How to turn the region into a magnet for investment, create efficient industrial parks, support local businesses and attract international partners even in times of war? In her interview, Yelyzaveta Savchuk, director of the Regional Development Agency of the Vinnytsia Region, shares specific examples of successful projects, including the Dniester Industrial Park, the Ukrainian-Korean Business Forum, and providing hospitals with modern equipment. And also – tells how participation in the Swiss-Ukrainian project “Ukraine’s Cohesion and Regional Development”, UCORD and cooperation with grant programs change the communities of Vinnytsia. Read on to learn about the challenges facing the region and bold plans for the future that can inspire your region.
What is the mission of the Regional Development Agency in your region and how does it contribute to the implementation of state regional policy on the ground?
The Regional Development Agency of the Vinnytsia region is like a part of the clock mechanism that works to implement the state regional policy. Our mission today is to be a part of this state mechanism in the region, namely: to promote the development of Vinnytsia region by attracting investments and other resources, as well as implementing measures to improve the business environment and image of the region. We pay a lot of attention to supporting communities: we help them develop, strengthen ties and reveal their potential.
The Agency’s team always choices a comprehensive approach and established cooperation with international organizations, state structures, regional authorities and territorial communities.
Can you share specific examples of projects or initiatives implemented by the Agency that had a positive impact on the development of the region?
It’s always nice to tell about successes. To promote the economic development of communities, for example, we actively advise communities on the creation of industrial parks. Thus, we strive to create a favorable business environment. One of these projects is the creation of the “Dniester” industrial park, which should become a center of new investments and jobs for local residents.
Another landmark event was the Ukrainian-Korean Business Forum, which took place in August. The event became a platform for establishing bilateral cooperation between local communities and businesses from South Korea. Forum participants had the opportunity to discuss prospects for export development and new ideas for innovation.
We are actively working on the implementation of socially significant projects. For example, within the framework of the initiative “Promoting Energy Independence of Critical Infrastructure Institutions” with the support of Hilfswerk International, the Agency helped provide several hospitals with modern generators.
Another positive example is the project to supply modern endoscopic equipment to the Kryzhopol district hospital within the framework of the grant program of the Government of Japan (Kusanone Program). This equipment makes it possible to improve early diagnosis and improve the quality of medical care even in small communities.
We recently started cooperation with the international organization Humanity for Freedom. Thanks to this initiative, the hospitals of the three communities of Vinnytsia will receive modern rehabilitation equipment, which will be a significant support for the military and civilians in need of recovery.
But we believe that the biggest and most useful projects for the region are yet to come.
What financial mechanisms and tools do you use to implement projects? Is there sufficient support from the state and international donors?
Project financing is always a challenge. In today’s conditions, international programs and grants are one of the main mechanisms of financing projects. These resources are directed to the implementation of important social, infrastructural and medical projects. Finances from local budgets often have to be combined with business funds and implement certain initiatives even in communities with limited financial resources. State programs are also a very effective mechanism, and its use should be resorted to when it comes to subventions for the development of infrastructure, support of energy efficiency or stimulation of entrepreneurial activity. The key to efficiency usually lies in the combination of different financial mechanisms.
Similarly with the tools that need to be selected according to the real situation. We constantly advise communities and organizations on writing high-quality project proposals for participation in international grant programs, and this gives results. We help communities to create local funds that can attract funds from entrepreneurs and philanthropists. We support communities in the use of crowdfunding platforms, such as “Spilnokost”, which allows to attract funds from citizens for the implementation of local initiatives. We promote the use of platforms that allow attracting private investors to the implementation of large-scale projects, such as industrial parks or infrastructure restoration projects. And one more important tool that I want to emphasize is learning financial management. No project can be implemented without proper planning. That’s why we organize trainings and seminars for communities, where representatives of local authorities and activists learn to effectively plan budgets and find resources.
Regarding state support, it is certainly important, but it is often not enough to solve all the problems. That is why we are actively looking for new opportunities, developing international partnerships and introducing modern financial instruments that help communities achieve their goals. Participation in such projects as the Swiss-Ukrainian project “Ukraine’s Cohesion and Regional Development” helps us in this, in which the Vinnytsia region participates as a pilot region.
How do you cooperate with territorial communities and local businesses? What examples of successful partnerships can you give?
Our cooperation with communities is based on trust and partnership. We do not only consultation or organization of educational events, but also actively participate in the implementation of projects that meet the needs of communities.
One of the successful examples is cooperation with the Zhmeryn and Bar communities within the project “Creation of conditions for the restoration and continuity of micro, small, incl. relocated business of the Zhmeryn and Bar communities of the Vinnytsia region by conducting informational and educational activities and developing the business support ecosystem.” As a result, 13 entrepreneurs received grant support in the total amount of over UAH 2 million, and new jobs were created in the communities of the region.
We are also actively working on establishing partnerships with international organizations, which contributes to the development of communities and the improvement of infrastructure. For example, within the framework of the agreement with the Humanity for Freedom Foundation (USA), three communities of Vinnytsia – Kalinivska, Bershadska and Kryzhopolska – will receive modern diagnostic and rehabilitation equipment. This will be a great support for both the military and other patients in need of recovery. In addition, within the framework of this cooperation, we will ensure the renewal of food blocks in three kindergartens of these communities.
