New EU-funded project to support decentralisation and strengthen regional development in Ukraine
March 22, 2021

New EU-funded project to support decentralisation and strengthen regional development in Ukraine


A new 18-month project in support of decentralisation and regional development in Ukraine was launched by the European Union and the Organisation for Economic Cooperation and Development (OECD) on 19 March. The project builds on previous work, which resulted in improved service delivery at sub-national level and stronger capacities to invest and make efficient use of financial resources at the disposal of sub-national authorities.

Sub-national governments play a critical role in public investment, including investment in ‘hard’ infrastructure, such as roads and schools, and ‘soft’ infrastructure, such as better regulations and programmes to support entrepreneurship and innovation. To ensure adequate resources and sufficient capacity to invest, particularly in projects at the sub-national level, Ukraine in 2019 adhered to the Recommendation of the OECD Council on Effective Public Investment across Levels of Government, which provides a framework for advancing this critical facet of Ukraine’s decentralisation reform in line with international standards. 

The new project will update the analytical work, identify local strengths and weaknesses to date, and advise on improvements to the reform in line with OECD standards and instruments. The project will also advise the government on how best to assign responsibilities across levels of government, how to replicate successful amalgamation cases more broadly, and on mechanisms to maximise the spillover effects of decentralisation and regional development across the country.

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