Ukraine

Ukraine – EU: Quality of Life

2013

National academy of managementDmitry Taran eduard golubievsky pavlo Vashchyshyn pavlo osos sergey vaschenko

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1. Introduction……………………………………………………………………………………………2a. Ukraine – European Union relations……………………………………………………………3b. The QOL level in Ukraine………………………………………………………………………..4

2. The QOL experience of European countries……………………………………………………....7a. Developing QOL…………………………………………………………………………………...7

Germany……………………………………………………………………………………....7 France………………………………………………………………………………………....9 Italy……………………………………………………………………………………………10 Czech Republic……………………………………………………………………………...11 Poland………………………………………………………………………………………..12

b. State QOL…………………………………………………………………………………………14 Bulgaria and Romania………………………………………………………………………14

c. Why countries have different economic outcomes after joining EU?.................................15

3. The QOL forecast for Ukraine in case of association with EU………………………………….18a. Civilizational choice………………………………………………………………………………19b. Extrapolation of European QOL experience to Ukraine’s present state……………………22c. Expected transitional stages and possible obstacles………………………………………...28

4. Conclusion……………………………………………………………………………………………31

5. List of references…………………………………………………………………………………….32

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“Let us never forget that government is ourselves and not an alien power over us. The ultimate rulers of our democracy are not a President and senators and congressmen and government officials, but the voters of this country.”

Franklin D. Roosevelt 

According to many researchers, the main features of modern society are increasing challenges, developing individualization, and prevailing complicated processes of identification (Z.Bauman, U.Beck, A.Etzioni, J.Young etc). The most important is that our society has changed from an inclusive with stability and homogeneity to an exclusive society with many changes and

1. Introduction

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UkrainEUkrainedivisions. The socio-economic situation in Ukraine during the few years has been very interesting to explore. It could be an illustration of either exhaustion of the population’s adaptive abilities or the growth of social claims caused by change of authority and greater hopes for the post-revolution orange future. The subject of this report is to evaluate the Quality of Life level in Ukraine and its possibilities to change using the opportunities of the association with European Union. Our goal is not only to explore the experiences and obstacles that EU countries had during their membership in EU but also to extrapolate European Quality of Life experience to Ukraine’s present state.

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During the last few years, the European Union considered Ukraine as the country of primary importance in the framework of the European Neighborhood Policy, launched in 2004. The basic principles of the ENP stated the deepening of political cooperation and economic integration between the EU and its partner countries. This policy was extended to countries of East Europe, South Caucasus and South Mediterranean, thus unifying the EU approaches towards the development of relations with countries of the specified regions. Taking into consideration the lack of membership perspectives in the ENP, Ukraine declared on the political level that such a policy was inadmissible and did not reflect its European aspirations.

In 2008, under the pressure of Ukraine and other EU Eastern neighbor countries, and also in response to the launch of the «Union for the Mediterranean«, the EU brought forward the proposal to deepen the relations with its Eastern neighbors on the basis of new principles, taking as an example the format of relations with Ukraine (namely, political association and economic integration principles). The initiative was named Eastern Partnership and was launched in May 2009 during the Eastern Partnership Summit in Prague. The Eastern Partnership does not provide partner countries with a candidate status. The Eastern Partnership is a new multilateral forum for a dialogue between the EU and its neighbors, taking place at regular foreign ministers meetings and summits, thematic platform at expert level, and the platform supporting mutual projects between the EU, its member states and partner countries in such areas as infrastructure, exchange of best practices and economic integration.

1 a. Ukraine – European Union relations

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The term quality of life (QOL) references the general well-being of individuals and societies. The term is used in a wide range of contexts, including the fields of international development, healthcare, and politics. Quality of life should not be confused with the concept of standard of living, which is based primarily on income. Instead, standard indicators of the quality of life include not only wealth and employment but also the built environment, physical and mental health, education, recreation and leisure time, and social belonging.i

We decided to compare Ukraine to certain EU countries. We chose our close mate Poland because it is relatively young European country, which joined EU in 2004, eight years ago. In addition, we chose Germany, Italy and France – the foundation of EU. One of the strongest and highly developed counties of the European Union.

Ukraine Poland Germany Italy France

Cost of Living 67 67 50 54 58

Leisure & Culture 81 85 97 97 100

Economy 27 58 65 60 65

Environment 43 50 67 67 75

Freedom 75 100 100 92 100

Health 72 72 93 90 100

Infrastructure 47 55 70 60 55

Risk & Safety 71 86 100 100 100

Climate 79 77 80 88 88

Final Score 60 7074 74 75

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*Data for the 2011

As we can conclude from the table, Ukraine needs to improve in every sector of QOL index. Germany, France and Italy are the foundation of the European Union and Ukraine has to learn a lot from these counties, but Poland can become a perfect landmark for Ukraine in the EU integrations processes as relatively young developing European county. That is why, it is highly recommended for Ukraine to use Poland’s experience as a benchmark in the development of the associative relations.

