STATE REGIONAL POLICY:
Ivan Lukeria
Deputy Minister for Communities and Territories Development of Ukraine
Meeting of Subgroup «Regional Development» of SWG «Decentralization and regional development», 1 July 2021
Priorities of the Ministry for Communities and
Territories Development of Ukraine
 National level:
 State regional development strategy for
2021-2027
 Action plan for 2021-2023 on the
implementation of the State regional
development strategy for 2021-2027
 Regional level:
 24 Regional strategies (SMART-
specialization)
 24 Action plans on the implementation
of Regional strategies
 Local level:
 1469 Communities development
strategies
Concentration of resources for
supporting the SMART-specialization of
the regions
Effective regional development planning
and implementation of the potential of
each community and region
Transparency of development
planning
Regional development coherence and
reduction of disparities
A three-level
system of
strategic
planning
The RESULTS
of the implementation of the updated State Regional Policy
The RESULTS
of the implementation of the updated State Regional Policy
COMPREHENSIVE UPDATE OF THE
SYSTEM OF STATE REGIONAL POLICY
FORMATION AND IMPLEMENTATION
«ON THE PECULIARITIES OF
REGIONAL DEVELOPMENT
STIMULATION»
INCREASING THE EFFECTIVENESS
OF THE USE OF FUNDS FROM THE
STATE FUND FOR REGIONAL
DEVELOPMENT
Draft Law 5323 Draft Law 5649 Draft Law 4200
Pending the second reading Pending the first reading Pending the first reading
 Three-level system of strategic planning:
state – region – community
 Effective planning of regional
development and realization of potential
of each community and region
 Methodical support of strategic planning
at the local level
 Concentration of resources for
supporting the SMART-specialization of
the regions
 Digitization of regional development
management
 GIS-system for regional development
monitoring
 Improving the quality and reasoning of
management decisions
 Comprehensive solution of territorial
problems
 Effective use of the potential of each
region
 Reduction of disparities in the
development of regions
 Concentration of public investments for the
implementation of integrated
development projects
 Creating favourable conditions for
attracting investments and building
infrastructure
 Increasing the level of employment,
creating new jobs, and eradicating poverty
in each region
 Cooperation and mutual responsibility of
all subjects of the State regional policy
 3% of the revenues of the State budget
 Attracting additional funds to the SFRD from
EU assistance programs, donors, and MFIs
 Transparent selection of the projects is
carried out through an online platform
 50% of the SFRG funds are directed for the
implementation of the projects in order to
achieve the goals of the State Strategy
 30% of the SFRG funds are directed for the
implementation of the projects in order to
achieve the goals of the regional strategies
 20% of the SFRG funds are directed for the
implementation of the projects in order to
develop the infrastructure in the
communities
The RESULTS
of the implementation of the updated State Regional Policy
308 Projects
UAH
billion
4,5
40 Economic development projects
 1,2 UAH billion from the SFRD
necessary
financing 1%
in fact
financing <1%
The SFRD funds in 2015-2021, UAH billion
 7,2 UAH billion from the expected investments
2,9 3,0 3,5
6,0 6,9
4,9 4,5
4,9 5,8 6,7
8,4
9,3
7,7 9,6
sequester
Industrial park
infrastructure
development projects
Selected projects to be funded
from the SFRD in 2021
SECTORAL BUDGET
SUPPORT - 2021
83 REGIONAL DEVELOPMENT PROJECTS ARE BEING IMPLEMENTED
IN UKRAINE FOR WHICH 667 UAH MILLION ARE ALLOCATED FROM
THE STATE BUDGET
The RESULTS
of the implementation of the updated State Regional Policy
Innovative
economy and
investments
Rural
development
Tourism
development
Human
development
All-Ukrainian
solidarity
Support for the
development of
depressed areas
Effective
management of
regional development
123,0
UAH mln
127,8
UAH mln
114,1
UAH mln
50,0
UAH mln
146,2
UAH mln
64,0
UAH mln
41,3
UAH mln
9 projects 13 projects 13 projects 12 projects 7 projects 8 projects
21 projects
COMMON RESULTS FRAMEWORK
of the Cooperation between the Minregion and Development Partners
MINREGION
Development
partners
The size of public financing is
predictable and sufficient for the
achievement of the goals of the
three-level planning system
Strategic goal 2
A three-level system of strategic
planning of regional
development (national, regional,
local levels) is created and
functions
Strategic goal 1
Institutional architecture of the
state regional policy is capable to
ensure effective implementation
