Annual Report 2013: "Towards Better Analytics"
CONTENTS
I. Facts and Figures. Major events in 2013.
II. OSF Key Competencies:
1. POLICY ANALYSIS
Parliamentary Monitoring
2. PUBLIC FINANCE
3. ANTI-CORRUPTION
Public Monitoring of Anti-Corruption Policies at the Regional and Local Levels
III. Financial Report
I. Facts and Figures. Major events in 2013.
Open Society Foundation (OSF) is a Ukrainian independent think tank established and registered in March 2001. OSF analyzes policies in the areas of key competences (political parties’ responsibility for pre-election promises in parliament, national and local budgets and budget policy, anti-corruption policy).
The Foundation’s mission is to promote the principles and values of an open society in Ukraine by influencing the agenda for public policy and public finance.
Within 12 years of operation we had mastered the public policy and public finance analysis in full. 2013 was an important year for our think tank.
We have improved the quality of our analysis significantly. We expanded cooperation with leading Ukrainian media outlets (“Dzerkalo Tyzhnya” and “Ukrainska Pravda”). We enhanced the cooperation with Parliamentary committees. The results of our monitoring and public expertise were tuned into policy recommendations and taken into consideration by the committees’ experts.
In 2013 OSF has welcomed a new team member. Ivan Sikora is a former advisor to the Council of Europe and advisor to the Minister of Economy of Ukraine. He was the founder and director of one of the first Ukrainian think tanks. His contribution provided the new impetus to the Foundation’s activities, allowed better coordination and higher quality analytical reports.
For us the year 2013 became:
11th year of the analysis of Ukrainian Parliament activities; the year of testing new approaches to monitoring the work of parliament;
4th year of Kyiv budget analysis; the year of systemic analysis of the "black holes" and reveling significant reserves for city budget replenishment;
2nd year of Kyiv national target program analysis; the year for in-depth analysis of the municipal SME promotion program according to the established standards of policy analysis.
1st year of the corruption risk analysis for the state budget; assessment of the fiscal policy compliance with the Management by Objectives requirements.
2nd year of the integrity in public procurement analysis; the year of increased public attention to the negative consequences of government-driven legislation on public procurement.
2nd year of the national anti-corruption strategy analysis, specifically the State Programme for Preventing and Combating Corruption for 2011-2015.
1st year of regional anti-corruption program analysis at the level of central executive bodies (Kyiv City State Administration (KCSA), Kyiv Oblast State Administration). The proposals to the KCSA and Kyiv Oblast State Administration were developed on the basis of public debates; the profile committee of Oblast Council returned the draft program for revision.
1st year of the comprehensive public monitoring of the anti-corruption policy at the regional and municipal levels. Ivan Sikora on the basis of his own "Anti-Corruption Policy Index" methodology, in cooperation with partner NGO in Chernihiv, has prepared comprehensive monitoring of 2012 anti-corruption action plan for Chernihiv Oblast State Administration and Chernihiv city council. More details: “Antykoryptsiyna polityka na Chernigivshyni: resultaty gromaskogo monitoryngu (Anti-Corruption Policy in Chernihiv: The Results of Public Monitoring)”
The "pause" in European integration and related events were the subject of our advocacy activities. OSF was the first organization, which declared its position at the summit in Vilnius. In particular, together with "Open Policy" Foundation we held "Do not kill our dreams!" flash mob during a speech by First Vice Prime Minister of Ukraine Serhiy Arbuzov. The Open Society Foundation was also the first organization to publish a statement on illegal crackdown of a peaceful gathering on the Independence square in Kyiv on the night of November 30th, 2013. We further responded to the events and actions of the authorities restricting democratic rights and freedoms and terminating Ukraine's European integration.
II. OSF Key Competencies:
1. POLICY ANALYSIS
Formation of the more accountable, efficient and effective policy in the parliament and the government of Ukraine remains one of our priorities. The voters and the general public have the right to control the implementation of the promises made by the political parties in parliament. Lawmaking analysis empowers voters with a tool for combating manipulative populist politicians and provides the ability of making a conscious choice.
