The Current State and Future Development of Ukrainian Rural Development Policy Rural Development Department, Ukrainian Ministry of Agrarian Policy, June16, 2010

Rural Settlements in Ukraine The population of Ukraine is 46,3 million people. One third of them live in rural areas. 1,3 ha of land per person

Social Infrastructure in Rural Areas in 2009 (%)

Reasons for the Decline of Rural Ukraine Lack of financial support to small agricultural producers Limited financial resources of local budgets Decrease in the number of social infrastructure facilities Administrative obstacles; the efforts of Ukrainian ministries and agencies are not concerted

National Target Programme of Development in the Ukrainian Countryside until Name of Ministry or Department Total funding foreseen Annual funding foreseen Funds finally allocated % implement ation Ministry of Regional Development and Construction ,8 Ministry of Transport and Communications ,738254,57,2 Environment Ministry Public Health Ministry State Committee on Water Resources ,9 Ukrainian Academy of Agrarian Sciences ,7 The way main budget administrators were financing the Programme in 2009 (UAH, thousands)

The Concept of National Target Programme for Sustainable Rural Development until 2020 Program background: Existing National Target Program for Development in the Ukrainian Countryside until 2015 is expressly production oriented (85% of funding to be directed towards agricultural production) European choice as a basis for future development of the country. Anticipated results: Increased rural employment and incomes Improved physical and social infrastructure in rural areas Environmental situation in rural areas improved; two-fold increase in agricultural gross output.

National Target Programme for Sustainable Rural Development till 2020 AXIS 1 improving the quality of life in rural areas AXIS 2 improving the competitiveness of agriculture AXIS 3 improving the competitiveness of agriculture AXIS 4 :Improving rural development management The sources of funding for the National Programme: MAP and other funds

Implementation of Victor Yanukovych`s programme “Ukraine For the People” Implement a national programme to revive rural Ukraine Create favorable conditions for attracting investments into rural social infrastructure, rural gas network, road construction, healthcare and educational institutions Introduce European social security standards; quality growth in living standards of Ukrainian citizens Create appropriate conditions for enhancing Ukraine’s educational potential, ensuring that the talented young people regardless of their place of residence and financial status have wide access to new skills Affordable Public Housing. Strengthen official control over the quality of medical services and drugs, ensure free quality emergency medical care Expand local councils’ powers, maximally remove bureaucracy from the process of addressing issues related to development of local communities, devolve power; reform inter-budgetary relations in favor of local government

SOCIO-ECOMICAL DEVELOPMENT SECTORAL PROGRAMME (NEW RURAL COMMUNITY MODEL PROJECT) Sectoral programme aims to elaborate socio- economical development models for rural communities to ensure their sustainable development

Programme Objectives diversify rural economy, increase rural employment and reduce migration; stimulate job creation and small business development; develop partnerships between public and private sectors and local communities; harmonize public and business interests, optimize industrial and social infrastructures in the countryside; introduce efficient rural development management based on EU standards to minimize the environmental impact caused by technogenic factors.

Pilot Regions

Sectoral Programme of Socio-Economical Development NEW RURAL COMMUNITY MODEL PROJECT

Programme Objectives diversify rural economy, increase rural employment and reduce migration; stimulate job creation and small business development; develop partnerships between public and private sectors and local communities; harmonize public and business interests, optimize industrial and social infrastructures in the countryside; introduce efficient rural development management based on EU standards to minimize the environmental impact caused by technogenic factors.

