printable banner

U.S. Department of State - Great Seal

U.S. Department of State

Diplomacy in Action

II. Country Assessments and Performance Measures - Ukraine


U.S. Government Assistance to and Cooperative Activities with Eurasia
Bureau of European and Eurasian Affairs
January 2007
Report
Share

Country Overview

Country Facts
  • Map of UkraineArea: 233,090 sq mi (603,700 sq km), slightly smaller than Texas 
  • Population: 46,667,646 (December 2006 est.) 
  • Population Growth Rate: -0.62% (2006 est.) 
  • Life Expectancy: Male 61.6 yrs., Female 72.38 yrs. (2005 est.) 
  • Infant Mortality: 20.34 deaths/1,000 live births (2005 est.) 
  • Gross Domestic Product (GDP): $355.6 billion (purchasing power parity, 2006 est.)
  • GDP Per Capita Income: $7,620 (purchasing power parity, 2006 est.) 
  • Real GDP Growth: 6% (2006 est.)

Overview of U.S. Government Assistance

In FY 2006, the USG provided an estimated $154.70 million in assistance to Ukraine, including:

  • $34.43 million in democratic reform programs; 
  • $16.43 million in economic reform programs; 
  • $1.93 million in humanitarian programs; 
  • $83.31 million in security, regional stability, and law enforcement programs; 
  • $16.85 million in social reform programs; 
  • $1.73 million in cross-sector and other programs; and 
  • Privately donated and USG excess humanitarian commodities valued at $25.06 million.

FY 2006 Assistance Overview

U.S. STRATEGIC INTERESTS & FOREIGN POLICY PRIORITIES

Ukraine's strategic location as a large state on the eastern border of the North Atlantic Treaty Organization (NATO) and the European Union (EU) makes it a linchpin of stability for Eastern Europe. In 2004, Ukrainians demanded fair, transparent elections and responsive government in what became known as the Orange Revolution; they elected a new government which promoted greater freedoms for the press and civil society and undertook initial steps to curb corruption. Ukraine thus advanced toward becoming a model for the region of democratic transition - a model that it is in the U.S. interest to support. The U.S. Government (USG) places a priority on facilitating Ukraine's transformation to a democratic society with a market-based economy under the rule of law, thereby assisting Ukraine to achieve its stated objective of integration into Euro-Atlantic institutions. A member of NATO's Partnership for Peace, Ukraine contributed one of the larger contingents of troops to Operation Iraqi Freedom through the end of 2005, continues to provide up to 50 staff and trainers, and also contributes to operations in Kosovo and Darfur. Ukraine inherited an extensive weapons-of-mass-destruction (WMD) infrastructure from the Soviet Union; it is in the U.S. interest to ensure that Ukraine's technological capabilities are directed to civilian purposes and are safeguarded with appropriate controls.

FOREIGN ASSISTANCE PRIORITIES

The goal of USG foreign assistance is a democratic, prosperous, and secure Ukraine fully integrated into the Euro-Atlantic community. Through its assistance, the USG seeks to help Ukrainians strengthen the democratic gains of 2004 by supporting legislation and sustainable institutions that promote democratic, judicial, legislative and market reform, human rights, and economic growth. A reformed justice system, a healthy economy, and energy security are necessary elements to ensure realization of the benefits of democracy. Assistance programs focus, too, on helping Ukraine to be an independent, law-abiding state that can be a long-term partner of the U.S.

USG democracy assistance programs promote elections administration and the development of strong political parties, legislature, civil society, and independent media. Increasing the accountability of government institutions, combating corruption, and reforming the courts and law enforcement structures strengthen the rule of law in ways necessary to sustain Ukraine's reforms.

Economic assistance programs focus on encouraging an open economic climate in which business can thrive. FY 2006 programs concentrated on trade policy, agricultural restructuring, financial services, and promoting energy security through nuclear fuels diversification, nuclear safety, energy efficiency and coal mine safety. All contribute to making Ukraine a more transparent, stable, and prosperous foreign policy partner.

To help combat security threats, programs aim to harmonize Ukraine's law enforcement structures, training, and procedures with the EU's while strengthening Ukrainian authorities' ability to prosecute corruption, intellectual property theft, and trafficking in persons. Other programs support WMD security through control of radiological materials, better control of biological pathogens, and employing former weapons scientists for civilian purposes. The United States is also the single largest country donor supporting stabilization of the existing sarcophagus over the destroyed Chornobyl nuclear reactor and construction of the new Chornobyl Shelter.

Health-related programs assist Ukraine's stability by addressing the serious HIV/AIDS epidemic in Ukraine, tuberculosis, avian influenza, and maternal/child health. Humanitarian programs in Ukraine focus on improving the daily lives of the most vulnerable through provision of medicines, clothing and adequate shelter.

OPERATING ENVIRONMENT

The government of President Yushchenko and then-Prime Minister Yekhanurov began the year with initial success in enlisting support from the business community, which had been unsettled by some of former Prime Minister Tymoshenko's policies. The March 2006 parliamentary elections were the freest and fairest in Ukraine's history. However, four months of political jockeying to form a majority coalition following the election delayed government decision-making on major policy issues. In early August, a new government formed under the leadership of Prime Minister Yanukovych. Economic growth increased in 2006 as a stronger steel market helped Ukraine's exports. Energy security became a top concern following Russia's shut off of gas supplies in January and the large increase in prices for imported natural gas.

Most USG assistance projects continued to operate successfully. However, political uncertainty slowed implementation of some initiatives. For example, Ukraine rapidly developed an anti-corruption Threshold Country Plan, which was approved by the Millennium Challenge Corporation (MCC) in June 2006, but the GOU did not agree on implementation until near the end of the year. In general, the new Yanukovych government, like its predecessors, has continued to support USG assistance efforts.

COUNTRY PERFORMANCE MEASURES

Ukrainian Democratic Reform

The "radar" or "spider web" graphs below illustrate Ukraine's democratic performance during FY 2005. Ratings are based on a 1 to 5 scale, with 5 representing the greatest advancement. These charts provide a disaggregated look at each of the indices and are reported to Congress on a regular basis. The gray shaded area represents 2005 performance levels, while the two dark lines indicate how each country compares in its progress vis-�-vis two standards: (1) the average of Romania's and Bulgaria's performance in each indicator as of 2002 (2002 was the year that Romania and Bulgaria - the "threshold countries" - were invited to join NATO and received favorable indications of future EU membership); and, (2) where the country stood in each indicator in 1999. Together, these charts provide a broad picture of where remaining gaps are in a country's performance, and to what extent these gaps are being filled. For more information, including a detailed explanation of each indicator shown in the graph, see USAID/E&E/PO, "Monitoring Country Progress in Central and Eastern Europe & Eurasia," No. 10 (August 2006). Found online at: http://inside.usaid.gov/EE/po/mcp.html

Graph shows Ukrainian Democratic Reform:  Average of Romania and Bulgaria-2002, corruption, 1.8; electoral process, 3.3; civil society, 3.7; independent media, 2.5; governance/public admin, 2.3; rule of law, 2.8

The graph above shows Ukraine's democratic reform scores in 2005* (the gray shaded area) as compared to the average of Romania's and Bulgaria's democratic reform scores in 2002 (the bold line) when they were invited to join NATO and receive favorable indications of future EU membership.

*Actual 2006 scores not yet available.

