Ukraine

Date of publication
août 2013
Geographical focus

The report is intended to determine the
appropriateness of the social protection system in meeting
the needs of the poor in Ukraine, and what are the changes
which can be instituted to improve such system. To this end,
the report presents the poverty measurement in the country,
assesses current social programs, and suggests a framework
for system redesign. In particular, it points at the
challenge of a transition economy, in realizing that poverty
does appear even among the employed population, while
childhood poverty does indeed affect the future of a nation.
The study presents the survey methodology, based on a
household survey, measures of income and expenditure, and of
inequality, examining the poverty line through a
multivariate analysis of poverty risks in the country,
including housing subsidies, energy arrears, in addition to
war entitlements and privileges. It finds that the Ukrainian
social support system could address social needs well, as it
has sufficient resources to do so, though currently, it does
so poorly. Thus resource allocation needs to be improved, by
targeting categorical benefits, testing asset and income
potential, as well as using indicators to substitute for the
direct measurement of income. An additional quantitative
analysis will be required to better plan management, and
effective evaluation, in addition to a system redesign to
reduce funding for poorly targeted programs, while
increasing social funding at large. A strategy is proposed
to phase-in a social assistance reform over a four-year
period, supported by the Bank.

Date of publication
août 2013
Geographical focus

This study presents a detailed analysis
of the system of environmental expenditure in Ukraine with a
particular focus on public expenditures. It examines the
extent to which the present system meets national
environmental objectives and identifies ways in which it can
be improved and made more cost-effective. Since
environmental spending is closely tied to sources of
environmental revenues (partly a result of earmarking and
partly because of the regulatory role that pollution charges
and fines play), this review also covers revenue issues. The
study is based on international systems of environmental
accounting established by Organization for Economic
Cooperation and Development (OECD).

Date of publication
juillet 2013
Geographical focus

This study provides a review of the food
and agricultural sector in Ukraine. It assesses the current
status of the food and agricultural sector with special
reference to the agricultural policy regime and the form and
level of government support to the sector. The paper reviews
the sector's readiness to compete on open global
markets for food and agricultural products. Given the
importance and sensitivity of the food and agriculture
sector in the country, the report highlights a number of
critical issues for the Ukrainian government to address. The
report goes beyond the narrower focus of the agricultural
policies and reviews the status of current rural physical
and social infrastructure and issues of rural poverty. The
Executive Summary highlights policy recommendations for
Ukrainian policymakers, while the individual chapters
provide technical analysis on key policy issues.

Date of publication
juillet 2013
Geographical focus

Favorable economic conditions offer a
window of opportunity for the Ukrainian government External
factors served as a catalyst for the economic turnaround but
policies and reforms have also played a critical role.
Nevertheless, the positive trends will weaken without vision
at the top level of government. An "insider
economy" threatens to become a primary obstacle to
Ukraine's future development and also weakens the link
between economic growth and welfare benefits for the larger
population. This report examines the obstacles to
sustainable growth and outlines the strategic vision for
economic policy and reform. Specifically, it discusses
adopting the economic strategy of European Choice, which
addresses many o f the outstanding problems emphasized in
the previous chapter. This includes strengthening legal and
regulatory institutions, improving standards o f corporate
governance, reducing subsidies, continuing reform in
agriculture, negotiating free trade agreements, and bringing
numerous standards into harmony with WTO and EU
requirements. Ukraine has also established a set o f
Millennium Development Goals for elevating key social
indicators in the direction o f EU levels. This includes
ambitious goals for poverty reduction, expanding access to
quality health and education, reducing infant mortality,
preventing the spread o f HIV/AIDS, achieving environmental
sustainability, and addressing gender inequality in the
labor market. The next task will be a more precise
formulation o f policy and reform directions that are
consistent with these underlying goals, including the
prioritizing and sequencing of specific measures to make
most effective use of the Ukrainian political process.

Date of publication
mai 2014
Geographical focus

Against the backdrop of economic
transition, several countries in Eastern Europe have
undertaken far-reaching programs to restructure their coal
sectors, which in the 1990s were in a state of deep crisis.
One aspect of restructuring has been the closure of
loss-making mines, which are often located in communities
where the coal industry is the dominant employer, and the
significant downsizing of the workforce. Mitigation efforts
that are implemented at the time of mine closure (such as
severance payments) are usually intended only for the
laid-off workers. The authors examine the impact of mine
closure on the entire community five years after mine
closure in Romania, Russia, and Ukraine. Using quantitative
and qualitative research methods and based on interviews
with national, regional, and local experts, and members of
the affected population, the authors describe the effect of
mine closure and evaluate the various mitigation efforts
that have been used by governments in such cases. They
conclude with policy recommendations of broad relevance to
programs of industrial restructuring in communities
dominated by a single industry.

Date of publication
juillet 2013
Geographical focus

This study provides a review of the food
and agricultural sector in Ukraine. It assesses the current
status of the food and agricultural sector with special
reference to the agricultural policy regime and the form and
level of government support to the sector. The paper reviews
the sector's readiness to compete on open global
markets for food and agricultural products. Given the
importance and sensitivity of the food and agriculture
sector in the country, the report highlights a number of
critical issues for the Ukrainian government to address. The
report goes beyond the narrower focus of the agricultural
policies and reviews the status of current rural physical
and social infrastructure and issues of rural poverty. The
Executive Summary highlights policy recommendations for
Ukrainian policymakers, while the individual chapters
provide technical analysis on key policy issues.

