UNDP in Ukraine

Poverty is multidimensional, involving not only a lack of income, but also ill-health, illiteracy, lack of access to basic social services, and little opportunity to participate in the processes that influence people's lives. Poverty reduction therefore is at the centre of UNDP-led development work. While economic growth is essential to human progress, it is not sufficient for achieving the Millennium Development Goals. UNDP supports countries in accelerating inclusive growth to ensure equitable and broad-based human development.

Context situation in Ukraine:

Ukraine is well on the road of recovery following the severe economic contraction of the 1990s, when the country recorded one of the steepest declines among the former Soviet Union states, with GDP falling to 45 percent of the 1991 level by 1998. Since 2000 Ukraine has enjoyed a steady economic growth, with an average annual increase of GDP by 7.5 percent. Ukraine has recorded macroeconomic stability. The privatization of key industries has laid the foundation for a robust market economy. The Ukrainian people have strengthened their statehood by developing democratic institutions and undertaking a number of legal and institutional reforms. Following the obtaining of WTO membership in May 2008, Ukraine started negotiations on a free trade agreement with EU.

At the same time, progress on reaching national MDGs is uneven. While the absolute poverty measured by US $4.30 (in average PPP), which constituted 11% in 2001, has reached its natural minimum of 1% in 2007, the relative poverty officially measured by the nationally defined poverty line is at the level of 28.3% (as of 1 Jan. 2008). An increase in the financing of health care and education, unaccompanied by reforms to improve the management of these services, has not led to improvements in the quality of services provided or to their accessibility. Social transfers remain poorly targeted, and pension system encompasses a verity of problems that threaten its fiscal sustainability, especially given the current demography trends. HIV/AIDS epidemic in Ukraine continues to deteriorate. At the end of 2007 there were 1.63% of people living with HIV, indicating that Ukraine has the most severe HIV/AIDS epidemic in Europe.

2008 year HDI for Ukraine is 0.786, which gives the country a rank of 83 out of 179 countries, comparing to the pervious year HDI 0.780 with the rank 76 out of 177 countries. The apparent degradation in ranking has been explained by delays in the implementation of reforms needed for strengthening human development and partially by revision in data series for GDP per capita indicator.

UNDP's response in Ukraine:

Overall UNDP's goal in Ukraine is to support the national Government in overcoming poverty, reducing inequality and improving living standards across the country.

UNDP, therefore, assists the country in formulating, implementing and monitoring of MDGs-based national development policies and strategies, centred on inclusive growth. In particular, UNDP supports enhancement of institutional capacity of the Ministry of Economy of Ukraine, a leading executive authority responsible for planning and implementing the national MDGs-based polices and programmes for economic and social development. In addition, UNDP Ukraine, through its Blue Ribbon Analytical and Advisory Centre project and based on the Government strategies and programmes, as well as on EU-Ukraine Action Plan, assists the national authorities in policy formulation and implementation, capacity development and expanding public policy dialogue in five areas, including international integration, regulatory policy and private sector development, monetary and fiscal policy, macroeconomic policy and agricultural policy.

Marcin Swiecicki, BRAAC Director and Aleksander Kwasniewski, former President of Poland (UNDP's guest of honour) present new Policy Recommendations on Economic and Institutional Reforms to Yuliya Tymoshenko, Ukraine's Prime Minister; April 2009;

Photo by Press-Service, Cabinet of Ministers of Ukraine

UNDP Ukraine supports the preparation of the National Millennium Development Goals reports as a tool for public advocacy and National Human Development Reports as a tool for policy advocacy among major stakeholders to trigger action for human development with the aim of building statistical capacity for monitoring poverty and inequality and using statistics for improving policy design. UNDP raises public awareness about MDGs in Ukraine by carrying out MDGs public education and advocacy events to foster national policy dialogue (please, see ‘Campaigning for MDGs')

UNDP Ukraine works to prevent the spread of HIV/AIDS and reduce its impact. It helps national partners to put HIV/AIDS at the centre of national development, build national capacity for HIV/AIDS multi-sector and sub-regional responses, addressing vulnerability and human rights aspects of people living with HIV and their families. In addition, UNDP develops the national capacity in preventing drug abuse and fighting drug trafficking in Belarus, Moldova and Ukraine as well as to improve regional cooperation in this field. Finally, UNDP Ukraine facilitates a proactive inclusion of people with disabilities into the society, including into the open labour market, in order to safeguard their equal rights and opportunities and contribute to poverty reduction among this particular group of people.

Future outlook for Ukraine:

Through sponsoring innovative activities, connecting country to the global best practices and resources and capacity development, UNDP Ukraine will further support national processes to accelerate the progress on human development with a view to reducing poverty and inequality and ensuring sustainable economic growth. Future UNDP Ukraine activities within this area will include (but will not be limited to) supporting the Government of Ukraine in implementing Ukraine's European Choice policy, initiatives in private sector development and regulatory policies, food security and agriculture polices, bringing national social monitoring and policy formulation systems closer to the EU social inclusion framework, and many others.