Regional development section

1. →
Cabinet of Ministers of
Ukraine

2. • On 3rd of March government
adopted the NES 2030 that
outlined country’s priorities
within 20 functional and
sectoral areas to achieve at
least 2x growth in the
upcoming 10 years.
• NES 2030 also contains a
section on “International
economic policy and trade”
which includes over 80
initiatives based on desk
research and field interviews
with more than 50 experts.
• All initiatives are evidence-
based and are calculated
using a rigorous CGE
economic model.
• An Audit of the Economy
of Ukraine became a
starting point in the
development of National
Economic Strategy 2030
(NES 2030).
• The document consists
of an analysis of
Ukrainian economy, its
potential and evaluation
of governments’ public
policies for the last 30
years.
1 2 4
• Vectors for Economic
Development followed
the Audit of the Economy
of Ukraine and
comprised of more than
1,500 medium to long-
term initiatives across
20 functional and
sectoral sections.
• The document
accumulated the
initiatives from various
stakeholders including
government, business
and civil society, and
therefore built a solid
ground for the
development of NES
2030.
• The strategy will be
cascaded into
specific projects in
each of the
functional and
sectoral sections.
• Implementation of
projects requires
increasing
institutional
capacity within key
stakeholders,
improving
budgeting and
monitoring process.
5 IMPLEMENTATION
OF NES 2030
3
• Within the process of
development of the
Presidential program
implementation plan, the
Cabinet of Ministers was
serving as a coordination of
work of so-called “triangles”:
CMU, Parliament, and
Presidential office.
• The Presidential program's
implementation plan is a list
of the comprehensive
strategic projects based on
the pre-election program of
President Volodymyr
Zelensky.

3. •
•
•
•

4. Free country with the high level
of welfare and effective digital
services economy, a reliable
economic partner globally and
an example of growth for all
Eastern Partnership countries.
The most attractive country of
economic opportunities for
investments, innovation and
doing business; the best place
for creative potential fulfillment,
ideas realization and self-
development.
To lay the groundwork for the
fulfillment of available
geographic, resource and
human potential to provide
welfare, self-fulfillment, safety
and freedom to every Ukrainian
citizen through innovative and
advanced economic
development
• European and Euro-Atlantic integration (implementation of the strategic course of the state for the full-
fledged EU and in the North Atlantic Treaty Organization membership)
• Decarbonization of the economy (energy efficiency, development of renewable energy sources,
development of a circular economy and synchronization with the European Green Course initiative)
• Effective digital service economy and compact state institutions (development of digital economy as
one of the drivers of economic growth of Ukraine)
• Reintegration of the temporarily occupied territories (priority of development of Donetsk and Luhansk
oblasts territories, where public authorities exercise their powers in full)
• Gender equality (ensuring compliance with the principles of gender equality in the implementation of
public policy)
• Free and fair competition, equal access for business
• Development of business, innovations and talents
• Barrier-free capital flow
• Realism and subjectivity in determination of economic development directions
• Integral economic approach, ability to combine liberal and institutional approaches effectively
• National security based on partnership and investments
• Rule of law (abidance to the rule of law in the implementation of public policy)
• Protection of the rights of all subjects of property rights
• Intolerance of corruption (prevention and counteraction to any manifestations of corruption)
х Termination of structural reforms
х Growth of business over-regulation
х Growth of tax burden
х Failure to comply with the
Association Agreement with EU
х Loss of independence by the
National Bank of Ukraine,
Antimonopoly Committee of
Ukraine, Accounting Chamber of
Ukraine, National Anti-Corruption
Bureau of Ukraine
х Sectors’ monopolization
х Dishonest use of economic
incentives
х Departure from reform of
underdeveloped markets
х Increase of fraudulent use of
budget funds
х Loss of creditworthiness and credit
rating
х Accumulation of critical debt
volume
х Decrease of transparency in state-
owned assets administration
х Deterioration of the environment

5. Source: National Economic Strategy until 2030
Competition for capital Sectors’ development Human development
Basis development
Create competitive conditions for
business and investment and restore
trust to the state
Win a competition for capital
on the world market
Stimulate the development of innovations and
modernization of economic sectors to ensure their
international competitiveness
Ensure the development of human
potential and win competition for talents
Social policy
Education
Culture
Environment
Growth of
well-being of
the population
Efficient
macroeconomic
policy
Administration of
the state-owned
assets
Efficient
regulation
International
economic policy
Rule of law Development
of internal
demand
Incentives
for export
Creation
of
the
state
reputation
National
Economic
Strategy:
Goals
and
action
plan
Cultural and value transformation
Foreign direct
investments
Domestic
investments
Public
investments
Healthcare
Regional development / Entrepreneurship / Digital economy
Industry
Agricultural sector
and food industry
IT sector
Transport and
infrastructure
Energy sector
Mining industry
Creative industries
and hospitality
industry
Services
Quality of life
Sport

