1. EU-Funded Project "Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)" Institutional capacity and the problems of agrarian NGO’s in Ukraine Bohdan Drozdowskij, Team Leader of the EU-Funded Project "Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)"

2. EU-Funded Project "Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)" Implementation of Ukraine's Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)

3. EU-Funded Project "Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)" Project Structure Overall objective is to achieve greater EU integration and harmonisation with closer compliance with WTO requirements Specific purpose is to support the application of a Sector Wide Approach for agriculture and rural development in the context of WTO accession and European Neighbourhood Policy Action Plan Components 1.Institutional development of Ministry of Agrarian Policy of Ukraine 2.Improvement of Ukraine's food safety system 3.Market Infrastructure Development 4.Rural Development

4. EU-Funded Project "Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)" Position on Non-Government Organisations Non-government organisations and associations are key stakeholders of the sector-wide approach Rural development (LEADER+ programme) is reliant on rural communities' initiative and the involvement of NGOs Improvement of agriculture market infrastructure requires development of effective professional associations

5. EU-Funded Project "Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)" Number of Professional Associations by Areas of Activity Areas of Activities Number Grain production and processing3 Production and processing of meat and meat products6 Production and processing of milk and dairy products4 Sugar production and processing3 Fruit farming, viniculture, winemaking3 Crop production (by crops: soya, sunflower, hops, vegetables) 9 Production and sale of tobacco, alcoholic beverages, beer3 Other activities (veterinary medicine, bio energy production, agrichemistry, land use, etc.) 12

6. EU-Funded Project "Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)" Areas of ActivitiesNumber Industry-wide NGOs 14 Associations of agriculture producers 12 Associations of processors and food producers 7 NGOs in fruit farming, viniculture and winemaking 5 NGOs intended to resolve land issues 12 Youth organizations 6 Organic production associations 4 NGOs in other areas (veterinary medicine, science, bio energy production, agrichemistry, agriecology, agriculture machinery ) 19 Number of Community Organisations by Areas of Activity

7. EU-Funded Project "Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)" NGOs Assessment Criteria Availability of information on organisation's operations (web site, media coverage, etc.) Capacity to represent members' interests at the national and international levels (representation capacity) Cooperation with government authorities (public hearings, drafting legislation, involvement in program development) Organisation and participation in public events Infrastructure - office space and qualified personnel

8. EU-Funded Project "Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)" Professional Associations Performance Indicators Total Number Number in a Group % Capacity to attain the overall objective and accomplish tasks of an association adequately 43 2865.1 Capacity to attain the overall objective and accomplish tasks of an association satisfactorily 1534.9 Low effectiveness (ineffectiveness) in attaining the overall objective and accomplishing tasks of an association 00

9. EU-Funded Project "Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)" Performance Indicators Total Number Number in a Group % Capacity to attain the overall objective and accomplish tasks of an association adequately 79 2227.8 Capacity to attain the overall objective and accomplish tasks of an association satisfactorily 2531.6 Low effectiveness (ineffectiveness) in attaining the overall objective and accomplishing tasks of an association 3240.5 Community Organisations

10. EU-Funded Project "Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)" Perceived Priority Tasks of the Government 1.To resume trust to the government by legislating the following issues:  Operations of professional associations and NGOs in the agrarian sector  Logistical support of agriculture production  Government support of the agrarian sector  Implementation of new technologies  Government accountability for decision making 2.To provide a Pan-Ukrainian Association of Non-Government Organisations with an exclusive right to represent professional associations and NGOs at all government levels and internationally. 3.To eliminate conflicts in the legislation on professional associations and NGOs in the agrarian sector. 4.To legislate delegation of government powers to professional associations and NGOs.

11. EU-Funded Project "Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)" Perceived Priority Tasks of Professional Associations and NGOs 1.To participate in formulating the country's agrarian policy at the national and international levels 2.To initiate necessary changes in Ukrainian legislation 3.To organise professional training and re-training of member staff; and to introduce best practices 4.To coordinate and lobby the interests of member organisations 5.Vision and strategy of the organisation’s development

12. EU-Funded Project "Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)" Translating of foreign legislation that useful in regulating professional associations and NGOs Engagement of international technical assistance Exposure to international professional associations and agrarian NGOs in other countries Lesson sharing – dissemination of best Ukrainian practices and models Developing and publishing training and methodological materials Effective External Support

13. EU-Funded Project "Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)" Professional associations and NGOs have been set up in virtually all segments of the Ukrainian agrarian sector. However, –duplication of functions, inconsistency of actions and, sometimes, competitions; –Some enterprises are members of several organisations; leading to dilution of funds and resources; –Associations’ capacities and potential are often ignored by government authorities, and sometimes misunderstood by potential members; –Foreign NGO’s are confused as to whom they should talk to, and who is authorised to talk to them on behalf of Ukrainian agriculture companies; Though there are several competent Pan-Ukrainian professional associations in the agrarian sector, they face numerous problems and are limited in their activities To a large extent, the situation is not helped by imperfection of the legislation regulating agrarian professional associations and NGOs Summary (Professional Associations)

14. EU-Funded Project "Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)" Ukrainian agrarian NGOs are guided by the Law of Ukraine "On Non-Government Associations" This Law establishes procedures for setting up and registering NGOs. In so doing, the Law does not define NGOs' functions, authorities and processes of NGOs' interaction with national and local government It is getting harder for agrarian NGOs to attain their objective and goals At the moment, the government's role in civil society development is very small and little is being done to improve the situation through a legislative framework. Current legislation fails to exempt not-for-profit organizations from the tax on income from membership fees Summary (Community Organisations)

15. EU-Funded Project "Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)" Draft Law of Ukraine "On Agrarian Chambers in Ukraine" Adoption of this Law will help Ukraine: Strengthen the role of professional associations in development and implementation of agrarian policy Develop the agrarian market and its infrastructure Train and develop agrarian specialists Monitor and provide informational support to legal entities and individuals Develop non-agricultural activities - social infrastructure in rural areas and integrated rural development Support trade unions in the agrarian sector Improve quality and competitiveness of Ukrainian agriculture produce Support export of Ukrainian agriculture produce and balance export and import of agriculture produce

16. EU-Funded Project "Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)" Improving the Institutional Framework The status and functions of self-regulatory organisations must be better legalised Government strategy and policy for developing agrarian self- regulatory professional associations must be clear and legalised Agrarian NGOs should be allowed to exercise authorities delegated to them by government Agrarian NGOs should be able to resolve all issues within authorities delegated to them without government interventions Government authorities must be obliged to agree on important issues that concern activities of self-regulatory organisations Self-regulatory organisations should be involved in implementation of government policy and programmes The public should be able to influence government's actions, including distribution and use of funds All players must be accountable for decisions taken