1 b. The QOL level in Ukraine

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The results of the survey can show dissatisfaction of Ukraine citizens with their quality of life. These numbers could be another, but the situation is what it is. This graph must be a good motivation for a work and growth.

The quality of life in European Union is not a myth. This graph may be a proof. Fortunately, the “Iron Curtain” was in the 20th century, and now a Ukrainian himself can evaluate and analyze the situation and make conclusion.

1 b. The QOL level in Ukraine

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There are many options how to forecast the future of Ukraine in European Union. After conducting a survey, the results were not surprised. 80% of population sure, that EU will influence Ukrainian Quality of Life.

1 b. The QOL level in Ukraine

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How association with EU will influence Ukrainain QOL

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The Germany is one of these countries, it’s economy - the fifth largest economy in the world in PPP (Purchasing power parity) terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force.

As Europe's largest economy and second most populous nation (after Russia), Germany is a key member of the continent's economic, political, and defense organizations. European power struggles immersed Germany in two devastating World Wars in the first half of the 20th century and left the country occupied by the victorious Allied powers of the US, UK, France, and the Soviet Union in 1945. The country was also divided into two parts with different political views, but despite all, after their unification in 1990 due to the decline of the USSR, Germany has expended considerable funds to bring Eastern productivity and wages up to Western standards.

The GDP per Capita in Germany is equivalent to 303 percent of the world's average. GDP per capita in Germany is reported by the World Bank.

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2 a. Developing QOL

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The GDP per Capita, in Germany, when adjusted by Purchasing Power Parity is equivalent to 158 percent of the world's average. GDP per capita PPP in Germany is reported by the World Bank.

Germany Monthly Wage Index

Wages in Germany decreased to 110 Index Points in August of 2013 from 137.90 Index Points in July of 2013. Wages in Germany is reported by the Deutsche Bundesbank.

But as we look on the economic indices forecast for this country, they all showing growth from 2013 till 2015.Germany went through a long process of the reconstruction and showed us a strong example of how a country in ruins, can grow to a one of the leading countries of the world.iv

Germany

2 a. Developing QOL

France

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2 a. Developing QOL

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Charles de Gaulle once said: "Every Frenchman wants to benefit from one or several privileges. It is his way of affirming his passion for equality".

During World War II the France almost lost everything. The Nazi regime had taken over almost all of France and set up a puppet regime known as the Vichy regime.

Now, in this new era of economic geopolitical blocks and strong international institutions, France again has had to call up its strengths to lead itself into this new era as one of the political and economic leaders of the European Union, France has had to change its political and economic attitudes. It has become a member of many international institutions because this is now necessary, almost required, to be part of the international scene.

France has enjoyed a strong role within the European Union. It has historically led in the development to what is the modem day European Union. From the European Steel and Coal Community to the European Union, France has been one of the leading countries in the birth and integration process in Europe. This is true not only due to its diplomacy tactics but also because of its vision of a future integrated Europe that would avoid European wars like those that had occurred in this century.

France wants to see a broadening of the sphere of influence of the European Union, and at the same time, it wants to keep its national and international objectives attainable. France, as a country, is very nationalistic, but it is not the only country to be like this. If the European Union were to become more politically integrated in a community where each member country would become rather like a member state, France may have a hard time adjusting.

The beginnings of French cooperation with its Western European allies after World War II began with the steel and coal community between France and five other European countries, including Germany. Robert Schuman, the French foreign minister, was the principal organizer. He proposed to create a steel and coal community because steel and coal were the two main industries for economic prosperity at the time. If these two industries were united, the French could revive their capacities after the war.

France had to include Germany in the community because "Traditionally Germany had acted as the power-house, or fly-wheel...of the European economy. The steel and coal alliance promoted European integration and would be a major step toward progress and stabilizing Western Europe. In 1951, the German Federal Republic, Belgium, France, Italy, Luxembourg, and the Netherlands signed the treaty for the European Coal and Steel Community (ECSC). After this first step, European integration progressed. In 1957, the six original countries that had formed the ECSC signed the treaties of Rome creating the European Economic Community. The EEC aimed "at a progressive customs' union, becoming an economic union starting in 1970"', the next major step toward integration.

These first associations were an example of how the European community would continue to work together to become what it is today. The Schuman plan succeeded, balancing German power with the rest of Western Europe through the European Coal and Steel Community, seen as the predecessor of the European Community.v

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Italy

2 a. Developing QOL

2 a. Developing QOL

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The Italian economic miracle is the name often used by historians, economists and mass media to designate the prolonged period of sustained economic growth in Italy comprised between the end of the Second World War and late 1960s, and in particular the years 1950-63. This phase of Italian history represented not only a cornerstone in the economic and social development of the country, that was transformed from a poor, mainly rural nation into a major industrial power, but also a period of momentous change in society and culture. As summed up by one historian, by the end of the 1970s, “social security coverage had been made comprehensive and relatively generous. The material standard of living had vastly improved for the great majority of the population.