of policy tasks and achievement
of its goals
Strategic goal 3
Monitoring and assessment
provides open access to
information on the processes of
communities and territories
development in order to make
effective managerial decisions
Strategic goal 4
15 TASK 52
ACTIVITIES
THE PRIORITIES OF THE MINREGION
Action Plan for 2021-2023 on the Implementation of the State
Regional Development Strategy for 2021-2027
207 Activities
 1 – Decree of the President of Ukraine
 21 – Laws of Ukraine
 45 – Resolutions of the Cabinet of
Ministers of Ukraine
 6 – Orders of the Cabinet of Ministers
of Ukraine
 63 – Decisions of the central executive
bodies
 71 – common activities of the central
and regional executive bodies and local
governments
All activities are
compliant with the
SSRD for 2021-2027
Responsible executors
are determined
Specific time-frames are
fixed
Indicators of result are
determined
52 Activities –
responsible executor Minregion
THE PRIORITIES OF THE MINREGION
Regional development programs
10 FUNCTIONAL TYPES OF
TERRITORIES
territorial community
boundary
district (rayon) boundary
region (oblast) boundary
capital of Ukraine - Kyiv
BORDER TERRITORIES IN
ADVERSE CONDITIONS
AND TERRITORIES ON THE
LINE OF COLLISION
BORDER TERRITORIES
URBAN
AGGLOMERATIONS
RURAL SETTLEMENTS IN
ADVERSE CONDITIONS
CENTERS OF ECONOMIC
DEVELOPMENT
MOUNTAIN TERRITORIES OF
UKRAINAIN CARPATHIANS
NATURE RESERVED TERRITORIES
COASTS OF THE BLACK SEA AND
AZOV SEA
MONOFUNCTIONAL CITIES
TEMPORARILY OCCUPIED
TERRITORIES
Development of rural territories
«New Ukrainian village»
Macroregion Azov - Black Sea
Digital transformation of regions
Centers of economic development
and urban agglomerations
Development of mountain
territories
Border territories in adverse
conditions
THE PRIORITIES OF THE MINREGION
The transformation of the coal-producing regions
 Step-by-step
 State support
 Long-term approach
 Broad public involvment
 Synchonised processes
 Investment to coal-producing
regions
 Long-term human development
programmes
 Diversification of local economy
 Comfortable environment in
mining towns
 Social support to miners and
their family members
 State budget
 Local budgets
 Investments (domestic and
foreign)
 Public-private partnership
 Loans form IFI
 Funds from donors (EU and
others)
«State target programme of just transfromation of the
coal-producing regions by 2030»
PRINCIPLES COMPONENTS
FINANCING OF THE PROGRAMMES
THE PRIORITIES OF THE MINREGION
The economic carcass of the state
The development of each of the 24
regions will be based on the Centers
of Economic Growth
150 centers of economic
development (cities and capable
communities with the greatest
economic potential)
At least 150 development projects -
economic magnets of the regions
THE PRIORITIES OF THE MINREGION
Industrial Parks
State Fund of Regional Development Sectoral budget support
2016-2020 2021
Industrial park «Swema»,
Shostka city
1,5 UAH mln
Industrial park «Trostianets»,
Trostianets city
3,0 UAH mln
Industrial park,
Novodnistrovsk city
3,0 UAH mln
Industrial park (fish processing plan
«AzovAkvaInvest»), Mariupol city
24,1 UAH mln
Industrial park Zhytomyr city
20,0 UAH mln
Industrial park «Myrotske» Buchach city council;
18,2 UAH mln
Industrial park, Kamianka Buzka city (Lviv regions)
9,7 UAH mln
Project «A Network of industrial parks
«Western Industrial cluster»
Total budget - 12 UAH million,
from State budget – 10,2 UAH million
Applicant : Regional development agency of
Zhytomyr region
5 new industrial parks
Increased employment in Zhytomyr, Ternopil
and Rivne regions
Promotion of industrial parks
THE PRIORITIES OF THE MINREGION
Establishment of Geoinformation System for Monitoring
Development of Regions and Communities (GIS)
Purpose of GIS:
 Visualization of point objects and information
about them on the interactive map
 Visualization of statistical information by
territories in the form of thematic maps, graphs
and trends
 Comparison of territories and objects according to
statistical information
 Construction of zones of influence (zones of
accessibility of institutions) on the basis of the
standard of maximum distance
 Tabular forms of reports on various areas of socio-
economic development of regions
THE PRIORITIES OF THE MINREGION
The public investments map
An instrument to
increase the investment
attractiveness of the
region, community, city
An instrument to
increase the efficiency
of budget funds
Comprehensive
characteristics of the
investment potential of the
regions, communities, cities
Interactive platform for description of the process
of selection and implementation of regional
development projects
 National budget