Date of publication
juin 2012
Geographical focus

This Poverty report is aimed at improving the understanding of poverty in Ukraine, and providing linkages between growth, the evolution of economic sectors, and poverty. The main findings can be summed up as follows: An absolute poverty line and a revised consumption aggregate -- jointly developed with Ukraine experts -- indicate that around 19 percent of the population lived in poverty by 2003. While in 1999 Ukraine had a poverty incidence higher than Poland, Russia, Lithuania, or Bulgaria, by 2003 it was the lowest compared with these countries. The overall improvement, however, has been paralleled by an increasing poverty gap between rural and urban households, reflecting the fast but unbalanced economic growth: The growth experience has not changed the rather stagnant level of employment. The improvement in labor markets are associated to gains in productivity and efficiency with resulting wage gains. There is also increased differentiation within workers since the fraction of underemployment has also increased, reflecting partly the subsistence agriculture, and precarious labor markets in some small towns. The combined effects of higher productivity but lower employment in commercial farms left real incomes in agriculture lagging behind other sectors. Rural areas had a slower reduction in poverty due to the combined effect of weather shocks, and restructuring in agriculture. The government has played a critical role in reducing poverty by increasing substantially the social insurance transfers. Other government transfers have become better targeted but still have very limited coverage. The reduction of poverty, however, provides a window of opportunity to reform the safety net system in order to effectively target the poor.

Date of publication
août 2014
Geographical focus

The agri-food sector is an important
part of the Ukrainian economy. Agriculture could make an
even larger contribution to economic growth and the vitality
of rural areas in Ukraine than is currently the case.
Ukraine has the agro-climatic potential to be a major player
on world agricultural markets. Agricultural competitiveness
in Ukraine also suffers from inadequate systems to test and
document food product quality and food safety.
Ukraine's food safety control system is complicated and
characterized by fragmented and often overlapping
jurisdictions. Many standards applied in Ukraine are
inconsistent with World Trade Organization (WTO) provisions,
with standards established by the responsible international
bodies and with accepted practices in international trade.
Without improvements towards an efficient and
internationally recognized food quality and safety control
system, Ukrainian agriculture will find it increasingly
difficult to sell into international markets and its
products will not be able to command top prices. The ban on
Ukrainian meat, eggs, fish, cheese, milk and butter imposed
by Russia in mid-January 2006 provides an example of the
disruptions that can result. This negative impact on
competitiveness will be increasingly acute for more
perishable products, higher-processed products and products
that combine different agricultural raw materials - in other
words many high-value added products. Policy reforms and
investments could greatly increase the competitiveness of
Ukrainian agriculture. In the policy sphere, greater
restraint should be exercised in the area of trade, market
and price policy. Ad hoc intervention on agricultural
markets should be reduced. Accession to the WTO is an
important and encouraging signal that policy makers are
willing to adopt less intrusive and more stable trade,
market and price policies. In the investment sphere,
priorities include food safety monitoring and certification
systems, trade infrastructure and logistic capacity, food
chain management, technical advisory and market information
systems, streamlined and transparent customs procedures,
land markets, and research and education institutions.

Date of publication
mars 2012
Geographical focus

This report undertakes a comprehensive
assessment of Ukraine's growth experience over the past
decade. It shows how vulnerabilities were allowed to
accumulate during the economic boom. And how growth,
averaging seven percent annually between 2000 and 2008, was
achieved without tackling Ukraine's well known
weaknesses in the investment climate and public sector
governance. The report also traces the emergence of large
structural fiscal deficits and fiscal pressures since 2004,
as buoyant revenues and terms of trade gains masked an
increasingly unsustainable fiscal position. It shows how
international excess liquidity allowed Ukraine to attract
vast capital flows, intermediated through the banking
system, while financial sector regulation remained
inadequate. And it analyzes how a poor investment climate,
low competitive pressures, limited innovation and slow
structural transformation of the economy are all interlinked
and perpetuate Ukraine's dependence on a few commodity
based exports. Consequently, the report argues, the route to
sustained recovery in Ukraine lies in deepening key reforms.
The report carries out an in-depth diagnostic of
Ukraine's growth drivers at the macro, sector and
firm-level and derives key constraints to sustained growth
from this analysis. The recommendations point to three main
challenges that deserve priority attention if Ukraine is to
re-launch its economy on a sustained growth path. First,
Ukraine has to tackle its fiscal crisis to restore
macroeconomic credibility and create fiscal space for
investments needed to support private sector growth. Second,
Ukraine needs to improve its investment climate and fix the
financial system to attract private sector investment.
Third, Ukraine needs to tackle the problems with public
sector governance through deep public sector, judicial and
administrative reforms. Since this is a large agenda, the
analysis identifies short and medium term priorities. The
report also argues that the key reforms highlighted above
are closely interlinked and that cosmetic and halfway
measures will not do.

Date of publication
mars 2013
Geographical focus

This study was carried out in three
stages during 2009 through April 2011. The main objective
of the study is to determine, on the basis of usage of
qualitative data collection methods, impact of the economic
crisis on the most vulnerable population groups, as well as
to monitor dynamics of changes in the lives of the
respondents by consistently comparing the results of each of
the consecutive stages of the project study. The study
evaluates the impact of Ukraine's economic crisis on
employment, household incomes, consumer prices, migration,
and emerging occurrences of fraud. The conclusion of this
assessment updates and supplements general information on
the impact of the crisis on different groups of urban and
rural population, with special emphasis to be paid to most
vulnerable groups, and to compare these estimates with those
which were obtained in December 2009 and June 2001.

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