1 Report on activities carried out during the reporting period 10
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1.4. Donor coordination
Donor coordination has traditionally been lead by the Ministry of Economy through the departments responsible for donor and IFI coordination (Directorate for cooperation with EU and Directorate for coordination of international technical assistance (bi-lateral)) and through the mechanism of the National Coordinating Unit.
Under the SWAP approach, it is the MAP which should undertake an increasing role in coordinating the donor and IFI activity in the sector. This fact has been acknowledged by the inclusion of a component in the programme to address the additional capacity requirements that this increased role will entail.
In October 2005, the EC Delegation received a letter from the Minister of Agrarian Policy requesting the EC to lead co-ordination of technical assistance in the area, pending the establishment of a government-led coordination process in the near future. The EU as champion and primary initiator of the SWAP approach in Ukraine will have a vital role to play in donor co-ordination process in the context of greater EU integration and harmonization of policies, regulations and legislations. For the purposes of preparing this fiche and subsequent TORs a table of relevant donor activity has been prepared and annexed to this fiche.
2. Country context
1.5. Cooperation related policy of beneficiary country
According to the Resolution of the Verkhovna Rada of Ukraine No 2921-IV dated September 23, 2005, the state of affairs in the agro-industrial complex of Ukraine is recognised as in crisis. For some time now, the Cabinet of Ministers of Ukraine and the Ministry of Agrarian Policy had tried to improve the situation. However, implemented measures had failed to raise productivity in agriculture, to ensure food safety and quality and to improve living standards in rural areas.
Currently, there is a lack of a governmentally approved overall strategy and vision for the development of agriculture and rural areas in Ukraine. Not much attention was ever paid in the past to having a framework policy for rural development. However, recently a lot of attention was given to develop such a comprehensive state policy in agriculture and rural development:
A recent attempt to define agricultural sector policy was made in the Law of Ukraine “On Main Principles of the State Agrarian Policy in Ukraine”, i.e. to ensure food safety; to enhance competitiveness of Ukrainian agricultural producers on domestic and foreign food markets; and for the preservation of rural heritage and support to the rural population.
In 2004, the Ministry of Agrarian Policy (МАР) has drafted the “National Programme for Social Development of Rural Areas till 2011”. The Programme’s purpose is to ensure the development of a favourable rural environment as a necessary prerequisite for efficient operation of agricultural production and sustainable development of rural settlements. This programme was not considered or adopted mainly due to the events in Ukraine in late 2004.
The National Integrated Programme “Prosperity through Agrarian Development for 2005-2010” (DAR) has been developed as a follow up of the Government Programme “Towards People” by a group of NGOs and experts in coordination with the Ministry of Agricultural Policy and other ministries. The drafting of the programme has been personally supervised and coordinated by Mrs. Timoshenko, the former prime–minister.
In 2005, a group of the Verkhovna Rada deputies drafted the National Agriculture Development Programme till 2015: ”Selo dlya Kozhnoho, Kozhniy dlya Sela (Countryside for Everyone, Everyone for Countryside)”. The Programme identified the following strategic objectives: (i) achievement of sustainable and efficient operation of the agro-industrial complex, which is oriented on meeting both domestic and export needs in agricultural produce and processed products; and (ii) the social revival of the rural areas, with the elimination of poverty of the majority of rural people and the gradual improvements in their livelihoods, in order to bring them up to the living standards existing in developed economies.
In 2005, the Institute of Agrarian Economy of Academy of Agrarian Sciences of Ukraine has drafted the “Programme of Socio-Economic Development of Rural Areas”. The Programme identified the following strategic objectives: (i) reform of the rural social sphere through the development of a socially oriented economy; (ii) adjustment of the proportions in economic and social development of rural areas with a focus on rural people’s interests; (iii) the creation of appropriate labour and rest-time conditions in every rural settlement.
None of the above programs have been adopted with corresponding budget lines allocated for their implementation. However, according to the Order of Cabinet of Ministers from October 26, 2005, the DAR programme should be reconsidered and proposed for final approval.