6. COMMENTS
• At the moment, civil servants do not feel
personal responsibility for the
implementation of measures, do not
understand how their actions help to
implement strategic objectives
• The purpose of implementing the tool for
cascading goals is to ensure maximum
achievement of strategic goals of the
state
• As a result of cascading, a longlist of
projects will be formed → projects that
may be of interest to donors
• Effective budgeting process and donor
funding are needed to ensure effective
implementation
• In addition, it is necessary to increase
institutional capacity – to restructure and
optimize the Central Executive Bodies
(continuation of PAR, strengthening RST
and RDO)
• Monitoring is needed to ensure control
over implementation, which requires
appropriate statistics
• In addition, economic modeling will
prioritize initiatives and set achievable
goals
Content → National Economic Strategy
Structuring and cascading to specific tasks (RBM + HRMIS)
1.1. Health (Healthcare
system that prevents
and treats diseases)
Policy sphere
1.1.1. Medical care
Policy sector
1.1.1.1. Emergency care
(ambulance)
Policy component
1.1.1.1.1. Admission
reform in hospitals
Policy initiative
• Develop protocols
• Prepare staff
• Buy equipment
Activities and
tasks
List of sectoral projects Implementation Monitoring
Institutional capacity
building in CMU,
Ministries (continuation
of PAR, strengthening
RST and RDO)
Economic modeling for
forecasting and
government’s
decisions making
IT-tool and dashboard for
monitoring the
implementation
Optimization of the
budgeting process
and its connection to
the Strategy*
Building donor
coordination system
Evidence-based
policymaking process
based on valid and
comprehensive statistical
information (SSU reform)
Example
* Integrated National Financing Framework

7. Gross regional product per capita in 12 oblasts is lower than 75% of the
average in Ukraine. This indicates significant disparities in the development of
regions.
In recent years, some regions have faced the demographic crisis, with rural
areas suffering the greatest losses → the problem of depopulation is urgent.
The demographic crisis in the long run will have a negative impact on the
economic sphere due to the reduction of the domestic market and the
number of labor. Adverse demographic changes lead to transformations in
the labor market, changes in the structure of the economy. As the population
ages, so does the cost of health and social care.
The migration of young, well-educated people to large agglomerations or
abroad leads to a reduction in human resources and loss of intellectual
potential in some regions and, as a result, to a reduction in their development
opportunities.
Each region included in the common Ukrainian space is able to
independently identify, realize and promote its potential to ensure a decent
life for its citizens:
• 100% of communities have a publicly available strategy
• Each community uses international and inter-municipal partnerships to
achieve its strategic goals
• 100% of LG employees undergo at least one internal or external training
per year
• All stakeholders plan and forecast their activities based on relevant
municipal data
• At least 30% of the State Fund for Rural Development or any other regional
development funds is used for development projects
• All territorial community investment projects are implemented or their
profile has all the necessary calculations pending the launch in the single
network of the Ukrainian investment map
Additional GDP growth of 4% over the next 10 years due to the
implementation of initiatives in this area.
As a result of the decentralization reform, power for
the development of each region have been
transferred to the local government
It is necessary to ensure effective planning,
management of each region and ensure access of
regions to finances
As a result, it will lead to ensure economic and
human development in each region
• Strategic planning development at the community level
• Harmonize strategic documents with the corresponding spatial
documentation
• Develop regional and sectoral policies for the development and
support of functional territory types (in particular, monofunctional
cities, rural areas in unfavorable conditions, etc.) through the
funding of corresponding projects (considering gender aspects in
the budget process)
• Stimulate the intensification of interregional cooperation based on
established mechanisms for uniting communities
• Complete the process of identifying growth points by regions (smart
specialization) as a mandatory component of strategic regional
planning; alignment with European Commission approaches
• Create a legal and methodological basis for the arrangement of
international and interregional youth exchanges, their integration
into Erasmus+ and ESC programs
• Inclusion of gender components into planning of regional
development
REGIONAL
DEVELOPMENT
Institutional
management of the
regional development
Economic
development
Human
development
Planning of the
regional
development
Financing the
regional
development
Development of the
regions
• Provide conditions for the assessment, development, and
monitoring of competencies in managers and specialists of regional
self-government
• Encourage higher education institutions, to develop modern
educational curriculums on public administration for the local
government officers and public servants
• Stimulate the development of the dialogue between local
governments and community residents (periodic, transparent, and
accessible reporting of local governments)
• Complete the regulatory framework of RDA activities and expand its
powers
• Establish Municipal Statistics Departments within city, district
(district within cities), village, settlement councils
• Collection of data that shows interactions between region
• Collection of gender disaggregated data by the regions
• Creation of an online geoinformation platform with accessible main
data of regional development
• Program state support for funding state programs for the
development of functional territory types (in particular,
monofunctional cities, rural areas in unfavorable conditions, etc.)
• Provide a legal environment for directing SRDF funding exclusively
to projects with economic growth potential
• Create, fill, and maintain an interactive map of investment
opportunities where each territorial community and the region set
their profile using a template
• Ensure the functioning of credit institutions for the development of
the system of credits to local governments
• Application of a gender-oriented approach in the budget process

