Having a development strategy and collaborating with the USAID LED project provide both tangible and intangible assets for local economic development
Koryukivka, Chernihiv Oblast, is a town of nearly 13,500 residents and the seat of the Koryukivka Technical Paper Factory, a public corporation that claims to be Europe's largest manufacturer of wallpaper. According to Koryukivka Mayor Ihor Matyukha, the factory has always helped the town in some way or other. This public-private collaboration has much intensified since September 2007, when the town adopted its Economic Development Strategic Plan drafted with assistance from the USAID LED project.
The enterprise has sponsored completion of a gas service installation project, and now natural gas is supplied to 95 percent of the town's residents. It has financed development and upgrade of the water, wastewater and street lighting systems; purchased and transferred to the town a new garbage truck and 20 European-type waste containers; paid for design engineering for a new up-to-date landfill to have it further from the town border than the existing one; and funded other good works for the community. All of the above activities were in fact implementation of projects that can be found in the Strategic Plan.
Koryukivka Mayor Ihor Matyukha (standing) speaks at the International Conference on Local Economic Development Toolkit, organized by the USAID LED project, the Kyiv Economic Institute, and the Michigan State University on March 3-4, 2008, in Kyiv. Sitting on the right of him is independent consultant Valeriy Kokot, who guided the strategic planning process in Koryukivka on behalf of the LED project (photo from the LED project's files)
"We cannot do everything at once, but it's important to start and know where you go," says Mr. Matyukha.
He described relationships between the town and the Koryukivka Technical Paper Factory before the strategy adoption as "somewhat chaotic." "When the plan appeared, and the factory saw our serious intentions, where we are going to, we began more closely working on more serious projects," the mayor said.
Nina Yakovych, General Director of the factory, explained this change in attitude as follows: "The Strategic Plan allowed us to see the vistas: what there will be in the town."
Koryukivka received over UAH 1 million (about $200,000) in assistance to implementation of town development projects from its main sponsor in 2007 alone, and Ms. Yakovych says the company will keep on sponsoring the town, specifically implementation of the Strategic Plan.
As a citizen of Koryukivka, the general director says changes for the better there are really visible, as the town has become cleaner.
It is also worth noting that the factory contributes to economic development of Koryukivka through its primary activities as well. According to Ms. Yakovych, over the last four years the enterprise has invested more than $25 million into equipment upgrade and purchase of new lines, having created about 120 new jobs.
The enhanced collaboration between the town and the company is not the only benefit brought about by the Strategic Plan and the strategic planning process. The mayor confesses that after they set about collecting basic data for carrying out the planning process, the town discovered how little they had known about community assets and dynamics. The data they collected was incorporated into two reports, a Community Profile and a report on private business views called a Business Attitude Survey, and can now be used to show where the town stands in terms of economic assets and potential. As the mayor said, "Now, when investors come to us and ask for information, they can see what our town and its potential are."
Mr. Matyukha believes that it was just the favorable opinion of the town government expressed in the Business Attitude Survey that tipped the scale in favor of Koryukivka when a Western Ukrainian investor was looking for a place to locate an up-to-date service station in the region. Now the station is under construction, and besides improved services to Koryukivka vehicle owners, it will also create ten new jobs for the community.
Moreover, work on the Community Profile helped discover idle land plots suitable for residential development, which had been overlooked earlier. Presently, the town is in negotiation with investors from Kyiv on housing construction on these plots. (One of the Strategic Plan's goals is to attract investments in housing construction.)
There are "intangible assets" as well. To improve its image, Koryukivka developed and legalized its coat of arms and flag. The USAID LED project invites representatives from Koryukivka to workshops and other events it organizes. Mr. Matyukha said that the most important thing in such events is the opportunity to share ideas with other cities and learn from them. "Then all or part of that is realized. This helps me advance myself, the town, and life in the town," he pointed out.
As of mid May 2008, the USAID LED project lent a hand to 51 Ukrainian cities in creation of their economic development strategies. In 50 of these cities the Strategic Plans have been approved, and in one, the document is waiting for approval by the City Rada. In 23 more cities the strategic planning process is in progress.
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