Threshold Program
Ukraine’s two-year, nearly $45 million Threshold Program aims to reduce corruption in the public sector by strengthening civil society’s monitoring and exposure of corruption, judicial reform, increased government monitoring and enforcement of ethical and administrative standards, streamlining and enforcing regulations, and combating corruption in higher education.
Background
Ukraine’s poor performance on the corruption indicator is primarily attributable to weak conflict of interest laws, a lack of independence, efficiency, and integrity in the judiciary, inadequate whistleblower and witness protection programs, and endemic corruption in the police force, educational and medical institutions, as well as customs and tax administration. Since 2004, Ukraine has made some important reforms to address corruption in the police force, customs service, and tax administration. However, much remains to be done. International organizations and experts have repeatedly highlighted that corruption in Ukraine constrains economic investment and growth and limits access to fair and equal opportunity and justice for the Ukrainian people. Initial steps for introducing reform in the four Threshold Program areas have already been taken – including passage of the Concept of Judicial Reform, deregulation at the national and regional levels, and passage and initial implementation of the Permit System Law. The Ukraine Threshold Program is an aggressive, multifaceted program that will invigorate ongoing efforts to attack public sector corruption.
- Strengthening Civil Society’s Monitoring and Exposure of Corruption -Despite substantial progress in recent years, Ukrainian civil society and media are not meeting their full potential as effective monitors of government and advocates for reform. This program component aims to reduce opportunities for corruption by enabling civil society to be more effective monitors of government and advocates for reform
- Judicial Reform - Critical to efforts to fight corruption is increasing the level of transparency in the delivery of justice by introducing permanent improvements in key legislation, procedures and institutions. The proposed activities will also contribute to fostering a more professional cadre of administrative judges, court personnel, and notaries.
- Government Monitoring and Enforcement of Ethical and Administrative Standards - Ukraine currently has no general conflict of interest legislation for government officials except for certain provisions that limit business opportunities for family members of officials. Although there are requirements that candidates for public office and civil servants declare their assets, the methodology has flaws and omissions; submitted declarations are rarely checked, and even more rarely are sanctions imposed for falsification. This component will create systems to strengthen accountability for government officials.
- Streamlining and Enforcing Regulations - Complicated and overlapping systems for providing construction permits, delivery of municipal services, land and property ownership, and customs clearance at borders are sources of significant corruption. The process is not transparent, and there is clear evidence of corruption at all steps. This component will change the legislative and regulatory framework for property transactions, reform the permit system, and streamline lines of responsibilities and procedures in order to reduce corruption.
- Combating Corruption in Higher Education - Recognizing the importance of reducing corruption within the educational system, a national testing center, the Ukrainian Center of Evaluation of Education (UCEE), has been established. Assistance is required, however, to fully implement the external testing system as well as to ensure its integrity. The goal of this component is to reduce corruption in higher education by establishing a legal framework requiring a minimum test score for admission to universities; developing a functioning security system for test results; and ensuring that 100 percent of students are tested and the test centers are fully operational.
What are the expected results of the Threshold Program?
- The Threshold Program is expected to reduce both perceived and actual corruption in all areas; reduce the number of cases brought to the European Court of Justice by 30 percent; increase the number of notary violation findings that result in sanctions or prosecutions by 30 percent; increase compliance in ministries with procedures of the Internal Investigative Unit; reduce the number of users who indicate that they made unofficial payments in areas of customs, transportation, construction, land ownership, land usage, and municipal services by 20 percent; increase to 100 percent the percentage of students tested for university admission.
What is the purpose of the Threshold Program and how many agreements have been approved by the Board of Directors of the Millennium Challenge Corporation?
- Threshold programs focus on improving governance, particularly on curbing corruption, to help create conditions in which poverty reduction and economic growth can take root in a partner country. To date, the MCC Board of Directors has approved $286 million for agreements with 11 countries: Albania, Burkina Faso, Indonesia, Jordan, Malawi, Moldova, Paraguay, Philippines, Tanzania, Ukraine and Zambia.
Which U.S. government agencies will implement the agreement on behalf of the Millennium Challenge Corporation?
U.S. Agency for International Development and the U.S. Department of Justice.