What are the main challenges your Agency faces in the process of implementing regional projects? What do you think can be improved at the state level to support RDAs?
We live and work in such a time that there are many more challenges than answers. Let’s try to list the main ones, or so to speak, determine the top three.
The first is the challenges associated with war and the uncertainty that is a consequence of prolonged war. In such conditions, it is very difficult to plan the attraction, distribution and management of resources. In addition, predicting the development of business or investments in infrastructure, when at any moment the energy supply can be interrupted or capital buildings will be destroyed by a rocket, is another task with an asterisk.
Second, these are challenges related to the negotiation process on joining the European Union, the future reconstruction of Ukraine’s economy, and the unfinished decentralization reform. Scilicet, the country will need to simultaneously reform the regional level of government, adapt to European legislation and implement cooperation programs with the EU for the purpose of post-war reconstruction and equalization of socio-economic development.
The third is the need to solve the problems of veterans, internally displaced persons, lack of qualified personnel, return (or non-return) of people from abroad, etc. in the future.
Will we be able to create such conditions so that our regions can develop successfully? Yes, we are already working on it, but unfortunately, no one can give one hundred percent guarantees of success today.
And in order for us and other Regional Development Agencies to work more effectively, at the state level, in my opinion, it is necessary to define as clearly as possible the role and place of Agencies (including tasks, resources, powers, etc.) in the system of implementation of state regional policy.
Do you have a strategic development plan for your Agency? What are the main priorities you see for the development of RDA for the next 5 years?
We are currently in the process of developing the development strategy of the RDA for 2025-2030. So far, we have only started work on the new strategy, but it is already clear that it must provide answers to several key questions. In particular, this is a matter of cooperation with local authorities in updating community development strategies and regional strategy. It is also important to determine ways of community and business participation in reconstruction and recovery programs, effective use of European Union funds, business support, infrastructure development and human capital development, a special place should be occupied by support for veterans and persons displaced from war zones.
In our opinion, it is very important to include an effective communication component in this strategy. We need to be in constant contact with 63 communities of Vinnytsia region, regional authorities, international partners, local business, as well as social, medical and educational infrastructure institutions. In addition, our role is to help communities and partners communicate effectively with each other and work in constructive partnership.
How often does your Agency refer to European practices of regional development, and are there plans to involve European experts or staff internships?
We regularly refer to European practices of regional development, because the experience of EU countries is a source of useful solutions for many challenges that Ukraine faces. In our work, we are guided by the principle: if something works successfully in Europe, it should be adapted to the needs of the region, taking into account local specifics.
In particular, we work closely with European partners, such as the Romanian North-East Regional Development Agency. Thanks to this cooperation, our employees get the opportunity to learn the best practices and implement them in the Vinnytsia region.
Regarding training, we are grateful to the Swiss-Ukrainian project “Ukraine’s Cohesion and Regional Development, UCORD”, within the framework of which our Agency is increasing its institutional capacity in order to be able to achieve our the goals.
How do you assess the level of community awareness and interest in the work of the RDA? Are you planning educational activities to improve interaction with the public?
There are communities that are more interested in cooperation with the agency, and there are definitely more passive ones. A very important factor here is the heads of territorial communities. Where there are active heads, there are active communities. But we try to actively cooperate with all communities: we find interested people from business, the public sector, coordinate the implementation of projects, help them better understand the mechanisms of development. We regularly conduct information and training campaigns to show that there are opportunities, but one must be able to find and use them. Our mission is to become a reliable partner that provides communities with practical tools to achieve their goals.
What are the key skills and knowledge, in your opinion, that the employees of the RDA should have in order to ensure effective work? Are there opportunities for their professional development?
Working in RDA is a bit like playing multitasking Tetris. You need to be able to make quick decisions, communicate with donors, work with data, and at the same time find time for inspiration.
Our employees must be versatile. They are strategists, economists, and even a little psychologists, because they work with communities that often need not only advice, but also support.
What is important is that we are constantly learning. Currently, our specialists participate in trainings and events in Sweden, Romania, and Poland. We learn not only from Europeans, but also from each other. After all, the best result is achieved when the team works harmoniously, like a Swiss watch.
What changes, in your opinion, need to be made to the legislation or the general system of support for RDAs in order to improve their effectiveness and sustainability in the long term?
The experience of Regional Development Agencies in other countries of the world confirms a simple truth – resources and authority are needed to achieve results. We recently sent proposals to the Ministry of Development, and I can summarize them on the “Decentralization” portal. If we want Regional Development Agencies to be used as an effective tool for the implementation of state regional policy, we consider it expedient to:
- strengthen the institutional capacity of the system of Regional Development Agencies by more clearly defining the tasks and mechanisms of the Agencies’ activities as subjects of state regional policy implementation;
- specify the place of Regional Development Agencies in future international cooperation within the framework of EU programs;
- ensure stable financing of Agencies (from the local and/or national budget) to perform permanent functions of attracting investments and stimulating the strategic development of the region and local communities.
Source: Decentralization portal