Introducing public policy process in Ukraine: role of independent policy think tanks

1. Dr. Vira NanivskaInternational Centre for Policy StudiesKyiv, UkrainePresentation to the Policy Institute SeminarOpen Society InstituteJune, 2000 Budapest

2. Introducing public policy process in Ukraine: role of independent policy think tanks

3. 10 YEARS AGO, businesses all over the world looked with enthusiasm towards the opening up of the Soviet Union, envisaging unprecedented market opportunities. • TODAY there is a general sense of frustration that these expectations have not been realised.

4. The impact of Soviet legacy on reforms in Ukraine • Guided by technical assistance, the transformation of post-totalitarian economy and society has failed to create a business-friendly environment in Ukraine. • Technical assistance did not take into account the Soviet legacy of the “shadow economy”. Privatisation did not legalize shadow ownership, instead shadow business was pushed further underground, where it became an opposition force, much stronger than the resources available to counter it. • Technical assistance did not work on reforming the totalitarian government machine (as was done, for instance, in the Baltic or other CEE countries).Instead, it was aimed only at policy advice to the non-changed government closely connected with shadow businesses. The malfeasant privatisation program is only one example of how the shadow relations between business and government grew stronger.

5. Ministry of economy Ministry of finance Light industry ministry Trade ministry shoe factory leather factory shoe shop light industry bank Official Soviet economy as a “Single unified factory” system

6. Soviet shadow connections Ministry of economy Ministry of finance Light industry ministry Trade ministry shoe factory leather factory shoe shop light industry bank

7. Public Policy as an institutional tool of democratic society • In the West, public policy process reconciles the legitimate interests of various public groups and serves to maintain one strategic direction. • The biggest problem of the Ukrainian government in transitioning from a totalitarian to a democratic regime has been the lack of a conception or practice of public policy. • Public discussions on government policy recently held by ICPS show that as far as energy, agricultural, regional policy, etc. are concerned, nobody distinguishes between national, strategic interests from the interests of certain business groups and clans. • These shadow interest groups and clans are served by newly created partisan think tanks.

8. Role of Technical Assistance • Donors do not typically work with Ukrainian institutions; in particular, they failto focus on developing the policy capacity of the government or of independent organisations.   • The lack of ability of the Ukrainian government to conduct open public policy, and the shadow economy strengthened by powerful private analytical institutions have crowded out legal business and reduced the investment attractiveness of Ukraine. • Existing methods of technical assistance, and current conditions in the Ukrainian economy, do not help in overcoming the reform challenges faced by the country. • Ukraine becomes less transparent to the West, and meanwhile, its dependence on Russian shadow capital increases. • The only donor who work at developing civic society is Open Society Institute. • International Centre for Policy Studies is a manifestation of the new institutional capacity which serves civic society.

9. International Centre for Policy Studies Activity Summary Spring, 2000

10. ICPS Mission As an independent policy think tank, the International Centre for Policy Studies has the objective of improving Ukrainian policy research and dialogue and the participation of the public at large in the formulation of policy and the monitoring of reform. Areas of Activity In pursuance of the ICPS Mission, activities are carried out in four main areas: 1. Independent policy voice ICPS develops and implements research projects that respond to society’s demand for an independent viewpoint on key problems which exist in the country. 2. Technical assistance to the government ICPS writes concept papers and develops technical assistance programs aimed at building the institutional capacity of government agencies to conduct full-fledged policy analysis. 3. Public participation in the policymaking process Here ICPS aims to improve the effectiveness and transparency of government activity through promoting the rights of citizens and their responsibility for the country's future. 4. ICPS institutional capacity We are striving to create a competitive research institution with a worldwide reputation, demonstrating new types of institutional behaviour inherent in an open society.