The impact of the economic miracle on Italian society was huge. Fast economic expansion induced massive inflows of migrants from rural Southern Italy to the industrial cities of the North. Emigration was especially directed to the factories of the so-called "industrial triangle", the region placed between the major manufacturing centers of Milan and Turin and the seaport of Genoa. Between 1955 and 1971, around 9 million people are estimated to have been involved in inter-regional migrations in Italy, uprooting entire communities and creating large metropolitan areas.

The needs of a modernizing economy and society created a great demand for new transport and energy infrastructures. Thousands of miles of railways and highways were completed in record times to connect the main urban areas, while dams and power plants were built all over Italy, often without regard for geological and environmental conditions. A concomitant boom of the real estate market, increasingly under pressure by strong demographic growth and internal migrations, led to the explosion of urban areas.

At the same time, the doubling of Italian GDP between 1950 and 1962 had a massive impact on society and culture. Italian society, largely rural and excluded from the benefits of modern economy during the first half of the century, was suddenly flooded with a huge variety of cheap consumer goods, such as automobiles, televisions and washing machines. From 1951 to 1971, average per capita income in real terms trebled, a trend accompanied by significant improvements in consumption patterns and living conditions. In 1955, for instance, only 3% of households owned refrigerators and 1% washing machines, while by 1975 the respective figures were 94% and 76%. In addition, 66% of all homes had come to possess cars. In 1954 the national public broadcasting RAI begun a regular television service. The pervasive influence of mass media and consumerism on society has often been fiercely criticized by intellectuals like Pier Paolo Pasolini and Luciano Bianciardi, who denounced it as a sneaky form of omologation and cultural decay. Popular movies like The Easy Life and I Mostri by Dino Risi, Il Boom by Vittorio De Sica and We All Loved Each Other So Much by Ettore Scola efficaciously stigmatized selfishness and immorality that characterized the miracle's roaring years. Italy joined EU at 1952, and was one of the first countries which joined the union. This event was really important for Italy and was the huge step forward for growth. But even now Italy has problems with debts. In 2012 there were several strikes dealing with anti-crisis process.vi

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The Czech Republic is a stable and prosperous market economy closely integrated with the EU, especially since the country's EU accession in 2004. While the conservative, inward-looking Czech financial system has remained relatively healthy, the small, open, export-driven Czech economy remains sensitive to changes in the economic performance of its main export markets, especially Germany. When Western Europe and Germany fell into recession in late 2008, demand for Czech goods plunged, leading to double digit drops in industrial production and exports. As a result, real GDP fell 4.7% in 2009, with most of the decline occurring during the first quarter. Real GDP, however, slowly recovered with positive quarter-on-quarter growth starting in the second half of 2009 and continuing throughout 2011. In 2012, however, the economy fell into a recession due to a slump in external demand. The auto industry remains the largest single industry, and, together with its upstream suppliers, accounts for nearly 24% of Czech manufacturing. The Czech Republic produced more than a million cars for the first time in 2010, over 80% of which were exported. Foreign and domestic businesses alike voice concerns about corruption especially in public procurement. Other long term challenges include dealing with a rapidly aging population, funding an unsustainable pension and health care system, and diversifying away from manufacturing and toward a more high-tech, services-based, knowledge economy.

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The Europe Agreement set out the legal grounds for the pursuit and implementation of economic, political, scientific, and cultural union. The agreements signed with the EC, which at this time was preparing for its transformation into the European Union (EU), initiated Poland's process of European integration. The Europe Agreement came into force on 1st February 1994 .Despite the fact that the EC very early on signed a range of association and customs agreements with Poland, the Agreement was in practice treated as a completely new entity. It included resolutions on political dialogue, obligations related to the narrowing of the gap between the association states and EC legislative models, as well as guidelines governing co-operation in the area of culture.

The EC gave its consent to the Agreement foreword containing an additional point: "Poland's ultimate aim is membership of the Community." In this way the Polish partner established that the aim of the Agreement was the creation of frameworks for Poland's gradual integration into the Community.

The most important from Poland's point of view was that as a result of diplomatic interventions by the states of the Visegrád Group, the European Council decided at its Copenhagen summit in June 1993 that: "the associate member states from Central and Eastern Europe, if they so wish, will become members of the EU. In order to achieve this, however, they must fulfill the appropriate conditions." These became known as the Copenhagen criteria, or simply, membership criteria.The Copenhagen criteria laid down the following EU membership requirements: 

That candidate countries achieve stable institutions that guarantee democracy, legality, human rights and respect for and protection of minorities.

