The The Current State and Current State and Future Development of Future Development of

Ukrainian Rural Ukrainian Rural Development Development Policy Policy

Rural Development Department, Ukrainian Ministry of Rural Development Department, Ukrainian Ministry of Agrarian Policy, June16, 2010 Agrarian Policy, June16, 2010

Rural Settlements in Ukraine 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 (%)Social Infrastructure in Rural Areas in 2009 (%)

Reasons for the Decline of Rural Reasons for the Decline of Rural UkraineUkraineLack of financial support to small

agricultural producersLimited financial resources of local

budgetsDecrease in the number of social

infrastructure facilitiesAdministrative obstacles; the efforts of

Ukrainian ministries and agencies are not concerted

National Target Programme of Development National Target Programme of Development in the Ukrainian Countryside until 20105in the Ukrainian Countryside until 20105

Name of Ministry or Name of Ministry or DepartmentDepartment

Total funding Total funding foreseen foreseen

Annual fundingAnnual funding

foreseen foreseen

Funds finally Funds finally allocated allocated

%% implementimplementation ation

Ministry of Regional Development and Construction

263900 2000 2000 0,8

Ministry of Transport and Communications

528100 95088,7 38254,5 7,2

Environment Ministry 243200 150000 0 0

Public Health Ministry 157500 0 0 0

State Committee on Water Resources

1115500 826620 823900 73,9

Ukrainian Academy of Agrarian Sciences

442600 350350 348487 78,7

The way main budget administrators were financing the Programme in The way main budget administrators were financing the Programme in 20092009 ((UAH, thousandsUAH, thousands))

The Concept of National Target The Concept of National Target Programme for Sustainable Rural Programme for Sustainable Rural Development until 2020 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 Implementation of Victor Yanukovych`s programme “Ukraine For the People”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 SOCIO-ECOMICAL DEVELOPMENT SECTORALSECTORAL PROGRAMME PROGRAMME

(NEW RURAL (NEW RURAL COMMUNITYCOMMUNITY MODEL PROJECT) MODEL PROJECT)Sectoral programme aims to elaborate

socio-economical development models for rural communities to ensure their sustainable development

Programme Objectives 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 Pilot Regions

Sectoral Programme of Sectoral Programme of Socio-Economical Socio-Economical Development Development

NEW RURAL NEW RURAL COMMUNITYCOMMUNITY MODEL PROJECTMODEL PROJECT

Programme Objectives 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 Sectoral Programme Delivery Plan

№ Measures Deadline Implementing agency

1. 1.1. 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 10.06.2010 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”.

16.06.2010 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 Sectoral Programme Delivery Plan

№ Measures Deadline Implementing agency

3. 3.1. Establish committees on identifying rural communities to participate in Sectoral Programme.  Committee membership shall include representatives of scientific institutions and NGOs.

3.2. Identify rayons typical of respective regions according to criteria approved; evaluate socio-economic development of their rural communities. 3.3. 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 01.07.2010 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 10.07.2010 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 01.09.2010 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 Sectoral Programme Delivery Plan

№ Measures Deadline Executors

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

01.09.2010– 31.12.2015

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

01.10.2010 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 Rural Communities Evaluation CriteriaEvaluation 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 Programme`s Implementation PeriodImplementation PeriodImplementation period – 2010 –

2015Implementing organizations –

ministries and agencies, responsible for implementation of National Target Programme of Development in the Ukrainian Countryside till 2015

FundingFunding

Implementing PartnersImplementing PartnersInstitute of Agricultural

EconomicsUkr-RI-Agriproject (research

institute)EU Project Implementation of

Ukraine's Commitments under WTO and ENP Frameworks in the Rural Sector

Anticipated ResultsAnticipated ResultsFive 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