11. Independent Policy Voice Quarterly PredictionsBusiness Opinion ReviewEvaluating Policy Impact of Economic Legislation Technical Assistance Policy Analysis and Strategic Planning GroupsEconomic Modelling and ForecastingCountry Economic MemorandumInstitutional Support for Verkhovna Rada Members Visit Public Participation in Policy making Building National Integrity: People’s Voice ProjectEvaluation Criteria for the Policy Project Competition Ukraine’s European ChoiceTechnical Assistance to Business AssociationsEducational Reform StrategyFuture of Ukraine: Plan for the President ICPS Institutional Capacity Publications GroupCommunications Forum GroupsFinancial Sustainability

12. Independent Policy Voice

13. Quarterly Predictions • Objective • To improve the policymaking process in Ukraine and further discussions on economic prospects • Tasks • Provide independent commentary on the Ukrainian economy and the policy problems it faces • Provide consistent forecast of macroeconomic indicators • Encourage co-operation between the government and non-government organisations • Enhance public understanding of the economic policy debate • Outputs • Four issues of the Quarterly Predictions journal each year • Economic research in the areas of fiscal policy, monetary policy, prices, business, agriculture, ownership, labour market, households, foreign trade and international capital flows, and the world economy • Macroeconomic seminars, presenting ICPS research results • Expert discussions with representatives from government, business, and academia

14. Business Opinion Survey • Objective • To provide an independent evaluation of government economic policyand its impact on the economy • Tasks • Obtain independent and reliable data on the economic situation in Ukraine at the micro level • Conduct quarterly surveys with business managers of different economic sectors • Define problems faced by Ukrainian enterprises that can be solved by the state • Present an independent view of key problems in Ukrainian business to entrepreneurs, government agencies, and the public • Outputs • Quarterly issues of the Business Opinion Review, with analysis of the data collected from surveys • Seminars and discussions aimed at examining research results, with participation by government and business representatives and Ukrainian and international experts

15. Evaluating Policy Impact of Economic Legislation • Objective • Provide an independent integrated evaluation of changes in economiclegislation with regard to their impacts on market reform feasibility in Ukraine • Tasks • Evaluate policy intervention impacts of new economic legislation on the investment climate and business environment in Ukraine • Outline prospects for future developments in economic legislation • Promote public discussion of important economic policy issues in Ukraine • Outputs • Annual publication of expert evaluations of new economic legislation enacted over a year’s time • Broad dissemination of expert evaluations to policy makers, investors, and media • Discussion of legislation assessments at seminars and workshops

16. Technical Assistance

17. Policy Analysis Groups and Resource Center in the Government • Objective • To improve decision-making process in the Ukrainian Government by strengthening the analytical and institutional capacity of the government officials for sound and coherent policymaking • Tasks • Promoteestablishing a system of informational and analytical support for government decision-making process • Promote improvement of procedures of government decision-making and evaluation • Promotetraining programs for government servants to support informational and analytical potential • Outputs • Policy analysis and strategic planning skills • Standards of procedures and documents within policymaking • Strategic documents:sectoral and issue Policy Papers • Recommendations to improvement of informational management • Resource library

18. S T A G E MOS Activities Outputs Performance criteria Institutional capacity: Developing Standards Strategic document development Trainings, special courses I 1 Introduction 1. Define the list of candidates 2. Develop the contest conditions 3. Hold the contest 4. Compose policy analysis groups 5. Develop training plan 6. Develop individual plans 7. Define the list of documents, which are to be developed 1. Policy analysis groups 2.Training plans for each group 3. Individual plans 1. Full participation 2. Fulfillment of individual assignments II 2 1.Study the international experience in reforming policymaking process 2.Current policymaking system analysis and problem definition Conception development 1.Study the international experience 2.Develop the document structure 3.Discussion (Seminar on policy formulation) Courses: 1. Policy Analysis 2.Organisation of Communication 3.Project management 4.Methods of informational support 5. Regulatory Reform: - Basics of regulation policy - Cost Benefit Analysis - Administrative Reform 6. Other І.Strategic document development -ToR for the document -document structure ІІ. Institutional capacity creation -International experience in policymaking process III 3 1.Comparative analysis of international and Ukrainian systems of policymaking 2.Define possible ways to improve the Ukrainian system Prepare the first draft 1.Study the international experience 2.Prepare the first draft 3.Hold a discussion (seminar on policy formulation) (30 persons) 4.Make changes 5.Define consensus and disagreements І. Strategic document development -First draft ІІ. Institutional Capacity creation - Results of comparative analysis - Possible ways to improve Ukrainian system ІІІ. Skills of: - Policy analysis - Organization of communication - Project management Implementation plan for the pilot project entitled “Creation of four policy analysis and strategic planning groups in the Secretariat of the Cabinet of Ministries and the Ministry of Economy of Ukraine”

