Ensuring Investment Sector Transparency in Cities

Description

After the decentralization process started in Ukraine, cities started completing for human capital and investments. It is therefore unsurprising that city mayors often claim to facilitate the development of entrepreneurship and expect an inflow of investments. Our team decided to help municipal governors, entrepreneurs, potential investors and NGO leaders to assess the level of investment transparency in 100 biggest Ukrainian cities. This research does not measure the investment attractiveness or the quality of services provided by the city to investors. The research of transparency rather reflects the potential managerial capability of municipalities in this sector.

Following advice provided by the biggest international financial organizations, business associations and international technical assistance projects, including the European Business Association, the European Bank for Reconstruction and Development, the World Bank and others, we have defined 17 key indicators for the research. Some of the indicators are connected with regulatory policy, work with international technical assistance projects, investment proposals etc.

This research is one of the key supplements to the Transparency Ranking of 100 Biggest Ukrainian Cities, implemented by the Transparent Cities program, and it has already made a significant contribution into establishing a healthy competition among cities and setting a new transparency standard for local self-government.

The research shows that only 16 municipalities out of 100 have a geoportal on the official website. Fewer than a half have approved a specific program for entrepreneurship facilitation and fund it. Fewer than 40% of cities have published the investment passport both in English and in Ukrainian. Only 4 cities out of 100 have implemented electronic auctions for seasonal trade placement rights. The remaining results can be found in the report itself and on the website www.transparentcities.in.ua. The investment sector transparency was studied in July and August 2018.

A unique feature of this research is that cities can improve in the index in real time by implementing new transparency standards in their investment sector. We not only measure the current situation, but also try to help active municipal managers and communities to implement the best practices. Our team is convinced that sustainable development of municipalities is one of the principal tools of rapid national economic development. Without city transparency and aptitude in the investment sector, development of entrepreneurship is impossible.

Authors

Kateryna Tsybenko

Date

30/11/2018

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