THE CHALLENGE:

Ukraine’s economic crisis exposed legal, regulatory and institutional weaknesses. Ukraine needs dramatic and decisive reforms to stabilize and revitalize its economy.  The three most urgent interventions include: improving the business enabling environment for SME’s, implementing a fair and transparent commercial law framework, and diversifying Ukraine’s export markets. 

PROGRAM OBJECTIVE:

To accelerate broad-based economic recovery through an improved business enabling environment and expanded export opportunities for Ukraine’s private sector.

OVERVIEW:

The USAID private sector development program works to create a better business environment, to implement an effective commercial law regime, and to enhance the efficacy of Ukraine’s participation in trade organizations.

ONGOING PROGRAMS:

Leadership in Economic Governance

The project works with local organizations with recognized technical proficiency and knowledge on policy corrections and facilitate reforms via three objectives: 1) identify legal, regulatory, and administrative measures that improve the business environment for Ukrainian small and medium enterprises (SMEs); 2) support the central and local governments in developing and implementing effective pro-SME reforms; and, 3) support the business community’s advocacy for economically sound and fiscally responsible reforms.

Commercial Law Program for Ukraine

The project reforms commercial law by working with the Verkhovna Rada and the Government of Ukraine to draft and implement laws and secondary legislation on deregulation and business liberalization, bankruptcy, corporate governance, and protection of investors’ rights.

Ukraine Trade Policy Program

The project helps improve Ukraine's capacity to engage with the World Trade Organization (WTO) system and capitalize on the economic benefits accessible through its membership.  The program 1) expands Ukraine’s capacity to utilize tools available through the WTO system, 2) improves communication and coordination on WTO issues both within the Government of Ukraine and with external stakeholders, and 3) assesses and improves Ukraine’s WTO compliance.

Competition Law and Policy

This activity is implemented under a Participating Agency Program Agreement (PAPA) between USAID and the U.S. Federal Trade Commission (FTC).  FTC and its partner DOJ provide technical assistance to Ukraine aimed at the development of sound competition policy and institutions, and is directed primarily at building capacity of the Anti-Monopoly Committee of Ukraine (AMCU) and the Ministry of Economic Development and Trade (MEDT).  The key element of the program is placement of FTC and DOJ advisors in the AMCU to provide training and counsel to its case handlers.  Other elements of the program are: conducting training programs; facilitating institutionalized cooperation with agencies in the region; and, NGO support.

Economic Opportunities for People Affected by Conflict

This new activity is designed to help people affected by the hostilities in the East to find employment or practical skills to support themselves and their families; establish or relocate small businesses; and strengthen the capacity of Non-Governmental Organizations (NGOs) and small businesses/private sector participants that provide assistance to conflict-affected populations.

PROGRAM HIGHLIGHTS:

Leadership in Economic Governance:

• Improved legislation and established policies to make it easier for SMEs to open and successfully operate.
• Launched an Annual Business Climate Assessment (ABCA) to monitor Ukraine’s business climate and generate policy recommendations.
• Helped establish the Odesa Administrative Services Center, streamlining the most demanded administrative services.
• Expanded export potential of Ukrainian SMEs by contributing to the draft Export Strategy and raising the business community’s awareness of export opportunities.

Commercial Law  Program for Ukraine:

• Updated the Joint Stock Company (JSC) Law to ensure transparency of corporate governance, to protect minority shareholders’ rights, and to relax unnecessary state control.
• Assisted the Verkhovna Rada committees to draft and promote legislation liberalizing business activities.
• Supported the drafting and adoption of new judicial enforcement laws introducing a private bailiff service to improve the execution of court decisions.

Ukraine Trade Policy Program:

• Provided formal training and “learning by doing” to the Department for Trade Protection at the Ministry of Economic Development and Trade (MEDT) on use of the WTO’s trade dispute settlement mechanism.
• Drafted procedures and forms for the effective investigation of trade remedies in countervailing duties cases.
• Assisted in preparing the draft legislative framework and training personnel for establishing and operating a simplified customs clearance process at the Odessa Port.