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Ukraine
CIDA Disbursements in Ukraine: Breakdown by Aid Channels (in $ millions), 2007-2008
Spotlight
Overview
Ukraine, the second largest country in Europe, with a population of more than 46 million, has close and longstanding ties to Canada.The country has seen a significant increase in political freedom, a reduction of state control over the media, and the emergence of a vigorous national debate. It is internally stable and striving to be a model for democratic transformation and stability in Central and Eastern Europe.
Between 2000 and 2007, Ukraine enjoyed strong economic growth, averaging 7.5 percent annually. The country is now considered a fully functioning market economy, having privatized its land and assets and become a member of the World Trade Organization (WTO). However, the global economic crisis in 2008 hit Ukraine harder than most other east European countries due to its dependency on steel and iron ore industries, as well as its vulnerabilities in its financial and banking sectors.
Ukraine has outlined its priorities for development, setting out an extensive plan for reform in such areas as:
- Rule of law and government effectiveness
- Trade and investment
- Taxation and public finances
- Laws and standards
Thematic Focus
In 2009, as part of Canada's new aid effectiveness agenda, Ukraine was selected by CIDA as one of 20 countries of focus.CIDA's programming objectives in Ukraine are to improve economic opportunities for Ukrainians in a strengthened democracy.
Canada is working with the Government of Ukraine to assist with the reforms needed to realize the country's full economic potential and build a sound public institutional and legal environment for closer integration with Europe. In Ukraine, CIDA will focus on two priority themes: sustainable economic growth and food security.
Economic growth
CIDA will focus on improving the business-enabling environment, restoring confidence in financial institutions, and increasing the competitiveness of small- and medium-sized enterprises by diversifying skills and increasing access to credit. CIDA will also support economic growth through interventions aimed at strengthening public institutions built on the rule of law and accountability. Increased attention will be paid to judicial and civil service reforms and local governance, as well as commercial and other courts involved in resolving commercial and business-related matters.
Selected examples of expected results
- A total of 8 large and small municipalities (large―over 1 million residents, small―over 75,000 residents) will have improved service delivery practices in the areas of economic development, energy efficiency, and waste management
- Inspections of businesses using a risk management approach will be conducted concerning such as aspects as taxation, fire safety, and sanitary and veterinary conditions
- Judicial decision-making time will be reduced by 30 percent in targeted commercial and other courts dealing with business matters
Food security
CIDA is supporting food security, placing an emphasis on sustainable agricultural programming and thereby adding to Ukraine's already strong position to contribute to redressing the global food security crisis. CIDA's involvement in agriculture is strongly encouraged by the Ukrainian government as a means to address rural poverty, particularly since there are few donors working in that area. Attention will be given to increasing net exports of grains and select commodities while promoting the use of environmentally friendly practices and norms.
Selected examples of expected results
- Some 2,500 dairy farmers and managers of cooperative-style enterprise in Lviv and Dnipropetrovsk will work in strengthened value chains
- Some 5,000 small-scale farmers in Crimea and Zaporizhzhya will have increased incomes through the development of selected crops and value chains
Progress on Aid Effectiveness
Canada is the fourth largest bilateral donor in Ukraine. CIDA will continue to build Ukraine's capacity to engage in donor coordination by encouraging joint monitoring of projects and playing an active role in several donor working groups.Canada has developed a reputation as a trusted partner in governance and private sector development and has become a leader in building capacity and transferring best practices, which are now being emulated by other donors.
If you have comments or questions on this page prepared by Europe, Middle East and Maghreb Branch, send an e-mail
Date Modified: 2010-03-17
