The document discusses challenges and opportunities for social policies in Ukraine in the context of decentralization reforms. Key challenges include ongoing conflicts that disrupt social welfare; Ukraine undergoing many reforms simultaneously; and decentralization providing both opportunities and risks if not implemented properly. The initiative of making municipalities "Child and Youth Friendly" is presented as a way to promote social inclusion and solidarity at the local level during decentralization. The initiative framework, funding mechanisms, current progress, and expected results are outlined. Expanding the initiative's network of experts and reach across municipalities could help scale up efforts to build social welfare locally.

1. CHALLENGES AND OPPPORTUNITIES FOR
SOCIAL POLICIES IN THE CONTEXT OF THE
DECENTRALIZATION REFORM
Oleksandra Churkina – Deputy Minister for European integration, Ministry of Social Policy

2. CONTEXT/BACKGROUND. PARAMETERS THAT PREDETERMINE SOCIAL
POLICY IN UKRAINE
Ukraine is a country experiencing a protracted conflict…
 Directly leads to security threats and disrupts social fabric;
 Significantly affects social welfare and cohesion;
 Contributes to political volatility and economic vulnerability;
Ukraine is at a special moment in its transition (Reforms and changes on all fronts);
Ukraine is a late reformer (Weak systems – delayed and incomplete reforms);
Economic recovery is still fragile and vulnerable to shocks

3. 1. Too many transformations (reforms) and processes
(battles) at the same time…
2. Effectively fighting with Populism at all levels is
becoming more and more difficult
3. Decentralization is a great opportunity but there are
certain challenges
KEY CHALLENGES AND RISKS

5. Understanding the Past of Social Welfare.
Accumulated promises…
• “INHERITED” SOCIAL WELFARE
SOCIAL SERVICES NEVER REACHED
THE BASIC LEVEL I.E. RURAL
COMMUNITY
• “EMERGENCE” OF ADMINISTRATIVE
AND NORMATIVE SOCIAL WELFARE –
BASED ON THE RECOGNITION OF
ELIGIBILITY FOR NUMEROUS
CATEGORIES OF POPULATION
• “FRAGMENTED INTRODUCTION” OF
MODERN ELEMENTS OF SOCIAL AND
CHILD PROTECTION SUCH AS SOCIAL
WORK; FOSTER CARE; ETC.
…THE SYSTEM HAS BEEN ALWAYS “POLITICALLY” MOTIVATED ESPECIALLY DURING PRE-ELECTION
TIMES…MISSED OPPORTUNITY SINCE 2004…
Privileges Benefits
120 types 60 types
Beneficiaries
130 categories
70
by social attributes
50
by professional
attributes

6. An absolute increase/decrease of local expenditures in main sectors 2013-2017 (IN 2012 prices)
2014/2013
2015/2013
2016/2013
2017 (plan )
/2013
-11612,4
-27429,3
-27521,5
-17317,9
-1490,8
-3625,6
-15851,5
-10469,0
-11229,8
-17267,8
-15340,8
-11347,4
15413,9
7785,4
1219,0
-2060,9
3422,7
1102,9
1146,5
6528,4
-30 000,0
-25 000,0
-20 000,0
-15 000,0
-10 000,0
-5 000,0
0,0
5 000,0
10 000,0
15 000,0
20 000,0
MlnUAH
Communal affairs-
Economic affairs
Health
Social protection and social security
Educationі
A challenge for Social Welfare….
THERE IS STILL A RISK
OF CREATION OF
UNHAPPY AND
DISTRACTIVE
“OUTSKIRTS”
INSTEAD OF STRONG
LOCAL
GOVERNMENTS