Graph shows Ukrainian Democratic Reform:  1999, corruption, 1.8; electoral process, 3.3; civil society, 3.7; independent media, 2.5; governance/public admin, 2.3; rule of law, 2.8

The graph above shows Ukraine's democratic reform scores in 2005* (the gray shaded area) as compared to its democratic reform scores in 1999 (the bold line).

*Actual 2006 scores not yet available.

Ukrainian Economic Reform

The "radar" or "spider web" graphs below illustrate Ukraine's economic performance during 2005. Ratings are based on a 1 to 5 scale, with 5 representing the greatest advancement. These charts provide a disaggregated look at each of the indices and are reported to Congress on a regular basis. The gray shaded area represents 2005 performance levels, while the two dark line indicates how each country compares in its progress vis-�-vis two standards: (1) the average of Romania's and Bulgaria's performance in each indicator as of 2002 (2002 was the year that Romania and Bulgaria - the "threshold countries" - were invited to join NATO and received favorable indications of future EU membership); and (2) where the country stood in each indicator in 1999. Together, these charts provide a broad picture of where remaining gaps are in a country's performance, and to what extent these gaps are being filled. For more information, including a detailed explanation of each indicator shown in the graph, see USAID/E&E/PO, "Monitoring Country Progress in Central and Eastern Europe & Eurasia," No. 10 (August 2006). Found online at: http://inside.usaid.gov/EE/po/mcp.html.

Graph shows Ukrainian Economic Reform: Average of Romania and Bulgaria-2002, external debt percent GDP, 4.0; private sector share, 3.5; share of employment in SMEs, 1.0; export share of GDP, 4.0; FDI pc cumulative, 1.0; GDP as percent 1989 GDP, 1.5; 3yr avg inflation, 3.5

The graph above shows Ukraine's economic reform scores in 2005* (the gray shaded area) as compared to the average of Romania's and Bulgaria's economic reform scores in 2002 (the bold line) when they were invited to join NATO and received favorable indications of future EU membership.

*Actual 2006 scores not yet available.

Graph shows Ukrainian Economic Reform: 1999, external debt percent GDP, 4.0; private sector share, 3.5;  export share of GDP, 4.0; FDI pc cumulative, 1.0; GDP as percent 1989 GDP, 1.5; 3yr avg inflation, 3.5

The graph above shows Ukraine's economic reform scores in 2005* (the gray shaded area) as compared to its economic reform scores in 1999 (the bold line).

*Actual 2006 scores not yet available.

FY 2006 Country Program Performance

Governing Justly and Democratically

Ukraine's democratic development faced a series of challenges in 2005-2006, but showed for the most part strength and resiliency. Parliamentary elections in March 2006, conducted for the first time completely on party lists, met international democratic standards and were characterized by many international observers as the best and freest in Ukrainian history, as well as in that of the former Soviet Union outside the Baltic States. The Party of Regions, in opposition to President Yushchenko, received a 32% plurality. Then in accordance with constitutional amendments that came into effect January 2006, a parliamentary majority, and not the president, selected the prime minister nominee, whose candidacy was endorsed by the President, to form a government. The process took four months, but all sides adhered to the new rules. In the end, a coalition was formed, and the Parliamentary majority selected Prime Minister Yanukovych from the Party of Regions, which had the largest faction in the parliament. Civil society remained strong and engaged; the media continued to operate freely. In Freedom House's September 2006 report, Ukraine was the only country of the former Soviet Union outside the Baltic States to receive a rating of "free."

The GOU continued to face four key democratic challenges: reducing corruption, which remained endemic in Ukraine's political and economic environment; preserving democratic achievements; assuring effective governance; and sustaining progress in strengthening the rule of law.

U.S. ASSISTANCE PRIORITIES

The top priority of USG democratic assistance was solidifying electoral process achievements and civil society advancements realized following the 2004 Orange Revolution. The final round of the presidential elections in 2004 generally met international standards, but backsliding remained a threat, as reforms were not well-grounded in Ukraine. To address its top democratic assistance priority, the USG provided assistance to: help the Central Election Commission promote free and fair parliamentary elections to support outlets for civic participation and advocacy through more sustainable non-governmental organizations (NGOs) and a professional independent media; strengthen democratic political parties; facilitate more effective and democratic governance at the local and national level; improve access to information; support local governance/decentralization; combat corruption; and support reform of the judiciary and law enforcement sectors and thus strengthen the rule of law.

DESCRIPTION OF PROGRAMS AND ACTIVITIES

USG media support included: continued promotion of a professional and financially sustainable press in Ukraine's regions; legal aid to the media; legislative drafting and advocacy to improve the climate for a free press and increase access to information; and capacity-building for media associations. USG-funded media grants focused on campaign coverage.

USG-funded grants helped civic groups, especially traditionally weaker groups in eastern and southern Ukraine, advance advocacy agendas at all levels of government. Programs placed increased emphasis on activating domestic philanthropy, promoting NGO sector professionalism, and strengthening the NGO legal climate. Small grants focused on women in governance, educating the public about Euro-Atlantic integration, and promoting youth participation in communities.

The USG funded programs in elections and political process that worked with the Central Election Commission to ensure transparent administration of the March 2006 parliamentary and local elections and to support domestic and international monitoring. A USG-funded nation-wide exit poll confirmed the parliamentary elections were free and fair.

USG assistance to parliament supported new-member orientation, faction and committee training, legislative drafting support, and assistance in broad civic vetting on key laws. Reform of the judiciary and law enforcement structures remains a key element of Ukraine's fight against corruption and its efforts to strengthen rule of law. The USG provided assistance to draft new laws central to fostering an empowered, but transparent, judiciary and law enforcement community and training relevant officials. The USG also continued to promote establishing a system of national testing to root out corruption in university admissions.

USG programs enhanced local governments' capacity to improve service delivery and develop financial planning and management strategies. They also supported citizens' participation in local decision-making.

A partnership between the USG and Ukrainian regional public libraries provided the Ukrainian public with access to information and materials about the U.S. The USG funded 108 library centers that provided free internet access to over 250,000 clients.

OUTPUTS

USG assistance supported over 100 regional media outlets and provided analytical reporting competition grants to another 22 outlets. A USG-funded legal hotline for publishers provided 1,535 legal consultations. Through USG assistance, by March of 2007 over 600 representatives from state-owned media will have learned how to privatize. In the run-up to parliamentary elections, the USG funded 11 live-television, pre-election debates as well as elections-related training for 612 journalists. The USG also funded legal assistance to journalists, and, on the day of the parliamentary elections, supported three hotlines and two press centers. One media center received USG funding to produce and broadcast twelve programs on European integration.

The U.S. funded a number of activities to build civil society. NGOs in 20 oblasts received 77 USG-funded advocacy grants. Well over 1,000 civic activists benefited from training on leadership and advocacy skills. With USG support, 35 Ukrainian civic groups actively engaged in community philanthropy. One local NGO used USG assistance to carry out 107 training sessions for 1,344 women, publish 1,320 leaflets on gender issues, and distribute 500,000 newspapers with articles about the project. Youth and civil society grants helped train 360 students. USG assistance supported the establishment of six public information centers on Ukraine's Euro-Atlantic aspirations and integration into the EU, World Trade Organization (WTO) and NATO. The centers, located in provincial libraries, provide information, in the eastern and southern parts of Ukraine most skeptical of western integration,

USG-funded programs provided elections-related training to 6,279 party poll-watchers, 175,000 elections commissioners, 1,000 judges, and over 1,000 party activists, including 439 women. USG assistance ensured that each of the 33,000 polling station commissions received training manuals and copies of the laws, that youth leadership schools took place in six oblasts, and that voter education programs distributed 1.6 million printed materials on voter rights and campaign issues. The USG supported 5,000 domestic observers, 644 international observers, and eight human rights organizations to monitor before and during the elections and ensure elections integrity.

