Rapid Assessment Report: USAID Governance and Local Accountability (HOVERLA) Activity

The program began in 2021 with the goal of improving governance and local accountability at the subnational level. The program is sponsored by USAID/Ukraine and is implemented by DAI Global, LLC. Decentralization in Ukraine is a complex process that involves the transfer of power and resources from the central government to local governments. The Ukrainian government has initiated several reforms aimed at supporting decentralization, including the adoption of new legislation and the establishment of a system of local government. However, the current state of legislation is incomplete, and several key laws remain outstanding. The system of local government in Ukraine is based on a hierarchical structure, with oblasts (regions) serving as the primary administrative units. Oblasts are further divided into rayons (districts), which are responsible for providing public services to local communities. However, the lack of legislation to support local self-government functions has hindered the effective implementation of decentralization reform. The HOVERLA program has identified several areas where it can provide support to Ukraine's decentralization efforts. These areas include the development of a unified approach to the provision of public services at the rayon level, the improvement of local government capacity, and the enhancement of fiscal arrangements. The program also aims to support the development of evidence-based policy at the state and local level. In terms of sectoral assessment, the HOVERLA program has identified several key areas where decentralization reform can have a positive impact. These areas include education, healthcare, and citizen engagement. The program has also identified several existing mechanisms for citizen engagement, including civil society organizations and community groups. The HOVERLA program has developed a dashboard to track its progress and identify areas where support is needed. The program has also established a methodology for selecting oblasts and rayons for support, based on demographic and economic indicators. The program's recommendations for initial programming include a focus on key approaches such as building local government capacity, improving fiscal arrangements, and enhancing citizen engagement. Overall, the HOVERLA program is a critical component of Ukraine's decentralization reform efforts. By providing support to local governments and civil society organizations, the program aims to improve governance and local accountability at the subnational level.