While “rear” municipalities need solutions to establish cooperation with relocated businesses and create jobs for IDPs, in the eastern or northern regions, there is a need to rebuild the destroyed infrastructure and restore economic activity.

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One of the key factors in the process of rebuilding and restoring municipality territories should be collaborating with investors, creating a favourable business environment, and supporting entrepreneurial initiatives. And local self-government bodies must start working in this direction already. To help them devise effective management solutions and develop sustainable projects, U-LEAD offered municipality teams to participate in the first stage of the “Steps for Specialists. A Business-Friendly Municipality” training programme during October–December.

“U-LEAD announced a competition for participation in training in August 2022. From a large cohort of volunteers, 60 municipalities were selected, which passed a rigorous competitive selection process. Our target audience includes experts from the economics and investment departments, representatives of communal institutions who are directly involved in business development, entrepreneurship support, and creating better conditions for doing business in the municipality. Participants work in teams because then the training effect is much higher,” said Yaryna Stepaniuk, local development advisor of U-LEAD with Europe.

Teams of participants were divided into three groups so that each group had its own focus depending on the needs and condition of the territories.

“Of course, the issues that concern the municipalities in the territories outside the front line and on the verge of conflict are completely different. While the ‘rear’ municipalities need solutions for establishing cooperation with relocated businesses, creating jobs for internally displaced persons, their training and retraining, in the eastern or northern regions, they talk about the destruction of infrastructure, the restoration of life and economic activity, the lack of specialists and the population outflow, and of course about losses. These territories need solutions to return people and restore economies,” Yaryna said.

Over the course of two months, the participants learned about the principles of effective cooperation between municipalities and businesses for local economic development, especially during the war, in the perspective of post-war reconstruction. Trainers and experts of the Programme talked about the tools for business support, entrepreneurship development, and investment attraction. Also, they explained which of them are still relevant now in the conditions of war, and which should not be applied.

They paid a lot of attention to the issue of attracting funding (loans from international financial organisations, grants from donors, state programmes, etc.), and also taught how to combine various sources of funding to achieve the municipality goals.

“Here you have to think broadly and see opportunities where others see only obstacles,” stressed Ms Yaryna.

“Steps for Specialists. A Business-Friendly Municipality” is a comprehensive educational programme. It consists of three full-fledged modules that are interconnected. The participants received homework, which at the end was transformed into project ideas. Each module consists of seminars and workshops, interspersed with consultations to develop these project ideas.

Then there will be a competition between municipality project ideas. The most interesting and realistic initiatives will be selected for participation in the second stage. During that stage, U-LEAD experts together with the teams will “polish” the project applications and assist the selected municipalities in their search of funding.

“Our goal now is to help municipalities turn their ideas into full-fledged detailed project proposals. Planning expensive and long-term projects requires painstaking work: from describing the stages of implementation, conducting research and preparing documentation to discussing projects with the public.  We can expect that money will come to Ukraine, including for post-war economic recovery. That is why municipalities should already develop project proposals in order to be ready to use these funds. For our team who organised the training course, it is especially valuable that we managed to conduct this training despite a difficult security situation, power outages and air alarms, and that the municipality teams demonstrated resilience and willingness to learn in such a difficult time for them. Their activity and perseverance are inspiring,” said Yaryna Stepaniuk.

According to the expert, despite the fact that the training took place online, the programme provided many opportunities for dialogue and discussion. This was facilitated by workshops and analysis of practical cases in groups.

“Exchange of experience and discussion of ideas give a positive result. The participants performed many practical exercises, solved a number of hypothetical cases, based on which they generated ideas for solving them. And it is very important that municipalities think differently, hear the proposals and ideas of others; and they can also make a note of them like ‘Yeah, I haven’t thought in this direction yet’,” said Ms Yaryna.