To strengthen national governance, the USG trained 100 parliamentary staff on communications and press, funded 58 one-year parliamentary internships, and supported the parliament's development of a new version of the Parliament's website, which contains a large database of legislative activities and laws. USG assistance programs developed and distributed a package of manuals on legislative process, oversight, citizen access, information resources, and international parliamentary practice. USG-funded technical assistance supported the GOU in drafting the Criminal Procedure Code, anti-corruption legislation, and the concept on judicial reform. Two hundred and forty press secretaries in oblast administrations also received USG-funded training on media relations.

The U.S. funded a number of activities that supported anti-Corruption and the rule of law. The USG provided technical assistance to the National Commission on Democracy and the Rule of Law to produce and vet a sweeping package of draft reform legislation, including a Council of Europe-compliant Criminal Procedure Code. The USG also supported a network of 35 legal clinics providing pro-bono legal aid and funded six training programs for criminal defense attorneys. USG-funded programs piloted a case flow management system in three district-level courts, tested an alternative pre-trial detention program, and helped develop a textbook on clinical legal education. USG commercial law assistance facilitated: the drafting of seven laws; the development of 29 seminars, 12 informational guides, 24 public information events on various commercial law topics; and the training of 846 officials in enforcement of judgments. USG commercial assistance also supported making 43,000 court decisions available on the Internet. Twenty-two organizations monitored human rights and published a national human rights report.

USG assistance programs promoted local democratic governance by training more than 10,000 local government officials on various municipal management topics, and nearly 2,000 officials and citizens from 33 cities in performance-based budgeting. The USG also funded training of 48 municipal officials and 20 local government support organizations (ranging from educational institutions to professional services companies and government agencies) in strategic planning.

PROGRAM PERFORMANCE/IMPACT

The 2006 IREX Media Sustainability Index measured an improvement in independent media sustainability in 2005 (2.23, up from 1.96 in 2004 on a scale from 0.00 to 4.00). This increase reflects improvements in the business environment, legal protection of free speech, professionalism, plurality of news sources business management and supporting institutions. USG media legal aid and legislative drafting work directly contributed to these improvements. Seventy-five percent of USG-assisted television and radio stations increased their total minutes of news and information programming since 2004. Total average print revenue grew by 354% and broadcast revenue by 34% over last year.

The 2006 USAID NGO Sustainability Index showed improvements in the legal environment, financial viability, and advocacy capacity of Ukraine's NGOs in 2005. USG-supported advocacy organizations fought successfully to repeal two laws, amend five, and introduce 12 in draft. Advocacy efforts also influenced a presidential decree that included civic boards, public hearings, and environmental audits in the policymaking process. USG-supported non-governmental organizations successfully pushed for the reinstatement of tax deductions for NGOs and their donors. As a result, business financing for NGOs increased by four percent in the last year. NGO registration and licensing procedures were streamlined. An NGO-led small business loan program created 800 jobs since its inception. One-third of the women who completed USG-sponsored seminars and participated in elections were elected as local administration heads or deputies; one-tenth were elected to a district administration; and one out of 11 was elected at the province level.

In part thanks to U.S.-funded elections and political process assistance, the GOU's conduct of the March 2006 parliamentary election was found by all major elections observer missions to be largely free and fair. The U.S. funded a number of voter awareness activities before the parliamentary election. An independent survey showed a 13% increase in voter awareness between December 2005 and March 2006.

USG assistance helped improve national governance by increasing transparency and facilitating public participation. The parliament held 48 public hearings in 2006, up from 35 in 2002. Twelve factions and committees invited public input in developing legislation, up from zero in 2005. A USG-supported index registered a 26% increase since 2002 in the effectiveness of "government days" (official days devoted to parliament/public discussion of selected issues) and public hearings as tools for executive oversight.

With USG support, the National Commission for Strengthening Democracy and the Rule of Law developed and introduced a far-reaching package of draft laws on judicial reform. The Ministry of Education mandated practical legal training via legal aid clinics. Finally, the Economic Courts harmonized the application of Ukraine's Civil and Economic Codes, thus removing contradictions that formed the basis for delays and bribe-seeking. The Economic Courts launched a web-based log of judicial decisions available to the public to use as precedents.

With the aid of USG assistance, 25 local governments strengthened their legal framework by efficiently implementing performance-based budgeting. USG assistance allowed select cities to improve their marketing practices and thus garner $77 million in investment and create more than 6,400 new jobs. Eighteen communal service enterprises implemented financial management practices resulting in better water and heating services for citizens.

MEASURES OF PROGRAM EFFECTIVENESS

In order to determine how USG assistance affects a country, U.S. embassies set targets for improvement called "performance indicators." Data for these indicators are collected by research institutes, embassies and international organizations. By examining data over time, U.S. policymakers can better understand whether or not assistance programs are having the intended impact.

Please find below two important indicators in the area of Governing Justly and Democratically. In the charts, the "Baseline" refers to a starting point from which to measure progress or regression over time. The embassy and its partner organizations then agree on a "Target" figure that they hope to achieve as a result of U.S. assistance programs. The "Rank" figure is the resulting measurement. "FY" stands for "fiscal year," the period of the U.S. budget that runs from October 1 - September 30 of the following year. "CY" stands for "calendar year," or January 1 - December 31.

Performance Indicator: Political Rights Index, drawing from Freedom House Annual Report Freedom in the World as modified by "Monitoring Country Progress in Central and Eastern Europe & Eurasia," USAID/E&E/PO, #10 August 2006 (1= most free, 7 = least free). Four different dimensions of political rights are analyzed each year in the Political Rights Index: electoral process, political pluralism and participation, functioning of government, and additional discretionary political rights issues. The Political Rights Index uses a seven-point scale, to facilitate comparisons to the Freedom House indices, with 7 indicating least free and 1 indicating most free. The data upon which this ranking is based comes from the previous calendar year. Found online at http://www.usaid.gov/locations/europe_eurasia/country_progress/index.html.

 

CY 2002 Baseline

CY 2004 Rank

CY 2005 Rank

CY 2006 Target

4

4

3

3



Impact of U.S. Assistance on the Above Indicator: Extensive USG elections and political process assistance in advance of Ukraine's March 2006 parliamentary and local elections fueled improvements measured by this indicator over multiple years. Voter education, elections administration, and election monitoring helped the Government and Ukrainian civic organizations ensure that these landmark political contests were called "free and fair" by all major international observer groups.

Performance Indicator: NGO Sustainability Index (Source: USAID 1 = highest; 7 = lowest; data based on previous calendar year). Seven different dimensions of the NGO sector are analyzed each year in the NGO Sustainability Index: legal environment, organizational capacity, financial viability, advocacy, service provision, NGO infrastructure and public image. The NGO Sustainability Index uses a seven-point scale, to facilitate comparisons to the Freedom House indices, with 7 indicating a low or poor level of development and 1 indicating a very advanced NGO sector. The data upon which this ranking is based comes from the previous calendar year. Found online at http://www.usaid.gov/locations/europe_eurasia/dem_gov/ngoindex/.