Sectoral Programme Delivery Plan № MeasuresDeadlineImplementing agency Develop and submit for approval social and economic criteria for selection of rural communities to participate in Socio-Economic Development Sectoral Programme (New Rural Community Model Project) (hereinafter – Sectoral Programme) 1.2. Propose membership of ministerial Committee on identifying rural communities to participate in Sectoral Programme and develop relevant resolution. before Rural Development Department (Parylyak O.I.), Education, Science and Extension Department (Syniavska I.M.), ministerial units, "Institute of Agrarian Economy” (P.T. Sabluk, with his consent) 2. Present the Programme at the XXIIth International Agricultural Exhibition "Agro-2010” Rural Development Department, Education, Science and Extension Service Department, the EU project "Implementation of Ukraine's commitments under WTO and ENP frameworks in the Rural Sector" (B. Drozdowskij, with his consent)

Sectoral Programme Delivery Plan № MeasuresDeadlineImplementing agency Establish committees on identifying rural communities to participate in Sectoral Programme. Committee membership shall include representatives of scientific institutions and NGOs Identify rayons typical of respective regions according to criteria approved; evaluate socio-economic development of their rural communities Committees shall review the evaluation results and submit the list of rural local communities to participate in Sectoral Programme to MAP (not more than three candidates that have gained the highest evaluation scores). before Ministry of Agriculture of the Autonomous Republic of Crimea, Agricultural Developments of Zhytomyr, Ivano-Frankivsk, Cherkasy, Donetsk State Oblast Administrations 4. Select rural communities to participate in Sectoral Programme. Prepare draft Order of MAP before MAP Committee on identifying rural communities to participate in the Sectoral Program 5. Develop and approve socio-economic development programs for rural communities selected before Rural Development Department, Education, Science and Extension Service Department, Ministry of Agriculture of the Autonomous Republic of Crimea, Agricultural Developments of Zhytomyr, Ivano-Frankivsk, Cherkasy, Donetsk State Oblast Administrations, National Association of Agricultural Extension Services "Dorada" (with its consent), Institute of Agrarian Economy (with its consent), EU project" Implementation of Ukraine's Commitments under WTO and ENP frameworks in the Rural Sector "(with its agreement).

Sectoral Programme Delivery Plan №Measures DeadlineExecutors 6. Provide funding from the State Budget for the fulfillment of objectives and activities foreseen in programs of socio-economic development of rural communities according to the order prescribed – Finance Department (Ahidzhanov B.R.), MAP units 7. Develop and submit proposals on the way in which other ministries and agencies can participate in implementation of the Sectoral Programme to Ukrainian Cabinet of Ministers Rural Development Department 8. Take measures to create favorable conditions for attracting investments into activities related to socio- economic development of rural communities Throughout the Programme Ministry of Agriculture of the Autonomous Republic of Crimea, Agricultural Developments of Zhytomyr, Ivano-Frankivsk, Cherkasy, Donetsk State Oblast Administrations 9. Ensure appropriate implementation of measures under each Axis Throughout the Programme Ministry of Agriculture of the Autonomous Republic of Crimea, Agricultural Developments of Zhytomyr, Ivano-Frankivsk, Cherkasy, Donetsk State Oblast Administrations

Rural Communities Evaluation Criteria Administrative status Socio-demographic characteristics Arable land Economical development Availability of social infrastructure facilities Availability of utilities Availability of social service operators Environmental safety and pollution Availability of community organizations Funding provided to local budgets Private sector participation in community development

Programme`s Implementation Period Implementation period – 2010 – 2015 Implementing organizations –ministries and agencies, responsible for implementation of National Target Programme of Development in the Ukrainian Countryside till 2015

Funding National Target Programme of Development in the Ukrainian Countryside till 2015 Funds of regional programmes Programme Funding Pilot rural community in Zhytomyr oblast Pilot rural community in Cherkasy oblast Pilot rural community in Donetsk oblast Pilot rural community in Crimea Pilot rural community oblast in Ivano-Frankivsk oblast

Implementing Partners Institute of Agricultural Economics Ukr-RI-Agriproject (research institute) EU Project Implementation of Ukraine's Commitments under WTO and ENP Frameworks in the Rural Sector

Anticipated Results Five exemplary sustainable development models for rural communities in place and replicated in other Ukrainian regions The first stage of National Grogramme for Sustainable Rural Development till 2020 began to be implemented Public-private partnerships for sustainable rural development in place Harmonisation of sustainable rural development models with basic EU and CAP guidelines and directives