2. PUBLIC FINANCE
The analysis and formation of public finance are the important parts of the responsible policy. Increased transparency, public participation in the budget process and information availability are the necessary conditions to influence the efficiency and effectiveness of the fiscal policy at all levels. Every year, billions of hryvnias are spent inefficiently, given the growing budget deficit and underfunding of social, educational and health care programs.
3. ANTI-CORRUPTION
Systemic corruption had caused the crisis of confidence in the government, billions in budget losses and inefficient use of state and municipal property, land and other assets. Proper development, implementation and monitoring of the anti-corruption policy at all levels in Ukraine was hindered by multiple corruption risks and inadequate responses from the authorities, poor civil society capacity to carry out the public monitoring, and mostly superficial readiness of the authorities to take into account public recommendations. Conflict of interest elimination and open access to the income declarations of public officials had not yet become the rule.
1. POLICY ANALYSIS
Parliamentary Monitoring
Transparency and accountability of the political parties in parliament form the basis for responsible policies and integrity of politicians. We empower the voters with a tool to monitor the political parties they elected. Awareness of the responsibility for the unfulfilled promises is an important step towards better Ukrainian politics.
OSF experts have monitored and analyzed the work of the Verkhovna Rada of Ukraine for more than 11 years. We controlled the implementation of election promises by the political parties represented in Parliament.
In 2013 we published 3 issues of information-and-analytical journal "Yak Pratsiue Tvoya Partiya" (How Does Your Party Work). The activities of the parliamentary political parties and the majoritarian MPs had been analyzed.
The analysis of lawmaking suggested the inconsistencies and contradictions between the pre-election promises and the draft laws submitted by MPs (on issues of decentralization, populist promises of language law, etc.)
More details:
2. PUBLIC FINANCE
State Budget of Ukraine
Open Society Foundation pays special attention to the corruption risks in the national budget. We monitor fiscal policy compliance with the Management by Objectives approach requirements and the Budget Code of Ukraine. Our analysis of the corruption risks and advocacy campaign on the international Right to Know Day (that traditionally coincides with the beginning of the Ukrainian state budget preparation for the next financial year) were focused on the challenges of preparation and implementation of national and local budgets.
State Procurement
The integrity in public procurement has substantially deteriorated in 2013. Within the coalition "For the Integrity in Public Procurement" OSF had initiated an open address to the President on corruption risks and undue restriction of competition in public procurement associated with the draft law 0884. Mentioned legal act provided for the change in competitive conditions and introduced additional opaque and unreasonable requirements for procurement participants.
More details:
Kyiv Budget
The budget of the city of Kyiv is the largest local budget in Ukraine. However, each year it fails to be properly implemented. At the same time, the analysis of Kyiv fiscal policy suggests the existence of the "black holes" draining billions of hryvnias. Massive budget loss and failure of planned revenues arose due to an inadequate responses to the corruption risks, the lack of transparency and accountability and the limited public participation in the budget process. We were able to identify, describe and evaluate tens of billions of hryvnias "hidden" from Kyivites due to underestimated cost of land, unregistered land plots, corruption risks in procurement, spending for intermediary organizations (parts of the public utility companies ) and others.
More analysis:
State Target Programs at the Local Level
The "Kyiv City Program to Promote Small and Medium Enterprises for 2011-2012" was analyzed in depth. Its impact on the development of small and medium enterprises (SMEs) in Kyiv was assessed. We also studied the goals and the needs of the key beneficiaries; the tools, products and resources, as well as the shortcomings of Program’s preparation, execution and reporting. Within the frames of the 2012-2013 project titled "Development of public policy proposals for Kyiv city budget", supported by the International Renaissance Foundation (IRF), OSF has analyzed municipal target programs granted with one third of the city budget (UAH 7 billion). The chair of the core parliamentary committee, members of parliament and associations of SMEs had highly rated our research. They noted it was performed in a professional manner. Research results formed the basis for amendments to legal acts shaping public policies to support SMEs (particularly at the Verkhovna Rada Committee on Entrepreneurship, Regulatory and Antimonopoly Policy, the Coordinating Council for Business Development at KCSA and the Regional Council of Entrepreneurs under the KCSA).