 

CY 2002 Baseline

CY 2004 Rank

CY 2005 Rank

CY 2006 Target

4.0

3.8

3.7

3.6



Impact of U.S. Assistance on the Above Indicator: Continuing USG training and grant support for more vibrant civic advocacy influenced this improved indicator. Project support directly facilitated improvements in the following factors of NGO sustainability: legal environment, organizational capacity, financial viability, and advocacy.

Economic Growth

In the first half of FY 2006, Ukraine's economic growth began sluggish but accelerated each month thereafter through June. The external environment, with rising energy prices and lagging commodity prices, was unfavorable for Ukraine's export-oriented economy. However, strong consumer demand helped mitigate this downward pressure on growth. By mid-2006, commodity prices recovered. Ukraine had a GDP growth, in CY 2006, of approximately 6%. After Russia cut off gas supplies in January 2006, Russia and Ukraine came to an agreement that Russia would raise gas prices by 90%. Russia's demand that Ukraine pay European prices for gas will likely result in substantial gas price hikes for Ukraine in coming years as the price it pays comes into line with market levels. To increase its energy independence, Ukraine will need to rehabilitate its energy-inefficient industrial and municipal infrastructure, reform non-transparent state monopolistic holdings in oil, gas, coal and electric power, and diversify its supply of fuel for nuclear power plants. In 2006, inflation remained slightly over 10%. The GOU held a successful privatization auction for Ukraine's largest steel mill, but pre- and post-election political uncertainty limited other progress on privatization. Foreign investment in the banking sector surged. Ukraine made further progress on WTO accession, including by completing a bilateral market access agreement with the U.S. Ukraine was also granted market economy status by both the EU and the U.S. The Yanukovych government proclaimed that it wanted to implement a business-friendly policy. However, foreign investors viewed unfavorably some of its early-instituted policies and practices such as its arrears on value-added-tax refunds.

U.S. ASSISTANCE PRIORITIES

Key U.S. support to promote economic growth included technical assistance to strengthen the financial sector, improve commercial legislation, support WTO accession, implement international accounting practices, improve the competitiveness of SMEs and agriculture, increase access to land and credit, and create the legal and regulatory environment to support and sustain competitive markets, trade, and investment. Assistance also focused on improving bank supervision, modernizing tax administration, combating money-laundering, improving budget execution, providing macroeconomic and energy policy advice to senior government leaders, and improving energy efficiency. The USG also supported a program to improve safety practices in Ukraine's often-dangerous coal mines and enhance coal production.

DESCRIPTION OF PROGRAMS AND ACTIVITIES

In the financial sector, the USG supported the GOU to enhance the capacity of financial market regulators, establish a sound pension system, and broaden the range of financial instruments available for portfolio investment. The USG continued to develop the primary and secondary mortgage industry, financial leasing, credit bureaus, and municipal and corporate debt issuance. USG assistance also improved the credibility of financial reporting. USG support for establishing pilot municipal finance facilities enhances the effectiveness and wider distribution of municipal financing.

The USG furthered trade and investment by advising the GOU on how to complete the final steps of its WTO accession process. The U.S. also assisted the GOU to draft and adopt WTO-related legislation and to organize a public awareness campaign on WTO benefits.

The USG launched an energy sector initiative to provide technical and financial assistance to industrial energy consumers to improve their energy efficiency. The USG also provided technical assistance to the GOU on revising its Production Sharing Agreement legislation and continued to support programs to improve nuclear safety and to help Ukraine diversify its nuclear fuel supply. USG-funded oil and gas policy advisers consulted with senior GOU officials. The coal mine safety program worked to reduce accident rates with cooperating mines.

The USG assisted the GOU to improve its business-enabling environment by implementing commercial legislation, including collateral, bankruptcy, and mortgage laws, by enforcing contracts and judicial decisions, and by adopting laws conducive to foreign investment. The USG helped the High Economic Court to implement automated case file and judicial decision registry systems to increase transparency and accountability. The USG also promoted deregulation of the business environment and helped to strengthen intellectual property rights (IPR) enforcement.

USG efforts to assist agriculture focused on reforming GOU taxation, subsidies, and regulatory policies; educating agricultural experts; and restructuring of government enterprises. USG assistance programs continued to support agricultural land privatization through land titling and developed legal aid centers to assist new landowners to protect their rights. The USG also provided technical assistance to develop the fruit and vegetable value chain and improve agricultural marketing.

OUTPUTS

The USG helped the financial sector strengthen capital markets by developing an electronic disclosure system to provide financial information on 220 publicly traded companies and approximately 33,000 other companies. The USG also assisted parliament to pass a new securities law, and funded designing a conceptual framework and materials for an electronic disclosure system for private pension funds. The USG supported training 65 loan officers as certified mortgage lenders and saw the number of certified leasing specialists in Ukraine grow to 26. The USG-funded Certified International Professional Accountant program delivered courses to more than 8,000 participants in 17 oblasts and certified 2,078 accounting practitioners and 50 international professional accountants.

USG trade and investment programs provided analytical support to help the GOU sign a bilateral market access agreement, completed review of ten out of 12 general categories of food safety standards, delivered 15 seminars to assist the Ministry of Economy in implementing WTO-related public information campaigns, assisted in drafting eight of the remaining laws to enable WTO accession, reviewed and commented on the other ten remaining legal acts; and reviewed over 40draft laws for WTO compliance. USG support sent 40 young Ukrainians to internships in U.S. companies. The USG also funded training in intellectual property rights (IPR) enforcement for officers at Ukrainian agencies and supported development of an integrated IT system to operationally link their offices across Ukraine.

In the energy sector, the USG continued to fund nuclear safety assistance, including the improvement of emergency operating instructions, safety analyses, and vital upgrades for nuclear reactor security at the Zaporizhzhya Nuclear Power Plant. A USG-funded project provided six test nuclear fuel rods for qualification in the South Ukraine Nuclear Power Plant. The USG-funded coal mine safety program, active in 157 sites, improved ventilation systems, introduced roof bolting techniques to reduce rock falls, and procured directional drilling equipment to remove methane from mines.

To help improve Ukraine's business-enabling environment the USG supported training 105 participants in commercial legislation; organizing 20 commercial law media events; introducing amendments to key laws on judicial enforcement, state executory services, public auctions, and bankruptcy; and training 846 Regional State Executory Officers in enforcement of judicial decisions. USG support to establish the Registry of Judicial Decisions for the Economic Courts made over 43,000 decisions available to the public. USG projects also helped pass a permit system law, open 41 one-stop-shops for permit issuance, and train over 700 municipal administrators in implementation of the permit system law.

USG assistance to Ukraine's fruit and vegetable industry facilitated $7 million in traded produce and developed a web-site visited by over 20,000 businesses monthly. A USG-funded land titling project completed urban land privatization for 15,547 enterprises and agricultural land privatization for 1.2 million individuals. USG agricultural fellowship and faculty exchange programs trained ten Ukrainian experts. The 25 USG-supported legal aid centers assisted 229,120 citizens to recover $360,000 in rent debts. A USG-funded project promoted agricultural policy and legal and regulatory reform by mobilizing civil society to lobby against a law that provided discriminatory subsidies to profitable poultry producers, for cancellation of an indirect VAT subsidy on agricultural sales, for adoption of plant and animal standards, and for wholesale markets legislation. With USG support, the project also held over 30 roundtables on policy issues.