That candidate countries have a working market economy, capable of competing effectively on EU markets.

That candidate countries are capable of accepting all the membership responsibilities, political, economic and monetary.

The negotiation process started on 31st March 1998, when the first sitting of the International Accession Conference took place. After the meeting, screening sessions began to determine the extent to which Polish law was in accordance with community law, followed by the two parties developing position papers for each negotiating position.

The opening of negotiations in given areas signified that the European Council has granted the European Commission the relevant mandate to conduct talks with the candidate states. After the final agreement negotiations were temporarily closed. In the final phase of all the negotiations their results took the form of entries in the accession treaty.

Poland (with other candidate countries) finished the accession negotiations in December 2002. Than the Accession Treaty was signed in Athens on 16th April 2003. After the ratification of that Treaty, Poland and other 9 countries became the members of EU on 1st May 2004.viii

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The 2007 enlargement of the European Union saw Bulgaria and Romania join the European Union (EU) on 1 January 2007. It was the expansion of the EU considered by the European Commission as part of the same wave (the fifth) as the 2004 enlargement.

During the 2000s, Romania implemented a number of reforms to prepare for EU accession, including the consolidation of its democratic systems, the institution of the rule of law, the acknowledgement of respect for human rights, the commitment to personal freedom of expression, and the implementation of a functioning free-market economy. The objective of joining the EU has also influenced Romania's regional relations. As a result, Romania has imposed visa regimes on a number of states, including Russia, Ukraine, Belarus, Serbia, Montenegro, Turkey and Moldova.

Within the framework of integration meetings held between the EU member states and Bulgaria, an 'Association Committee' was held on 22 June 2004. It confirmed overall good progress for the preparation of accession; however, it highlighted the need for further reform of Bulgaria's judicial structures, particularly in its pre-trial phases, as well as the need for further efforts to fight against political corruption and organized crime, including human trafficking. There was also, according to the report, limited progress regarding the integration of the Roma community. The findings were reflected in the 2004 Regular Report.ix

President of the European Parliament, Hans-Gert Pöttering says:

“Romania and Bulgaria became member states in 2007, but both countries at that time knew that they didn’t fulfill all the requirements, all the conditions. In particular the very grave events in Romania do cast serious doubts on the state of constitutional order there but There has been an enormous amount of work done by these two countries, which were under Communist and totalitarian rule for more than a generation. They made a lot of progress in order to leave this experience behind them. The European Union is a community based on law, the law is power and this represents enormous progress in the history of Europe. In the past, authority was always right. Today we are united, connected through values. The core of them is the human dignity, the core of them are human rights, democracy, freedom. The rule of law is something very precious, this rule of law which is uniting Europeans in the European Union has to be respected.”x

2 b. State QOL

Bulgaria

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To answer to this question we decided to weigh the pros and cons of joining the EU:Costs of Joining the EU:

Cost of replacing currency’s and adjusting machines, however this is a one off cost Loss of autonomy over economic policy. 

With the ECB setting a common interest rate for the whole area, countries have lost an important part of their Monetary policy. This is a major problem if a countries economy is at a different stage in the business cycle.

Loss of Devaluation as economic management policy. As well as losing an independent Monetary policy countries cannot use their exchange rate. Business would argue Sterling is overvalued at the moment if we joined the Euro at this rate our exports would be uncompetitive.

Countries will lose some independence over Fiscal Policy. This is because of the growth and stability pact.( e.g. no country is allowed to borrow more than 3% of its GDP. This means that they will have to try and maintain the economy at a similar stage to other countries.

Asymmetric Shocks. If one country experienced an external shock it might need a different response. But this is not possible with a common currency. E.g. German reunification required higher interest rates in order to help reduce inflation but this was not good for many other countries.xi

Benefits of the EU: Transaction Costs:

There will be no longer a cost involved in changing currencies; this will benefit tourists and firms who trade within the EURO area.

Price Transparency:With a common currency it will be easier to compare prices in different European countries because they would all be in Euros.

Eliminating Exchange Rate uncertainty.Volatile swings in the exchange rate can destroy the profitability of exports. This undermines business confidence in investing. Therefore with a single currency business confidence should improve leading to greater trade and economic growth.

Improvement in Inflation Performance.The ECB which sets interest rates for the whole Eurozone area will be committed to keeping inflation low; countries with traditionally high inflation will benefit from this.

Euro could emerge as a global trading currency Inward investment

May increase from outside the EU as firms take advantage of lower transaction costs within the EU area.

2 c. Why countries have different economic outcomes after joining the EU?

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Economizing on foreign currency reserves The financial sector could benefit.

