Minister of Economy Yatsenyuk, I would like to thank you and the government of Ukraine for taking the initiative to organize this event. Ukraine has set ambitious objectives for its social and economic development, and the international community has responded with indications of increased support. We in the World Bank are committed to working with our development partners in support of your aims. We estimate that international organizations have in the range of $5 to $7 billion available to help Ukraine over the next three years, as well as access to extensive networks of knowledge and international good practices from these organizations on which it can draw to support its programs. The available funds amount to between 2 and 3 percent of annual GDP. These are sizable amounts, and underscore the importance of effective management of these resources, and good donor coordination. It is important to recognize that there are important differences between different forms of international support. That which is provided to the private sector (e.g., from EBRD and IFC) or to civil society organizations (e.g., from many bilateral programs) necessarily needs a very light government touch. That which is “official development assistance”, which is provided directly to the government, on the other hand, needs to be fully aligned with government priorities and integrated into the national institutional framework. Almost a year ago, the entire international development community, and I believe all of the donors and organizations represented here today, committed in Paris to far-reaching changes designed to promote aid effectiveness. In my view, we have yet to fully apply these in Ukraine, and it is for that reason that we welcome so strongly your initiative in organizing today’s discussion. The highlights of the Paris Declaration are: To strengthen country development strategies and associated operational frameworks (e.g., planning, budgeting, and performance assessment) To align our support programs with each country’s own priorities, systems and procedures, while helping strengthen associated capacity To enhance accountability to citizens and parliaments on the effective use of development assistance To eliminate duplication of efforts and rationalize donor activities to make them cost-effective To reform and simplify donor policies and procedures, increasingly aligning with those of the country. To define measures and standards of performance and accountability in country systems in the areas of procurement, financial management, and environmental management.
The Declaration goes on to suggest a series of specific commitments by both donors and recipient governments designed to apply these principles. Ukraine has, in our view, articulated a clear strategy for the future. It appears in the “Meeting the People” program by Verkhovna Rada approved last year, in the EU Action Plan, as well as in the strategies and programs agreed with individual donors. In our view, the emphasis now needs rather to be on implementation. In this, there is scope for improvement on both sides. Among the priorities we see in the World Bank are: An urgent need to put in place a results monitoring framework, building on the UN MDGs, and linked to key programs such as the EU Action Plan, UNDAF, World Bank CAS, etc. To complement the individual donor coordination initiatives in certain sectors that work well within an overall architecture for donor coordination, to be developed and agreed in a collaborative manner by the donor community and the government. For the government, to radically simplify its administrative procedures, and at the same time, position the management of aid resources within overall management of public finances rather than special stand-alone arrangements for donors. For donors, to simplify and remove duplication, to shift away from the use of PIUs, which undermine and distort national public administration, and to enhance capacity building measures with respect to country institutions and procedures.
I commit that we in the World Bank will work hard, and change how we do business, to meet these objectives. This is a process that we have already started. We accept that we have more to do—indeed, we believe that we all do do. We hope that at the end of today’s meeting, we will be able to agree specific steps for additional work to carry this agenda forward in practical and specific ways. |
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