PROGRAM PERFORMANCE/IMPACT

USG assistance helped Ukraine's financial sector contribute to economic growth in several areas. USG certified mortgage lender training contributed to increased mortgage origination and overall growth of the mortgage market. The volume of mortgage lending increased to $2.9 billion or 3.1% of GDP, and the volume of annual new leases reached $270 million. USG support for preparation of the business plan for the First National Bureau of Credit Histories and passage of the credit bureau law contributed to ensuring the institution's sustainability, a key factor in promoting greater lending. The parliament passed the Mortgage Bond Law which will provide banks with long-term liquidity and secure tradable instruments for institutional investors. As a result of USG assistance in pilot municipal bond issues, a number of smaller cities have either issued or are in the process of registering new bond issues.

USG assistance supported increased trade and investment by assisting the GOU to harmonize with international standards in order to reduce technical barriers to trade, reduce the cost of production, and increase access for Ukrainian food products to WTO markets. USG assistance helped the GOU to establish the National Codex Commission to harmonize Ukrainian standards with the international food standards set in the FAO and WHO's Codex Alimentarius. The USG also assisted the GOU to become a member of the International Plant Protection Convention in May 2006. USG assistance supported public awareness campaigns that increased public support for Ukraine's WTO membership and led to the enactment of many WTO-related laws, thus bringing Ukraine closer to WTO membership. USG projects supported the GOU's improved IPR enforcement. As a result, the USG in 2006 restored trade benefits and upgraded Ukraine to Priority Watch List status under Special 301.

Extensive USG assistance over the past 12 years has allowed the GOU to markedly improve its knowledge, tools and capabilities in nuclear plant safety. The USG-supported trial of six fuel assemblies in a Ukrainian nuclear reactor qualified an alternative nuclear fuel supplier for Ukraine. Coal mine fatalities in Ukraine have declined for five years in a row.

Parliamentarians and GOU policymakers markedly increased their reliance on the USG-supported Commercial Law Center for assistance in developing legislation that reflects market principles and international best practices. When adopted, this legislation ultimately will result in a more "commerce friendly" legal environment.

USG assistance in agricultural land privatization enabled over 300,000 land titles to be issued, developed a land market, and provided for the systematic protection of property rights. As a result of USG assistance to the fresh fruit and vegetable value chain, over 30% of fresh fruit and vegetables produced are now sold to commercial food processing plants. Food processing has grown annually by 20%; supermarket retail sales of produce have grown by 30% annually; government tax collections have increased, and rural livelihoods have improved. Agricultural policy assistance has focused private sector agricultural associations to develop common positions that benefit the entire sector, not particular interests. In 2006, lobbying by private sector agricultural associations succeeded in preventing one indirect subsidy and removing a second and to promoting regulatory changes that have contributed toward WTO accession.

MEASURES OF PROGRAM EFFECTIVENESS

In order to determine how USG assistance affects a country, U.S. embassies set targets for improvement called "performance indicators." Data for these indicators are collected by research institutes, embassies, and international organizations. By examining data over time, U.S. policymakers can better understand whether or not assistance programs are having the intended impact.

Please find below two important indicators in the area of Economic Growth. In the charts, the "Baseline" refers to a starting point from which to measure progress or regression over time. The embassy and its partner organizations then agree on a "Target" figure that they hope to achieve as a result of U.S. assistance programs. The "Rank" figure is the resulting measurement. "FY" stands for "fiscal year," the period of the U.S. budget that runs from October 1 - September 30 of the following year. "CY" stands for "calendar year," or January 1 - December 31.

Performance Indicator: Enterprise Reform Index (1-low to 4-high). Source: European Bank for Reconstruction and Development. The data upon which this ranking is based comes from the previous calendar year. Found online at: http://esdb.cdie.org.

CY 2002 Baseline

CY 2004 Rank

CY 2005 Rank

CY 2006 Target

2.0

2.0

2.0

2.0



Impact of U.S. Assistance on the Above Indicator: Although this indicator has not improved in the past four years, it also has not deteriorated. This is significant due to the influence of those who lobby against greater reform. USG programs, particularly in reforming the financial markets environment, continue to help Ukraine lay the foundation to make progress in improving the business environment. The CY 2006 target is not higher than the CY 2005 target because the long pre- and post-parliamentary election period of political uncertainty resulted in few major GOU reform initiatives.

Performance Indicator: Forex and Trade Liberalization Index (1-low to 4-high). Source: European Bank for Reconstruction and Development. The data upon which this ranking is based comes from the previous calendar year. Found online at: http://esdb.cdie.org.

CY 2002 Baseline

CY 2004 Rank

CY 2005 Rank

CY 2006 Target

3.0

3.0

3.3

3.5



Impact of U.S. Assistance on the Above Indicator: The USG's efforts to assist Ukraine's WTO accession have brought Ukraine to the threshold of WTO accession, including legislation to bring its trade regime fully into line with WTO standards.

Investing in People

While Ukrainians enjoyed an overall better standard of living in FY 2006, there remained significant income disparities. Poverty remained widespread, particularly in rural areas. Despite President Yushchenko's call for a focus on improving national health care, the health care system remained under-funded. Growth rates of HIV/AIDS infection were among the highest in Europe; the epidemic shows signs of spreading out of the original affected groups of intravenous drug users and sex workers. The GOU's response to the HIV/AIDS and tuberculosis epidemics remained ineffectual. Some international initiatives met with GOU resistance, and some donors suspended programs because of inadequate GOU protections against diversion of assistance funds. On the positive side, civic organizations made an increasing contribution to debate over health and environmental policy in Ukraine. The GOU cooperated with the international community on combating avian influenza; Ukraine had outbreaks of avian influenza among wild and domestic birds, but no human cases.

U.S. ASSISTANCE PRIORITIES

U.S. assistance priorities include: reduction of HIV transmission and impact; prevention and control of tuberculosis; reduction of high abortion rates and maternal mortality; and provision of family-care options for orphans and vulnerable children. USG assistance also helped Ukraine cope with avian influenza.

DESCRIPTION OF PROGRAMS AND ACTIVITIES

USG HIV/AIDS assistance provided preventive information and services to populations most at risk of HIV/AIDS. USG also supported training, promotional materials, and media events to promote more tolerant attitudes towards people living with HIV/AIDS. USG tuberculosis assistance supported the GOU's efforts to adopt the internationally recognized Directly Observed Treatment Short Course Strategy (DOTS) as national policy. USG-supported mother and infant heath activities worked to change attitudes of Ukrainian regional health professionals, the Ministry of Health (MOH), and Ukrainian academics to endorse a new family-centered approach to pregnancy and birth. USG assistance in the area of family planning and reproductive health supported the use of modern contraception by working with the medical community and the MOH to develop a technically-sound national plan, identify opportunities for local financing, revise training curricula, help providers to update their skills, and perform pilot outreach to clients. USG programs on avian influenza helped provide personal protective gear for first responders, increase Ukrainian laboratories' diagnostic capabilities, and provide public education to increase awareness about both the dangers of avian influenza and prevention measures for the general public and for poultry owners. To protect vulnerable children, the USG-supported the implementation of local action plans for family-based care.

OUTPUTS

In the area of HIV/AIDS, the USG supported training of 27 regional health departments and 373 specialists in voluntary counseling and testing and funded the production of 22,000 copies of the new national protocol. With USG funding, 24 local NGOs provided preventive information and services to high-risk groups at 22 new sites. The number of USG-supported health facilities preventing mother-to-child transmission more than doubled from 14 to 29, and 400 doctors and midwives were trained in preventing transmission from mother to child. In addition, all eight of the regions most affected by HIV/AIDS regions scaled-up services for HIV-positive pregnant women. Scaling up allowed them to serve 24,000 women and enabled 82 HIV-positive mothers not to abandon their newborns. To promote tolerant attitudes towards people living with HIV/AIDS, 62 master trainers living with HIV/AIDS and 1,006 instructors from various social, health and educational institutions were trained and in turn trained 11,510 peer educators.