19. IV 5 1.Prepare the first draft of standard procedures for policy paper development, document formats, skills requirements and ToRs for policy analysts 2.Develop recommendations for temporary agenda for the Cabinet of Ministries and structure and procedures of quarterly report preparation Prepare the second draft 1. Prepare second draft 2.Discussion (policy formulation seminar) (30 persons) 3.Making changes 4. Define consensus and disagreements 5. Broad discussion (60 persons) І. Strategic document development -Second draft ІІ. Institutional capacity creation: -First draft of standard procedures for strategic document development, document formats, skills requirements and ToRs for policy analysts ІІІ. Skills of: - Policy analysis - Organization of communication - Project management 6 V 7 Discuss prepared documents Prepare the final draft 1.Define necessary additional materials, information 2.Prepare the final raft І. Strategic document development -Final draft ІІ. Institutional Capacity creation: -development of changes and suggestions for prepared documents ІІІ. Skills of: - Policy analysis - Organization of communication - Project management 8 VI 9 1.Prepare final drafts of document taking into account comments and suggestions 2.Approve standard procedures of policy paper development, document formats, skills requirements and ToRs for policy analysts Preparing reports 1.Prepare project report 2.Prepare individual reports 3.Prepare draft regulations 4.Prepare and conduct communicative events 1.Project report 2.Individual reports 3.Approved regulations on ToRs and skills requirements for policy analysts 4.Approved regulations on standard procedures for policy paper development and document formats 5. Recommendations for temporary agenda for the Cabinet of Ministries and structure and procedures for quarterly report preparation 10

20. Economic Modelling and Forecasting Project in Ukraine • Objective • To strengthen the capacity of the Ukrainian government to conduct current economic analysis and develop sound economic policy • Tasks • Improve the capacity of the government in the area of economic and fiscal policy design and analysis • Develop skills of econometric model building and testing and economic forecasting • Build knowledge in database construction and management • Outputs • Functioning econometric model of the Ukrainian economy • A centralised data bank and a system for updating this data • Sound understanding of how to use the new tools (the model and database) in studying and analyzing economic policy and change

21. World BankCountry Economic Memorandum • Objective • To facilitate work on an economic development strategy for Ukraine and to support the development of consistent dialogue between Ukrainian and international experts • Tasks • Broker meaningful policy dialogue between the government of Ukraine and the World Bank • Provide research groups with organisational and methodological support for preparation of the Country Economic Memorandum • Outputs • A draft of the Country Economic Memorandum, including reports on 8 major topics of economic policy: fiscal policy, education, health care, social security policy, industrial and trade policy, energy policy, agricultural policy, shadow economy • Long-term strategies of economic policy in Ukraine • World Bank recommendations to the Ukrainian government • Expert discussions, seminars

22. Institutional Support for Verkhovna Rada Members and Staff Study Visit Goal Increase institutional capacity of the Parliament to draft normative acts of high quality through obtaining skills of policy analysis and strategic planning by Parliamentarians and staff. To develop requirements to the standards of any normative acts related to ensuring effective and clean governance, enabling business environment, and human rights. • ICPS approaches • 1. Ensure Ukrainian ownership of the training program by personified involvement of every would be trainee in the process of planning: • Develop individual plans with clearly defined outputs • Formulate home assignments • Create guidelines for the back-to-office report. • 2. Ensure a well-informed learning process: • So that each participant receives reading material relevant to his topic and tasks • So that back-to-office report includes recommendations derived from new information • 3. Ensure that training is directly related to reform agenda: • Clean and effective governance • Enabling business environment • Protect of human rights

