Ukraine

Since its independence in 1991, Ukraine has been progressing on its path towards a competitive market economy, supported by accountable and responsive public institutions. Despite the rapid growth of the 2000s, the post-crisis recovery was short-lived as the country became mired in political instability. This has led to conflict, economic decline, and high unemployment.

The dramatic and turbulent events of the past years have left Ukraine in a level of crisis unprecedented in its history as an independent state, and brought rapid change in its political, social, and economic landscape. However, these events have also presented opportunities for reforms. A number of international donors reflected this situation and are investing into building the institutions on all levels.

Public Finance for Development in Ukraine

SINCE 2015 – completed for now

Ukraine is one of the major political partners of Slovakia. Since its beginning, Ukraine was a target country of the Public Finance for Development programme. As a Slovak neighbour and one of the priority countries of Slovak development cooperation, it was a natural selection for the initial assessment of government needs and mapping of interventions by other donors. However, due to complex realities of this European giant, establishing a programme in Ukraine was somewhat challenging and took several years to take off.

ACTIVITIES: The cooperation with Ukraine’s Ministry of Finance finally materialized in 2015. The activities centered on upcoming strategies for PFM reform. Slovak experts helped with methodology, design and setting-up of the strategy. However, after assessing the real needs, the dynamics of the cooperation, and positioning of the programme within the donor community in Ukraine, the Public Finance for Development programme activities in Ukraine were suspended. Nevertheless, the development and needs of the Ukrainian government are monitored, and once Ukraine clearly defines its requirements, assistance within the programme can be provided.

UNDP in Ukraine website

Outcomes

  • PFM needs-assessment was completed by a Slovak expert and presented to Ukraine’s MF in February 2016. The assessment provided inputs for the 2013 PFM reform strategy update, and insights into strengths and weakness of the reform process.
  • Policy advice on PFM reform design and implementation.  Project experts provided comments and recommendations to improve the PFM Reform Strategy and Action plan. Both were approved in 2017.
  • Methodological support for designing a Medium-Term Expenditure Framework (MTEF). The project expert prepared: i) methodology for medium-term budget planning; ii) recommendations on regulatory amendments to the Budget Code and the Rules of Procedure of Verkhovna Rada (the Parliament of Ukraine); iii) Practical guide for Key Spending Units on how to implement the MTEF in their internal procedures, and iv) Guidelines for preparation of budget request by key spending units.
  • On the request of the Ukrainian MF, a mission of an Ardal (Slovak Debt and Liquidity Management Agency) expert took place to Kiev in September 2016. The expert provided the Ministry’s senior managers’ recommendations for improving debt and liquidity management which served as input for the preparation of the Public Finance Management Strategy and Action plan.

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