It would be easier to conduct banking and insurance with a single currency. It would be easier to trade German shares on the London stock market.xii

This graph shows GNI per capita growth of European countries in comparison to Ukraine. Ukraine has the lowest level of GNI out of all counties, which are listed above. Poland and Czech Republic showed remarkable growth. From the moment of the association with EU, Poland redoubled its GNI per capita from $6270 in 2004 to $12660 in 2012. Czech Republic increased its GNI rate in 1,86 times, which gave $8380 of growth.

Influenced by accession to the European Union, Bulgaria and Romania have shown increase in GNI per capita, 1,52 and 1,27 times correspondently.xiii

2 c. Why countries have different economic outcomes after joining the EU?

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Joining the EU

Becoming a member of the EU is a complex procedure, which does not happen overnight. Once an applicant country meets the conditions for membership, it must implement EU rules and regulations in all areas.

Any country that satisfies the conditions for membership can apply. These conditions are known as the ‘Copenhagen criteria’ and include a free-market economy, a stable democracy and the rule of law, and the acceptance of all EU legislation, including of the euro.

A country wishing to join the EU submits a membership application to the Council, which asks the Commission to assess the applicant’s ability to meet the Copenhagen criteria. If the Commission’s opinion is positive, the Council must then agree upon a negotiating mandate. Negotiations are then formally opened on a subject-by-subject basis.

Due to the huge volume of EU rules and regulations each candidate country must adopt as national law, the negotiations take time to complete. The candidates are supported financially, administratively and technically during this pre-accession period.

2 c. Why countries have different economic outcomes after joining the EU?

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We have analyzed different QOL experiences of different European Union countries, and now we what to show you the possible outcomes for Ukraine. How would Ukrainian QOL index change, in case of association with EU.

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How association with EU will influence Ukrainain QOL

According to our research, the majority of Ukrainians think that association with European Union will increase the Quality of Life in our country.

We have also conducted an international research, where we questioned more than 30 foreigners, who live in the countries of European Union. The results show, that the majority of respondents stand for the idea that Ukraine will improve its QOL index by approving the association with EU.

3. The QOL forecast for Ukraine in case of association with EU

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How association with EU will influence Ukrainain QOL (int)

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In December 2008 44.7% of all Ukrainians found it necessary for Ukraine to enter the European Union and 35.2% see no necessity in Ukraine's entering the EU.[120] Western Ukraine is found to be generally more enthusiastic than Eastern Ukraine, but in most regions a majority early 2008 believed that their lives would improve faster if their country were inside the EU. [111][115] Citizens aged between 20-39 and residents of Central and Western Ukraine appeared to be the strongest supporters of joining the EU in May 2010 and December 2011 (in December 2011 the opinion of the age group 18-29 did not vary from one region to another).] In July 2012 residents of West Ukraine (74%), Central Ukraine (59%) and North Ukraine (56%) where the biggest supporters for EU membership. A June 2013 poll, on behalf of Deutsche Welle, found that 52% of Eastern Ukraine was in favor of joining the EU.

Ukraine's EU ambassador, Kostyantyn Yeliseyev, stated in July 2011 that business tycoons and politicians from Ukraine's Russian speaking east were as much pro-EU as the west of the country: "If any politician today in Ukraine declared himself to be against European integration, he would be politically dead." xiv

To understand better what Ukraine stands for we conduct the survey. The point of our survey is not just to ask questions and get answers, but try to make the results more clear and understandable. That is why we use segmentation to better understand people’s thoughts. We divide our respondents by age and citizenship.

The graph shows us the thoughts of Ukrainians and their beliefs about EU. This graph demonstrates that the life in Ukraine is in high need of improvement.

3 a. Civilizational choice

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Does Ukraine need association with EU? (ukr)

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Than we asked about which changes will our life faced after association, by other words our life will be better or worse.

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Does Ukraine need association with EU? (int)

Not only Ukrainians think that we need association with EU. During the survey, we contact people from different countries all over the world. We have different opinions from Canada, Poland, Czech Republic and even from Guadeloupe.

3 a. Civilizational choice

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“When you have to make a choice and don't make it, that is in itself a choice.” William James.

The question of the choice is very hard and important. We face the choices every day hundred times. Now according to Ukrainian choice everything is quite clear. People do not want to survive, they want to live. They know who they are; they visit different countries and know that they are the same as Americans or Canadian. They know not less but may be more than others. They try to change the situation and we can see on Independence square. Ukraine is ready to fight for its choice. The survey is the proof. It’s a high time for all Ukrainians to make the choice, and actually we had made it before, now our choice is an opportunity.

This graph can be the most important. During the survey we asked the question about the important sectors which need development. No doubt that Ukraine is agricultural country, but people think that is not enough. Science, Medicine, IT, Economics can help Ukraine and take it to the higher level of growth. Our country has a great potential but we also need more technologies and more qualified human resources.