23. Public Participation in Policy Making

24. Building National Integrity: People’s Voice Project • Objective • Implement mechanisms and procedures which promote public participation in building an effective, responsible and open government, as well as assure public participation in the policymaking process • Tasks • The primary target of the project is to assist selected cities in Ukraine to reform and improve their services to households and businesses and to enhance their level of integrity in the process • A secondary task of the project is to strengthen capacities of both citizen groups and officials to use information and interact with each other in order to enhance the overall quality of governance in these cities • Outputs • Open budget hearings • Monitoring the quality of services provided by state authorities • Citizens’ Charter • Mass media involvement to make these processes transparent to the public

25. People’s Voice Project Principles What do we want? How do we get it? 1. Capacity Building – Skills ·to build the knowledge and skills of representatives of the NGO coalition in planning, organization, communications, management, etc. A RBM (Results Based Management) Course was developed and delivered to the core management group of the project and it will help define better frameworks for governing the project. This took place on February 7, 2000. A Strategic and Operation Planning Workshop was delivered to the NGO coalition on February 28 – March 1. The general purpose of the workshop was to provide representatives of the NGO coalition with a knowledge and understanding of the various models and dimensions of strategic and operational, as well as of strategic management, and to develop in them the ability to apply this knowledge and understanding in their own organizations. A Human Resource Management Workshop was delivered to NGO Coalition ion March 27-29. The purpose was to give the participants knowledge of the specific and special nature of communication management in non‑profit organizations, management of human resources in NGOs and some other problems connected with communication management (motivation, conducting meetings, group decision‑making, public presentations, and so on). Additional courses could be developed and delivered based upon the needs of the coalition. 2. Coalition Building – Solidarity ·to support the solidarity of the coalition through joint activities, sharing of information, developing common objectives, etc. A Coalition Building Workshop is being planned for June 8-9 that will be delivered to the heads of the NGO coalition members. It will help them understand the essence and advantages of teamwork and provide them with tools to further the goals of the coalition. A strategic plan for the coalition is being developed by the lead local agency. This plan will be used as a blueprint to develop coalition activities. This is being done using the skills developed during the Strategic and Operation Planning Workshop. This will be used as a protocol in guiding the future activities of the coalition. 3. NGO Activities – Research, Community Development, Active Roles on Working Groups, etc. ·to provide opportunities for our NGO partners to undertake activities that correspond with their own objectives and support the goals of the People’s Voice Project Provide opportunities for NGO partners to take an active role in monitoring various aspects of local government service delivery, including: ·local government activities ·gender related policies and programs ·education reforms ·budget issues ·regulatory reforms ·utilities and housing issues ·environmental issues People’s Voice Project, NGO Strategic Development Outline

26. Principles What do we want? How do we get it? 4. NGO Resource Centre ·to provide resources and a location for meetings, training, networking, etc. Developing a NGO Resource Centre that could be used for training, research, coordination, planning, etc could help further the activities of the coalition. This also might be done by establishing a small library of learning materials in connection with one of the existing NGO coalition members in Ternopil. 5. Media Relations ·to facilitate awareness of NGO activities and their role in monitoring local government services A seminar on NGO Media Relations Seminar was held in cooperation with IREX on March 25, 2000 that provided local NGO partners will tools and skills in developing a media awareness campaign (press releases, publications, etc.) for the activities associated with the project. Profile NGO groups in newsletters and websites. Additional courses could be developed and delivered based upon the needs of the coalition. Support is also possible to facilitate press conference for project activities through the Ukraine Market Reform Education Program that is funded by USAID. 6. CEE Cooperation ·to give our NGO representatives an opportunity to learn from similar NGO groups in CEE and forge partnerships amongst them Possible development of a conference dealing with NGO coalitions that monitor local government services. NGO coalitions have been identified from Bulgaria, Poland and Czech Republic that would possibly participate in the conference. The conference is scheduled to take place on July 20-22 in Yaremcha. People’s Voice Project, NGO Strategic Development Outline

