MCC Fact Sheet

April 12, 2007

Millennium Challenge Corporation Threshold Country Plan (MCC TCP) Ukraine Combating Corruption in the Public Sector

Threshold Program Overview

Ukraine's Threshold Program aims to reduce corruption in the public sector through strengthening civil society's monitoring and exposure of corruption, judicial reform, increased government monitoring and enforcement of ethical and administrative standards, streamlining and enforcing regulations and combating corruption in higher education. 

USAID, through its partners and in conjunction with the government of Ukraine counterparts, will facilitate the implementation of each of the five components.  The contact person for questions regarding MCC TCP Ukraine is Ellen L. Seats, Senior Advisor MCC TCP Ukraine. (eseats@usaid.gov)

Program Components

Strengthen Civil Society's Monitoring and Exposure of Corruption:  Thousands of Ukrainian nongovernmental organizations (NGOs) actively represent the interests of their constituencies, promote public policies, monitor government performance, and successfully advocate for reforms.  Furthermore, the mass media enjoy fundamental press freedoms and offer the public a range of sources of professional news and information.  Despite the substantial progress of recent years, Ukrainian civil society and media are not meeting their full potential as effective monitors of government and advocates for reform.  This component aims to reduce opportunities for corruption by enabling civil society to be more effective monitors of government and advocates for reform. 

The activities under this component will be carried out under the Promoting Active Citizen Engagement (PACE) program by Management Systems International (MSI), whose program launched in December 2006.  In February, 2007 MSI is conducting a comprehensive, national baseline survey on public perception and experience with corruption in a variety of economic and social spheres.  It is further proceeding to organize a network of NGOs throughout Ukraine to monitor performance of public officials and promote transparency in the government.  By working with the MCC Executive Board and a working group in the Verkhovna Rada, MSI will ensure that the voice of civil society is heard by the government of Ukraine. 

The MSI program is headed by Juhani Grossmann - jgrossmann@pace.org.ua and Lyubov Palyvoda - lpalyvoda@pace.org.ua

Judicial Reform:  Critical to efforts to fight corruption is increasing the level of transparency in the delivery of justice by introducing permanent improvements in key legislative, procedural and institutional arrangements.  The goal of this component is to increase transparency in the judicial sector. 

The specific activities envisioned in the TCP include creation of an online registry of court decisions, computerized random case assignment, reform in the appointment and discipline of judges, establishment of administrative courts, improvement in enforcement of decisions, and reform of the notary system.  USAID envisages two implementers will commence working on these activities in March 2007.    

Government Monitoring and Enforcement of Ethical and Administrative Standards:  Currently Ukraine has no general conflict of interest legislation for government officials except for certain provisions that limit business opportunities for family members of officials.  Additionally, although there are requirements that candidates for public office and civil servants declare their assets, the methodology has flaws and omissions, and submitted declarations are rarely checked and even more rarely are sanctions imposed for falsification.  This component will create systems to strengthen accountability among government officials and enable the Government of Ukraine to better monitor and enforce ethical and administrative standards.

Building upon experience with similar programs in other countries in the region, these activities will be implemented by a team from the U.S. Department of Justice Office of Overseas Prosecutorial Development Assistance Program (OPDAT) headed by Catherine Newcombe (Catherine.Newcombe@usdoj.gov)

Streamlining and Enforcing Regulations:  Complicated, confusing and overlapping systems providing construction permits, delivery of municipal services, land and property ownership and usage are sources of significant corruption.  Both private individuals and legal entities must complete an enormous number of steps to start any construction activity.  The processes are neither transparent, nor defined in time, and there is clear evidence of corruption at all steps.  This component will change the legislative and regulatory framework for property transactions, reform the permit system, and streamline lines of responsibilities and procedures in order to reduce corruption in these areas.  USAID's Trade, Investment, Business Acceleration (TIBA) program operated by Booz Allen Hamilton will be managing these activities.  Andrey Astrakhan, program manager, can be reached at aastrakhan@bah.kiev.ua. 

Addressing corruption in the cross-border shipment processes, the U.S. Department of Justice International Criminal Investigative Training Assistance Program (ICITAP) will work with the government of Ukraine to improve the legal and regulatory framework, as well as creating a user-accessible, integrated database for cross-border shipments.  Gregory E. Ducot, Deputy Assistant Director, ICITAP Europe/Eurasia can be reached at Gregory.Ducot@usdoj.gov. 

Combating Corruption in Higher Education:  Recognizing the importance of reducing corruption within the educational system, a national testing center, the Ukrainian Center of Evaluation of Education (UCEE), has been established.  Assistance is required, however, to fully implement the external testing system as well as to ensure its integrity.  The goal of this component is to reduce corruption in higher education by establishing a legal framework requiring a minimum test score for admission to universities; developing a functioning security system for test results; and ensuring that 100 percent of students are tested and the test centers are fully operational.

The selection process for the implementing partner responsible for these activities is in process.  USAID, the US Embassy, and the Government of Ukraine will jointly select the organization best suited to achieve the goals of this component.  Selection is expected to be announced in March, 2007.