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. Seven years of average annual economic growth of 7.5 percent from 2000 until mid-2008 was followed by severe economic crisis, with GDP slumping by -14.8% in 2009. In 2010, Ukraine’s economy resumed growth on the back of moderate improvements in external demand.  In 2011, the real GDP growth is estimated to reach 5 percent comparing with 4.2 percent in 2010. Strong revenue performance on the back of solid economic growth and rising imports helped keep the consolidated fiscal deficit on a declining trend since 2010. The Ukrainian people have strengthened their statehood by developing democratic institutions and undertaking a number of economic and institutional reforms. In 2008 Ukraine became the 152nd member of the World Trade Organisation (WTO). Creation of a free trade area with the European Union (EU) could serve as an additional anchor for further reforms. Pension reform, enacted in September 2011, will help significantly in future years.

Progress on reaching national MDGs is uneven. While the absolute poverty measured by USD 5.05 (in PPP) decreased to 2.5 percent in 2010.  The relative poverty officially measured by the nationally defined poverty line was at the level of 24.1 percent in 2010. The poverty level in rural areas remains almost twice as high as in urban areas. 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. HIV/AIDS epidemic in Ukraine continues to deteriorate. Ukraine is the country with the highest estimated HIV prevalence (1.3 percent) in Europe. The growing number of newly reported HIV infection and AIDS death cases (20,500 and 3,100 people respectively) in 2010 is alarming and requires quick action. 

2011 Human Development Index (HDI) for Ukraine is 0.729, which gives the country a rank of 76 out of 187 countries. HDI for Ukraine is below the average for countries of Eastern Europe and Central Asia.

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 Economic Development and Trade of Ukraine, a leading executive authority responsible for planning and implementing programmes for economic and social development and realizing the national MDGs-based polices. In addition, UNDP Ukraine assists the national authorities in policy formulation and implementation, capacity development and expanding public policy dialogue on macroeconomic policy and strategic planning.

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.

UNDP supports the Government of Ukraine and the Ministry of Social Policy of Ukraine in accelerating the implementation of the reforms in the social policy and achieving Ukraine’s short- and mid-term social and economic development goals. This includes the provision of high-level advisory support for revision or elaboration of the necessary legislative documents and strategies in the key areas of the social sector reform, namely pension reform, social security, social assistance and social services, and enhancement of capacity of the Ministry of Social Policy for the successful implementation of the social sector reforms. This also includes testing various approaches for expanding the access to community-based social services through diversification of the service providers and expansion of the menu of social services, as well as testing an innovative mechanism for sustainable job generation for unemployed at pre-retirement age.

UNDP Ukraine contributes to the implementation of pro-poor trade-related policy reforms and trade capacity development measures on the national and local levels. UNDP facilitates international trade on the national and local level by supporting the development of national strategic documents to promote trade, optimizing the institutional framework, and providing technical assistance to small and medium local businesses with a view to promote exports.

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. UNDP will support the Government in developing and implementing inclusive pro-poor strategies and policies aimed at ensuring sustainable development in line with national MDGs targets and international commitments. It will support the achievement of national MDGs, monitoring the progress and mainstreaming MDG targets into the national development agenda. It will facilitate improvements in the business environment and investment climate, focusing on the growth of micro and small enterprises as well as on local business support institutions, cooperatives, and value chains. Future UNDP Ukraine activities within this area will include (but will not be limited to) promoting social inclusion of vulnerable groups, such as people with disabilities, the elderly, the youth, homeless, people living with HIV/AIDS among others through the design and implementation of evidence-based policies and programmes, introduction of enabling institutional frameworks and legislations, and more effective and targeted social, health and education services.  In particular, UNDP will support the Government in accelerating the implementation of social sector reforms, with the focus on pension system, social security, decentralization of social assistance and community-based social services. Furthermore, UNDP will work to increase the inclusion and participation of disadvantaged groups, particularly young people and women, in the labour market.