27. People’s Voice Project, Possible Activities for NGO Partners Component Dates Comments Possible Outputs 1. Monitoring of Local Government Reforms April – July, 2000 As part of it duties, Ternopil Agency of urban development will continually monitor local government reform initiatives and make these available to local media through press releases. Other possibilities include facilitating a monthly speakers series, providing analysis of local issues and developing a “hotline” where citizens, citizen groups, and NGO can provide updated information on concerns and updates related to local government service delivery. These can all be done as part of their responsibilities associated with the project. ·policy updates (press releases) ·policy workshops (speaker series) ·policy hotline development 2. Gender Audit March – June, 2000 This initiative will build upon the suggestions made by international expert Katrina Murray. It is likely that there are many donor groups willing to fund such activities given that proposal can be developed by the local partners under the guidance of the international experts. ·gender audit ·monitor and publish stories/facts about gender issues ·develop and manage separate project (training, seminars, leadership development, etc.) 3. Education Reforms June - July 2000 Through support from the Canadian government through the Policy Advice for Reform (PAR) project a Canadian advisor will be working with local officials and NGO representatives in developing an action plan of educational reform initiatives related to establishing a community dialogue and establishing options for alternative financing mechanisms. As part of this initiative, NGO partners will be required to conduct research on policy issues and participate in a number of seminars. ·policy paper on educational issues in Ternopil ·seminar in Ternopil on educational reform experience in Lviv 4. Report Cards September, 2000 Once 2-3 initiatives have been completed, a report card will be completed to determine if public perceptions toward that particular service have changed. It is likely that a local partner will do this. Methodology to conduct such reports will have to be determined some time this summer. ·report card on “Utilities Payment Centres” ·report on “Municipal Complaints Hotline” 5. Budget Hearings May – September, 2000 As a follow-up to mission to Ternopil in February it has been suggested to finance experts from the Academy of National Economy to conduct research on specific budget questions and quite possibly to be trained as neutral facilitators. This will have to be determined during upcoming discussions in Ternopil concerning open-budget hearings. ·training facilitators ·developing a research agenda ·manual/outline for local budget hearings 6. Regulatory Issues April – September, 2000 It might be possible to use some of the work and research conducted by this project (and the various NGO partners it has established) to link into the objectives of the Economic Development Working Group. It might be worthwhile to help one of the NGO partners in this project to conduct a report card of some of the results of this project, either in the area of land reform or rent of communal property ·shared reports and strategies ·possible identification of report card opportunities

28. POLICY RESEARCH Does the topic meet goals of democratic and market reforms? Are planned beneficiaries involved in the decision-making process? Does the project structure correspond to the structure of Policy Paper? Does the program of dissemination exist? Are working consultations with officials planned? Are working consultations with public planned? POLICY DIALOGUE Is the event connected with wider policy process? Is the topic of discussion connected with policy? Is the possibility of individual participation planned? Are representatives of different interest groups invited? Is the study of international experience planned? Is dissemination of event results planned? Is preparation of event analysis and report planned? POLICY TRAINING Does the project have policy content? Are project outputs defined clearly and connected with policy goals? Are beneficiaries included in the project? Do they have individual plans? Are international experts involved in the project? Are communicative events planned? Is policy paper a product of the project? Are skills that have to be developed clearly defined? Are high officials involved in the project implementation? Do they plan to use the project outputs in their work? Are follow up activities planned? Evaluation Criteria for the Policy Projects Competition

