The situation, existing in both Ukraine and abroad, requires relevant system of cooperation between the Government, central and local executive authorities.

For the purposes of efficient resistance to new world challenges and problems of domestic origin, the Government has developed new forms of cooperation, which provide coordinated activities of all branches of power with regard to financial stability maintenance, sustainable economic advancement, competitive recovery of domestic manufacturers, protection of bank depositors’ rights, improvement of foreign balance and stabilization of situation in consumer and labor markets.

In pursuance of the objectives, fixed by the Government, local executive agencies are already engaged in a number of arrangements, focused on prevention of negative developments, stemming from the world financial crisis.

All regions had adopted:

daily and weekly monitoring of: labor movement in the enterprises of major industries; registered unemployed; revenue receipts; payment of pensions and income transfers; operation of municipal housing and public utilities infrastructure; crime rate; social and political environment;

detailed analysis of situation, existing in budget-forming enterprises;

daily monitoring of situation in regional banking system (foreign currency market, the population’s deposits, advances portfolios of the banks), as well as on regional consumer market (prices, trade networks saturation with commodities).

Abovementioned monitoring enables tracing the situation in the regions, prompt decision-making at regional level and formulation of relevant suggestions to and orders of the Government.

As of today, all local executive agencies had developed the Plans of Anti-Recessionary Arrangements, based on the relevant programmes of the Government and focused on mitigation of adverse effects of the world financial crisis on the regional economy.

Abovementioned Plans provide formulation by local executive authorities of their propositions to the Government for the purpose of those propositions implementation on the level of the state, as well as top priority arrangements to be assumed by local government bodies and local executive agencies in order to provide:

easing of situation in regional labor markets;

social protection to the most exposed groups of the population;

accessibility of the population to consumer goods and services, as well as to improve spending capacity of the population;

fail-safe operation of life-supporting and public utilities infrastructure;

sustainable operation of enterprises, engaged in production of mass consumer goods, as well as that of construction organizations and small business entities;

introduction of economic austerity, improvement of efficient utilization of budget funds, local budget revenues and stable operation of budget domain of the regions.

With this objective in view, local executive authorities hold joint conferences with the participation of industrialists, entrepreneurs and trade union organizations.

For example, a number of RSA had held the extended sessions with the participation of the deputies, trade unions, unions of employers, representatives of local government bodies and directors of budget-forming enterprises, for the purposes of discussion of such topical issues as: stabilization of operation of regional banking system; employment and working positions  protection; formulation of suggestions on modification of legal and regulatory framework for the purposes of recessionary developments prevention.

A number of meetings with agricultural producers and commercial banks on prolongation of loan agreements entered and access to credit resources are expected to be held on December 9 to 10, 2008.

For the purposes of mitigation of adverse effects of the world crisis on social and economic domains of the regions, regional state administrations had held the meetings with the directors of ore-mining and smelting enterprises and mayors of large cities of the regions.

Joint order of the heads of regional state administrations and regional councils “On objectives for local government bodies and additional arrangements, focused on improvement of local budget revenue in 2009 against the background of economic recession” had been adopted. That order coordinates the activities of local government bodies on: labor relations and remuneration legalization; intensification of “collective contract” campaign, led in the enterprises and organizations; introduction of stiff austerity policy.

Owing to arrangements assumed, the regions had managed to maintain operation of all continuous-cycle fabrications. None of fabrication facilities or working positions had been lost.

For the purposes of prevention of budget funds wasteful application in the environment of financial and economic crisis, as well as in order to improve investment attractiveness and competitive ability of the regions, local executive agencies, under the instruction of the Ministry of Economic Affairs, are engaged in formulation of the list of investment projects to be implemented in 2009 to 2011.

Implementation of abovementioned arrangements on both central and regional levels will grant an opportunity to mitigate adverse after-effects of the world financial crisis.