7. The ‘maximum’ financial capacity at consolidated municipality level to
finance social services
 Calculated on a per capita basis using the data of 2016 assuming
that
 a. existing level of obligations on other areas remain the same
 b. consolidated municipalities will use all the existing reserves
(currently on bank accounts) for social sectors and related
administration.
2120,4
1236,0
3120,8
2958,3
761,7
2044,3
1294,3
373,1
623,6
1343,4
1694,0
838,6
666,6
1671,6
2502,4
1203,7
1232,9
1113,7
0,0
1164,3
1123,1
1066,6
608,8
2478,9
0,0
1 000,0
2 000,0
3 000,0
4 000,0
Вінницька
область
Волинська
область
Дніпропетровська
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Донецька
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Ж
итомирська
область
Закарпатська
область
Запорізька
область
Івано-Ф
ранківська
область
Київська
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Кіровоградська
область
Луганська
область
Львівська
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М
иколаївська
область
О
деська
область
П
олтавська
область
Рівненська
область
С
умська
область
Тернопільська
область
Харківська
область
Херсонська
область
Хмельницька
область
Черкаська
область
Чернівецька
область
Чернігівська
область
грн
- Fiscal capacity at
consolidated municipality
level significantly varies
- A differentiated approach is
needed to equalize those
least capable and stimulate
- With no tailored support
from the government, social
welfare services will not
emerge in hundreds of
consolidated municipalities
- Specialized social welfare
services will not emerge in
the vast majority of the
consolidated municipalities

8. Decentralization as a unique opportunity
As a result of the Decentralization Municipalities Become a ‘Subject’ of Social Policy
TODAY, EFFECTIVE AND EFFECIENT LOCALLY DRIVREN SOCIAL WELFARE IS A MATTER OF NATIONAL
SECURITY…
SUCCESS OF THE DECENTRALIZATION REFORMS GREATLY DEPEND ON THE COMBINED EFFORTS WITH
SOCIAL WELFARE…
MUNICIPALITIES ARE QUICKLY LEARNING BUT EQUITABLE INVESTMENTS WILL NOT BOOST ON THEIR
OWN…OR THE PROCESS WILL TAKE ANOTHER 20 YEARS…
SO, THE ULTIMATE QUESTION FOR US IS HOW TO STIMULATE MUNICIPALITIES TOWARDS SOLIDARITY
AND INCLUSION
WITHOUT PUSHING AND ‘TELLING’ THEM WHAT TO DO

9. If “social” is anything related to interpersonal relationships, it can
not be built on individualism or math based formulae only….on the
contrary it should assume solidarity among all players involved in
social relationship.
Priority Interventions for MoSP KEY PRINCIPLES OF LOCAL
SOCIAL WELFARE
SOLIDARITY
SUBSIDIARITY
SOCIAL INCLUSION
A. Macro-level and Regulatory Policies
(Pension Reform, Salary adjustments, Cash
transfers and Subsidies)
B. Child and Youth Friendly Municipality
Initiative

10. Child and Youth Friendly Municipality Initiative. WHAT ?
Child and Youth friendly city is a transformative strategy with
equity that is aimed at ensuring that local leaders and communities
are thinking and acting for children and youth with children and
youth
Child and Youth friendly city is a combination of advocacy and
programming that creates healthy competition among
municipalities to advance realization of child and youth rights
Child and Youth friendly city is an indirect way to position
municipality as a place to invest as it is a place that respect the child
and youth rights – UNICEF recognize the progress through a special
‘accreditation procedure’
Child and Youth friendly city is a direct way to ensure that there are
no ‘invisible children’ in the community. It enables a ‘chance’ to be
realized also through the stimulation of ‘social elevators’.
Child and Youth friendly city is a process that helps to promote the
most difficult reforms for disadvantaged such as inclusive education
and de-institutionalization

11. The global Outlook • The CFCI was launched in 1996 to act on the resolution
passed during the second UN Conference on Human
Settlements (Habitat II). Since then, a movement of
child friendly municipalities started flourishing and has
reached an all-time high in recent years.
• More than 40 countries currently engage in the CFCI
and more than 3000 municipalities have been
recognized as CFCs globally.
• List of countries with the CFCI: Albania, Andorra,
Austria, Belarus, Belgium, Belize, Brazil, Bulgaria,
Canada, China (in process), Colombia, Costa Rica,
Finland, France, Germany, Hungary, Iceland, Israel, Italy,
Japan (in process), Jordan, Kazakhstan, Kyrgyzstan (in
process), Kosovo, Mongolia, Nepal, New Zealand,
Norway, Philippines, Poland, Portugal, Republic of
Korea, Slovenia, Spain, Sweden (in process),
Switzerland, Turkey, United Arab Emirates (in process),
United Kingdom, Vietnam (in process)
Practical tool that accelerates the implementation of the
Convention on the Rights of the Child and Revised European
Charter on The Participation of Young People in Local and
Regional Life, as well as contributes to the realization of the
Sustainable Development Goals at the local level.

