KEY ISSUES OF THE LOCAL SELF-GOVERNMENT REFORM IN UKRAINE

 

Mr Denys ZAPYSNYY,

Ph.D. Researcher, Classical Private University (Zaporizhia, Ukraine)

 

Today, Ukraine is facing an urgent need to implement large-scale decentralisation reform. Decentralisation in Ukraine can be viewed as a part of a wider public administration reform, which requires re-distribution of tasks, competences, and resources at central, regional, and local levels [7].

Better policy planning and co-ordination, sound administrative procedures and improved public financial management are of fundamental importance for the functioning of the local self-government system and for implementing the decentralisation reform required for integration with the EU [4]. Ukraine has to increase its efforts to improve its municipal administration on the basis of the relevant national strategy. A strong political commitment is also needed to steer the decentralisation reform process.

The Article 2 of the European Charter of Local Self-Government stipulates that the principle of local self-government shall be recognised in the domestic legislation, and where practicable in the constitution. In this regard, the ECLSG creates itself an excellent benchmark for measuring the level and the scope of the decentralisation in the countries that have already signed and ratified this main European legal instrument in the field of LSG [3].

In this context, it has to be noted that Ukraine signed the European Charter of Local Self-Government on 6 November 1996 and ratified it in 1997, without any reservations, with entry into force on 1st January 1998. Ukraine signed in 2011 and ratified in 2014 the Additional Protocol to the European Charter of Local Self-Government on the right to participate in the affairs of a local authority [1].

The Constitution of Ukraine (1996) and the 1997 Law on Local Self-Government are based on a distinction between “local communities” (hromada – citizens of village, town, city) and “administrative and territorial units”.

After several years of “stagnation” the current Ukrainian Government re-started the process of improving the local democracy and the functioning of self-governments. On 1 April 2014 the Government of Ukraine approved (by its Regulation ¹ 333-p) the new concept of the reform of LSG and territorial organisation of the authorities in Ukraine. Significant efforts are connected with changes to the Constitution in regard of decentralisation. The proposed changes passed the first reading in the Parliament in August 2015.

At the same time, the Parliament of Ukraine adopted in June 2014 the Law on Inter-municipal Cooperation and in February 2015 – the Law on Voluntary Merger of the Territorial Communities (hromadas). The process of voluntary merges was promoted by very strong financial incentives (close to cancelling of all transfers to very small municipalities, if they do not decide to merge). In such environment the voluntary amalgamation process started quite actively.  As a result 159 merged municipalities representing 794 cities, settlement and village councils participated in municipal elections in October 2015.

Changes implemented since the end of 2014 also mean that most of competences that were transferred to central government in the past, now returned or are in the process of returning to the LSG level. There is an intention to transfer some other functions of the central government to municipalities, for example in the area of construction permits [5].

In the end of 2015 the Parliament of Ukraine adopted the new Law on Civil Service which was entered into force on 1st May 2016. This law will influence the functioning of the central government level, but is expected to have positive impact also on local level. This law is also expected to help depoliticise the civil service - there will be a difference between political and administrative positions.

At the same time, it will be recommended to Ukrainian authorities to reinforce their efforts on further LSG development as an integrated part of wider public administration reform in order to pay a particular attention to the following objectives:

·          A completion of the constitutional reform in its part relating to the decentralisation of power should be treated as a priority objective: 2.  Territorial boundaries of local self-governance bodies and executive power should be defined in order to reinforce the three-tier system of administrative and territorial structure (with 27 regions, 120-150 rayons, 1500-1800 local communities);

·       A clear division of competences should be set between the local self-governance bodies of different levels (hromada, rayon and oblast). At the same time, the competences which are the most vital for peoples’ life should be transferred to the levels closest to the people  following the principle of subsidiarity;

·       A clear  division of competences should be set between the LSG bodies and local state administration bodies. The latter should transfer most of their competences to local self-governance bodies and retain only control functions;

·       The fiscal decentralisation  reform should be continued with a particular focus on the implementing each of the recommendations formulated by the EaP CSF Sub-group for Local Government and PAR in 2012;

·       The accountability of LSG bodies to the citizens of the respective hromadas should be reinforced. People will become aware that the quality of the local power operation will depend on their voting. So the quality of life will depend on the residents themselves;

·       Standards for services delivery and its financing should be developed with particular focus on education, health, and other social services. Full implementation of these standards into the state transfers/subsidies mechanisms will ensure consistent access to public services throughout the whole territory of Ukraine. This step will stimulate optimisation of social infrastructure, spending resources for increasing quality of services instead of maintenance of public utilities;

·       A more transparent framework for local budgets should be established. Increasing of local funds should be accompanied by enhancing mechanism of public control and supervision over utilisation of these funds. Local authorities have to be accountable to local communities especially in terms of planning, implementation and reporting on spending of local finances;

·       Awareness of the citizens of the decentralisation  reform, its objectives and the main results should be enhanced and promoted;

·       Further development of IMC as an important stage for further amalgamation of the communities (hromadas) should be continued. At the same time, the process of amalgamation of the communities should be further supported by the central government. In this regard, the dialogue with the newly elected mayors and local elected representatives should be reinforced; awareness raising campaigns among mayors based on success-stories and peer-to-peer approach may be also used;

·       The autonomy of LSG bodies to manage their own human resources within the framework provided by the relevant laws should be further guaranteed. At the same time, proper control mechanisms of compliance with the provisions of law should be established.  The new Law on Service in LSG Bodies should be finalised and adopted. Its quick implementation should be a priority for further realisation of the decentralisation  reform in Ukraine;

·       The delegated powers and competences should be fully financed by the central government, introduction of new privileges and bonuses should be accompanied by respective financial resources to the local budgets.

 

References and bibliography:

1.     Civil Service in Figures – 2015. National Agency on Civil Service of Ukraine, Kyiv, 2015, available at:  www.nads.gov.ua

2.     Council of Europe. Additional Protocol to the European Charter of Local Self-Government on the Right to Participate in the Affairs of a Local Authority, 2009, available at: https://rm.coe.int/CoERMPublicCommonSearchServices/DisplayDCTMContent?documentId=090000168008482a

3.     European Charter of Local Self-Government: Standing Conference of Local and Regional Authorities, Strasbourg, 1985

4.     Encyclopedia of Public Administration in 8 tomes. Group of authors headed by Y. Kovbasiuk. Kyiv, National Academy of Public Administration under the President of Ukraine. Tom 6 «Civil Service». 2011, 524 p.

5.     Kuybida V., Tkachuk A., Tolkovanov V. “Experience on the implementation of good governance standards on local level in Ukraine and other European countries”, Kyiv, “Kramar”, 2010, 317 p.

6.     Tolkovanov Vyacheslav “La mise en oeuvre du nouveau systeme de l’autonomie locale en Ukraine”. These de doctorat (droit public), Universite Robert Schuman de Strasbourg III, 2006, 405 p.

7.     Tolkovanov Vyacheslav, Tools for Ensuring Good Governance at Local and Regional Levels. PhD Thesis in Public Administration. - Zaporizhia, 2013, 436 p.