CONTEXT
In 2019, remittances from migrant workers reached a record $14 billion (a figure that continued to grow even during the first month of the quarantine). For comparison, the total amount of foreign direct investment for all of 2019 was $2.53 billion. According to macroeconomists and economic historians, nearly all modern economies (except Poland) have developed primarily through internal investments and the rational use of domestic resources.
The pandemic showed that, even in a globalized world, each country is ultimately left to face its own problems. Therefore, relying on significant external contributions is no longer a viable option.
In Ukraine, there is a lack of widespread practices for developing and using internal financial tools that would allow citizens or communities to accumulate and invest funds effectively. At the same time, food security is a challenge not only for the Ukrainian government but for countries around the world, opening up significant opportunities for domestic producers.
HYPOTHESIS
Under these conditions, local budgets, through entrepreneurship development programs, could become drivers of investment in the growth of small local businesses.
If the community, represented by local authorities, is ready (and able) to invest in its own development, local annual programs could be created and adopted, fostering new job creation and improving the economic security of families.
For example, this could be a program to support family farming.
WHAT WE OFFER
Providing practical online training on investing for community members, addressing concerns and promoting investment in local businesses.
Engaging the community in developing local entrepreneurship programs.
Identifying and strengthening the community’s competitive advantages for investment.
This will help community members develop the habit of using personal resources more efficiently, while enabling local authorities to redirect development budget funds towards boosting income rather than spending it.
The "Impact Investment in Communities" project will
Create new jobs in your community by encouraging local entrepreneurship as early as 2020.
Equip community members with the skills to effectively manage local resources.
Collaborate with your community to develop local business development program projects.
Receive official recognition of resource efficiency through the adoption of local entrepreneurship programs by local authorities, along with increased interest in micro-investing from platform users on woc.org.ua.
Attract investments in community development, starting at 50,000 UAH in 2020 and growing to over 400,000 UAH in 2021-2022.
PROJECT IMPLEMENTATION STAGES
June–December 2020
Selection
Goal: Select 20 pilot communities (United Territorial Communities) to join the project.Timeline: June 2020.
Core Formation
Goal: Prepare functional teams in 20 pilot communities to use “World of Communities” educational tools for diagnostics, team building, and community development modeling.
Timeline: June–July 2020.
Local Economy & Development
Goal: Conduct participatory and gaming-based diagnostic activities in 20 pilot communities via the woc.org.ua platform, exploring internal resources and opportunities for local economic growth.Timeline: September–October 2020.
Investment Boost
Goal: Deliver practical online training on micro-investment tools to 20 pilot communities through woc.org.ua.
Timeline: November–December 2020.
Sustainable Development
Goal: Develop local programs supporting small business development.Timeline: January–December 2020–2021.
WHAT'S THE COST?
The participation fee for the community is 59,000 UAH. However, for the 20 selected united territorial communities (UTCs), participation is free, thanks to the investment from UkrMilkInvest. Submitting an application does not obligate the community to pay the 59,000 UAH if it is not selected as one of the 20 UTCs.
PROJECT NEWS
Joined the Project:
Baranivka UTC (Zhytomyr region)
Bar UTC (Vinnytsia region)
Berezdiv UTC (Khmelnytskyi region)
Berezniaky UTC (Cherkasy region)
Bilokorovychi UTC (Zhytomyr region)
Bilshivtsi UTC (Ivano-Frankivsk region)
Bukachivsti UTC (Ivano-Frankivsk region)
Hukiv UTC (Khmelnytskyi region)
Dymydivka UTC (Rivne region)
Dunayivtsi UTC (Khmelnytskyi region)
Illinets UTC (Vinnytsia region)
Kobleve UTC (Mykolaiv region)
Mykhailivka UTC (Cherkasy region)
Olesha UTC (Ivano-Frankivsk region)
Poninka UTC (Khmelnytskyi region)
Radyvyliv UTC (Rivne region)
Rozhniv UTC (Ivano-Frankivsk region)
Sataniv UTC (Khmelnytskyi region)
Tulchyn UTC (Vinnytsia region)
Chernykhivtsi UTC (Ternopil region)
THE PROJECT IS IMPLEMENTED BY
WORLD OF COMMUNITIES LLC
A Ukrainian EdTech company that creates simulation-based educational games and gamified solutions for community development and engagement.
Trusted by: 167 municipalities, EENCE, DVV International, UNDP, IOM, DOBRE, PACT, Ukrainian Social Investment Fund, ULEAD with Europe, IREX, Eastern Partnership Civil Society Facility Project.
Awarded the title of "Best Project in Civic Education aimed at Community Activation" in 2019 by the Eastern European Network for Citizenship Education.
UKRMILKINVEST
A Ukrainian company that attracts investments and develops the ecosystem of family dairy farms in Ukraine.
The company’s strategic goal is to open 5,000 family dairy farms by 2026.
Invest in Family Dairy Farms: familymilkinvest.com
Yulia Yushkevych
Project Manager