29. Ukraine’s European Choice • Objective • Assist in developing strategy and efficient policy of Ukraine’s integration into the European Union • Tasks • Contribute to strengthening the Ukrainian Government’s policymaking capacity in the sphere of European integration • Promote greater Ukrainian public awareness of and support for the country’s European choice • Promote Ukrainian NGOs’ involvement into the policymaking process • Outputs • Research and policy papers on the issues of Ukraine’s European integration • Expert discussions and policy formulation seminars • International conferences

30. Educational Reform Strategy • Objective • Facilitating the process of developing educational policy and definition ofthe strategic tasks of educational reform in Ukraine. • Tasks • Use the positive experience of Western countries and Central-Europeanstates • Make the educational reform an essential component of the transformation of the country’s economy. • Make Ukraine more open to Western experience in educational reform. • Outputs • New knowledge on the conditions and effectiveness of education in Ukraine compared to other countries • Widespread public understanding of the critical necessity for educational reform in Ukraine • Defined priorities for transforming educational content and administrative systems • Independent educational policy institutes established in regions of Ukraine for involvement of the community and private sector into the open policy process in educational area and accelerate a transition to new methods of education financing and management • Groups of public policy analysis and strategic planning in the Ministry of education and science established to increase institutional capacity for policy making aimed to support the decentralisation and democratisation of education

31. Ukraine’s Future: Plan for the President • Objective • To promote the democratic practice of public participation in the policy process by promoting public discussion of policy options facing the government as well as implementation of policy decisions in Ukraine • Tasks • To conduct a broad consultative process with representatives of private business, NGOs, Parliament, government and municipal leaders to identify key policy objectives • To address practical concerns of political leaders constrained in their decision making by government’s institutional inability to provide policy advice • To build up the institutional capacity of ICPS to develop policy analysis and contribute to the policy debate • Outputs • Series of roundtable discussion sessions on key policy issues in Ukraine • Broad dissemination of conclusions from discussion sessions to policy makers, NGOs, and media • A briefing document providing advice for the incoming President

32. Technical Assistance to Business Associations • Objective • To promote and develop private initiative in business, andenhance economic welfare and labour safety in Ukraine • Tasks • Conduct analytical work on monitoring, reviewing, and supplementing draft laws of Ukraine concerning business activity • Provide wide-ranging lobbying via recommendations, analytical and expert materials • Organise feedback between the business sector and legislative and executive powers • Outputs • Successful campaign to eliminate the stamp duty • Proposals for simplifying the taxation, accounting, and reporting systems for small businesses • Attempts by the State Tax Administration to impose a tax return program in electronic format were overturned • A decision to introduce state-issued accounting forms for primary-level bookkeeping was overturned

33. ICPS Institutional Capacity

34. Publications Group • Objective • To promote awareness of ICPS research results and activities in the government and among business, NGOs donors, and the public • Tasks • Distribute research results in a variety of publications • Promote ICPS intellectual products among policymakers and the general public • Work towards self-sufficiency as a long-term strategy • Outputs • Quarterly Predictions journal • Quarterly Business Opinion Review • Monthly Policy Studies journal • Weekly ICPS Newsletter • Transformatsiia, a Russian-language version of the World Bank bulletin Transition

35. Communication Forums Group • Objective • To raise policy dialogue in Ukraine to a higher qualitative level by means of facilitating effective means of communication • Tasks • Create environments that facilitate making well-founded policy decisions in Ukraine • Provide effective communication forums for ICPS and the public, government bodies, mass media, and Ukrainian and foreign NGOs • Render methodological support to ICPS projects concerning external and internal communication • Outputs • Weekly macroeconomic seminars • Seminars on policymaking • Expert discussions • Roundtables • Focus groups • Press conferences

