Decentralisation in Ukraine is a series of reforms to give additional power and resources to local authorities. This process was intended to advance regional development and border reform. Successful steps have been taken. Angela Merkel,[1] Georg Milbradt[2] and Hugues Mingarelli[3] praised the reforms. In opinion of financial experts (PhD Yеvhеn Мarynсhak) decentralizing public funds of territorial communities, the state should use real instruments that can help create a strong regional economy on the territory.[4]
The decentralization reform had the following provisions:
The reform consists of three key components:[5]
After Ukraine gained independence in 1991, the state increased local/regional government powers. In 1997 Ukraine ratified the European Charter of Local Self-Government, and adopted regulatory acts that established such powers. However, discussions concerning larger scale organisation as a rule concerned the distribution of powers at the national level.
Following Euromaidan in 2014, the new government launched a national project "Decentralisation" (Ukrainian: Національний проект "Децентралізація"), on 1 April.[6] The government of Volodymyr Groysman identified support for decentralisation as one of its priorities.
During the reform, local budget revenues grew from ₴68.6 billion in 2014 to ₴146.6 billion in 2016. By the end of 2017, local budget revenues had reached ₴170.7 billion. In addition, amalgamated hromadas became more active in the process of budget formation: during the first 10 months of 2017, amalgamated hromadas increased their own revenues by 80%, while national revenues grew by only 31.8%. In addition, per capita development expenditures in January-September 2017 increased by 225% compared to 2016 (for example: in communities without amalgamated hromada, growth was only 50%).[7]
From 2014 to 2017, state support for the development of amalgamated hromadas and their infrastructure increased from ₴0.5 billion up to ₴14.9 billion.[8]
Donor agencies, embassies and multilateral organisations are financing and implementing programs and decentralization projects via a Donor Board.
The following projects and organisations are very active:[9]