After attaining independence in 1991, Ukraine undertook inconsistent reforms toward becoming an efficient market-based economy. USAID supports a competitive economy in Ukraine in which small and medium-size businesses are free to achieve their potential. With USAID support, the Government of Ukraine recently achieved several milestones, including introducing an electronic disclosure and reporting system for publicly listed companies, creating institutions to facilitate transparent and efficient asset trading, and developing a bond market.
USAID works with Ukrainians to build a strong financial sector in Ukraine regulated by politically and financially independent entities, supported by industry best practices, integrated with international standards, and trusted by Ukraine’s citizens and the investor community.
USAID programs improve the business climate at the national and local levels to encourage domestic and foreign trade and investment. By streamlining laws and regulations that contribute to the cost of doing business, USAID fosters a competitive Ukrainian economy.
PRIVATE SECTOR DEVELOPMENT:
Commercial Law Reform Project
Commercial Law Center
October 16, 2011 – July 15, 2016
The USAID Commercial Law Reform project is helping the Government of Ukraine draft laws and secondary legislation related to public-private partnerships, taxation, bankruptcy, registration of companies, and other areas critical to economic development. CLC was launched in 2003 as a legacy of previous USAID activities that helped the Government of Ukraine develop modern legislation and market-oriented policies to replace Soviet-style laws and outdated command economy regulations.
Business Investments and Loans
Western NIS Enterprise Fund/Horizon Capital
September 21, 1994 – August 26, 2016
USAID created the Western NIS Enterprise Fund (WNISEF), a regional private equity fund for Ukraine and Moldova, in 1994, capitalizing it with $150 million. For two decades WNISEF invested in small and medium-sized companies in the region. In 2014, WNISEF completed its commercial investment activities and USAID directed remaining funds toward promoting policies and practices that support private sector development. The focus areas include economic leadership, local economic development, social investments, and export promotion.
Financial Management Capacity Development Initiative (FMCDI)
Implementer: Financial Markets International, Inc. (FMI)
September 26, 2014 – September 25, 2016
To give local partners in Ukraine, Moldova and Belarus the financial and operational capabilities to manage awards and implement programs funded by USAID and other donors, FMCDI enhances the quality and range of audit and consulting services available to local organizations.
The long/mid-term impacts of this award include:1) closer interaction between regional missions and local implementing partners, many of which face institutional capacity challenges; 2) stronger relationships between regional missions and local non-government partners; 3) a sustainable mechanism for building capacity of local organizations; and 4) increased range and quality of financial management services available on the local market.
Leadership in Economic Governance (LEG/LEV)
East Europe Foundation (EEF), in partnership with the Institute for Economic Research and Policy Consulting (IER), CASE Ukraine (CASE) and the Kyiv Economics Institute under the Kyiv School of Economics (KEI)
December 19, 2014 – December 18, 2019
The Leadership in Economic Governance activity seeks to improve the country’s business enabling environment by identifying local organizations with recognized technical proficiency and knowledge and then strengthening their capacity to identify and correct policy weaknesses and motivate concrete institutional reform. The activity has three objectives: 1) identify legal, regulatory and administrative measures that improve the business environment for Ukrainian small and medium enterprises (SME); 2) support central and local governments in developing, promoting and implementing effective pro-SME reforms; and, 3) coordinate with and support stakeholders in the business community to advocate for economically sound and fiscally responsible reforms.
Last updated: January 21, 2016