12. CFCI Goals & Results
Framework
Child and Youth Friendly
Municipality Initiative. WHAT ?
Depending on local issues, the
municipality chooses priority aspects for
its activities. Any community can,
however, direct their efforts to work in
all areas of the initiative.
Minimum criteria
1. A comprehensive child rights approach with
demonstrated results for children;
2. Child participation through all the phases of
the CFCI; and
3. A non-discriminatory and inclusive
approach much be applied to ensure inclusion
of all children in the various phases of the
CFCI, including most vulnerable children.

13. Child and Youth Friendly
Municipality Initiative. WHY ?
- UNICEF piloted CFCI in Ukraine
during 2009-2010
- Vinnitsa was one of UNICEF’s pilot
cities
- In late 2017, the PM Groysman
requested UNICEF to ‘reincarnate ’
CFCI in Ukraine noting the
importance in the context of the
decentralization reform

14. Child and Youth Friendly Municipality Initiative.
HOW ?

15. Child and Youth Friendly Municipality Initiative.
Funding streams?
• Local Budgets (main source)
• State budget (regular instruments e.g.
Regional Development Fund)
• State budget incentives (1% of
additional income tax) – E.g. USD 1mln
in Case of Mariupol
• International Development programmes
(regular instruments)
• Crowd Funding Platform

16. SOCIAL
INVESTMENT
COUNCIL
POTENTIAL
COMPETITIVENESS AT THE
NATIONAL LEVEL
INNOVATIVE
PRODUCT
TRUST
FINANCIAL
TRANSPARENCY
According to the World Bank, by 2025, annual
investments in crowdfunding will grow to $ 93 billion. Only
a third of all Crowdfunding projects are social and
entertainment, the rest are commercial.

17. Child and Youth Friendly Municipality Initiative.
WHERE ARE WE NOW?
• Steering Committee (Government)
• MoU with 9 partners
• More than 150 municipalities
expressed the willingness to
participate (from all regions –
cities and consolidated hromadas)
• Ongoing technical assistance for
the First cohort – 20 municipalities
• Incentive - 1% of additional
income Tax for those ‘accredited’

18. Child and Youth Friendly Municipality Initiative.
EXPECTED RESULTS AND MILESTONES ?
2019
• Evaluation of the results and CFCI recognition (end of
2019 – beginning of 2020) – clearly demonstrated
results
• Entry of new candidate municipalities (ongoing)
2020
• Evaluation of the results and CFCI recognition (end of
2019 – beginning of 2020) – clearly demonstrated results
2021
• Mid-term Review of the Initiative
…By 2021, a critical mass of all
municipalities in Ukraine (city and
consolidated) are child friendly
JUN -
ongoing
•International launch of CFCI Ukraine (June 1) -
Global CFCI mayors forum in Ukraine
•Implementation of CFCI in pilot municipalities
(ongoing)
September -
ongoing
•Facilitation of Twining between Ukrainian CFCIs and
CFCIs for Europe, Americas, Asia, Australia
(ongoing)
October -
ongoing
•Accreditation of the first cohort of municipalities
(Candidate Status)

19. Back to PFM….Correlation of Social sector expenditures with revenues of
local budgets during 2013-2017….Fiscal Opportunity
166,8
183,1
129,5
122,3
95,6
126,8112,6
95,8
211,3
188,2
128,5
101,6
188,8
161,1
107,7
95,8
80,0
100,0
120,0
140,0
160,0
180,0
200,0
220,0
2014/2013 2015/2013 2016/2013 2017 (план)
/2013
%
Health Education Social protection and social securityі Revenues of local budgets
In few years, newly
created consolidated
municipalities will
accumulate so called
‘long term’ obligations
and the fiscal space for
social welfare will almost
disappear

20. Further process…
Expanding the Opportunities for Child and
Youth Friendly Municipality Programme –
Network of Experts and Management
• Change management (Innovation,
Technology, Tradition)
• Scaling up horizontally (reach a critical
mass of municipalities (10%) in few years)
• Using the untapped potential of the
private sector and particularly agro-
business

21. Thank you!
MOSP
Oleksandra Churkina
o.churkina@mlsp.gov.ua
+380637174287