Kiev. October, 6. Project on development of strategy to raise economic competitiveness has been launched in Dnepropetrovsk Region. The Cooperation Agreement was signed yesterday in Dnepropetrovsk by the Foundation for Effective Governance, a leading international consulting company Monitor Group, Dneptopetrovsk Regional State Administration and Dnepropetrovsk City Council.

“The key project goal is to facilitate the region’s development and establish closer cooperation between business, power and other representatives of the civil society. The strategy we seek to produce is not an illustration of some abstract economic theory. It includes specific objectives and practice-oriented priorities”, stated Director of the Foundation for Effective Governance Natalia Izosimova at the signing ceremony of the agreement on cooperation.

As we reported earlier, a cluster approach, one of the most effective tools in modern economy, will be used within the scope of the project on raising economic competitiveness of Dnepropetrovsk Region. The Foundation is implementing similar projects in Donetsk Region and Lviv City and now we will use this expertise in Dnepropetrovsk Region.

Specialists of the Foundation and Monitor Group identified the priority clusters for the region’s development – construction and agriculture.

According to Andrew Swart, a partner at Monitor Group, systemic development of the agricultural cluster in Dnepropetrovsk Region will help diversify the regional economy and reduce its dependence on heavy industry. Development of construction is a necessary condition for upgrading worn-out key assets and commissioning new infrastructure and production facilities.

“It is of crucial importance for Dnepropetrovsk Region where the fixed assets base has depreciated by 60%”, he stated.

Dnepropetrovsk Region was selected for the project after an in-depth analysis of almost all Ukrainian regions’ competitiveness. Foundation specialists and members of the International Advisory Board of the Foundation identified Dnepropetrovsk Region as the best candidate for implementation of the new regional project of the Foundation.

“Resources of Dnepropetrovsk Region, and what is more important, the readiness and ability of local authorities to work with us, make us feel confident of the success of the whole project. In addition Dnepropetrovsk Region is like a miniature Ukraine and its economic growth directly impacts the overall country’s economy. So the expertise gained during implementation of the project will be helpful for other Ukrainian regions”, stated former Canadian Prime Minister and the Chair of International Advisory Board of the Foundation Kim Campbell.

According to the Chair of Dnepropetrovsk Regional Administration Oleksandr Vilkul Dnepropetrovsk’s economy has significant development potential in many industries and this potential has been effectively used. “In six months we have climbed from the 19th to the 1st place on the speed of social and economic development of Ukrainian regions. To keep the leading position and move to a new high quality level we are implementing absolutely new approaches of regional governance. We are creating a modern interconnected “power-business-society” system which is open for dialogue and development, and changing the principle of operation of government at the regional level – control over business environment is not our main function any more. My objective is to first of all ensure the right environment for development of business and the region –this is the responsibility put on me by the President of Ukraine. And we will do this within the framework of private public partnership”, he underlined.

Dnepropetrovsk regional economic development project will consist of two stages.
The first stage will last to January 2011 and includes an in-depth analysis of the regional economy and development of the strategy for raising competitiveness of the regional economy based on the selected priority clusters.
The second stage, which actually sets this project on development of regional strategy aside of many others, includes development of the structure and elaboration of mechanisms for practical implementation of recommendations outlying the strategy. At this stage the Foundation and consultants of Monitor Group will help the region create own potential for implementing the strategy on their own.

To ensure the efficiency of the process there will be established supervisory and controlling bodies. In particular, the Steering Committee headed by the Governor Oleksandr Vilkul is already in place.

Profile of FEG
The Foundation for Effective Governance (FEG) www.feg.org.uawas established in 2007 by Ukrainian businessman, Rinat Akhmetov with a mission to develop and implement long-term projects and programs which encourage the long-term economic development of Ukraine. FEG is committed to help reach public and political consensus on the key areas of the economic transformation programs. To reach its objectives, the Foundation attracts leading Ukrainian and international experts with impeccable reputation. An Advisory Board, which includes famous public and political figures from different countries, ensures the Foundation’s independence. Among the board members are former Canadian Prime Minister Kim Campbell, former U.S. Senator Lincoln Chafee, former president of the National Bank of Hungary György Surányi, and General Director of the Ukrainian office of the International Investment Bank Morgan Stanley Igor Mityukov. The International Advisory Board takes an active part in building the Foundation’s strategy, selecting the priority projects and representing FEG both inside and outside Ukraine.

Monitor Group
International Consulting Company Monitor Group (www.monitor.com) works with the world’s leading corporations, governments and social sector organizations to drive growth on the issues that are most important to them. The firm has extensive expertise in regional economic competitiveness and has worked on over 175 projects in 58 countries the last 20 years to analyze and develop economic development strategies in regions and countries around the world.
Monitor Group was founded in 1983. Headquartered in Cambridge, Massachusetts, the firm employs over 1,500 people in 22 countries worldwide.

Dear colleagues, for any additional information please, contact: Inna Gordienko, PR-Director of the Foundation for Effective Governance
Tel.: (+38 044) 501-41-07
mobile telephone. (+38 095) 270-59-60
E-mail: igordienko@feg.org.ua