OSF cooperation with mentors from the IRF in the frames of the project "Development of public policy proposals for Kyiv city budget" has allowed our experts to prepare analytical products according to established policy analysis standards. This provided for increased methodological capacity and improved analytical procedures for structuring problems in the assessment of fiscal policy in Kyiv. International Renaissance Foundation recognized that our think tank has managed to achieve considerable success using the IRF mentoring model for think tanks support.
On the international Right to Know Day OSF in cooperation with the Global Budget Transparency, Accountability and Participation Movement (BTAP) conducted an advocacy campaign for the public right to access the understandable information on the public finance, including the information about:
Open Society Foundation had initiated public and expert discussion on the national budget, Kyiv city budget and other local budgets.
As part of an advocacy campaign on Right to Know Day (that traditionally coincides with the beginning of the state budget preparation of the next financial year) we prepared and presented an analytical report "Byudzhet Kyyeva-2012: vyklyky ta mozhlyvosti dlya majbutnoyi byudzhetnoyi polityky (Kyiv Budget 2012: Challenges and Opportunities for Future Fiscal Policy)". The report demonstrated Kyiv budget losses caused by opaque and non-public budget policies. The results promoted the demand for accessible and transparent information on public finances.
In September 2013 we have initiated an open address on the danger of the lack of public, media and parliamentary control over the budget process. We prepared an article in a leading Ukrainian newspaper “Dzerkalo Tyzhnya” as of August 30th, 2013, advocating for change in national and Kyiv fiscal policies. Another analytical piece was published in the online edition of the "Ukrainska Pravda" ("Slidkuite za Groshyma. Nashymy Groshyma! (Watch the money. Our money!)" as of September 26, 2013). The article called for fiscal transparency, accountability and public participation in the budget process in Ukraine. It also referred to the OSF open address to the country’s leadership and local governments. Mentioned address was earlier supported by the Ukrainian National Platform of Eastern Partnership Civil Society Forum, "Combating Corruption" Section.
The advocacy campaign continued in December 2013. We initiated the address on neglecting the current budget law in drafting the state budget for 2014. (More details: Proekt Byudzhetu Ukrayiny 2014 - poza zakonom? (2014 Budget Project was outlawed?)The principles of fiscal policy incorporated in the Budget Code of Ukraine and the Strategy of PFM were omitted due to political expediency).
3. ANTI-CORRUPTION
Public Monitoring of Anti-Corruption Policies at the Regional and Local Levels
Public monitoring of anti-corruption policies at the national and local levels is an important tool of public control. Corruption risks are often included in the draft laws providing the formation, implementation, monitoring and reporting on implementation of the state programs and the action plans. Superficial response to corruption risks under the anti-corruption programs and the action plans remains a common practice.
Open Society Foundation constantly improves the quality of own analytical products. At the same time, we also focus on the increased capacity of civil society in public monitoring, evaluations and investigations. Considering the above, in July 2013 we had initiated a polemical public debate regarding the effective practices in combating corruption. Participants had discussed the issues of income declaration and conflict of interest in the public sector. Two different coalitions of NGOs had declared different approaches (OSF led one of the coalitions). "Uryadovyy Kuryer" issue as of July 27th, 2013 published a telling article titled: "Komy storozhyvatu storozhiv? Gromadskosti! (Who guards the guards? The public!)". The government had recognized the need for clear and understandable criteria for assessing the effectiveness of national anti-corruption program. Mentioned article confirmed the relevance of the methodological expert discussions, initiated by the Open Society Foundation, for the productivity and effectiveness of anti-corruption policies and practices in combating corruption.
OSF Director Ivan Sikora reported on the current methodological research on anti-corruption policy and the prevention of the conflict of interest in the public service on December 21st, 2013 at the Kyiv-Mohyla Academy "Club of Policy Analysts”.
Sikora has analyzed the challenges of identification and prevention of the conflict of interest using specific examples of civil servants in the Government of Ukraine, the Parliament, the local councils and local self-government. Special attention was drawn to smoothing the party differences of MPs while lobbying the laws that have obvious signs of the conflict of interest.
Anti-Corruption Policy at the National Level
In April 2013 Open Society Foundation had chaired the secretariat of "Combating Corruption" Subgroup of the Working Group 1 "Democracy, Human Rights, Good Governance and Stability" of Ukrainian National Platform of Eastern Partnership Civil Society Forum. The OSF Director became the coordinator of this subgroup.