 Local budgets
 Raised funds
 Education
 Science
 Healthcare
 Culture
 Sport
 The social protection
 Roads
 Transport
 Housing and Utilities
 Energy
 Construction
 E-services networks
 Ministries
 Regional state administrations
 Local government bodies
 State enterprises
 Utilities enterprises
 Budget institutions and others
By sources of public investment
By networks/ objects of social
institutions
By networks / objects of
infrastructure
By fund managers
THE PRIORITIES OF THE MINREGION
Communities development strategies
Support of communities and development
and implementation of strategic documents
 Development and approval of
methodical recommendations
 Providing support (methods, experts,
trainings)
Communities
development
strategies approved
Draft
strategies
570
467
Total strategies
required
1469
COOPERATION BETWEEN THE MINREGION AND DEVELOPMENT PARTNERS
The Regional Development Project Office (RDPO)
Regions
Conceptualization of
regional
development
projects and its
centralized
coordination
Support in strategic
development and
coordination of
regional institutions
RDPO
Strategic advisory unit
Analytics and project
management unit
Communications unit
Ministry for Communities and
Territories Development of
Ukraine
Development partners
providing expertise on:
Minister
Deputy minister responsible
for regional policy
Directorate of Regional Policy
• legal support of regional
policies
• institutional support
• strategical planning
• digital transformation of
regional management
• effective communication
of regional policies
Regional State Administrations
Monitoring, supervision and reporting
Regional development agencies (RDA)
Advising, projects preparation, coordination,
designing of the management instruments
Local governments and their
associations
Cooperation, creation of support demand,
communication with citizens
GOALS, FUNCTIONS AND PRINCIPLES OF RDPO
GOALS FUNCTIONS PRINCIPLES
• Increase of the cooperation between
Minregion and international partners that
provide institutional and expert support of
the regional development policies
• Increase of institutional capacities and
coordination of regional development
• Introduction of the balanced 3-level
system of planning and implementation of
regional development
• Creation of the effective system of
monitoring and evaluation of regional
development projects
Advisory and strategical management
• Expert support in implementation of regional development
policies
• Preparation of educational, analytical and methodological
materials
• Depository of best practices and their adaptation for further
integration
• Ensure cooperation between stakeholders
Project implementation
• Creation and support of the institutional provision through the
network of RDAs
• Strategical planning of regional development through creation
of working plans of projects and program
• Analysis of the legal framework and preparation of
recommendations
• Development of needed legal and organizational infrastructure
for digitalization of regional development policies
Communication
• Communication of the regional development policies
• Communication of the SSRD 2021-2027 implementation
• Development of internal communication system among
stakeholders
• Team of professionals with rich
experience in regional
development
• Technical and analytical support of
the Minregion, aligned with
sectoral Ministries to ensure
sustainable policy implementations
• Integration of work with
development partners through
exchange, consultations and
discussions
RDPO organizational structure and functions to face current main bottlenecks
STRATEGIC ADVISORY UNIT
ANALYTICS AND PROJECT
MANAGEMENT UNIT
COMMUNICATIONS UNIT
HEAD OF RDPO
• Vision and strategical planning through
coordination with Development
partners
• Assessment of Ministry’s functions, with
following recommendations and
development of proper legal framework
• Creation of reports on megatrends in
urban, rural development and depository
of best practices in Ukraine and abroad
• Conceptualization of vision into projects
and their design
• Seeking of financing opportunities,
preparation of technical proposals, and
procurement of project implementation
• Supervision of projects and monitoring
of their effects
• Development of efficient internal
communication system in the Ministry
• Communication campaigns for the projects
and programs
• Communication of the implementation of
SSRD 2027
PRIORITY PROJECTS
Local Data portal
Strategic frameworks for
functional types of
territories
Capacity building
of RDAs
Educational
program for
territorial managers
Industrial parks
Development partners on regional development

Ivan Lukeria

  • 1.
