You're reading: Sweden launches 3.5 million euro project to advance decentralization process in Ukraine

The government of Sweden on Nov. 17 started a 3.5 million euro project to support decentralization in Ukraine, one of the key reforms aimed to broaden powers of local governments. The money will be used for international expert advice, trainings and exchange visits for representatives of local and state authorities of Ukraine.

Sweden is providing some 25 million euros this year and is one of the strongest supporters of Ukraine’s latest push to shed its corrupt, Soviet ways. “We do believe that this project is very important. It could unlock important reforms in other areas,” Swedish Ambassador to Ukraine Andreas von Bekerath said.

The project will be focused on a new system allowing local governments to raise their own taxes to meet new responsibilities, such as providing health care, keeping public order and taking care of educational establishments. The project follows the “Concept of Reformation of Local Self-Government and Territorial Organization of Power in Ukraine,” adopted by Ukrainian government in April. 

Local governments are expected to get an additional Hr 39 billion ($2.5 billion) in state budget funds to fulfill new duties, Vyacheslav Negoda, a Ukrainian deputy minister, said. Together with electoral system reform, decentralization will also enable the conducting of local elections in October 2015 under the new system, Negoda said.    

Ukraine has a lot to learn from Sweden, the country with its 150-year tradition of strong self-government, as well as other European Union member states, regarding decentralization of power. The municipalities of regions in Sweden are responsible for about 75 percent of all public service provided to the citizens, which is about 21 percent of gross domestic product of almost $558 billion, Carola Gunnarsson, vice president of Swedish Association of local authorities and regions which is leading the project said. The municipalities also employ about 30 percent of all labor force of almost 5 million people in Sweden, according to her.

“I think we have much to learn from each other. We have our experience of long time work with local self-governments and decentralization process but we also have a lot to learn from your work in Ukraine,” Gunnarsson said.

Kyiv Post staff writer Anastasia Forina can be reached at [email protected]