| KYIV, January 30, 2007 - The
U.S. Agency for International Development (USAID) has
launched a two-year, $8 million project to provide technical
assistance to the Government of Ukraine and the private
sector to promote trade, investment and business development
and help integrate Ukraine into the world economy. The
project, known as TIBA, will support trade in goods and
services in accordance with WTO rules, and implementation
of regulatory reform to establish a business-friendly
legal environment that encourages SME growth, and attracts
investment.
"TIBA will target both the national
and regional level," explained Earl Gast, USAID
Mission Director. "It will include activities promoting
Ukraine's accession to WTO and post-accession implementation,
private enterprise compliance with WTO requirements;
improving business environment and creating enabling
environment for increased domestic and foreign investment;
and streamlining and enforcing regulations to reduce
corruption related to granting land owner and user rights,
access to utilities, and construction permits."
USAID's assistance activities in 2003-2006 have enabled
Ukraine to conform to numerous complicated WTO agreements
and requirements by reforming its legislative and foreign
trade regime, including Ukraine's governing policy,
legal, regulatory, and institutional framework. The
new project will continue to review and propose amendments
to Ukraine's trade-related laws and regulations to make
them WTO-compliant as well as improve the processes
of institutions that are critical to the implementation
of WTO commitments.
The new project will leverage successes of USAID's
BIZPRO project, which ended in December 2006 and provided
significant assistance in the areas of trade expansion
and regulatory reform. The SME sector in Ukraine continues
to lag behind nearby countries in its proportion of
GDP and employment due in large part to the regulatory
obstacles that SMEs face here. The project will further
develop methods introduced earlier by BIZPRO, which
combined a top-down and bottom-up approach to successfully
strengthen public sector regulatory institutions, improve
enforcement of the Regulatory Policy Law, institutionalize
regulatory impact analysis and evaluation, and further
implement quick deregulation strategies at the national,
sector and regional levels.
Complicated and confusing systems providing construction
permits, delivery of municipal services, and access
to land are sources of significant corruption. The US
Government through the Millennium Challenge Corporation
(MCC) will make one of its largest Threshold Program
investments in Ukraine through TIBA. The investment
is designed to help improve Ukraine's performance on
the MCC's corruption indicator, and improve the lives
of citizens in the process. TIBA will work to reduce
opportunities for corruption by helping make processes
more efficient, simple, and transparent; improving the
permit system law and related statutes, streamlining
procedures for construction permits and access to utilities,
and improving the law on inspections.
Booz
Allen Hamilton will be the primary implementing
partner for the new project. Booz Allen Hamilton, a
leading global consulting firm, has more than 18,000
employees serving clients on six continents. Booz Allen
Hamilton will partner on the TIBA project with Emerging
Markets Group, Economic Integration Forum, Crimson Capital,
and Mendez England.
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