Since Euromaidan, continued political, economic, and social reform is at risk because the Government of Ukraine (GoU) has a weak capacity to fight corruption in an environment of limited citizen oversight and high tolerance for corruption in daily life.

In the past two years a vibrant Ukrainian civil society and key GoU reformers have passed foundational legislation; established structures for combating corruption; implemented a transparent, publicly-available asset declaration system for government officials and applicants; and installed open data and open governance systems.

Despite this tangible progress, gains are fragile.  In its November 2016 Barometer of World Corruption document, Transparency International reported that 70% of Ukrainians think corruption in Ukraine has not decreased, while 86% of Ukrainians have a negative view of the GoU’s efforts to fight corruption.

ACHIEVEMENTS:

• Strengthened the organizational capacity of over 200 Ukrainian civil society organizations
• Supported legislation to create the National Anti-Corruption Bureau, the Specialized Anti-corruption Prosecutor Office, and the National Agency for the Prevention of Corruption.
• Over 1.6 million students have entered university based on transparent and fair exams. 

OVERVIEW:

USAID seeks to significantly reduce opportunities for corruption in Ukraine to improve the prospects for economic growth, democratic governance, and national security.

Three years since the Revolution of Dignity, systemic corruption impacts all aspects of Ukrainian life.  It continues to compromise the judiciary and police force, hampers economic growth and investment, leads to low public confidence in the government and its institutions, and increases vulnerability to outside influence and aggression.  

USAID programs work across the spectrum of Ukrainian society, including with the media, civil society, Parliament, and the Government.  USAID has stand-alone anti-corruption programs as well as anti-corruption efforts built in across our democracy, health and the economic growth portfolio.

TARGETED ANTI-CORRUPTION PROJECTS:

The Transparency and Accountability in Public Adminstration and Services program provides tangible successes for the Government of Ukraine (GoU through e-governance tools that reduce opportunities for corruption at all levels.  Efforts are focused on improving e-procurement, supporting Open Data, and implementing citizen-based e-Services.

Starting in spring of 2017, the Support to Anti-Corruption Champion Institutions (SACCI) program is designed to assist the GoU in fighting corruption through support to institutional champions of reform.  The program will; empower key government institutions to fight corruption; increase public support for and engagement in anti-corruption efforts; and reduce public tolerance of corrupt practices.    

USAID’s Enhance Non-Governmental Actors and Grassroots Engagement (ENGAGE) program will increase citizen awareness of, and engagement in, civic actions at the national, regional and local level, with a focus on improving civil society’s ability to advocate for anti-corruption reform.  ENGAGE program objectives are to enhance civic education; support civic coalitions and initiatives at the national, regional and local levels; improve the organizational capacity of partner civil society organizations; and ensure long-term civic engagement in democratic reforms.   

CROSS-CUTTING ANTI-CORRUPTION EFFORTS:

To support political finance reform, USAID’s Ukraine Responsive and Accountable Politics Program (U-RAP) provides assistance to the National Agency for the Prevention of Corruption (NAPC). This support is focused on political finance oversight for improved transparency so citizens will know how and by whom political campaigns are financed.

In the education sector, USAID supports greater transparency at the Ministry of Education through the Ukrainian Transparent Education and Management Alliance (UTEMA) project.  Decisions made by the Ministry will be more accessible to the public for open discussion. USAID has also supported the implementation of independent testing, which GOU officials recognized as vital to objectively measuring student performance for admission to higher education institutions.  

In the health sector, USAID fights corruption in pharmaceutical procurements leading to significant cost savings, increased transparency, and greater availability of life-saving treatments for Ukrainian citizens.  As a result of legislation supported by USAID funded partners, pharmaceutical products must now be procured through ProZorro, a government-run e-procurement system.  This reform resulted in over $34 million in savings to the GOU in 2016 pharmaceutical procurements.

In the financial sector, USAID’s Financial Sector Transformation (FST) program will improve confidence in the banking sector and transform the financial regulatory environment.  Corruption through insider abuse of the financial system can be countered by implementing legal and regulatory checks and balances.

In the agricultural sector, the USAID will work to ensure that agriculture policies are more objective and favorable for the whole market, and increase transparency in land market transactions through USAID’s Agriculture and Rural Development Support (ARDS) program. 

In the energy sector, USAID’s Municipal Energy Reform Project (MERP) focuses on enhancing Ukraine's energy security, including improving the energy regulatory and legislative enabling environment, which reduces the opportunity for corruption in the sector.  Through MERP, which will be completed by September 2017, the USAID will support efforts to change rules and procedures in municipal utility' tariff setting.  USAID plans to launch a $90 million, five-year Energy Security Program through Competitive Energy Markets in 2017.  Through the program, USAID will help reduce corruption in the energy sector by establishing transparent regulatory accounting, increasing transparency in pricing, and ensuring open competition for energy generation and supply.