    STATE REGIONAL POLICY: IvanLukeria Deputy Minister for Communities and Territories Development of Ukraine Meeting of Subgroup «Regional Development» of SWG «Decentralization and regional development», 1 July 2021 Priorities of the Ministry for Communities and Territories Development of Ukraine
  • 2.
     National level: State regional development strategy for 2021-2027  Action plan for 2021-2023 on the implementation of the State regional development strategy for 2021-2027  Regional level:  24 Regional strategies (SMART- specialization)  24 Action plans on the implementation of Regional strategies  Local level:  1469 Communities development strategies Concentration of resources for supporting the SMART-specialization of the regions Effective regional development planning and implementation of the potential of each community and region Transparency of development planning Regional development coherence and reduction of disparities A three-level system of strategic planning The RESULTS of the implementation of the updated State Regional Policy
  • 3.
    The RESULTS of theimplementation of the updated State Regional Policy COMPREHENSIVE UPDATE OF THE SYSTEM OF STATE REGIONAL POLICY FORMATION AND IMPLEMENTATION «ON THE PECULIARITIES OF REGIONAL DEVELOPMENT STIMULATION» INCREASING THE EFFECTIVENESS OF THE USE OF FUNDS FROM THE STATE FUND FOR REGIONAL DEVELOPMENT Draft Law 5323 Draft Law 5649 Draft Law 4200 Pending the second reading Pending the first reading Pending the first reading  Three-level system of strategic planning: state – region – community  Effective planning of regional development and realization of potential of each community and region  Methodical support of strategic planning at the local level  Concentration of resources for supporting the SMART-specialization of the regions  Digitization of regional development management  GIS-system for regional development monitoring  Improving the quality and reasoning of management decisions  Comprehensive solution of territorial problems  Effective use of the potential of each region  Reduction of disparities in the development of regions  Concentration of public investments for the implementation of integrated development projects  Creating favourable conditions for attracting investments and building infrastructure  Increasing the level of employment, creating new jobs, and eradicating poverty in each region  Cooperation and mutual responsibility of all subjects of the State regional policy  3% of the revenues of the State budget  Attracting additional funds to the SFRD from EU assistance programs, donors, and MFIs  Transparent selection of the projects is carried out through an online platform  50% of the SFRG funds are directed for the implementation of the projects in order to achieve the goals of the State Strategy  30% of the SFRG funds are directed for the implementation of the projects in order to achieve the goals of the regional strategies  20% of the SFRG funds are directed for the implementation of the projects in order to develop the infrastructure in the communities
  • 4.
    The RESULTS of theimplementation of the updated State Regional Policy 308 Projects UAH billion 4,5 40 Economic development projects  1,2 UAH billion from the SFRD necessary financing 1% in fact financing <1% The SFRD funds in 2015-2021, UAH billion  7,2 UAH billion from the expected investments 2,9 3,0 3,5 6,0 6,9 4,9 4,5 4,9 5,8 6,7 8,4 9,3 7,7 9,6 sequester Industrial park infrastructure development projects Selected projects to be funded from the SFRD in 2021
  • 5.
    SECTORAL BUDGET SUPPORT -2021 83 REGIONAL DEVELOPMENT PROJECTS ARE BEING IMPLEMENTED IN UKRAINE FOR WHICH 667 UAH MILLION ARE ALLOCATED FROM THE STATE BUDGET The RESULTS of the implementation of the updated State Regional Policy Innovative economy and investments Rural development Tourism development Human development All-Ukrainian solidarity Support for the development of depressed areas Effective management of regional development 123,0 UAH mln 127,8 UAH mln 114,1 UAH mln 50,0 UAH mln 146,2 UAH mln 64,0 UAH mln 41,3 UAH mln 9 projects 13 projects 13 projects 12 projects 7 projects 8 projects 21 projects
  • 6.