3 a. Civilizational choice

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Summary table of on-going and planned activities as agreed by the EU-Ukraine Joint S&T Committee

Health research

Topic Activity Who When / where

EU and Ukraine to increase communication activities to promote further Ukrainian involvement in the FP7 Health Theme and EU participation in Ukrainian programmes in health research.

Liaison between the Commission and the newly appointed NCPs

Information event – potential video conference on new FP7 calls

COM/Ukraine Ongoing

Summer 2012

Information and Communication Technologies research and Infrastructures

Topic Activity Who When / where

Ukraine to investigate further involvement with EGI.eu

EU and Ukraine to increase communication activities, including at a regional level, with a view to increasing Ukrainian participation in FP7 and EU participation in Ukrainian programmes

Liaison between the Commission and the newly appointed NCPs

Information event – potential video conference on new FP7 calls in ICT

COM/Ukraine Ongoing

Summer 2012

3 b. Extrapolation of European QOL experience to Ukraine’s present state

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Nanosciences, Nanotechnologies, Materials and New Production Technologies research

Topic Activity Who When / where

EU and Ukraine to increase communication activities to promote further Ukrainian involvement in the FP7 NMP Theme and EU participation in Ukrainian programmes in nanotechnology/materials/production research.

Liaison between the Commission and the newly appointed NCPs

Information event – potential video conference on new FP7 calls

COM/Ukraine Ongoing

Summer 2012

HEALTH

(a) Achievements of recent research and innovation cooperation

Ukrainian institutions are involved as partners in six projects in the FP7 Health theme. Four are research projects, one network of excellence (NoE) and one coordination action. The research projects deal with infectious diseases (AIDS), childhood mental disorders and public health. The NoE is a network of HIV/AIDS cohort studies and the coordination action (EECA-Link) serves to identify future priorities for cooperation with EECA.

The EECA-Link project has produces a list of priority areas for cooperation in Health between the EU and Eastern Europe and Central Asia. This document is provided in annex. It neither commits the Commission nor the EU or EECA states to follow-up on these areas but should be seen as a recommendation.

(b) Planned activities and potential new activities

Ukrainian entities are always welcomed to participate in open calls for proposals in the Health theme. Ukraine is invited to explore the possibility of their participation in the running and planned multilateral (multinational) programme level cooperation, such as the one on rare diseases (see 2012 call). Ukrainian participants are regularly informed on general information events through the NCP network.

3 b. Extrapolation of European QOL experience to Ukraine’s present state

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FOOD, AGRICULTURE AND BIOTECHNOLOGIES

(a) Achievements of recent research and innovation cooperation

Under the FP7 Knowledge-Based Bio-Economy (KBBE) theme several topics with mandatory participation from Eastern Europe including Ukraine have been published. Projects with successful Ukrainian participation include the following:These are in the following areas:

Network of Third country Bio-NCPs; Improving research in support to scientific advice to fisheries management in the

Mediterranean and Black Sea.

Four Specific International Cooperation Actions of interest to Ukraine have been published in the FP7 KBBE work programmes; two of the selected projects have Ukrainian participation:

to assess and predict the combined effects of natural and human made pressures in the Mediterranean and the Black Sea in view of their better governance (very good Ukrainian participation, grant agreement currently under negotiation);

for optimising biomass or novel biotechnological approaches for transforming industrial and/or municipal bio-waste into bio-products production ( Perennial grasses) Ukrainian participation);

In total, there are eight participants from Ukraine in seven FP7 KBBE projects, including an ERA-Net on plant phyto-sanitary research.

(b) Planned and potential new activities

In the 2012 work programme, 'Ocean of Tomorrow' call for proposals includes a topic of specific interest to Ukraine, addressing the ecological significance of different types of marine benthic ecosystems, including essential and sensitive habitats, in European marine waters (including the Black Sea) on a regional basis, and assess the impact of the fisheries on the status, structure, function and productivity of these ecosystems. Other topics of potential interest include a Specific International Cooperation Action on insects as novel sources of protein. Future actions could include topics on conversion of bio-waste in developing countries.

INFORMATION AND COMMUNICATION TECHNOLOGIES (ICT)

(a) Achievements of recent research and innovation cooperation

In the FP7 ICT programme, Ukraine has eight participations (corresponding to eight different organizations), in six different projects, for a total received funding of €383,000. On a regional basis, the six Eastern Partnership countries together have 30 participations (corresponding to 22 different organizations), for a total received funding of €1,394,600.

Four of the six projects with Ukrainian participation are Coordination and Support Actions aiming to analyze the ICT research landscape in Ukraine and the Eastern Partnership countries, identify ICT research players and priorities and raise awareness for collaboration opportunities with the EU. Projects EXTEND, SCUBE-ICT and ISTOK-SOYUS are in completion and the PICTURE project, which will start shortly, will continue the work in this regard.