The spectrum of project ideas that the municipalities managed to develop during the training is very versatile. From fairgrounds and honey processing lines to industrial parks, business support centres with “makerspaces” (spaces with tools, equipment and resources to make something: sewing, woodworking, creating electronics, etc.).

For example, Shatsk municipality in Volyn, which is known for its lakes, is looking for opportunities to overcome the challenge of business seasonality. They want to extend the tourist season for the whole year. For this purpose, they are planning to create an interactive museum, open a cinema, and trade platforms for craftsmen.

Hora municipality of Kyiv region is thinking about an industrial park with a focus on air transport. Their location near the capital and the presence of an airport on their territory contribute to the development of this field of activity.

Nova Odesa municipality of Mykolaiv region is thinking about creating a cooperative that will unite bee-keepers from local and neighbouring municipalities. In addition to processing honey and selling products, they plan to create a recreational apitherapy centre here.

“In most municipalities, we see this comprehensive approach, and it is really very valuable. Solving such economic challenges as the lack of jobs and the outflow of the population requires coordination and joint efforts of local authorities and businesses,” Ms Yaryna said.

According to the expert, it is worth starting to think about post-war recovery now, and the development of the economy cannot be postponed for later. Yaryna Stepaniuk outlined five main points that all municipalities should pay attention to.

First. Local self-government bodies are among the most important players in the process of economic recovery. As long as entrepreneurs work in isolation and the municipality stands aside, everyone loses. It is important to communicate with entrepreneurs, to hear them and help them develop, to build on their needs. They may have problems and issues that the local self-government bodies can easily solve, and there may be those that will provide a basis for new ideas and areas of cooperation.

Second. To learn, to exchange experience, to master best practices. Municipalities can always contact the regional offices of U-LEAD with Europe if there is a need for consultation on establishing a dialogue with businesses, preparing projects, etc.

Third. To devise investment proposals and to develop projects. The search for an investor, donor or lender will be much more effective if you immediately know what to offer them and what your municipality specifically needs.

Fourth. To look for partners among the neighbouring municipalities, public organisations, business associations, to establish cooperation with regional and state authorities. By teaming up, one can implement a project that will have an impact on a larger target audience, solve common problems, and attract more funds.

Fifth and most important. To believe in victory and to make every effort for this victory. To believe in the economic recovery of Ukraine. It will definitely happen, and now local self-government specialists are the key to the post-war recovery of our country.

Here’s what municipality representatives say about “Steps for Specialists. A Business-Friendly Municipality” training programme.

Olena Hlivna-Andreieva, Nova Odesa municipality of Mykolaiv region:

“My impressions of the training in a few words are the following: it was constructive, expedient, and professional. The course was really informative. I really liked that there were practical and theoretical classes and that there was a balance between them. All informational material is laid out really clearly. No less useful and really interesting was the practical work and the exchange of experience with colleagues. Each theoretical lesson was worked out in groups, which of course was effective and absolutely proper. I am sure that all the knowledge we have gained will be used for the practical implementation of projects, the establishment of relations between municipalities, and for solving the problems of municipality restoration in general. We are also especially grateful for the professionalism of the coaches, the organisation of business dialogues, practical work, the creation of a special microclimate in the group – his skills and experience are impressive.”

Yuliia Prokhorenko, Korop municipality of Chernihiv region:

“It was a very interesting and useful educational cycle. Experts talked about the complicated in simple words. It is positive that we had the opportunity to learn as a team. We are preparing a project that involves setting up a workshop for the production of pellets. We plan to use raw materials available at our enterprises, as well as purchase them from the neighbouring municipalities. We will use these pellets for heating budget institutions, as well as for the population.”

Yuliia Faizullina, Chumaky municipality of Dnipropetrovsk region:

“Thanks to participation in training, we were able to scale our ideas and systematise them into a project. We hope to receive recommendations from experts regarding the implementation of the project to open a business centre in the municipality. I liked studying because the course was close to life, and the recommendations of experts can be applied in real situations.”