To help combat tuberculosis, the USG supported introduction of a new curriculum for medical students to institutionalize DOTS-based services. USG-funded programs conducted surveys of multi-drug resistant TB and TB/HIV co-infection, which informed the first treatment protocol for multi-drug resistant TB. The roll-out of DOTS from one pilot region to five additional highly TB-burdened regions brought DOTS coverage to 40% of Ukraine's population.

The USG helped the MOH to develop a new 10-year national reproductive health plan and to conduct an assessment of the health-financing system. USG-supported national academies formulated family planning and reproductive health curricula for a range of health providers and trained obstetrics-gynecology specialists in evidence-based medicine. The USG supported Ukraine's first national obstetrics-gynecology congress, attended by 700 specialists.

To ensure sustainability of best practices in maternal and child health, USG-funded programs endorsed 42 evidence-based protocols for obstetric and neonatal care and distributed 13,000 copies of these protocols. The USG also funded training for more than 1600 health professionals, and graduated another 122 expert trainers.

The USG provided avian influenza personal protective gear worth $100,000 to first responders at the Ministry of Emergencies and procured four Polymerase Chase Reaction diagnostic machines for laboratories of the MOH and Ministry of Agrarian Policy. The USG also supported increased public awareness through educational materials, broadcast spots, journalist training, and engagement with local organizations and local government representatives in high risk areas for avian influenza. A USG-funded seminar trained 200 health, veterinary, and emergency personnel in avian influenza response and detection.

USG support provided funding to 37 NGOs and 13 public service providers to protect vulnerable children by implementing family-based services. The USG-funded programs provided related training for 4,788 people including service providers, decision makers, parents, children, and media representatives. USG-funded programs initiated foster/adoptive parent recruitment and related awareness raising campaigns for the general public resulted in 15,910 media references, 155 media products, and 160 community events.

PROGRAM PERFORMANCE/IMPACT

USG HIV/AIDS assistance increased coverage of preventive information and services to populations most at risk of HIV/AIDS from 25% to 31%. USG support for training, promotional materials, and media events promoted more tolerant attitudes emerged towards people living with HIV/AIDS. USG assistance ensured that 24,950 people received voluntary counseling and testing in 146 project-supported centers, 89% of HIV-positive pregnant women were provided with anti-retroviral prophylaxis to prevent transmission to their newborns, and 95% of infants exposed to HIV received anti-retroviral prophylaxis and replacement feeding. Increased capacity of health care providers, achieved through USG-supported training, reduced stigma and discrimination. As a result, pregnant women received high quality services in voluntary counseling and testing, prevention of mother-to-child transmission and post-partum family planning counseling. In one supported site, a referral network was created which united 27 organizations to actively refer HIV-infected pregnant women to social services.

With USG support, the MOH adopted DOTS as Ukraine's national policy for the first time in over 70 years of MOH TB control efforts. Coverage of DOTS-based services was expanded from 10% to 40% of Ukraine's population, with specific coverage of the east and south where the burden of HIV and TB is greatest. The original pilot region maintained TB cure rates of 68-72% and increased smear-positive case detection rates to 62%. This progress enabled the USG to hand over TB activities to the regional administration authorities and engage them in training their peers in neighboring regions. This hand-over of responsibility represented a significant sustainability achievement. TB smear-positive case-detection rates in newly participating regions reached 60%. Surveys documented higher rates of MDR-TB (15% of all new TB cases and 42% of previously treated cases) and TB-HIV co-infection (16% of all new smear-positive cases) than found through routine surveillance.

Implementation of the USG's maternal child health approach virtually eliminated newborn hypothermia, decreased neonatal mortality by 60%, and minimized post-partum complications in pilot sites. USG support enabled the MOH to revise, develop, legalize and disseminate more than 40 national obstetrical and neonatal protocols in line with international standards.

The U.S. was one of the most active international donors in providing assistance against avian influenza. USG assistance enhanced Ukraine's ability to detect and respond to avian influenza outbreaks, both in human and animal populations, by providing Ukraine with additional diagnostic and laboratory capacity under the Biological Threat Reduction Initiative Agreement.

USG social sector assistance for vulnerable children led to the establishment of eight foster families and one family-type home. Even more importantly, USG assistance contributed to a momentous change in attitudes among child welfare decision-makers and service providers in favor of family preservation and family-type placements for children outside of or at risk of being outside of family care.

MEASURES OF PROGRAM EFFECTIVENESS

In order to determine how USG assistance affects a country, U.S. embassies set targets for improvement called "performance indicators." Data for these indicators are collected by research institutes, embassies and international organizations. By examining data over time, U.S. policymakers better understand whether specific assistance programs are making their intended impact and, if necessary, how to adjust these programs to improve the impact.

Please find below two important indicators in the area of Investing in People. In the charts, the "Baseline" refers to a starting point from which to measure progress or regression over time. The embassy and its partner organizations then agree on a "Target" figure that they hope to achieve as a result of U.S. assistance programs. The "Rank" figure is the resulting measurement. "FY" stands for "fiscal year," the period of the U.S. budget that runs from October 1 - September 30 of the following year. "CY" stands for "calendar year," or January 1 - December 31.

Performance Indicator: New HIV infections reported per 100,000 - Number of new persons for whom HIV seropositive test was found during the calendar year. Source: World Health Organization. Found online at: http://data.euro.who.int/hfadb/.

CY 2002 Baseline

CY 2003 Number

CY 2004 Number

CY 2005 Target

15.39

17.17

21.62

29.2



Impact of U.S. Assistance on the Above Indicator: With only one in six HIV-positive Ukrainians aware of their HIV status, USG -supported prevention programs reach out to populations most at-risk and persuade them to be tested for HIV, to engage in protective behaviors to prevent further transmission, and to seek treatment and care when needed. In FY 2006, coverage of prevention efforts increased from an estimated 25% to 31% of the target population, contributing to an increased detection or registered incidence of new HIV infections. Continued USG-supported expansion of coverage in FY 2007 will support detection of even higher rates of new HIV infections.

Performance Indicator: Maternal deaths reported per 100,000 live births - Number of women who die due to puerperal causes. Source: MOH, Government of Ukraine 2006.

CY 1996 (Baseline)

CY 1997

CY 1998

CY 1999

CY 2000

CY 2001

CY 2002

CY 2003

CY 2004

CY 2005

CY 2006 Target

34.3

30.9

29.5

26.5

26.2

24.1

22.5

17.4

13.8

17.6

14.5


Impact of U.S. Assistance on the Above Indicator: The USG's project for improved care during pregnancy and birth reduced maternal deaths in the 16 project pilot sites in FY 2006. However, these 16 pilot sites did not provide sufficient coverage to reduce national rates. With estimates of one abortion for every live birth and 25% of maternal deaths due to abortion complications in CY 2002, the USG's new project to increase the use of modern contraceptives will reduce the reliance on abortions as a method of family planning, thus reducing maternal deaths. Expanded geographical coverage of both projects in FY 2007 is expected to begin reducing national rates.