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The two remaining projects with Ukrainian participation are in the area of eGovernment (project eGovPoliNet) and FET (project STELE). (b) Planned activities

Following the tradition of scientific collaboration between EU and the wider EECA region, and built on the outcomes and lessons learnt of three clustering projects (ISTOK-SOYUS, SCUBE-ICT and EXTEND), a group of leading EU and EECA specialists from twelve countries (Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russian federation, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan) with complementary competences have come together in the PICTURE project aiming to support and promote ICT R&D policy dialogue and cooperation between EU and EECA.

The overall aim of the project which is expected to start in November 2011 and last for 30 months is to engage the EU and EECA stakeholders from across research, academia, industries, government and civil society to enrich and support the EU-EECA ICT Policy Dialogue, and to reinforce strategic partnerships between EU and EECA ICT organisations. As a final outcome, the project will present recommendations and strategies for reinforcement of bilateral and multilateral cooperation, covering the large geographical area of the EECA countries.

(c) Potential new activities

No specific ICT RTD actions targeted towards Ukraine or the wider Eastern Partnership region are planned for the 2013 work programme. Regarding ICT in Horizon 2010, it is expected that the results coming out from the PICTURE project would provide valuable guidance in addressing properly ICT research and innovation topics of joint interest between the EU and the EaP countries and Ukraine in particular.

ENERGY

(a) Achievements of recent research and innovation cooperation

Currently, Ukraine has participants in five FP7-funded projects under the energy theme in the areas of biomass, energy storage and methane GHG reduction. The total EU contribution to the Ukrainian partners is €778.6k.

Coal mine methane – new solutions for use of CMM- reduction of GHG emissions (COMETH) - Eco-Alliance and Krasnodonugol;

New generation high energy and power density super-capacitor based energy storage systems (HESCAP) - APCT-Ukraine LLC;

Multi-Approach for high efficiency integrated and intelligent concentrating PV modules (Systems) - State Enterprise Scientific Research Technological Institute of Instrument Engineering;

Biomass Energy Europe - National University of Life and Environmental Sciences of Ukraine; and Scientific Engineering Centre 'Biomass' Ltd; and

Classification of European biomass potential for bio-energy using terrestrial and earth observations - Ukrainian Land and Resource Management Centre.

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An additional project, with Ukrainian participation is currently under negotiation: EFENIS (Efficient Energy Integrated Solutions for Manufacturing Industries) - Ukrainian participant: Spivdruzhnist-T Joint-Stock Company.

Overall, Ukraine ranks ninth in terms of international participation in EU-funded projects in the Energy theme, receiving 4% of total EU funding that goes to third countries. The broader Eastern Europe and Central Asia (EECA) region including Ukraine receives 3.9% of FP7 EU funding for energy projects.

(b) Planned activities The European Strategic Technology Plan (SET-Plan) is the EU's technology contribution to the EU Energy Policy. In recent months a particular emphasis was placed on the development of the international cooperation dimension in the SET Plan and notably of the Industrial Initiatives and the European Energy Research Alliance. This international dimension in energy Research & Innovation, including cooperation with Ukraine, is only promoted where it results in clear and significant mutual benefit. The current calls corresponding to the work programme 2012 (budget ~ 325 M€) are largely designed to support the implementation of the SET Plan main action lines and in particular the European Industrial Initiatives: the following areas are currently open:

Renewable Energy (photovoltaics, concentrated solar power, wind, bio-fuels, ocean energy, heating and cooling);

Clean coal/ CCS; Smart energy networks; Energy efficiency; Future emerging technologies;

Whilst there are no current calls, specifically targeted towards Ukraine, all topics in the above calls are open to the participation of Ukrainian entities either bilaterally or on a regional basis. Bio-energy and photovoltaics could represent areas of interest for Ukraine to participate in EU partnerships.

(c) Potential new activities No specific actions targeting cooperation with Ukraine are foreseen in the FP7 2013 work programme. However, Ukraine is invited to establish contacts with corresponding EU interlocutors in industry and the research community with the objectives to create alliances and partnerships. A regional approach could bring a strategic added value to this cooperation. For such purpose, participation in the next SET Plan Conference under the Polish Presidency, taking place in Warsaw on 28-29 November 2011 , could be very useful.

Energy research cooperation with Ukraine could be of strategic interest to the EU in the future where it serves the priorities of the SET Plan, notably in the forthcoming Horizon 2020 programme. This could take the form of Energy Researcher Training through reinforced staff exchange, knowledge sharing and/or large scale and scope projects in areas of common interest and mutual benefit.

