By Nadiia Petruniak, Coordinator of the Decentralisation Portal

Imagine a dialogue between two regions: one from Ukraine, which is struggling every day not only for development but also for survival, and the other from an EU country that has been working for decades under the common rules of EU regional policy. This interview is an imaginary dialogue, simplified as much as possible for the sake of perception, but it contains real problems, real challenges and real solutions. What do they have to say to each other? And why is the EU’s support for Ukraine not just about funding, but also about solidarity? This ‘dialogue’ aims to show in miniature the two worlds – Ukrainian and European – approaches to the formation and implementation of the EU’s Regional Development Agenda/ Cohesion Policy. In a few words.

The author of the dialogue would like to thank Yurii Tretiak, Director of the Centre for Cohesion and Regional Development at Civil Society Institute, for an interesting and informative lecture as part of the Cities4Cities course ‘European Integration: Impact and Opportunities for Communities’, supported by the Swedish-Ukrainian Polaris Programme ‘Support to Multi-Level Governance in Ukraine’.

“Decentralisation”: Good afternoon, dear guests! Today we are going to talk about regional development and the main differences between the approaches in Ukraine and the EU. Representatives of the Ukrainian region and the EU region will take part in the discussion. We will look at challenges, opportunities and best practices. So the first question is: What is regional policy in your country?

The Ukrainian region: In Ukraine, regional policy aims to reduce territorial disparities, improve living standards, harness the potential of regions for economic growth and prevent separatist tendencies. However, its effectiveness is hampered by insufficient funding, lack of a strategic approach and weak coordination between levels of government.

The EU region: In the European Union, regional policy is based on the principles of cohesion, which means supporting weaker regions, promoting partnerships, long-term programming and complementing national finances with EU funds. We have a clear system for monitoring and evaluating the results of the projects implemented.

“Decentralisation”: What are the main challenges for regional development in your region today?

The Ukrainian region: The most pressing problems include war-damaged infrastructure, mass migration, budget shortfalls, staff shortages and weakened institutions at all levels. In addition, the lack of a stable funding mechanism makes it difficult to implement long-term development strategies.

The EU region: We also have problems of regional disparities, but we are overcoming them through a system of multi-level governance and decentralisation. The key is a well-designed development strategy, planning based on the territories’ potential and citizens’ needs, and effective investment in development rather than absorption of substantial EU funding.

“Decentralisation”: What sources of funding for regional development are available in your region?

The Ukrainian region: Before the war, there was the State Fund for Regional Development (SFRD), but it is now defunct, as are many sectoral subsidies. Currently, the main sources are local budgets and international support.

The EU region: We use the European Regional Development Fund (ERDF), the Cohesion Fund, the European Social Fund (ESF+), the Just Transition Fund and Interreg cross-border cooperation programmes. Funding is allocated on a competitive basis according to 7-year regional development programmes.

“Decentralisation”: How do you define the priorities for regional development?

The Ukrainian region: We develop strategies at the national, regional and local level, but quite often the principle of ‘no plans without money, no money without plans’ does not work and therefore they are not always implemented.

The EU region: We work on the basis of multi-year programming, and priorities are set in line with the objectives of the EU’s cohesion policy, such as a more competitive, environmentally friendly, mobile, social and citizen-oriented Europe.

“Decentralisation”: How is the effectiveness of regional programmes monitored?

The Ukrainian region: There is monitoring, but it is often formal. There are insufficient analytical frameworks and mechanisms to assess the impact of implemented projects on the socio-economic situation.

The EU region: We have a clear system for evaluating effectiveness – each project has defined product (what has been done) and outcome (what changes it has brought about) indicators.

“Decentralisation”: How do you engage citizens in regional development?

The Ukrainian region: Public hearings are held, but they do not always influence decision-making. These hearings are often formal.

The EU region: Our citizens are actively engaged through local councils, digital platforms and participatory budgeting mechanisms. Citizens can directly influence the allocation of funds.

“Decentralisation”: How has the war affected Ukraine’s regional policy?

The Ukrainian region: The war has caused significant damage – more than 329 communities are in the combat zone or under occupation, many areas are mined and critical infrastructure has been destroyed. This requires new approaches to reconstruction and recovery.

The EU region: We recognise these challenges and are supporting Ukraine through the Ukraine Facility. This provides funding for recovery, reconstruction and modernisation at regional and local level.

“Decentralisation”: Are there special funds for the recovery of disadvantaged regions?

The Ukrainian region: We rely on international assistance and funds from the state budget. We need to create an effective mechanism for allocating funds for the restoration of the areas directly affected by the war and for the development of other communities and regions.

The EU region: There is a Just Transition Fund (JTF) for old-industrial regions transitioning to a green economy. Similar initiatives could be useful for Ukraine.

“Decentralisation”: How will public investment management reform affect Ukraine’s regional development?

The Ukrainian region: The Government has adopted a resolution on the distribution of public investment, which provides for the creation of a Single Project Portfolio. This will allow for a transparent distribution of public and international funds.

The EU region: This is an important step. The EU has been using this approach for many years – assessing projects on the basis of their economic, social and environmental impact.

“Decentralisation”: What steps does Ukraine need to take for an effective regional policy?

The EU region: Ukraine needs to strengthen coordination between central government and communities, ensure high-quality preparation of development and recovery strategies and projects, introduce high-quality project monitoring, and train local managers to work with European funds.

The Ukrainian region: We are committed to implementing these changes. International (mainly European) experience will help us create effective regional development.

This imaginary dialogue between the Ukrainian region and the region of an EU country can be continued for long. The author wanted to show that, despite all the efforts, Ukraine is still very far from European standards of regional development. Our regions face a number of serious challenges: from ineffective governance and lack of funding to poor coordination between levels of government and insufficient institutional capacity.

The EU region has reminded us that sustainable development is not just about money, but also about a clear strategy, transparency and active community participation. Their experience shows that without a systematic approach that includes planning, monitoring and evaluating results, any initiatives will remain half-measures.

Ukraine is on the verge of major changes. Getting the country’s regional policy back on its feet will require not only more resources, but also a radical change in management approaches. This means:

• strengthening institutional capacity at all levels of government;
• active involvement of communities in the decision-making process;
• implementation of European standards in project planning, financing and monitoring;
• development of human capital to provide regions with qualified staff.

This dialogue has reminded us that the road to success will be long and hard. But it has also shown that we have an example to follow – the EU’s experience, which has shown that even the most difficult challenges can be overcome if we work systematically and purposefully.

The time to act is now, because the future of our regions depends on how quickly we can implement these changes.

Register for the course ‘European Integration: Impact and Opportunities for Communities’ on the Cities4Cities Academy platform: https://academy.cities4cities.eu/euintegrationpro