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- Project: “Support for agricultural reforms and land relations in Ukraine”
The Support to agricultural and land reforms in Ukraine project was created to strengthen the capacity of central executive authorities to develop state policy in the field of agriculture and land relations based on evidence and economic analysis. To this end, the project strengthens the analytical component of the reform process and contributes to providing central authorities and society with up-to-date and reliable data on the state of land relations through the creation of the Land Relations Monitoring System in Ukraine, analytical and academic research.
The project is funded by the World Bank. It is implemented in cooperation with 15 government agencies, international and Ukrainian non-governmental organizations. Their representatives are members of the Steering Committee, which approves the Project’s priority areas of activity, as well as working groups on Land Relations Monitoring and other activities. The Project is implemented by the Kyiv Economic Institute (KEI) at the Kyiv School of Economics.
The main products created as a result of the Project implementation are: (1) Analytical notes on topics necessary for the authorities to make decisions in the land and agricultural sectors. The analytics take into account international experience and provide an assessment of the feasibility of its application in Ukraine. (2) The system for monitoring land relations in Ukraine that integrates all existing indicators on the state of land resources, their use and land reform. To implement the Monitoring, the Project is actively cooperating with the relevant executive authorities. (3) Conducting expert discussions, presentations and publications in the media based on the results of analytical work and Monitoring. (4) Remote sensing of land – studying the possibilities of its application by order of state institutions in Ukraine.
RESULTS OF THE PROJECT “Support to Reforms in Agriculture and Land Relations in Ukraine”. pdf
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Justification of the Project. Underutilization of land resources in Ukraine results in high costs for rural, urban and economic development in general. Over the past 10 years, agricultural yields have increased, but remain low compared to international practice and Ukraine’s Soviet-era achievements, unlike Russia and Kazakhstan.
The inability to effectively use land resources directly affects living standards in rural areas and in the country as a whole. According to World Bank reports, better land and agricultural policies could increase agricultural productivity by 30% and add about 12.5% to GDP over the next 10 years, with a significant increase in wages among poor rural households. The increase is expected to be between 11.2% and 27% in the long run.
Imperfect land policy worsens the investment climate, impedes the functioning of markets, the creation of new businesses and jobs, and the functioning of local governments. According to IMF estimates, real estate tax revenues could easily be increased by the equivalent of 0.6% of GDP, which would help provide local services and encourage efficient land use.
Despite the fact that these problems are well known, Ukraine has long lacked the political will and capacity to develop evidence-based reforms, monitor their implementation, and engage a wide range of stakeholders in the discussion. The Support to Agricultural and Land Reforms in Ukraine Project was designed to strengthen the Government’s capacity to develop an evidence-based strategy for agricultural and land reform and its individual components based on economic analysis and to monitor reform implementation. The project provides the Ministry of Agrarian Policy and Food of Ukraine, the State Service of Ukraine for Geodesy, Cartography and Cadastre and other central executive authorities and private sector representatives with information to:
(a) assessing relevant alternatives and making informed policy choices in the field of land relations;
(b) ensuring transparency and better accountability of the authorities involved in the development and implementation of the reform;
(c) stimulating public debate on key reforms;
(d) creating an attractive climate for private investment.
As these activities will facilitate key policy and regulatory reforms in the land and agricultural sectors, they will also significantly increase support from the World Bank and other international financial institutions. The project also improves the institutional capacity of government agencies involved in the collection and administration of land and agricultural data (State Service of Ukraine for Geodesy, Cartography and Cadastre, Department of State Registration of the Ministry of Justice of Ukraine, Fiscal Service and others) to provide regular factual information on the state of the sector, support regular public dialogue and use data for monitoring reforms.
General coordination of activities. This is provided by the Project Steering Committee. It includes representatives of 15 government agencies, international and Ukrainian non-governmental organizations. The Steering Committee approves the priority areas of the project. Steering Committee meetings are scheduled every three months.
Project funding: The World Bank. The Project Coordinator from the World Bank is Klaus Deininger, PhD.
Implementing Institution: Kyiv Economic Institute (KEI) at the Kyiv School of Economics.
Project Manager: Denys Nizalov, PhD.
Project implementation period: March 2015 – December 2017
Contact information: [email protected]
Components of the project
Component 1. Strengthening the capacity of the authorities to formulate and implement policies in the agricultural sector and land relations based on evidence and analysis.
Deliverables. Quarterly policy briefs and studies with recommendations on a list of topical issues agreed and approved by the Steering Committee. The preliminary list of such issues includes:
(1) recommendations on the structure of the agricultural land sales market;
(2) cases and impact of imperfections in the structure of input markets and ways to overcome them;
(3) assessment of land with regard to its agricultural potential;
(4) the impact of land policy and investment climate on the creation of new enterprises.
Component 2. Strengthening the capacity of the Government of Ukraine to process and publish data on the state of land relations in Ukraine
Deliverables. Establishment of automated monitoring of land relations in Ukraine, which will ensure the collection and publication of key indicators of the state of land relations and the publication of relevant reports. The reports will focus on:
(1) trends and prices in the land lease and sale market;
(2) the status of registration of land plots and rights to them
(3) the status of land privatization
(4) land tax revenues;
(5) conflicts related to land relations.
Component 3. Dialogue on land policy and reforms.
Deliverables. A series of expert discussions, presentations in Ukraine and abroad, and publications in the media and professional publications of the results of the project’s analytical work and Land Relations Monitoring.