KSE - Stöd till ekonomiska of finansiella reformer i Ukraina (2019-2022)

Component 1: Improve the institutional capacity (skills of personnel) of policymakers that formulate, implement and evaluate policy decisions in the areas of macroeconomic and financial stability of the country Successful trainings were carried out of current and potential employees of the National Bank of Ukraine and other policymaking institutions. During the project, 115 professionals from NBU and the Antimonopoly Committee took courses in macro and microeconomics, mathematics, statistics, field courses in economics. And 120 more specialists finished short-term courses on data analysis, finance, project management, basics of economics, behavioral economics. Totally 235 employees received cutting-edge knowledge and skills that could be applied in their work. 454 students and recent graduates went through the training programs when they got skills needed for public sector and also got information about career opportunities at the National Bank and other policy and public institutions. For policymakers who formulate and implement policy decisions the research skills are crucial. To strengthen these skills KSE organized 55 academic seminars where researchers (including people from top universities, e.g. Oxford University, London School of Economics, Duke University) presented and discussed their papers. Indicators of success include a tangible demand of the budget committee of the Verkhovna Rada and other policymakers for the analysis of the Center, and partial amendment of the Government policy according to the provided recommendations. For example, committee hearings on the implementation of the state budget in December 2020. One of the reasons for these hearings was an article by the head of the Center Darina Marchak about the state budget deficit. Component 2: Give high-quality education to faculty and students of economics departments and general public. In 2019-2022, 490 faculty members from 80 universities participated in trainings and workshops organized by KSE. The workshops were focused on developing skills in effective teaching and research work with students. - 26 lectures/presentations for students and pupils from all regions - Launch of 5 online free courses, 1300 people registered so far Indicators of success include numerous cases where research provided by the CPFG leads to the review of governmental decisions in particular spheres. For instance, in Summer 2020 the CPFG on request of the Ministry of Digital Transformation researched the potential fiscal impact of the tax model of the Diia City (special legislative regime for the IT sector in Ukraine). The research showed that the model proposed by the Ministry would lead to losses of both state and local budgets. This forced the Ministry to reconsider the model to minimize losses. Objective 3: Increase public understanding and trust to policy actions. In total, 141 media pieces were published. KSE experts commented on current news (e.g. the effect of COVID-19 on the economy, exchange rate, 3-5-7% credits, state price regulation, minimum wage, etc.) as well as published columns to explain the important macroeconomic problems 22 events were conducted where MPs, NBU top managers, top executives from business, deputy ministers and other high-level stakeholders participated. KSE roundtables are the platform for overarching public dialogue that gather all stakeholders: government, parliament, NGOs, business, international organizations, academia. Indicators of success include committee meetings, each article/presentation/ publication accompanied by many interviews, comments, broadcasts for the media. The Centre's comments significantly influenced the intensification of the public discussion, for example, on such topics as (1) research on the living wage; (2) 20% VAT for agrobusiness; (3) introducing the Google Tax and how it will affect Ukrainians; (4) situation with the budget of the Pension Fund and how to fix it. We also see significant demand from the media for comments from the Center. A higher degree of flexibility in utilization of funds during the wartime economy has enabled KSE to continue providing instrumental underpinnings to government decision-making while also contributing to public debate (e.g. co-authoring the first Blueprint for Reconstruction document in Ukraine and providing important inputs to Ukraine National Recovery Plan). Due to Sida's support, KSE have been able to keep operations going in spite of extreme liquidity shortage and volatility. KSE staff have also by staying employed at KSE been able to use their unpaid time to establish a humanitarian fund for Ukraine which has raised USD 30 million since Russia's full-scale invasion on February 24.

The goal is to contribute to economic growth, social stability and poverty reduction through an increased efficiency, predictability and transparency of financial flows in Ukraine by strengthening the state in its capacity to manage public funds and private capital. Outcomes: The Contribution is divided into three components. In component 1 'Macroeconomic Stability' the key stakeholder is the National Bank of Ukraine (NBU), Ukraine's central bank. The NBU's primary task is to maintain macroeconomic stability in Ukraine, lowering inflation and minimising potential shocks to the economic system. Through strategic capacity building at key NBU departments the contribution can substantially strengthening the NBU in its forecasting and oversight role. Further supporting activities are related on strengthening other relevant institutions such as the Ministry of Economy and - Finance as well as advocacy and teaching for the private sector and general public. In component 2 'Public Finance Management' (PFM) the key stakeholders are mid-level staff at Key Spending Units (KSUs) and oblast level administration that are directly responsible for the implementation of the state budget. Through conducting training, capacity building and developing a network of expertise the contribution can potentially affect the efficiency and effectiveness of budget allocations at all levels of the state budget. Mid-level staff have been chosen as in previous trainings it was found senior staff often left their positions after completing the training. One group will be formed from the lecturers of public finance in the state universities providing skills upgrade trainings for the public officials (ToT - teaching of teachers/training of trainers). In component 3) 'Economic Reform Support Facility' KSE will improve the knowledge base and research around components 1 & 2 as well as supporting the creation of a community practice through events and round tables.