The Foundation for Effective Governance (FEG) was established in 2007 by Ukrainian businessman, Rinat Akhmetov. The Foundation’s main objective is to encourage the development of long-term national economic programs for Ukraine, through the formulation of practical policy solutions to the political, economic and social challenges facing the country. The basic principles governing the foundation’s activities are independence, a focus on economic development, openness, and a practice-oriented approach.
FEG's International Advisory Board is involved in developing strategy, choosing priority projects and representing the foundation in Ukraine and internationally. Board members includes former Canadian Prime Minister Kim Campbell, former U.S. Senator Lincoln Chafee, former President of the National Bank of Hungary György Surányi, and Director General of Financial Policy Institute Ihor Mitiukov.[1]
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Currently, FEG is focused on the following programs designed to advance the country’s economic development: preparing Ukraine’s Economic Development Agenda, conducting the Ukraine Competitiveness Report[2], economic development projects in Western and Eastern Ukraine, public debates on the economy of Ukraine, and crisis control measures for the Ukrainian economy.
Economic Development Agenda
Formulated together with leading Ukrainian and international experts and drawing upon the best global practices and expertise, Ukraine’s Economic Development Agenda presents a complex program of reform aimed at solving many of the problems that are prevalent in a transition economy. When implementing the Economic Development Agenda, focus is placed on creating the basic elements of a market economy, improving the overall business environment, and spurring development in the sectors that are the most vital for Ukraine’s economy. The Economic Development Agenda includes 23 areas of reform that will have the greatest impact on the country’s economy, and lay the foundation for sustainable economic growth.
Ukraine Economic Competitiveness Report
In close partnership and cooperation with the World Economic Forum [1], FEG has implemented the Ukraine Economic Competitiveness Report [2], a comprehensive project aimed at assessing Ukraine’s competitiveness on both a national and regional level. Utilizing the World Economic Forum’s strict guidelines and methodology, the Ukraine Economic Competitiveness Report provides an independent and objective assessment of the country’s economic competitiveness. The report also includes an in-depth analysis of the Ukrainian economy that helps pinpoint specific priority areas requiring particular attention, and specific economic development and reform policies.
FEG and the World Economic Forum released their second Ukraine Economic Competitiveness Report in July 2009. It analyzed Ukraine's competitiveness both on the national and regional level, with the number of regions studied expanded from 12 to 15, including the city of Kiev.
Economic Development Projects
In October 2008, as a result of the Ukraine Economic Competitiveness Report [2], FEG announced the launch of economic development projects in Lviv, a city in Western Ukraine, and the region of Donetsk Oblast in Eastern Ukraine. The economic development projects are being developed by FEG in partnership with Monitor Group, a leading international consultancy, and in close cooperation with local governments. Both projects are scheduled to last 8 to 12 months. Monitor Group will organize the process and ensure access to intellectual property. FEG will provide stable funding, take part in determining general strategy, and facilitate communication between all involved parties.
In June 2009, Lviv and Donetsk Oblast began implementation of their economic development project strategies. The Lviv project calls for establishing two economic clusters: tourism, and business services including consulting, software services and database and information management. The Donetsk project will focus on modern industrial production and a more diversified economy.
Public Debates
In 2009, FEG is sponsoring a series of Oxford Style public debates on economic and business topics in Ukraine. The debates are held in partnership with London-based Intelligence Squared. They are designed to give the public an opportunity to discuss the most important economic issues facing Ukraine. The first debate, titled "Ukraine Needs Agricultural Land Market Today," was held in Kiev in February 2009. The second debate, held in April 2009, focused on the current economic crisis in Ukraine [3]. The third debate, held in June 2009, focused on the motion: "The Ukrainian government should stop subsidizing businesses during the current economic crisis." [4]. In September 2009, FEG hosted a debate on the motion “Ukraine should introduce tax reform despite the economic crisis." The last debate of the year, “Decentralisation will increase competitiveness of the regions,” will be held in November 2009.
Crisis Control Measures
FEG is also currently conducting crisis control measures for the Ukrainian economy. This involves diagnosing problems in particular sectors, and utilizing the most appropriate and cost effective methods to solve them. Major areas affected by the economic downturn include the financial system, metallurgy, building, agriculture, and manufacturing. FEG works in partnership with all arms of the government including Parliament, the National Bank, Secretariat of the President of Ukraine, and the Council for National Security. FEG also coordinates with the World Bank, International Monetary Fund, and International Finance Corporation. This project’s main goals are to prepare and adopt relevant laws and bills that will help fight the impacts of the economic downturn, mobilize government policy, and enhance efficiency of government financial aid. The first results were introduced on February 18 at parliamentary hearings organized by the Economic Committee of Verkhovna Rada, for consideration by all relevant government organizations.
Forums
In February 2009, FEG hosted a forum in Washington, D.C. on “Building A Strong Economy for the Real Ukraine.” [5] Senator Jack Reed (D-RI) spoke about the importance of maintaining strong U.S.-Ukrainian relations, and Senator Christopher Dodd (D-CT) addressed the crowd in a videotaped message. Also speaking at the event were Paula Dobriansky, former Under Secretary, Democracy and Global Affairs; and Dr. Anders Aslund, Senior Fellow at The Peterson Institute for International Economics and an expert on the Ukrainian economy
On October 22, 2009, FEG and Vedomosti hosted a conference in Moscow titled "Ukraine: Challenges and Opportunities." Participants included Victor Chernomyrdin, Advisor to the President of the Russian Federation; Irina Akimova, Deputy of the Supreme Rada of Ukraine; Denis Bugrov, Board Member at Sberbank of Russia; Kirill Dmitriev, Managing Partner and President of Icon Private Equity; Aleksandr Savchenko, former Deputy Head of the National Bank of Ukraine (2007–2009); Aleksandr Lukanov, President of Alfa Bank Ukraine; and Igor Shumilo, Executive Director for economic issues at the National Bank of Ukraine.[6]
On December 8, 2009, FEG in partnership with the Financial Times hosted "Ukraine: Opportunities and Challenges"[7] at the Four Seasons Hotel in New York. The conference focused on Ukraine's economic outlook, evolving business environment, and the challenges that need to be overcome for investment opportunities to be realized there. Chaired by Chrystia Freeland, the Financial Times' U.S. Managing Editor, the conference featured a keynote address by William Taylor[8], former U.S. Ambassador to Ukraine, along with contributions from the Right Honourable Kim Campbell, Chair of FEG's International Advisory Board, and many leading experts on the country including Ralph Judah, Senior Partner, Monitor Group and Elena Kuznetsova, Senior Manager, McKinsey & Company. Panelists included Georgina Baker, IFC's Director for Global Financial Markets and Vladislav Kaskiv, Head of State Agency for Investment and National Projects.