Peace and Security

Ukraine has been both a source and transit country for weapons and destabilizing criminal activity. President Yushchenko strengthened bilateral cooperation on the entire range of non-proliferation and regional security issues. The USG also served as lead nation in a NATO Partnership for Peace project to eliminate excess and unsecured small arms and light weapons including Man-Portable Air defense Systems (MANPADS) which otherwise could threaten civil aviation if they fell into terrorist hands. In 2006, the GOU and USG continued to eliminate strategic weapons and related infrastructure and expanded cooperation to controlling biological and radiological sources. Meanwhile, the Ukrainian military continued its transformation into a more modern, smaller force as Ukraine advanced its integration into Euro-Atlantic institutions. Ukraine continued to contribute peacekeeping forces and support to a number of regions, particularly Iraq, Kosovo, and Darfur. President Yushchenko set out ambitious targets to harmonize Ukraine's law enforcement and criminal justice system with Europe's. The GOU identified the need to strengthen its capabilities to combat corruption and trafficking in persons, major problems in Ukraine. Ukrainian law enforcement structures, with the exception of the Office of the Prosecutor General (OPG), began actively to embrace this agenda. OPG resistance has hampered law enforcement and criminal justice reform. International programs to assist stabilization and decommissioning at the Chornobyl nuclear site largely stalled over technical difficulties. Planned construction of the Chornobyl shelter confinement, administered by the European Bank for Reconstruction and Development, did not make progress due to tender award challenges and internal investigations.

U.S. ASSISTANCE PRIORITIES

In FY 2006, USG assistance enhanced the physical security of facilities that store radioactive material and radiological sources. The USG supported the elimination of Ukraine's remaining strategic bombers and continued efforts to eliminate WMD infrastructure. USG technical and material assistance and training enhanced the capabilities of the Ukrainian State Border Guards and State Customs Service to deter, detect and interdict illicit trafficking of WMD and associated materials and supported civilian research by former weapons scientists. The USG agreed to provide assistance to enhance the GOU's ability to detect dangerous pathogens, including the H5N1virus that causes avian influenza. USG assistance also enhanced Ukraine's interoperability with NATO forces. In particular, USG assistance helped Ukraine form a NATO-compatible Joint Rapid Reaction Force (JRRF) and an all-professional Noncommissioned Officers (NCO) Corps. USG programs help the GOU harmonize its law enforcement structures, training, and procedures with the EU's; strengthen the GOU's ability to prosecute corruption, intellectual property theft, and trafficking in persons; and help Ukraine enhance border security, prevent trafficking in persons and protect trafficking victims. To assist Ukraine in the aftermath of the Chornobyl nuclear accident, the USG places a priority on supporting the international effort to replace the deteriorating sarcophagus around the destroyed Chornobyl nuclear reactor and decommission the reactor site.

DESCRIPTION OF PROGRAMS AND ACTIVITIES

USG assistance worked to minimize illicit trafficking of special nuclear and other radioactive materials and to enhance the security of radiological sources at various Ukrainian agencies and state enterprises. To help prevent the proliferation of WMD expertise, the USG funded civilian research undertaken by Ukrainian scientists. The USG also assisted Ukraine in developing and strengthening its export control system to halt the proliferation of WMD, their delivery systems, and other destabilizing weapons. USG-supported programs eliminated nuclear-capable bombers and missiles, dismantled former nuclear weapons storage sites, and worked to prevent accidental or intentional release of dangerous biological pathogens.

USG programs to increase military interoperability and support peacekeeping included providing tactical communications packages and visit, board, search and seizure equipment and training to Navy JRRF vessels. The USG also provided the Ministry of Defense and Ukrainian military with defense planning assistance, battle staff training capability, NCO Corps development strategies, and operational-level communications gear. The USG also funded attendance at War and Staff Colleges, professional education for the civilian defense work force, and tactical courses for officers in key JRRF units. Work continued on programs to develop a modern cost-effective simulation training capability for tactical unit staffs. The USG and GOU began work on a communication system to achieve the interoperability of Ukraine's JRRF with NATO. The USG and GOU also began pre-deployment training for Operation Active Endeavor (OAE) in the Mediterranean

The USG supported a national commission's work on a concept paper for comprehensive law enforcement reform to bring Ukraine's law enforcement in line with European standards. USG programs promoted transforming the State Border Guard Service from a Soviet-era, paramilitary organization into a professionally staffed, civilian law enforcement body that meets EU norms. USG programs helped the MOI develop and begin to implement an internal anti-corruption strategy, strengthen its TIP and IPR investigative capabilities, and begin to implement a modern, secure information network for the national police force. USG-supported efforts to counter human trafficking focused on building capacity and networks to institutionalize prevention and victims' assistance.

The USG is the largest single country donor supporting the stabilization of the existing Chornobyl sarcophagus and reconstruction of the new Chornobyl Shelter.

OUTPUTS

A USG-funded program completed engineering surveys of ten sites for installation of radiation detection equipment to minimize trafficking of special nuclear and other radioactive materials. Five border crossings with Moldova will be fully operational with USG-installed radiation detection equipment by February 2007. USG programs upgraded physical security at oncology clinics, research institutes, and state enterprises for the secure storage of radiological sources. Through USG assistance, seven registry offices became operational for registering, controlling, and accounting for radiological sources in Ukraine. USG programs worked with three research facilities on disposition of highly enriched uranium material and conversion of reactors to low-enriched uranium. The Science and Technology Center - Ukraine approved ten new research projects in Ukraine for USG funding. The USG also provided equipment and training for the Border Guards and Customs Service to help to bolster enforcement and detection capabilities at borders and ports of entry.

With USG assistance, Ukraine eliminated the last TU-22M Backfire bomber, as well as TU-142 Bear maritime patrol aircraft, Kh-22 nuclear air-to-surface missiles, and strategic bomber trainers. Work continued on dismantling four former nuclear weapons storage sites.

With U.S. support, the Ukrainian Navy prepared to participate with NATO forces in the NATO's key counterterrorism/counterproliferation operation, OAE. The Ukrainian armed services established their first-ever schools for professional NCOs and trained 610 sergeants and petty officers in the first year. The USG-sponsored Battle Staff Training Center trained over 782 officers for participation in coalition operations. To foster long-term reform of Ukrainian military education, the USG funded the training of 101 military and defense-associated personnel.

With USG support, the Border Guards' Training Center introduced four new courses into its curriculum. The USG also supported developing an action plan to introduce an EU-compliant border guard risk and criminal analysis system. USG- and EC-funded experts assessed the Border Guards' primary training facility and recommended introducing the EU core border curriculum. USG experts helped the Deputy Minister of Interior develop preventive corruption measures. USG experts also worked with the MOI computer department to develop a MOI technical team capable of designing, developing, and operating an MOI agency network while simultaneously ensuring the protection of MOI databases. Finally, a USG-funded program provided the MOI's Anti-TIP Department with a series of courses to improve the identification, intelligence gathering, and investigation of non-sexual forms of trafficking USG assistance also enabled the network of NGOs assisting trafficking victims to expand from 60 to 70 organizations. The NGO network provided psychological, legal, and medical assistance for 1,158 victims of trafficking.

EBRD made a preliminary contract award recommendation for the new Chornobyl shelter in early 2006, but because of a bidder protest, the contract discussions are expected to continue through early 2007. Stabilization measures for the existing sarcophagus have been completed, and construction of support facilities is nearing completion

PROGRAM PERFORMANCE/IMPACT

USG-funded security upgrades at 46 oncology clinics and four commercial and industrial facilities resulted in securing a large number of radiological sources of potential proliferation concern. USG-funded programs continued to find civilian project employment for former weapons scientists, thereby lessening the chances that they would be lured away to proliferator countries.

