sensitive strategic
planning and budgeting, results-based management
and localization of the Sustainable Developments
Goals” conducted on 10 December 2020 by the
Minregion and UN Women.
A meeting of the SWG was dedicated to a review of the
approved State Strategy for Regional Development
2020-2027 and discussing further coordination
arrangements between Minregion and Development
Partners. The EU Delegation has presented recom-
mendations resulting from an independent review of
the Strategy conducted by the Kyiv School of Economics
that need to be taken into consideration during
elaboration of the Action Plan 2021-2023. The Ministry
of Regional Development is planning consultations
with Development Partners on the draft Action Plan.
The Ministry has submitted a request to Development
Partners to establish a Regional Development Support
Office to assist Minregion in launching and ensuring
proper implementation of the State Strategy for
Regional Development 2020-2027, and to support the
communication campaign around the Strategy
implementation.
Regional Development
Among the issues requiring the attention of
Development Partners and the Minregions are:
Ensuring that the redistribution of competencies
and powers and relevant amendments of legislation
are done in consultations with relevant stakeholders
(including LSG Associations and line Ministries) and
in accord with the principles declared by the
European Charter on Local Self Government;
Addressing the request of Minregion to establish
a Regional Development Support Office to assist
Minregion in launching and ensuring proper
implementation of the State Strategy for Regional
Development 2020-2027;
Finalization of the structure and Terms of Reference
of the SWG Decentralization and Regional Develop-
ment in line with the new three-tier national aid
coordination system;
Support to Minregion in elaboration of the new
Decentralization Strategy and subsequent review of
the Common Results Framework for SWG Decentra-
lization and Regional Development and the adopted
State Strategy for Regional Development 2020-2027.
Issues requiring SWG attention in the first part of 2021:
July-December 2020