DFID and Ukraine: Past, present and future

2 April 2008

Image courtesy of Gregory Wrona/Panos Pictures At the end of March 2008, DFID closed its bilateral programme in Ukraine. This marked the end of 17 years of aid - a period which has seen this former Soviet country make real progress in areas such as reducing poverty, strengthening democracy, and increasing opportunities for trade. However, the story of UK involvement in Ukraine's development is not over yet. The UK will continue to support the country's social and economic advancement through international organisations including the European Union, the World Bank, and the United Nations. Below, find out more about how the UK has fought poverty in Ukraine over the last 17 years - and read the testimonies of people whose lives have been changed by DFID help. Lives changed Between 1991 and 2006 the UK gave £105 million in bilateral aid to Ukraine. This money went towards key priorities such as tackling HIV/AIDS, building a better climate for business, improving the delivery of social services, helping people to learn new skills, and enhancing social protection. Amongst the many ordinary Ukrainians whose lives have been transformed during this period is Nataliya, a wheelchair user from Kamyanets’-Podil’sky in the west of the country. Nataliya benefited from a DFID-funded project that works within the community to provide care and training for disabled people, enabling them to earn an income, be more independent and participate in "normal" society. Back to top Real improvements Nataliya describes how this opportunity gave her a new lease of life: "The disabled in Ukraine are given little chance to study or be employed, and social welfare benefits are minimal. But when the project was launched, it was the first time in years that real actions were taken to improve our lives. I began to work and study. Now I can do different types of work: typesetting, embroidery, dough ceramics, beadwork, and sewing. I feel useful and wanted."

Ukraine's progress   Since the UK started providing aid in 1991, the country has moved forward in a number of areas: A stronger economy - with an average real growth rate of 7.4% over the last seven years Poverty reduction - between 2000 and 2005, the number of people living under $4.30 a day fell from 11.9% to 1.5%. Democracy - there are free and transparent elections, and a more open media. Governance - the government system is reforming and introducing international standards to deliver better services to citizens. Communities - local people want to play a more active role in the political and social life of their town, village or city. Private sector - business is showing an increasing interest in investing in and supporting development. Trade - formal negotiations on Ukraine’s accession to the WTO were recently completed, and policy is consistently heading towards integration into international markets.

Thanks to the project (implemented within the framework of the Facilitating Reform of Social Services programme, which received £3.185 million DFID funding between 2004-07), Nataliya found a job in typesetting, and she plans to pass on the skills she learned to other disabled people.

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Bringing communities together

In the Donbass region in the east of Ukraine, another recent project has aimed to bring about major changes. Over the last six years, DFID has provided £7.4 million to Action Donbass (also known as Economic Regeneration and Social Mitigation in the Donbass).

The village of Novomykilske, in Luhansk Oblast, is one place that has benefited. Before, the village was marred by poverty, unemployment, poor roads, and a lack of a sense of community. Local people felt they were powerless to change their situation.

However, when the Action Donbass programme arrived, villagers were taught to identify their most pressing problems and find solutions for them, relying on their own resources. This brought the whole community together behind common goals, like repairing the village club, doing minor repairs to the road, and buying a bicycle for the local postman.  

“Before the project we didn’t believe we could do anything by ourselves,” says community volunteer Olga Zhernova. “There used to be five or six suicides in the village every year. But in the eight months since the project came to us, there hasn’t been a single suicide. It’s because people were given help which restored their faith in themselves.”

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A fresh start

Another important achievement of Action Donbass has been to create career opportunities for young people. After serving a prison sentence, Artyom Moiseyenko, 27, found it difficult to return to normal life and get a job. When he decided to launch his own business making peat and humus pots for seedlings, he needed money to buy parts and raw materials, but lacked a deposit to secure a bank loan.

The Youth Business Ukraine Programme (YBU), which was initially funded by Action Donbass, provided Artyom with a loan that enabled him make his idea a reality. Within two months, Artyom's business was up and running, and is now attracting major orders. Artyom plans to buy his rented premises and increase production, and he also sits on the YBU board, helping others to become entrepreneurs.

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Supporting creativity

Yulia Bulkina's idea for a business was quite different to Artyom's, but YBU made it happen. Twenty-three-year-old Yulia's theatre company, Divo, received a start-up loan worth $3,465 after she impressed the YBU panel with her passion and command of detail.

Divo brings its unique, cheerful style of theatre to aqua parks, resorts and hotels, and is even diversifying into the production of costumes for corporations, and the leasing and sale of carnival outfits. Yulia is keen to point out that without the encouragement, assistance and support of YBU, Divo wouldn't have been possible: "YBU assisted me not only financially but provided with me with a mentor who has given me invaluable information about running a business."

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Future UK help to Ukraine

The experiences of Nataliya, Artyom and Yulia, and of the villagers of Novomykilske, are just some examples of how DFID has helped to make a difference in Ukraine. Now that the country has moved from a low to middle income country, and made significant progress in reducing poverty, DFID sees an opportunity to change the way it gives aid.

The DFID bilateral programme, whilst having been successful, is only one mechanism to support Ukraine as it grows and changes. The UK recognises that the job is not finished, and will continue through:

• The FCO’s Strategic Programme Fund - to support projects to help Ukraine work towards closer co-operation with Europe and strengthen the emerging broader democratic base.
• The Global Conflict Prevention Pool (1252.8 kb)- this will continue to operate a number of programmes in support of security reform.
• The British Council - which will continue its wide ranging educational and cultural programmes.
• The British Embassy’s Commercial Section - which will remain engaged with British companies seeking to explore the expanding and growing trade and investment market.

Most significantly, the UK, as a member state of the European Union, will continue to support the effective implementation of European Commission aid to Ukraine. This aid amounts to over Euro 120 million a year, and is mainly channelled through the European Neighbourhood and Partnership Instrument.

• Find out more about the UK's future support to Ukraine - and read more stories from people whose lives have been changed - in UK-Ukraine - Development Partnership: Past, Present and Future(877 kb).