1. Conclusions & Recommendations for design and implementation of Social Management and Stakeholder Engagement Plans Support to the Implementation of the Ukraine Early Recovery Project of the European Investment Bank This project is financed by the European Union. The opinions expressed are the authors' own and should in no case be regarded as representing a position of the EU

2. Conclusions & Recommendations State of infrastructure: Throughout the target region, housing, educational and health care facilities, roads are in poor condition, and local government capacity to cope with strains resulting from an influx of IDPs into their communities leaves room for significant improvement. A key role in this endeavor is to be played by external donors, and the relevance of external financial support is particularly high given the national authorities’ decentralization plans. Emphasis should be placed on improving infrastructure that will benefit both IDPs and local communities, and high priority given to projects that create re- qualification opportunities and non-specialized jobs as part of their realization (e.g. construction of housing, schools, nurseries). Employment opportunities are few, and job creation must be seen as a high priority for the region This project is financed by the European Union The opinions expressed are the authors' own and should in no case be regarded as representing a position of the EU

3. Conclusions & Recommendations Actual numbers of IDPs present in the region are fewer than registration statistics show, but their effect (pressure) on social infrastructure is still significant Schools and nurseries in Kharkiv, Zaporizhzhia, and Dnipropetrovsk regions have registered significant influxes of IDP children Health care facilities in Donetsk and Luhansk regions have experienced higher demand for service Identity differences between IDPs and local inhabitants do not seem to be a major problem in the region (risk of ghettoization or formation of permanent “diaspora” is low), and therefore are unlikely to become a source of conflict in themselves. However, local problems exist (e.g. Severodonetsk – low levels of “Ukrainian” identity). Evidence shows that NGO/stakeholder engagement can diffuse potential conflict (e.g. Chuhuyev). Social management and stakeholder engagement must be implemented case-by-case Differing responses from IDPs and host populations regarding perceived levels of competition between them for resources indicate relatively low degree of social integration (so far) of IDPs. This project is financed by the European Union. The opinions expressed are the authors' own and should in no case be regarded as representing a position of the EU

4. Findings of the study: 1.The major problem in the region is unemployment – access to social infrastructure and state service provision is a distant second. 1.Nevertheless, IDPs intend to remain in Ukrainian government controlled regions for the long term, and therefore job creation must become a higher priority in the region 2.Local government capacity to respond to IDP influx needs improvement – stakeholder engagement is key to increasing responsiveness; donors can help build capacity 3.Differences between IDP groups and host community responses are significant (e.g. self-reliant IDPs who integrate with hosts in Berdyansk vs. aggressive- dependent IDPs in conflict with locals in Severodonetsk); localized strategy for social management is required; stakeholder engagement can diffuse potential conflict (e.g. Chuhuyev) This project is financed by the European Union. The opinions expressed are the authors' own and should in no case be regarded as representing a position of the EU

5. Recommendations 1.To introduce a new practice of implementing development projects that is not limited to reconstructing specific infrastructure targets, but rather is based on inclusion, participation, and social management; Social management planning must seek to integrate and build trust in communities by instituting processes that ensure accountability of local project implementers 2.Effective social management requires increased capacity. Conflict potential in the region is low but present (regional differences require case by case approach); as a rule, risk of conflict rises if state fails to deliver on reconstruction commitments Local government in the region is willing to improve both its own processes and contribute to effective management of infrastructure development, but have low capacity. Donor help with capacity building is key to early recovery 3.Stakeholder engagement paradigm (“Inform -> Consult -> Accountability”) requires both institutional and process-level implementation, innovation (incl. grievance redress), and dialog This project is financed by the European Union. The opinions expressed are the authors' own and should in no case be regarded as representing a position of the EU