    COMMON RESULTS FRAMEWORK ofthe Cooperation between the Minregion and Development Partners MINREGION Development partners The size of public financing is predictable and sufficient for the achievement of the goals of the three-level planning system Strategic goal 2 A three-level system of strategic planning of regional development (national, regional, local levels) is created and functions Strategic goal 1 Institutional architecture of the state regional policy is capable to ensure effective implementation of policy tasks and achievement of its goals Strategic goal 3 Monitoring and assessment provides open access to information on the processes of communities and territories development in order to make effective managerial decisions Strategic goal 4 15 TASK 52 ACTIVITIES
  • 7.
    THE PRIORITIES OFTHE MINREGION Action Plan for 2021-2023 on the Implementation of the State Regional Development Strategy for 2021-2027 207 Activities  1 – Decree of the President of Ukraine  21 – Laws of Ukraine  45 – Resolutions of the Cabinet of Ministers of Ukraine  6 – Orders of the Cabinet of Ministers of Ukraine  63 – Decisions of the central executive bodies  71 – common activities of the central and regional executive bodies and local governments All activities are compliant with the SSRD for 2021-2027 Responsible executors are determined Specific time-frames are fixed Indicators of result are determined 52 Activities – responsible executor Minregion
  • 8.
    THE PRIORITIES OFTHE MINREGION Regional development programs 10 FUNCTIONAL TYPES OF TERRITORIES territorial community boundary district (rayon) boundary region (oblast) boundary capital of Ukraine - Kyiv BORDER TERRITORIES IN ADVERSE CONDITIONS AND TERRITORIES ON THE LINE OF COLLISION BORDER TERRITORIES URBAN AGGLOMERATIONS RURAL SETTLEMENTS IN ADVERSE CONDITIONS CENTERS OF ECONOMIC DEVELOPMENT MOUNTAIN TERRITORIES OF UKRAINAIN CARPATHIANS NATURE RESERVED TERRITORIES COASTS OF THE BLACK SEA AND AZOV SEA MONOFUNCTIONAL CITIES TEMPORARILY OCCUPIED TERRITORIES Development of rural territories «New Ukrainian village» Macroregion Azov - Black Sea Digital transformation of regions Centers of economic development and urban agglomerations Development of mountain territories Border territories in adverse conditions
  • 9.
    THE PRIORITIES OFTHE MINREGION The transformation of the coal-producing regions  Step-by-step  State support  Long-term approach  Broad public involvment  Synchonised processes  Investment to coal-producing regions  Long-term human development programmes  Diversification of local economy  Comfortable environment in mining towns  Social support to miners and their family members  State budget  Local budgets  Investments (domestic and foreign)  Public-private partnership  Loans form IFI  Funds from donors (EU and others) «State target programme of just transfromation of the coal-producing regions by 2030» PRINCIPLES COMPONENTS FINANCING OF THE PROGRAMMES
  • 10.
    THE PRIORITIES OFTHE MINREGION The economic carcass of the state The development of each of the 24 regions will be based on the Centers of Economic Growth 150 centers of economic development (cities and capable communities with the greatest economic potential) At least 150 development projects - economic magnets of the regions
  • 11.
    THE PRIORITIES OFTHE MINREGION Industrial Parks State Fund of Regional Development Sectoral budget support 2016-2020 2021 Industrial park «Swema», Shostka city 1,5 UAH mln Industrial park «Trostianets», Trostianets city 3,0 UAH mln Industrial park, Novodnistrovsk city 3,0 UAH mln Industrial park (fish processing plan «AzovAkvaInvest»), Mariupol city 24,1 UAH mln Industrial park Zhytomyr city 20,0 UAH mln Industrial park «Myrotske» Buchach city council; 18,2 UAH mln Industrial park, Kamianka Buzka city (Lviv regions) 9,7 UAH mln Project «A Network of industrial parks «Western Industrial cluster» Total budget - 12 UAH million, from State budget – 10,2 UAH million Applicant : Regional development agency of Zhytomyr region 5 new industrial parks Increased employment in Zhytomyr, Ternopil and Rivne regions Promotion of industrial parks
  • 12.
