The purpose of this major project, led by WYG International is to establish an enabling environment for sustainable social and economic regeneration in the Donbass region of Ukraine. The project works with the Oblast Administrations in Donetsk and Lugansk, selected regions and a range of state bodies, other donor organisations and NGOs. 80% of the project is targeted at Lugansk Oblast – being the poorer of the two and recognising that Donetsk is one of the few net contributors to the federal budget of Ukraine.

The Donbass has been in a state of decline for many years as the old coal, iron and steel industries, along with the associated heavy engineering and machine building, have dramatically reduced. Social and economic decline at the local level is high as are levels of personal poverty. This project aims to support and engage the less advantaged segments of society.

The project follows on from a variety of previous projects in the Ukraine in which WYG International was involved in successful delivery and implementation. This more highly integrated approach builds on these previous projects but aims to engage the Oblast administration more fully in the process and develop learning between the two Oblasts and the municipalities.

Working in both Oblasts and in selected regions, the objectives are to:

• Complete a programme of capacity building/institutional development in Oblast and raion administrations ;
• Establish a policy environment at Oblast level which promotes and enables employment and economic growth ;
• Develop and test sustainable models of comprehensive employment and economic regeneration in pilot raions which can be replicated throughout the Oblasts and the rest of Ukraine ;
• Establish practices which support a more inclusive political culture.

The project has established a process of local consultation whereby priorities are set for each Oblast and a strategic development plan drawn up with measurable targets for promoting an enabling environment for job creation and labour redeployment. In all, this involves the implementation of over 23 activities in a co-ordinated approach to this problem, whereby all available resources are brought into play. Over the coming years this institutional development activity will be extended to community level in Lugansk mirroring current work in Donetsk so as to directly impact on reduction of poverty and inequalities and the generation of employment opportunities.