36. Financial Sustainability Objective Insure ICPS financial independence and sustainability by client and topic diversification • Tasks • Create a market for commissioned policy research • Reach various client groups (international institutions, Government, private sector) • Develop institutional capacity to deliver diverse high-quality services and market them • Outputs • Create membership system based on the regular high-demand publications • Create a frequently updated client database • Develop standards and procedures for commissioned research • Set up surplus-generating units which deliver high-demand services • Set up client relationship unit • Ensure persistent marketing efforts: • — Samples of the publications and information about new products disseminated to potential clients; • — Briefings to members promoting contract research opportunities; • — Regular press conferences on ICPS economic forecasts and research projects; • — Free economic seminars; • — Frequent interviews and articles on the crucial economic policy issues; • — Free weekly newsletter distributed to the clients; • — Regularly updated ICPS website (www.icps.kiev.ua).

37. ICPS Financing sources Donors and clients Members ·Canadian Institute for the Ukrainian Studies ·CIDA ·Eurasia Foundation ·Freedom House ·IRIS ·National Bank of Ukraine ·NewBizNet ·Nuclear Safety Centre ·OSI ·Raiffaisen Bank ·RAND ·Royal Netherlands Embassy ·UNDP ·US Embassy ·World Bank ·Pool of the Ukrainian banks: —Allonzh —Antares —Aviatekbank —Avtoritet —Brokbiznesbank —Forum —Nadra —Societe Generale —Ukraina —Ukrainskiy Kapital —Ukrgazprombank ·Altheimer & Gray ·British Embassy ·Dniepr-Daewoo JSC ·Dniproenergo JSC ·Embassy of Argentina ·Embassy of Austria ·Embassy of Finland ·Embassy of Hungary ·Embassy of India ·Embassy of Japan ·Embassy of Spain ·Embassy of Sweden ·Embassy of the Republic of Cuba ·Embassy of the Republic of Korea ·Farmak JSC ·First Ukrainian International Bank ·German Advisory Group on Economic Reform in Ukraine ·Holding Cement Polski ·Internet Securities ·JSCB Citibank (Ukraine) ·KLM Royal Dutch Airlines ·KPMG ·Kyiv International Bank ·Minolta Ukraine ·Moscow office of Japan Bank for International Cooperation ·Nestle Ukraine ·Northland Power ·Philip Morris ·Robert Bosch ·Royal Danish Embassy ·Royal Netherlands Embassy ·Savings Bank of Ukraine ·SC Johnson ·Scania Ukraine ·Schneider Electric ·South African Embassy ·Sumitomo Corporation ·Tekt Investment Company ·The PBN Company ·US Embassy ·Volvo Truck Corporation ·Zaporizhtransformator JSC

38. SummaryThe role of independent policy think tanks in increasing effectiveness of technical assistance and attracting foreign capital

39. Technical assistance Technical assistance Technical assistance Technical assistance OSI policy programme Independent policy think tanks Foreign capital Foreign capital Foreign capital Foreign capital Shadow interests strengthened by partisan think-tanks Government Partisan think-tanks’ influence decreases Government and business are motivated to work with international technical assistance and foreign capital Independent policy think-tanks create forum for public participation in the policy process and bring transparency into decision-making OSI policyprogramme establishes new independent societal actors Technical assistance and foreign capital attempt to work with Government and business crowd out foreign capital andmake technical assistance ineffective Shadow capital loses access to public resources Shadow capital

40. Conclusions • After three and one-half years of work, ICPS has contributed to creating demand for the type of assistance that builds public policy capacity. • The government is now asking donors for the same types of projects that have been designed and carried out by ICPS. • Donors would benefit from cooperation with OSI in this area. ICPS’s recent project aimed at creating policy analysis groups in the government can serve as a good example and beginning of such cooperation. • OSI support of independent policy think tanks leads to: • ensuring ownership of economic reforms; • facilitating democracyby establishing new civil society institutions and programs; • bringing about new quality communication and cooperation between various public groups; • leading the country out of the “shadow” and improving the business climate; • creating conditions for involving the public and allocating intellectual resources for democracy and economic growth.