1. Financial Policy in Ukraine: Key Issues for Analysis Lesya Ilchenko-Syuyva, Associate Professor, Economic Policy Department National Academy of Public Administration, Office of the President of Ukraine e-mail: lesya@rocketmail.comlesya@rocketmail.com

2. Policy consistency in overcoming current financial crisis

4. Selective Macroeconomic Data Real GDPCPI 2006107,3110,3 2007107,9111,6 2008102,3116,6 200984,9 (-15,1)122,3 (+22,3)

5. Financial policy Fiscal - MoF  budgets  public revenues and expenditures Monetary – Central banks  money supply Public FinanceIndividual FinanceLegal Entities Finance International Finance

6. Monetary policy In Ukraine it mainly relay on banking sector (~180 banks, but only 150 are operating) – under supervision of central bank Credit (to both individuals and legal entities provided by bank and non-bank financial institutions – with are under supervision of the State Committee on Financial Services Market of Ukraine)

7. Monetary policy

8. Policy Cycle ? Problem Identification ? ? Background ? ? Alternatives ? ? Consultations ? Decision-Making Action Plan Monitoring Evaluation

9. Key issue -1 “Cheshire Cat” she began, rather timidly, “Would you please tell me, please, which way I ought to go from here?” “That depends a good deal on where you want to get to,” said the Cat. “I don’t much care where,” said Alice. “Then it doesn’t matter which way you go,” said the Cat. L. CARROL, “Alice in Wonderland” Problem Identification

10. Key Issue - 2 Evidence Based Policy-Making Background information as a basis for sound policy (bank secrecy) Alternatives Consultations

11. Key Issue - 3 Transparency in Policy-Making Duplication of responsibilities (MoF vs. Central Bank) Sticking to institutionalized procedures Sticking to institutionalized procedures Consultations Cooperation with civil society

12. Key Issue - 4 Policy Effectiveness and Efficiency How to measure? How to assess policy at least medium-run effects (time-leg for both fiscal and monetary policy is 1.5 – 2 years) Top-down vs. bottom-up assessment Top-down vs. bottom-up assessment

13. Key Issues - 5 Capacity Building MoF – “being bureaucrats” NBU – “being bankers” Outsourcing – nice option but… Academic education Academic education In-service training In-service training

14. Thank you for your kind attention!