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Maintaining the Momentum of Decentralisation in Ukraine

image of Maintaining the Momentum of Decentralisation in Ukraine

This Multi-level Governance Series study focuses on Ukraine’s advances in regional development, territorial reform and decentralisation since 2014. The Government launched a reform to merge local governments and strengthen the decentralisation process, giving additional power and resources to sub-national authorities. In a short period, successful steps have been taken toward achieving municipal mergers and greater fiscal, administrative and political decentralisation, complemented by the State Strategy for Regional Development 2015-2020. The first local elections have been held and more public services are being delivered by certain local authorities. Yet, important challenges remain, ranging from a need to address rising disparities and adjusting multi-level governance practices and territorial structures, to better structuring fiscal decentralisation. This report addresses regional performance and disparities in Ukraine, provides insight into Ukraine’s current territorial reform and approach to decentralisation, explores the impact of fiscal decentralisation measures, and includes a case study of the transport sector. It also provides a set of recommendations for action to support Ukraine in meeting the conditions for successful decentralisation.

English Ukrainian

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Strengthening fiscal decentralisation in Ukraine

Chapter 3 presents the fiscal component of Ukraine’s decentralisation reform. It highlights how the reform has developed and the implementation process. It offers an in‑depth examination of the impact that fiscal decentralisation is having on subnational government revenue and expenditure, and equalisation systems, as well as the fiscal challenges that local communities are facing in light of the reform. Insight is provided into the management and public investment tools that could better support the delivery of public services, including the role of public enterprises, inter-municipal co-operation, and the need for more effective capital transfers for subnational investment. The chapter ends by exploring opportunities to reinforce human capital at the subnational level and the impact the decentralisation is having on the subnational government staff.

English Ukrainian

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