    THE PRIORITIES OFTHE MINREGION Establishment of Geoinformation System for Monitoring Development of Regions and Communities (GIS) Purpose of GIS:  Visualization of point objects and information about them on the interactive map  Visualization of statistical information by territories in the form of thematic maps, graphs and trends  Comparison of territories and objects according to statistical information  Construction of zones of influence (zones of accessibility of institutions) on the basis of the standard of maximum distance  Tabular forms of reports on various areas of socio- economic development of regions
  • 13.
    THE PRIORITIES OFTHE MINREGION The public investments map An instrument to increase the investment attractiveness of the region, community, city An instrument to increase the efficiency of budget funds Comprehensive characteristics of the investment potential of the regions, communities, cities Interactive platform for description of the process of selection and implementation of regional development projects  National budget  Local budgets  Raised funds  Education  Science  Healthcare  Culture  Sport  The social protection  Roads  Transport  Housing and Utilities  Energy  Construction  E-services networks  Ministries  Regional state administrations  Local government bodies  State enterprises  Utilities enterprises  Budget institutions and others By sources of public investment By networks/ objects of social institutions By networks / objects of infrastructure By fund managers
  • 14.
    THE PRIORITIES OFTHE MINREGION Communities development strategies Support of communities and development and implementation of strategic documents  Development and approval of methodical recommendations  Providing support (methods, experts, trainings) Communities development strategies approved Draft strategies 570 467 Total strategies required 1469
  • 15.
    COOPERATION BETWEEN THEMINREGION AND DEVELOPMENT PARTNERS The Regional Development Project Office (RDPO) Regions Conceptualization of regional development projects and its centralized coordination Support in strategic development and coordination of regional institutions RDPO Strategic advisory unit Analytics and project management unit Communications unit Ministry for Communities and Territories Development of Ukraine Development partners providing expertise on: Minister Deputy minister responsible for regional policy Directorate of Regional Policy • legal support of regional policies • institutional support • strategical planning • digital transformation of regional management • effective communication of regional policies Regional State Administrations Monitoring, supervision and reporting Regional development agencies (RDA) Advising, projects preparation, coordination, designing of the management instruments Local governments and their associations Cooperation, creation of support demand, communication with citizens
  • 16.
    GOALS, FUNCTIONS ANDPRINCIPLES OF RDPO GOALS FUNCTIONS PRINCIPLES • Increase of the cooperation between Minregion and international partners that provide institutional and expert support of the regional development policies • Increase of institutional capacities and coordination of regional development • Introduction of the balanced 3-level system of planning and implementation of regional development • Creation of the effective system of monitoring and evaluation of regional development projects Advisory and strategical management • Expert support in implementation of regional development policies • Preparation of educational, analytical and methodological materials • Depository of best practices and their adaptation for further integration • Ensure cooperation between stakeholders Project implementation • Creation and support of the institutional provision through the network of RDAs • Strategical planning of regional development through creation of working plans of projects and program • Analysis of the legal framework and preparation of recommendations • Development of needed legal and organizational infrastructure for digitalization of regional development policies Communication • Communication of the regional development policies • Communication of the SSRD 2021-2027 implementation • Development of internal communication system among stakeholders • Team of professionals with rich experience in regional development • Technical and analytical support of the Minregion, aligned with sectoral Ministries to ensure sustainable policy implementations • Integration of work with development partners through exchange, consultations and discussions
  • 17.
    RDPO organizational structureand functions to face current main bottlenecks STRATEGIC ADVISORY UNIT ANALYTICS AND PROJECT MANAGEMENT UNIT COMMUNICATIONS UNIT HEAD OF RDPO • Vision and strategical planning through coordination with Development partners • Assessment of Ministry’s functions, with following recommendations and development of proper legal framework • Creation of reports on megatrends in urban, rural development and depository of best practices in Ukraine and abroad • Conceptualization of vision into projects and their design • Seeking of financing opportunities, preparation of technical proposals, and procurement of project implementation • Supervision of projects and monitoring of their effects • Development of efficient internal communication system in the Ministry • Communication campaigns for the projects and programs • Communication of the implementation of SSRD 2027 PRIORITY PROJECTS Local Data portal Strategic frameworks for functional types of territories Capacity building of RDAs Educational program for territorial managers Industrial parks Development partners on regional development