8. ДSource: Centre for Economic Recovery, National Economic Strategy 2030, State Strategy
for Regional Development 2027
Regional
development
2. Institutional management
of the regional development
Economic
development
Human
development
1. Planning of the regional
development
3. Financing the regional
development
3.1 Financial instruments
3.2 Nonfinancial instruments
1.3 Planning the development
of territorial clusters by
functional types
1.2 3-level planning
1.1 Harmonization of sectoral
planning
2.5 Provision with needed
instruments
2.4 Building effective dialog
between government, local
authorities and communities
2.3 Capacity building of the
ARRs
2.2 Introducing effective
management procedures
2.1 Staffing
DESCRIPTION OF THE GENERAL FRAMEWORK: State Strategy for Regional Development 2027 and National Economic Strategy 2030 propose to provide regional
economic and human development by focusing on three main components presented below. Our Program is planned to support the implementation of those
strategies and follows the national approach by directly enhancing components 1.3, 2.2, 2.4 and 2.5 through proposed projects and indirectly support all of others
through creation of the benign environment for the regional development.
Key issues in chosen components:
1.3 Planning the development of territorial clusters by
functional types
10 functional types were identified according to common
characteristics, issues, and growth points under the 2027
State Strategy for Regional Development. Most of the formed
territorial clusters are already organized under some
jurisdiction, but the “Azov-Black Sea cost” one lacks special
support programs and unified vision of its development.
2.2 Introducing effective management procedures
The Ministry of Communities and Territories Development is
an institution with multiple responsibilities and has limited
organizational resources for the effective regional
development management, leaving a lot of uncoordinated
functions behind.
2.3 Capacity building of the ARRs
Regional Development Agencies (ARRs) exist for couple of
years, but do not execute their expected responsibilities and
there is often a duplication of functions with other
stakeholders.
2.5 Provision with needed instruments
There is no access to multidisciplinary local statistics to
ensure effective governance.
Also there is a lack of organizational capacity among small
communities to design strategical documents.

9. REGIONAL DEVELOPMENT
PROJECT GOALS
ROADMAP
Development of the
Local Data Portal
• Fully functioning Local Data Portal
• Gathering the information requests from the stakeholders
• Designing of the data gathering, stocking and presentation architecture and
indicator’s passports
• Integration of the Local Data Portal into existing data gathering procedures
1
Capacity Building of the
Regional Development
Agencies Network
• Regions and communities
constantly attract credit resources
and effectively use programs by
functional type of territory
• Mapping of the current state of affairs
• Organizational design with performance indicators & gap analysis
• On-demand support on capacity building
2
Development Strategy
for the Newly Formed
Regional Cluster “Azov-
BlackSea Seaside”
• The Strategy developed, approved
with key stakeholders, adopted
and being implemented
• Analysis of the current state of affairs and identification of biggest issues
• Defining the regional cluster identity and the desired state
• Development of detailed action plan, goal cascading and setting indicators
3
Project Management
Office for the Ministry
of Territorial and
Community
Management
• PMO sustainably serves the
Ministry, supporting its activities
• Audit of the responsibilities of the Ministry’s personnel and identification
of procedure weaknesses
• Integration of the new structure into the excising system
• Launching the activities of the PMO with public monitoring
4

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Cabinet of Ministers of
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