Polska pomoc

 

The school of drawing investments for public administration units of Western Ukraine


Ukraine’s economy, in particular the local governments’ ability to attract investors, needs support in terms of using investment policy tools and instruments. Since local authorities lack the skills and knowledge of professional methods for attracting foreign and domestic investors, few new investments are made there. Such a situation prevails in the oblasts of Lviv, Ivano-Frankivsk, Volyn, Ternopil, Khmelnytskyi, and Rivne in western Ukraine, which make up the project area.

The first group of beneficiaries, municipal officials responsible for investment policy, economic development, and promotion, will be playing a key role in the future when it comes to making a professional investment portfolio for western Ukraine. Given their present situation, this group of beneficiaries cannot take advantage of this kind of modern investment instruments (inability to make a portfolio, lack of reliable information about the expectations and needs of external investors, unfamiliarity with a city’s investment barriers, etc.). Beneficiaries from this group came from small cities (10,000-50,000 inhabitants), as it is these areas that endure particular hardship.

The second group of beneficiaries were officials from local development agencies in the project cities that worked to foster economic development, attract investors, and were involved in promotion.

The project built on some earlier projects implemented by the Foundation in Support of Local Democracy – the Malopolska Institute of Local Government and Administration in the framework of Poland’s development assistance.

The school of drawing investments for public administration units of Western Ukraine


The project comprised two modules. Module I ran from 3 March until 31 December 2014, and module II from 1 January until 31 December 2015. The implementing entity, the Foundation in Support of Local Democracy – the Malopolska Institute of Local Government and Administration, partnered with the Institute of Political Science in Lviv. The project was consistent with priority 8 of the Multiannual Development Cooperation Programme 2012-2015, namely “Regional development and capacity building of public and local administration.”

The project addressed the inability of administration officials in small cities and towns of Ukraine to create their own investment portfolios, and attract investment. Local government officials increasingly try to incentivize investment, seeing it as an opportunity to boost their local budgets and improve the local community’s quality of life. However, the relevant models and good practices are limited to Ukraine’s big cities, where development conditions are altogether different. The project helped to make 10 cities (with populations of between 10,000 and 50,000) in western Ukraine more attractive to investors. This was achieved by enhancing their skills of creating and using a professional investment portfolio, whilst tapping into the experience of Polish partner cities.

The project’s primary objective was to increase the ability of public administration officials in western Ukraine to attract foreign investment. The project’s target group were investment policy specialists from western Ukrainian cities numbering 10,000-50,000 residents.

The school of drawing investments for public administration units of Western Ukraine


The first part of the project, which ran in 2014, was aimed at performing a comprehensive analysis of western Ukraine’s investment climate and conditions. Among other things, small cities and towns of that region were screened for investment barriers and needs. The aim was to conduct a comprehensive examination of investment barriers in towns and cities of 10,000-50,000 people, and to gain a detailed knowledge about what foreign investors expect of cities’ portfolios.

Moreover, foreign investors with running operations in western Ukraine were invited to attend a round table, at which they could set out their investment needs, expectations and motives for choosing a particular location.

One effect of these efforts was the “Examination Report on the Investment Needs and Barriers of Western Ukraine.” The report’s conclusions informed subsequent stages of the project.

A series of workshops prepared 35 Ukrainian investment policy specialists for designing professional investment portfolios of cities, and attracting external investors.