OSF prepared Subgroup’s Position Paper, which later was adopted and became a document of the Working Group 1. We also initiated the statement regarding the Law of Ukraine 2837 "On Amendments to Certain Legislative Acts of Ukraine on implementation of the national anti-corruption policy " as of May 14th, 2013.
Anti-Corruption Policy in Kyiv Region
Within the frames of the public discussion on draft “Programme on Prevention and Combating Corruption in the Kyiv region for 2014 – 2015” OSF provided suggestions and comments which were later used for the meeting of the Kyiv Regional Council Committee on Law, Order and Combating Corruption in February 2014. Mentioned proposals focused on improvement of the formulation and specification of objectives, activities and performance indicators of the Programme. The discussion of the draft programme thus enabled its revision.
Anti-Corruption Policy in Chernihiv Region
In 2013 Ivan Sikora, OSF Director and also the consultant to the partner Chernihiv organization and the member of the Chernihiv Oblast State Administration Public Council, issued a book “Antykoryptsiyna polityka na Chernigivshyni: resultaty gromaskogo monitoryngu (Anti-Corruption Policy in Chernihiv: the Results of Public Monitoring)” based on his own methodology of "Anti-Corruption Policy Index".
The study aimed at a comprehensive assessment of the efficiency and effectiveness of anti-corruption policies at the regional and local levels in Ukraine. This attempt was unique in Ukraine. Before, the efforts of civil society to assess Ukrainian anti-corruption policy were mostly fragmented and did not provide a coherent picture of corruption at the national, regional and municipal levels.
The full range of anticorruption policy tools in the context of its beneficiaries was assessed using previously developed methodology of "Anti-Corruption Policy Index", the analysis of anti-corruption policy impacts on Chernihiv Oblast State Administration and the Executive Committee of City Council. Mentioned research provided the institutions of civil society with the tools for monitoring and examination of anti-corruption policies at the local, regional and national levels. The study results have enabled the state authorities to increase the efficiency and effectiveness of the anti-corruption policy.
Conflict of Interest in the Public Service
In 2013 we initiated and led an NGO coalition "For the Integrity in Public Service". We presented an innovative method of monitoring the conflicts of interest and income declarations of public officials during the Verkhovna Rada Committee on State Building and Local Self Government meeting.
The coalition "For the Integrity in Public Service" was created to unite the efforts of civil society in Ukraine to ensure public control over the integrity and conflict of interest in the public sector. Members of the coalition shared social network approach methodology as a basis for monitoring conflicts of interest.
III. Financial Report
|
2013 INCOME |
UAH |
|
National Endowment for Democracy, USA (NED) |
276 308 |
|
The International Renaissance Foundation |
344 840 |
|
Charitable Contributions to the Statutory Activity |
8 636 |
|
TOTAL: |
629 784 |
|
|
|
|
2013 EXPENSES |
UAH |
|
Research, Expert-and-Analytical Activities |
400 800 |
|
Translation |
8 900 |
|
Rent of the Office Space |
44 294 |
|
Communication Services (telephone, internet) |
16 333 |
|
Logistical Support |
8 337 |
|
Printing Costs |
25 400 |
|
Web-Page Maintenance |
10 500 |
|
Expenses to Arrange the Events (Conferences, Round Tables, Seminars) |
4 100 |
|
Bank Services |
8 094 |
|
TOTAL: |
526 758 |
General information about the Open Society Foundation
Open Society Foundation constantly improves the tools for analysis and advocacy campaigns.
Our reports are based on the best foreign methodological approaches (Shedler method for monitoring the implementation of pre-election promises of the political parties, four requirements of the International Monetary Fund to the budget process in monitoring and evaluating fiscal policy in Kiev in 2012, the requirements and standards of the Council of Europe and the OECD to anti-corruption policy, etc.)
We coordinate the activities and take an active part in the following networks:
The Global Budget Transparency, Accountability and Participation Movement (BTAP)
"Combating Corruption" Subgroup of the Ukrainian National Platform of the Eastern Partnership Civil Society Forum, coalitions "For Integrity in Public Service" and "For Integrity in Public Procurement" (OSF chairs the Secretariat)