Prime Minister Mr Echanurov has signed on 21 December 2005 the resolution № 536-p a concept of the Ukrainian villages development 2006-2010. The Ministry of Agricultural Policy is commissioned to prepare within 3 months a draft of the Ukrainian villages development 2006-2010.
This document names the following priorities:
- Food safety and quality;
- Agricultural markets;
- Agricultural production;
- Financial mechanisms and investments;
- Agricultural science and education;
- Rural development;
- Land relations;
- Institutional issues.
The most recent national programme in the agrarian sphere is the General State Program on social-economic development of Ukrainian Village for the period up to 2015. The process of the development of the General State Program on social-economic development of Ukrainian Village for the period up to 2015 has been very much more protracted than originally foreseen and at the time of writing the programme is still not finalized and the mechanism of its approval (Cabinet of Ministers resolution or by Law through the Verhovna Rada) is still not clear.
General:
The main components of the programme are:
- Development of rural territories;
- Agrarian market development;
- Development of external economic activities;
- Development of education, agrarian science, advisory services and information;
- Improvement of management system of agro-industrial complex.
The focus of the draft General State Program on social-economic development of Ukrainian Village for the period up to 2015 has been changed from support to the development of Ukrainian village, which by definition means the emphasis on social and infrastructure development measures in the first case, to social-economic development, which prioritizes economic development of agricultural sector as a whole and support to agricultural production in particular.
Food safety:
Main aim: implementation of State policy in the sphere of food safety ensuring and production of quality products.
Tasks:
- harmonisation of normative and technical documentation regarding safety and quality of foodstuff with international and European requirements;
- activation of scientific researches and increase of implementation of science intensive and alternative technologies;
- development of profound biotechnologies of raw materials processing and ensuring of production of competitive foods;
- increase of production of packaged and ready to eat food with use of domestically produced packaging materials;
- introduction of international food and safety management systems, ecological safety systems, international standards of ISO series, adopted to the EU requirements;
- development of fast methods of testing and appropriate equipment with software for control of safety and quality of raw materials, food contact materials and food.
Market infrastructure
- The following tasks stipulated for the agrarian market infrastructure development, are incorporated in the draft Program and presented in its various sub-chapters:
- Support to (as a priority) to the organization of the National Network of agricultural wholesale markets (commodity exchanges, wholesale markets for vegetable, fish and other fresh produce, livestock and poultry wholesale markets; wholesale trade centres of agricultural marketing/sales cooperatives;
- Support to the development of retail markets infrastructure of Ukrainian Cooperative Union (Ukoopspilka) system and local community markets of community ownership;
- Support to the formation of infrastructure for agricultural sales cooperatives and their regional and national grouping with the functions of export activities;
- Implementation of the information and telecommunication technologies for monitoring of agrarian market and services to rural population;
- Creation of infrastructure for export and external marketing. Formation of state institutional structures with the functions of the support to the development of export trade of agricultural products.
As a whole, majority of planned methods and activities in the proposed Program are focused on large agricultural producers, while medium and small ones remain overlooked.
Rural development
The Program reflects the rural development problems in a quite comprehensive way and proposes approaches to integrated rural development and solutions of rural social problems.
The Program establishes the following main priorities of rural development:
- Rural employment, poverty reduction, and development of businesses;
- Creation of conditions and incentives for young people to remain in rural areas;
- Integrated development of infrastructure in rural areas;
- Support for development of depressed territories;
- Improvement of rural development management system.
Besides, significant attention was paid to the rural development issues in other aspects, such as infrastructure of agrarian market (cooperation, credit unions, etc.) and development of education and advisory activity, which directly relate to rural development and play critical part in socio-economic growth of rural areas.
The project proposal for the application of SWAP in agriculture, food safety and rural development, is thus consistent with the above described national policies, strategies and programmes (albeit none adopted or successful) regarding needed agricultural reforms and the need to improving rural livelihoods in Ukraine.