Eastern Europe & Eurasia Success Stories


Municipal Development Assistance for Local Governments in the Ukraine
In 2002, a USAID-funded computerized budget model helped roughly 29 percent of Ukrainian cities improve their financial management. This funding also provided an additional 130 small cities with computers, communication equipment and technical assistance to improve information exchange, strategic planning and financial management. As a result of assistance from USAID, more than 230 Ukrainian cities now actively use citizen task forces and advisory boards, 67 cities have shifted to competitive bidding, and 48 have improved the delivery of municipal services. Finally, USAID technical assistance allowed the Association of Ukrainian Cities to expand the number of regional offices from 18 to 23, resulting in an increase in member cities -- from 350 to 402 in 2002 alone.

Kyrgyz President Signs Law to Strengthen Local Governments' Fiscal Autonomy
USAID technical assistance in Kyrgyzstan resulted in the adoption of an October 2003 local public finance law that substantially overturns the existing centralized system of public finance. A major step forward in the country's efforts to decentralize, the law provides for greater local government control over locally-generated revenue, a more predictable system of government transfers and greater transparency of budget guidelines. The new law loosens the financial noose around local governments and will enable Kyrgyz local government to better implement service delivery improvements in response to local demands. The challenge now is to make sure the law becomes practice. USAID will continue to educate local and national officials on provisions of the law and help bring other budget legislation into conformity.

USAID/Bulgaria Technical Twinning Program
With direct technical assistance provided by the Resource Cities program, the the USAID/Bulgaria Technical Twinning Program has helped 14 Bulgarian cities in their local economic development planning processes. The Twinning Program was able to increase local government's capacity to attract investment and expertise by encouraging and facilitating international partnerships and cooperation with American cities. Going through three phases, the program has expanded its scope work, involving more cities. As a result, partnered cities not only created economic development plans and city marketing profiles, but also established permanent positions for local economic development officers in their city administrations.

Social Assistance Delivery in Russian Cities
As part of its contribution to reforming social assistance delivery in Russia, the USAID/Russia Mission funded a means-tested system of subsidies that targeted a city's most needy citizens. USAID offered assistance that led to the development of a model for administrative reform, improving labor efficiency and reducing operating costs of social-assistance offices. The pilot model created in Arzamas City in 2001-2002 demonstrated the advantages of a unified standard application for social services. It is currently being replicated in five municipalities and is being studied at the federal level for possible national roll-out.

Additionally, an innovative welfare-to-work program that targeted social support and comprehensive assistance to households suffering from unemployment was developed and tested. The initial pilot work was carried out in one district of Perm City. Based upon the pilot's success, the program was rolled-out to all of Perm City and was taken up by the regional administration for duplication in other cities in the region. The model is now being replicated in several more regions.

Improving Urban Land Markets in Russia
As a result of USAID support, the national legislative framework for improving urban land markets in Russia has improved. USAID assisted in the drafting a new Land Code, amendments to the Town Planning Code and the federal law "On State Registration of Real Estate Rights and Transactions"; and in the drafting of a new law, "On Protection of the Rights and Legal Interests of Citizens Investing in the Construction and Purchase of Housing". The Land Code was adopted by the State Duma (Parliament) in October 2001, providing the first national-level basis for the sale and purchase of non-agricultural land. Further amendments in 2002 permitted the sale of agricultural land.

Also, several important local-level regulatory acts have now been adopted in a number of Russian municipalities due to USAID assistance. For example, Land Use and Development Rules have been enacted in Samara and Khabarovsk. In response to local demand in Samara, a Cooperative Public Town Planning Board was created. The Board will combine the efforts of the city administration, local developers and investors in planning cost-effective projects to renovate dilapidated housing, facilitate approval of design documents, and allocate project sites. In Tomsk region, the oblast (regional) and city authorities have developed a set of legal and regulatory acts to develop the land market in the region, including demarcation of state and municipal lands, facilitation of land registration and land sale procedures.

Greater Local Autonomy and Transparency in Romania
USAID has been supporting efforts to improve governance in Romanian cities. The results have been far-reaching, impacting more than 300 large and small cities and even more villages and towns. As a result of USAID's technical assistance for the drafting and promotion of laws that support decentralization, national legislators adopted the "Law on Local Public Finance" in 1998. Consequently, local governments now have a more predictable and greater flow of revenue from the central government to local budgets, thus improving their financial stability.

Between 1996 and 1999, USAID also supported the creation of Citizen Information Centers in 20 Romanian Cities. These centers serve as one-stop shops where citizens can go for information about their city government. These centers thus promote greater transparency and improve relations between cities and their governments. In the past, when a citizen had a problem or concern, they might have gone to a dozen city offices to have their problem resolved. Now, with a unified city information center, citizens only have to go to one office for resolution of their problems. Due to the succss of the pilot program, a National Association of Citizen Information Centers was established. Today, that association is self-sustaining and citizen information centers have been established in more than 50 Romanian cities.

In July 2001, with USAID assistance, four Romanian municipal associations joined forces to establish the Federation of Local Authorities of Romania. Romanian cities are now represented by a single organization allowing them to speak with one voice when advocating Parliament for greater local government resources and autonomy. This is already proving fruitful. In January 2002, Federation input resulted in the amendments to the "Law on Local Taxes and Fees".

Citizen Participation and Decentralization in Albania
USAID assistance in Albania has led to local governments taking citizen input into greater consideration in determining budgets. Specifically, USAID assisted in conducting citizen surveys in central Albania. The results were then used to formulate budgets for fiscal year 2004. Additionally, USAID helped Albanian officials advocate for the decentralization of state funding for schools. As a result, local education directorates, municipal engineers, school directors and parents now direct government funds generated from local taxes toward the maintenance of their schools and these stakeholders have been trained to assess the condition of their schools, prioritize needs, and create budgets reflecting those needs.


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