Tapping the global economy for greater economic prosperity and stability - Reforming Ukraine’s export and trade services
Request for Technical Assistance: Support export services/programs to benefit Ukraine’s exporters
EDGE Response: Assistance in establishing an Export Promotion Office (EPO) from initial founding into an active, independent, effective national export promotion agency.
Ukrainian Partners: Expert Promotion Office (EPO) / Ministry of Economic Development and Trade (MEDT).
Initiative Description: Over the past two years Ukraine experienced a massive economic hit, with over 30% of its export market contracting, primarily through the loss of traditional markets, namely the Russian Federation. In response, MEDT has launched a series of initiatives designed to support Ukraine’s national exporters rebuild their export markets. EDGE, in response to a request from MEDT, is working hand-in-hand with MEDTE, supporting the development of an independent Export Promotion Office (EPO), with the sole mandate of improving Ukraine’s export performance, particularly amongst its small and medium size exporters. Previously, Ukraine’s export promotion activities had been shared across a number of diverse private and public organizations. As part of EDGE’s assistance package, a trade and investment expert was deployed to support MEDT as it assessed these different interests in order to determine EPO’s unique niche and structure amongst Ukraine’s exporters. The expert assisted with articulating the EPO’s broad strategy/mandate and the preparation of an organizational development strategic plan. Now, as the EPO enters the early stages of its operations, EDGE is supplying technical staff, embedded within the Office, as well as external short term experts to move forward with implementing its development plan. This includes identifying, through a needs assessment process of Ukraine’s exporters and the current export support network, select export services and programs designed to facilitate Ukraine’s entry into foreign markets and promoting trade interests abroad.
Cutting red tape – Support to the Better Regulation Delivery OfficeRequest for Technical Assistance: Provide support for deregulation initiative.
EDGE Response: Amend legislation in favor of small and medium businesses.
Ukrainian Partners: Better Regulation Delivery Office (BRDO) / Ministry of Economic Development and Trade (MEDT)
Initiative Description: Small and medium enterprises (SMEs) are the economic engines of growth. Establishing a balanced regulatory business operating environment will free SMEs to grow; leading to a stronger, more diverse Ukrainian economy. Ukraine struggles with an overabundance of regulations and procedures that are required to conduct business. This creates a regulatory burden that impedes investment and is particularly limiting for business growth. Traditionally, unnecessary regulations caused many businesses to resort to paying bribes in order to circumvent lengthy and burdensome procedures, thereby generating opportunities for corruption and increasing the risks of doing business. The Government of Ukraine is determined to achieve an efficient regulatory system on the national level, as it is critical to Ukraine’s transition from a centrally planned system to a free enterprise market-based one. The Better Regulation Delivery Office (BDRO) within the Ministry of Economic Development and Trade is championing this goal. The BDRO’s mandate is to streamline and reform the current burdensome regulatory regime. Furthermore, the BRDO is building infrastructure and the functional and technical capacities within the government to permanently manage regulatory reform once the backlog of current reforms is cleared. EDGE organized a large team of professionals including 70 lawyers, other sectorial business analysts, and communications and IT personnel to establish and support the initial operations of the BRDO. Since May of 2016, the BRDO was transferred to and is now operating under EU SURE. Work of the Office remains focused on the sectors that are critical to SME functioning and development including agriculture; construction; electricity and market surveillance; and transport and communications.
Strengthening Ukraine’s anti-corruption watch dogs
Request for Technical Assistance: Provide training aimed at combating national-level corruption.
EDGE Response: Plan and deliver training for NABU staff; establish a NABU Training Unit.
Ukrainian Partners: National Anti-Corruption Bureau (NABU).
Initiative Description: Current anti-corruption efforts in Ukraine are critical to the future politico-economic development of the country. Key weapons in the war on corruption are Ukraine’s National Anti-Corruption Bureau (NABU) and its sister agency, the National Agency for the Prevention of Corruption (NAPC). EDGE is working alongside both NABU and NAPC; providing these nascent institutions with the technical “teeth” to effectively and competently reduce corruption across Ukraine. To NABU, Ukraine’s anticorruption institution tasked with rooting out and building cases against complex, high-level grand corruption, EDGE is supplying training and capacity building support including the provision of a full-time HR expert/professional to assist and help oversee with the delivery of high impact training designed to bring NABU’s growing cadre of detectives and analysts up to speed on leading research practices for cases of corruption. The HR expert works closely with other donors that are facilitating and/or funding this training - coordinating their assistance and support to ensure maximum efficiency in training delivery. In addition, EDGE is providing training equipment and ad hoc expert instructors to support the training program. For NAPC, Ukraine’s agency responsible for curbing public sector corruption, EDGE is lending its support to more fully engaging the public in the fight against corruption. This package of assistance covers (i) the design and development of a national complaints handling system, to which members of the public can anonymously report acts of corruption; (ii) a whistleblower protection mechanism that will ensure the security and safety of those that do report cases of corruption; and (iii) and a broader anti-corruption communication campaign with the primary purpose of more fully engaging the public.
Decentralizing Ukraine’s government – supporting the transition from a post-soviet systemRequest for Technical Assistance: provide support for line ministries in decentralization reform
EDGE Response: Support the creation of the Project Office on Sectoral Decentralization
Ukrainian Partners: Project Office on Sectoral Decentralization / Project Management Office / Ministry of Regions
Initiative Description: Decentralization is a priority reform of the Government of Ukraine and is now considered a national program given its complexity and importance to the current government. The policy goal of decentralization is to move away from a centralized model of governance; bringing greater efficiency, effectiveness and relevance to government programs by bringing decision-making power down to lower levels of government where the public and government interact more directly. Ukraine is seeking to fundamentally change its system of governance, removing a legacy of siloed ministries and agencies where ministries have very few mechanisms for coordination and lack of expertise to plan and implement sectoral reform within the oblasts and municipalities. EDGE is supporting Ukraine’s decentralization effort with the funding of a Project Office on Sectoral Decentralization – an office of sector experts that will work alongside the Ministry of Regional Development, Construction Housing and Communal Services of Ukraine (MinRegion), the Ministry responsible for overseeing the implementation of the decentralization program. The Office will be the main driver for coordinating and sectoral decentralization reform through its direct support to building capacity within the Ministry of Regions, as well as embedding sectoral leads within line ministries such as education, health and infrastructure in an effort to both kick-start and fast-track this lengthy process.