Semi Annual Project Proposal January – June 2016
Ke y inte rv e ntio ns , w o rk- p lan & b udg e t
Purpose of this document • An overview of what has been done so far? • A semi-annual workplan and budget that will underpin the project’s implementation from Jan-June 2016 • A tool to communicate to Sida and other project stakeholders • It should be read in conjunction with: • • •
the updated Results Framework, which sets out the activities that will be undertaken and their link to the project results (Annex A) the updated Risk Management Framework (Annex B) for Sida, the budget for Jan-Jun 2016 (Annex C)
Contents • Progress so far • Main direction of the project in 2016 • Key interventions and activities for Jan-Jun 2016 in the project’s focus areas: • • • •
Education decentralisation Fiscal decentralisation Reform process management Reform communication
• Project-level interventions Jan-Jun 2016
Project progress
April – November 2016
Overall Framework • Overall objective: Support to decentralisation process • Long-term aim: To contribute to strengthened democracy, improved governance and better service delivery to the citizens of Ukraine • Focus: Strategic assistance in a few key policy areas. Providing advisory, analytical and capacity building support in a) Fiscal Decentralisation; b) Education • Expected results: Improved organisational capacity of Ministries of Education, Finance and Regional Development to manage change (reforms) on national level
SCOPE OF PROJECT SUPPORT – PROPOSAL FOR 2015 EDUCATION
FISCAL DECENTRALISATION
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Development of data bases and tools to monitor and simulate the effects of the new Budget Code; the financial implications of territorial consolidation and legal reforms Development of improved empirical foundation for formulating evidence-based policies Qualititaive Research on the relations between Rayons; Hromada and Towns of Rayon Significance – how will the amalgamation process affect their relationships in terms of functions and finances? Expert support/experience sharing to GoU in developing a new system for oversight of local government
Counterparts: Ministry of Regional Development, Ministry of Finance, Associations of Local and Regional Governments, Parliamentary Committee on LSG and Decentralisation
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Analytical and internal capacity building support to MES for development of an allocation formula for new educational grants from central to local budgets Development of key data on the education system; simulate possible allocation scenarios expressing policy priorities of Ministry Propose allocation formulas for categorical grants in education sector to the Cabinet of Ministers Support to experts drafting new framework law on education, in line with decentralisation strategy of Ukrainian
Counterparts: Ministry of Education, Ministry of Finance, Associations of Local and Regional Governments, Parliamentary Committee on Education
Communication: Support to GoU and other key stakeholders to communicate the nature and objectives of the reforms through: Support to setting up and coaching of Help Desk in MES; Development of methodological materials for subnational governments; External seminar and workshops; Training in communication and presentation skills Reform process management & coordination: Support to dialogue and dialogue building between key stakeholders on reform aspects of fiscal decentralisation and education through internal and external seminars; study visits
What has been done so far: Decentralisation of Education • Improved evidence for policy making: • • •
Analysis of education performance in 40 rayons Capacity building for the team of the MES Institute for Education Analytics Advising the management team of MES on issues related to data collection and analysis
• Legal basis for decentralisation of education: •
Contribution to drafting of the Framework Law on Education: participation in expert discussions, cooperation with Education Committee of Rada, MES management, drafting team and experts; preparing legal proposals
• Education financing and formula for distribution of subvention: • •
Review of the current (2015, 2016) education subvention formula and discussion with MES and MoF colleagues Awareness raising about the education financing
• Reform communication: •
Articles with expert opinions, TV interview, participation in public discussions on education and decentralisation reform on national and regional level
What has been done so far: Fiscal Decentralisation • Improved evidence for policy making: • •
Supporting the Ministry of Regional Development with formulating the requirements for sub-national data Advisory support to the Ministry of Finance e-data project regarding publishing of sub-national data
• Reform Process Management: •
Organisational and expert support to the Fiscal Decentralisation Task Force established by the Ministry of Finance
• Municipal supervision: •
Preparing inputs for expert discussion: a situation analysis for Ukraine, and a comparative analysis of European practices
What has been done so far: Reform Communication • Publications: • • • •
Scandinavia’s way: the reform experience of Denmark and Sweden (in UA) «What is decentralisation» – a briefing note Q&A on education decentralisation Content inputs for communication on Constitutional amendments
• Training of communication officers of Regional Reform Offices: • •
A two-day practical workshop focusing on strategic approach to communication Contribution to the Council of Europe seminar for Regional Reform Offices
What has been done so far: Reform Process Management • Pilot Project in Hmelnick: •
