1. International Centre for Policy Studies Kyiv, Ukraine Dr. Vira Nanivska International Centre for Policy Studies Tel. +38044 462-4937/38 Web: www.icps.kiev.ua Weak Institutions and Consequences for Government (for the Economic Forum on "Transparency and Good Governance in Economic Matters”) March, 2001 Bucharest

2. The Challenge of Transformation Research proves: corruption is a consequence of weak governance and institutions; Weak or strong governments are defined by their appropriateness to a particular political system; In Ukraine, the process is not about reworking a weak government to enable its strength. We are in a procedure of downright change, from totalitarianism to democracy; In Ukraine, the public service, at all levels, works in an environment of procedures, references and job descriptions all grounded in an institutional memory of totalitarianism; Institution building means the creation of a functional democracy that entirely replaces the entrenched ways of the past. Tel. +38044 462-4937/38 Web: www.icps.kiev.ua International Centre for Policy Studies

3. 'Lame' Democracy Without Governmental or Civil Society Institutions Ukrainian democracy is lame; one 'leg' of political institutions is in place and functions. We have a democratic constitution and democratic elections all legitimizing various group interests and political rights and freedoms; We do not have the other much needed 'leg' of societal and government institutions, to function between the elections; What remains are the habits and skills of the totalitarian system, operating only to implement the orders of the one interest group in power; Totalitarian power, by definition, is not accountable to any other societal group; Unchanged governmental systems create poor governance-non- transparent, not accountable, providing favors and not services, to the Ukrainian citizen. Tel. +38044 462-4937/38 Web: www.icps.kiev.ua International Centre for Policy Studies

4. Introducing Public Policy Capacity Today in Ukraine, our government does not have procedures and skills to deal with our citizens; and our citizens lack the 'know how' to monitor the government; Public communication and public policy processes are lacking in today's Ukraine; Public policy process consists of government capacity to deal with differing societal interests by means of policy options and their consequences; Citizens need to learn policy vocabulary to provide their feedback through civic participation that monitors government decisions. Tel. +38044 462-4937/38 Web: www.icps.kiev.ua International Centre for Policy Studies

5. Skills for Government and Civil Society The Ukrainian government and society is largely without the new skills to communicate, analyze and evaluate, all capacities which create transparency and accountability; Because we do not possess the tools of authentic democratic functioning, our institutions and citizens are judged as unchanged and untransformed; In fact, we are simply 'uneducated' in the techniques of democracy; The result? An environment facilitating corruption, because without public communication and public analysis one produces non-transparency and non-accountability. Tel. +38044 462-4937/38 Web: www.icps.kiev.ua International Centre for Policy Studies

6. Solutions It is absolutely necessary to teach the vocabulary of public policy to both government institutions and to citizens; We need to produce public policy documents, such as green and white papers, that take into consideration various group interests, analyze different options and research the implications for society; The government must develop standard procedures for consultations with different stakeholders on each policy issue; Ukrainian citizens must also be democratically enabled through education in policy processes; The creation of policy think tanks, policy education, participation in policy analysis and debates all facilitates the critical question, "What will this government decision mean for me?" This question foregrounds the link between the citizen and the government. Choice-making becomes conscious when the implications, both short and long term, are clearly defined; The informed, participating citizen is thereby a guarantor of good governance. Tel. +38044 462-4937/38 Web: www.icps.kiev.ua International Centre for Policy Studies

7. Two ICPS Examples of Capacity Building "Creation of Policy Analysis Groups and Information Resource Centre in the Government of Ukraine" (CIDA and Soros supported) An initiative engaging ninety government officials, in key bureaucratic positions, in skills-based learning of policy analysis, strategic planning, communications strategies, policy coordination and management; The new standards and guidelines are being developed to ensure both transparent consideration of different policy options and planned public consultations; On the job training enables them to move from the directive decision-making of a totalitarian system, to the policy-making system of democratic societies; Real time policy documents, produced under the guidance of a team of international experts, are another result of the project participants' work. Tel. +38044 462-4937/38 Web: www.icps.kiev.ua International Centre for Policy Studies

8. Two ICPS Examples of Capacity Building "The People's Voice" Project (CIDA and WBI supported) Capacity building of procedures and skills that promote public participation in building an effective, responsible and open government at the municipal level; This project introduces such activities as normative for both government and society: Policy analysis standards and methods in the decision making process; Policy consultations; Public budget hearings that provide training in budget analysis and enable citizen assessment of government spending; Creation of citizen's charters; Public service delivery surveys and complaints offices creation; and Posting codes of ethics for the public service. Tel. +38044 462-4937/38 Web: www.icps.kiev.ua International Centre for Policy Studies

9. Impact New government regulations facilitate processes that are developed according to the principles of public policy, ensuring participation, transparency and accountability; These new opportunities--analyzing options, consultations with stakeholders, surveys, public service delivery, public budget hearings--enable civil society to understand policy decisions and to participate in this process; As a result, skilful citizens provide the government with feedback and hold it accountable for decisions and their implementation; Thereby environments of corruption, secrecy and collusion are challenged. Tel. +38044 462-4937/38 Web: www.icps.kiev.ua International Centre for Policy Studies

10. Recommendations The positive aspect of this experience is that establishing new societal skills is do-able; Democratic skills and procedures are transferable, learnable and sustainable producing the concrete, observable results of good governance; Sadly, over the past ten years in Ukraine, this skills transfer process has not been the mainstream of reform; Therefore, the recommendations are: Build on the success achieved and expand the projects that are working; Make capacity building the rule, and not the exception, for technical assistance; Assist the country to develop a comprehensive and sustainable good governance strategy. Tel. +38044 462-4937/38 Web: www.icps.kiev.ua International Centre for Policy Studies

11. International Centre for Policy Studies Kyiv, Ukraine Dr. Vira Nanivska International Centre for Policy Studies Tel. +38044 462-4937/38 Web: www.icps.kiev.ua Weak Institutions and Consequences for Government (for the Economic Forum on "Transparency and Good Governance in Economic Matters”) March, 2001 Bucharest