The Easy Business Analytical Center, with the support of the UCORD project, conducted a study and prepared materials on the international experience of local and regional authorities in using recovery funds: lessons and recommendations for Ukraine.
The materials focus on identifying key lessons for Ukraine on its path toward European integration. They not only demonstrate how to use EU funds effectively but, more importantly, analyze how to build a capable financial management system at the local and regional levels.
Many of the challenges Ukraine faces are shared by other countries as well, including issues of human capital, coordination between different levels of government, institutional capacity, and bureaucratic procedures. The analysis focused on Romania, Croatia, Bosnia and Herzegovina, and Albania — countries that have recently joined the EU or are candidates, and that have experience in post-war or post-disaster recovery.
Particular attention is given to Regional Development Agencies (RDAs), which act as intermediaries between central authorities and local communities, helping to design regional programs, prepare project proposals, and implement projects.
Experience shows that effective use of funds is possible only with decentralization, the development of local staff capacity, adequate financing, and a clear definition of RDAs’ mandates. For Ukraine, a key takeaway is that strengthening the institutional role and resource base of RDAs is essential for the successful use of recovery funds and future access to EU financing.
Among the key lessons for Ukraine are the following:
- Integrate all international assistance processes into a unified financial management system.
- Create collaboration clusters between communities based on territorial-administrative or functional approaches.
- Engage local communities in the development and planning of regional strategies.
- Ensure alignment of regional strategies with EU principles, legislation, regulations, standards, and other relevant strategies.
- Conduct proper due diligence, taking into account geospatial planning and the current socio-demographic situation, with the involvement of local authorities, public organizations, and NGOs.
- Minimize bureaucratic procedures at all stages of fund utilization, both from donors and the state.
- Implement a flexible and effective system for contesting procurement results.
- Distribute guidance materials for project applicants on working with key donor funds to all local communities.
- Define specific RDA services to strengthen collaboration with local communities.
- Assess operational costs for project management and maintenance.
- Enhance local government capacity in aid management.
- Create specialized units within RDAs focused solely on aid management, without overloading staff with multiple functions.
The Swiss–Ukrainian project Ukraine’s Cohesion and Regional Development of Ukraine” is implemented with Swiss support by NIRAS Sweden AB.
The material is available at the following link.
The presentation of the material can be found here.