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Joint initiative by several other donors (Despro, GIZ, Council of Europe), implemented by Civil Society Institute – support to amalgamated hromadas of Hmelnick oblast during their process of formation A separate component implemented by Swedish-Ukrainian project’s experts supporting the establishment of the education function in selected amalgamated hromadas of Hmelnick oblast
Progress • Decentralisation of Education • Fiscal Decentralisation • Reform Process Management and Communication
Main directions for project January – June 2016
Key developments Apr-Dec 2015 •
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Amalgamation of hromada: Territorial reform has led to amalgamation of 159 hromada. Urgent need to educate them about the decentralization process and build their capacity to take on new functions. Local elections: New mayors have been elected. Urgent need to educate them about their roles and build their capacity to manage hromadas during the decentralization process. Constitutional amendments passed in 1st reading: The date of the 2nd reading is unclear. Draft Law on Prefects is discussed Open budget initiative: Ministry of Finance has launched a comprehensive effort to publish all Treasury and budget data, including on sub-national level Fiscal Decentralisation and Education Decentralisation Task Forces have been established by Ministry of Education and Ministry of Finance, and are working on all decentralisation-related tasks
Implications for project Jan-Jun 20 •
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No change to focus areas: Education and fiscal decentralization are still top priorities with reform process management and reform communication as cross-cutting issues Results framework: No major changes at this point, potentially some tweaks to fiscal decentralization as the Green Paper rolls out Focus on new hromadas: Within its focus areas the project will also address capacity building, support and communication to 159 amalgamated hromadas
Key interventions and activities January – June 2016
Education decentralization overvie •
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Key developments Apr-Dec 2015: Analysis of school expenditure in 40 rayons has helped to identify the key problems in education financing and management; Ministry of Education and Science has been working on legal framework and institutional developments – Institute of Education Analytics has been established; Task Force for Education Decentralisation set-up; work is proceeding to establish system for collection of education data; Hmelnick pilot project has been launched Implications for project: From Jan-Jun the project will focus on three key intervention areas (outlined in following slides): 1. Support to creation of legal framework for the new status quo in the field of secondary education 2. Support to 159 new hromadas with establishment of education function 3. Design of the education financing formula for 2017
Education decentralization (1) 1.Support to creation of legal framework for the new status quo in the field of secondary education •. Why: For broader reforms in the education sector to be effective, new laws and policies must be developed in a consistent way that is appropriate for the new decentralized model of governance. •. Planned project activities Jan-Jun 2016: Focus is on providing input to key laws and policies and helping Ministries to understand and implement the changes. a) Expert support with development of the Law on Primary and Secondary Education; a key law that needs to be re-designed in line with a decentralised model b) Functional analysis of the education management framework and design of the new framework corresponding to the decentralisation concept c) Study visit focusing on education system management to selected EU country (possibly, Estonia) as a way to complement and influence the policy/legal work d) Continuous support to the inter-institutional Education Decentralisation Task Force, working groups developing draft laws, Ministry’s management; cooperation with oblast education bodies
Education decentralization (2) 2. Support to 159 new hromadas with establishment of education function • Why: The newly amalgamated hromadas will take on new functions in education. They need urgent support to understand and manage these functions. Creating capable new hromadas is critical to the success of the reform. • Planned project activities Jan-Jun 2016: The project will continue to focus on its pilot project in Hmelnick oblast, as well as continue establishing support functions at the national level. a) Continuation of the Hmelnick pilot project, establishment of the education function in selected pilot hromadas b) Transfer of the Hmelnick experience to other amalgamated hromadas and support to establishment of education function in them; in particular, preparation of methodological guidelines and model documents c) Establishing and supporting a reform Help Desk function in the field of education decentralisation and education financing