USG assistance contributed to Ukraine's increasing capacity to promote regional stability through its growing involvement in peacekeeping activities and continuing adoption of Euro-Atlantic norms, in accordance with Ukraine's NATO Action Plan and annual Partnership Goals. The Ukrainian military has approximately 587 soldiers deployed in 11 overseas missions. Combat units are on the ground in Liberia and Kosovo. Meanwhile, Ukraine has provided 101 personnel to UN observer teams in Iraq, Liberia, Congo, Ethiopia, Georgia, Sudan, Moldova, Kosovo, and U.S. Central Command in Florida.

Supported by USG assistance, the Border Guard Service introduced Western, civilian training methodology and training courses into its curriculum. The MOI also begun to implement preventive anti-corruption measures to change the attitude of Ukraine's national police force toward corruption. USG assistance provided the MOI with the in-house technical capability to develop, with further USG assistance, a modern, sustainable information network through the use of open net source software and data compression technology.

The MOI's Department for Combating TIP strengthened its investigative skills. USG efforts strengthened the capacity of civil society to reach and assist victims of human trafficking. Ukrainian NGOs identified and assisted 89% of all newly identified victims in the country.

Successful progress on Chornobyl sarcophagus stabilization efforts increased the security and longevity of this structure. Progress will be needed on the new shelter to provide further protection against release of radioactive contamination.

MEASURES OF PROGRAM EFFECTIVENESS

In order to determine how USG assistance affects a country, U.S. embassies set targets for improvement called "performance indicators." Data for these indicators are collected by research institutes, embassies and international organizations. By examining data over time, U.S. policymakers can better understand whether or not assistance programs are having the intended impact.

Please find below an important indicator in the area of Peace and Security. In the chart, the "Baseline" refers to a starting point from which to measure progress or regression over time. The Embassy and its partner organizations then agree on a "Target" figure that they hope to achieve as a result of U.S. assistance programs. The "Rank" figure is the resulting measurement. "FY" stands for "fiscal year," the period of the U.S. budget that runs from October 1 - September 30 of the following year. "CY" stands for "calendar year," covering events from January 1 - December 31 of the subject year or last calendar year.

Performance Indicator: Judicial Framework and Independence Rating (formerly Constitutional, Legislative, and Judicial Framework Rating). Highlights constitutional reform, human rights protections, criminal code reform, judicial independence, the status of ethnic minority rights, guarantees of equality before the law, treatment of suspects and prisoners, and compliance with judicial decisions. (7-point scale: 1=highest, 7=lowest). The data upon which this ranking is based comes from the previous calendar year. Source: Freedom House, Nations in Transit. Found online at: http://www.freedomhouse.org/research/nattransit.htm.

CY 1999 Baseline

CY 2004 Rank

CY 2006 Rank

CY 2007 Target

4.75

4.75

4.25

4.0



Impact of U.S. Assistance on the Above Indicator: The GOU has welcomed USG assistance to improve the conditions and structure of the judicial system to make it more effective, balanced, and less subject to corruption. USG efforts complement other donor efforts such as EU initiatives that seek to improve Ukraine's long-term eligibility for EU membership.

Humanitarian Assistance

Ukraine's economic and political reforms have improved conditions for the poor and vulnerable, particularly in western urban centers. However, conditions for people living in the extreme south and east of the country remain very difficult. The USG and GOU have cooperated to find solutions to this disparity in social conditions. In the interim, the USG continued its humanitarian program to meet basic survival needs of these left behind groups through distributions of commodities and provision of basic services.

U.S. ASSISTANCE PRIORITIES

USG humanitarian programs in Ukraine continued to focus on improving the daily lives of the most vulnerable, often institutionalized, persons living in remote areas without even the most basic of necessities. The provision of medicines, clothing and adequate shelter remains the top priority for humanitarian efforts. In addition, USG assistance bolstered local and USG disaster and crisis response capability. The highest priority was given to programs assisting people in eastern coal-mining oblasts and in Crimea.

DESCRIPTION OF PROGRAMS AND ACTIVITIES

In FY 2006, the USG humanitarian efforts included an ongoing commodity distribution project, an ongoing healthcare services project, water supply projects, and an airlift to mark the twentieth anniversary of the Chornobyl disaster.

The USG funded a medical clinic in Mariupol, a mobile medical unit, and rural nurse stations. This three-tiered program provided basic medical and diagnostic services to underprivileged and remote rural populations throughout the year. The USG also funded cardiovascular and mammography screenings.

In April 2006, the USG delivered an air shipment of medicines and medical supplies valued at approximately $3 million as a symbolic gesture of remembrance and goodwill on the twentieth anniversary of the Chornobyl nuclear accident. The GOU granted this cargo a one-time dispensation to import pharmaceuticals into Ukraine.

USG-funded water supply projects implemented in 2006 provided potable water to thousands of Crimean villagers. In addition, the USG implemented a program designed to provide medical equipment, supplies and other relief items to Crimean Tatars and previously un-reached populations in the eastern coal-mining oblasts of Ukraine.

In addition to the above activities, the USG funded a program that provided free shipping to any registered U.S. charitable organization that wished to send humanitarian commodities to local partners in Ukraine. This program allowed more than two dozen U.S. charities to deliver and distribute 89 containers of humanitarian relief items to needy populations throughout Ukraine. Programs benefited various children's institutions, elderly homes, provided wheelchairs and other ambulatory aids and

OUTPUTS

The primary focus of the USG humanitarian program is the distribution of humanitarian commodities, for which need has been verified, to vulnerable persons beyond the reach of other USG assistance programs and GOU social welfare spending. Overall in FY 2006, the humanitarian program delivered 181 surface containers and one airlift of various humanitarian commodities valued at $25.06 million. The cost to transport, distribute and monitor these commodities was just over $1.7 million. Commodities delivered included, medicines, medical supplies, shelter items, clothing, shoes, food, blankets, linens, hygiene kits and school supplies. In addition to the April 2006 airlift of approximately $3M in medicines and medical supplies, the USG funded the transportation of 89 containers valued at $8,729,488.98. The USG provided poor, unemployed coal miners and other vulnerable persons in Eastern Ukraine 64 containers of various medical and relief aid valued at $11.5 million. This total includes 25 containers of defense excess medical equipment refurbished, retrofitted, and calibrated by the USG. The USG-funded water supply project in the village of Novozhilovka in Belogorsk region provided potable water to 1,950 residents, about half of whom are internally displaced people.

PROGRAM PERFORMANCE/IMPACT

Humanitarian programs, while significantly impacting the day-to-day lives of recipients, are not designed to have long lasting impacts on recipient countries; however, some aspects of these programs assist in sustainable development. The provision of relief supplies and the renovation of facilities alleviate some of the burden placed on the GOU and allow for resources to be focused on democratic and economic reforms that will enable the country to care for its own. In addition, humanitarian programs foster greater cross cultural understanding between our two countries and can stand as a foundation for future economic and cultural exchange activities. Lastly, humanitarian programs can help the local government identify areas in need of improvement and act as a blueprint for how to begin solving social welfare problems.

FY 2006 Funds Budgeted for U.S. Government Assistance to Ukraine [PDF format]



Back to Top
Sign-in

Do you already have an account on one of these sites? Click the logo to sign in and create your own customized State Department page. Want to learn more? Check out our FAQ!

OpenID is a service that allows you to sign in to many different websites using a single identity. Find out more about OpenID and how to get an OpenID-enabled account.