Public Debates
17 December 2009
Public Debates on Decentralization of the Regions Held in Kyiv
Decentralization of powers, financial resources, and responsibilities will promote greater competition for investments among the regions, and will force the local authorities to work more efficiency. Meanwhile, Ukraine continues experiencing the pressing problems of political instability and corruption, which pose a real threat to the socioeconomic development of the regions against a backdrop of the financial crisis.
That was the conclusion arrived at by participants in the public debates on the topic "Would the decentralization of government and fiscal authority improve competitiveness of the regions in Ukraine?” hosted by the Foundation for Effective Governance jointly with the Intelligence Squared, London, in Kyiv on 17 December 2009. The Institute for Budgetary and Socio-Economic Research, represented at the event by Iryna Shcherbyna, IBSER Director General, also joined in the discussion. This was the fifth such event held by the Foundation in the Oxford Club format.
Natalia Izosimova, the Foundation director, opened the debates stating that transfer of additional resources and power into the hands of local officials, without introducing effective mechanisms of supervision first, might turn out to be disastrous for Ukraine. “Another important question is whether or not the local authorities will be capable to implement regional development strategies on their own?", she said.
The Foundation director also told the audience, there were depressed territories in Ukraine, where it would be virtually impossible to set up self-sufficient local government entities.
“Such regions need the State support," N. Izosimova stressed.
The Foundation director also told the audience, there were depressed territories in Ukraine, where it would be virtually impossible to set up self-sufficient local government entities.
“Such regions need the State support," N. Izosimova stressed.
It was the opinion of the debate participants supporting the decentralization of powers that the problem today was that the central government was afraid to let go its levers of influence.
“There is simply no other way, however, if we want to ensure normal living standards, any problems need to be addressed not in high offices, but just where the people live. And there are real chances to change the situation, as local government leaders are increasingly realizing that they have the right to not only beg, but also insist to be heard,” Volodymyr Groysman, mayor of Vinnytsya, stated at the debates.
“There is simply no other way, however, if we want to ensure normal living standards, any problems need to be addressed not in high offices, but just where the people live. And there are real chances to change the situation, as local government leaders are increasingly realizing that they have the right to not only beg, but also insist to be heard,” Volodymyr Groysman, mayor of Vinnytsya, stated at the debates.
The Candidate of Economics, Assistant Professor Irina Khakamada emphasized in turn, that decentralization in Ukraine was inevitable. “The period of stability in the global economy is over. We face a new wave of turbulence ahead related to the emergence of new economic players. It is only the accountability, accountability of all economic agents that will be winning in these conditions: accountability of national economic systems, corporations, and entrepreneurs. Accountability means decentralization, however awkward and uncomfortable it might be,” said I. Khakamada.
Other participants in the debate supported the idea of partial decentralization. For instance, the current Ukrainian MP and former Minister of Regional Development and Construction, Volodymyr Yatsuba stated it would make sense to discuss decentralization relative to the formation of local budgets, taking into account the capacity of each oblast, with their subsequent transition to financial self-sufficiency.
He also noted that, given the current crisis and political instability in Ukraine, the functions of governance at the central and regional levels needed to be consolidated, with building a clear hierarchical system and developing a coordinated procedure for decision-making.
He also noted that, given the current crisis and political instability in Ukraine, the functions of governance at the central and regional levels needed to be consolidated, with building a clear hierarchical system and developing a coordinated procedure for decision-making.
Pierre Defraigne, executive director of the Madariaga European Foundation, who represented the College of Europe, economist and top official of Europe’s governing bodies in 1970 through 2005, spoke about the risks inherent in decentralization of powers, financial resources, and responsibilities. In his opinion, decentralization will become a barrier to development of the regions, and subsequently - a threat to Ukraine’s unity.
“First, one will need to resolve the problems, which plague the Ukrainian society: political instability, corruption, nepotism, and infrastructural deficit. And only then, one might approach the decentralization issue," the economist stated.
“First, one will need to resolve the problems, which plague the Ukrainian society: political instability, corruption, nepotism, and infrastructural deficit. And only then, one might approach the decentralization issue," the economist stated.
The report was prepared based on materials of the Foundation for Effective Governance website http://debaty.org/cms/decentralization_reform.html.
Glyanec