Education decentralization (3) 3. Design of the education financing formula for 2017 • Why: In line with its objectives, the project hopes to influence the development of a financing formula for education so that allocations are made on a more evidence-based, transparent and equitable basis. • Planned project activities Jan-Jun 2016: Focus is on building the analytical capacities within MinEd, developing the allocation formula and supporting its implementation. a) Support with establishment of a comprehensive and up-to-date education information database in the Ministry of Education b) Support with sorting and linking of financial and statistical education data, and with establishing indicators for monitoring of quality of education services c) Preparation of the allocation simulator and of allocation scenarios d) Support with preparation of submission by MES of the allocation formula to the Cabinet e) Support with drafting of the necessary legislation (following acceptance by the Cabinet) f) Advisory and capacity building support to MES and Institute of Education Analytics to design and prepare for new budgeting procedures with focus on local budgeting processes g) Advisory and capacity building support to MES and Institute of Education Analytics to implement and monitor new budgeting procedures
Fiscal decentralization overview •
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Key developments Apr-Dec 2015: MinFin has drafted a Green Paper suming up the key tasks in the field of fiscal decentralisation and established a Fiscal Decentralisation Task Force (FDTF) Implications for project: From Jan-Jun the project will focus on the following key intervention areas (outlined in following slides): 1. Supporting the work of the Fiscal Decentralisation Task Force under the Ministry of Finance 2. Monitoring inter-governmental fiscal relations and improving the way evidence is used in policy-making; focus of work – data collection, processing, analysis and use
Fiscal decentralization (1) 1.Supporting the work of the Fiscal Decentralisation Task Force •. Why: The FDTF is central to fiscal decentralization. By supporting its work, the project has significant opportunity to influence and guide reforms to be more effective, transparent, evidence-based and equitable •. Planned project activities Jan-Jun 2016: Focus is on coordinating overall efforts through the FDTF, delivering specific activities in the Green Paper and communicating with hromadas and other sub-national actors about fiscal decentralization.
a) Providing local expertise to manage and coordinate the work of the FDTF and deliver the necessary inputs b) Providing international expertise on topics identified in Green Paper, such as municipal borrowing, municipal fiscal oversight etc. c) Providing local expertise to communicate the reforms in the field of fiscal decentralisation and to provide information to sub-national actors, to new amalgamated hromadas in particular
Fiscal decentralization (2) 2. Monitoring inter-governmental fiscal relations and improving the way policy-makers collect and use data • Why: In a changing environment, such as reforms taking place in Ukraine, it is important that Ministry of Finance prepares and bases decisions on robust empirical foundation. Tools are needed to monitor the developments of sub-national budgets and to anticipate the possible policy implications. Certain tools should be transparent and made available to wider public, interested parties, elected councils, associations of local authorities, experts, NGOs etc • Planned project activities Jan-Jun 2016: Focus is on supporting the e-data team and Fiscal Decentralisation Task Force coordinated by the Ministry of Finance
Reform Process Management •
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Importance to reform process: Given the breadth of decentralization reform, it is essential that there is adequate coordination and communication between the key actors. Ministry of Regional Development is in the centre of the decentralisation reform. However, significant amount of work needs to be done by sector ministries. In each reform area, a framework is needed to coordinate Ministries and encourage greater engagement between national and local actors as well as between government, civil society and the public. Key developments Apr-Dec 2015: In both project focus areas interministerial decentralisation task forces have been established. Project also makes sure that representatives of all relevant parties are involved in all public and expert activities of the project Focus for project Jan-Jun 2016: Continue the approach throughout project lifetime
Reform Communication •
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Importance to reform process: Communication is essential to maintain the public’s support for the reform process, ensure the political momentum for change, and improve democracy in Ukraine. Transparency, openness and accountability are key principles that the project aims to inject into the reform process Key developments Apr-Dec 2015: Project has supported public communication efforts in the field of education decentralisation, and at sub-national level Focus for project Jan-Jun 2016: In Jan-Jun the project will continue its work with communication, using it as a tool to advance the creation of capable LSG framework in 159 amalgamated hromadas, to communicate the changes in the framework of education and fiscal decentralisation, and to advance decentralisation reform overall
Project-level interventions January – June 2016
Interventions at the project level • • •
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Risk management: Continuously monitoring and managing risks in the project, an updated risk management framework is at Annex B Security: The project will invest in mitigating security and safety risks during Jan-Jun 2016 Monitoring and evaluation: During 2015 the project developed a rigorous results monitoring framework which will be implemented fully in 2016 Project Communications: The project will continue to invest in communications relating to the project in general. The project is currently developing a communications strategy to guide efforts in 2016.