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SOCIAL SCIENCES AND HUMANITIES

(a) Achievements of recent research and innovation cooperation

There has been little successful participation of Ukrainian institutions under FP6 and FP7. Whilst the number of applications involving Ukraine to FP7 has been relatively high (73 in total) only six projects involving Ukrainian research organisations have been successful. These include:

'Fostering Regional Innovation and Development through Anchors and Networks' (FRIDA), involving the National Technical University of Ukraine;

'Governance of shrinkage within a European context' (SHRINKSMART), involving the Industrial Economics Institute of the National Academy of Sciences of Ukraine.

(b) Planned and new activities

There is no specific activity for Ukraine planned in the FP7 2012 work programme but the Ukrainian institutions may be interested in topics such as 'Human rights in EU external and internal policies'; 'Dealing with diversity and cohesion: the case of the Roma in the EU'; 'European energy security including its economic dimension'; and 'New types of offences in a globalised world: the case of environmental crime'.

The preparation of the FP7 2013 work programme has just started. One topic which could be considered for inclusion would be on 'Security and Democracy in the Neighbourhood Regions: the Case of the Caucasus', which could be of interest to Ukraine.

SPACE

(a) Achievements of recent research and innovation cooperation

Cooperation with Ukraine under the Space Theme in FP7 has been very constructive. Overall, Ukraine is the third highest international partner in the theme, after Russia and the US; there are eight projects with Ukrainian participation. These include:

Three projects in the area of GMES: MyOcean (Marine services); Operational Pan-European River Runoff (OPERR); and 1. Prototype Operational Continuity for the GMES Ocean Monitoring and Forecasting Service (MyOCEAN2) - GMES service activities;

Five projects in space technologies: HPH (in-Space propulsion); Lightweight technologies for exploration rovers (ROV-E) - Space exploration; Advanced forecast for ensuring communications through space (AFFECTS) - Space weather; Radiation shielding of composite space enclosures (SIDER) - Space weather; and Problem-oriented processing and database creation for ionosphere exploration (POPDAT) - Space data exploitation

(b) Planned and new activities

The 2012 work programme includes several topics of potential interest for Ukraine on space technology development.In the coming years, an increasing number of participants from Ukraine is expected, in particular in the space technology sector and space weather. In the space application field new Ukrainian capabilities in Earth observation and satellite navigation

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We reach in and did sociological survey, from which we found out what people think and what kind of transitional stages and sectors to develop in order to see prosper Ukraine.

From the survey we should conclude the Ukraine has to develop next sector, which will become a transitional stages on the way to European integration:

1. Agriculture Support adoption of the Draft Law aimed at liberalization of grain shipment quality

certification and grain warehouse conformity certification. Develop a Draft “On the Land Market,” which includes the provisions that ensure

functioning agriculture land market. Maintaining stable working processes of the Ministry of Agricultural Policy and Food of

Ukraine under the framework of the Memorandum of Understanding of Grain Exports.2. Economics

Credit Histories Market Development – working out policy options for the reform of Ukrainian system of credit history bureaus based on the experience of emerging markets.

Insurance market development – MTPL legislation/ pension reform/ tax system. Stock Market development- increasing the efficiency and reliability of the stock market

development and creation of conditions for the effective protection of the rights of Investors.

Agricu

lture

Car bu

ilding

Defenc

e Dep

artmen

t

Econo

mics

Energy

Financ

ial S

ector

High Tec

h Prod

ucts IT

Medici

ne

Oil&Gas

Produc

tion

Social

Transp

ort0

5

10

15

20

25

30

Sectors vital for development

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3. IT Develop amendments to the Tax Code, local accounting standards in order to clarify the

treatments of various types of transactions with software licenses. Improve new tax legislation for IT sector. Develop and lobby necessary amendments to the current Law of Ukraine on personal

data protection to bring it in line with the best EU practices.

4. Light Industry

Light industries require only a small amount of raw materials, area and power. The values of the goods are low and they are easy to transport. The number of products is high. While light industry typically causes relatively little pollution, particularly when compared to heavy industries, some light industry can cause significant pollution or risk of contamination. Electronics manufacturing, itself often a light industry, can create potentially harmful levels of lead or chemical wastes in soil due to improper handling of solder and waste products (such as cleaning and degreasing agents used in manufacture).

5. Medicine Prevent implementation of import licensing as a non-tariff trade barrier. Pro-actively influence the development and further implementation of the reimbursement

system in Ukraine, preventing a discriminatory approach.

6. Science Alternative technology. Alternative technologies include the following:

a. Anaerobic digestion – is a collection of processes by which microorganisms break down biodegradable material in the absence of oxygen. The process is used for industrial or domestic purposes to manage waste and/or to produce fuels.

b. Composting – is organic matter that has been decomposed and recycled as a fertilizer and soil amendment. Compost is a key ingredient in organic farming.

c. Fuel cells/fuel cell – is a device that converts the chemical energy from a fuel into electricity through a chemical reaction with oxygen or another oxidizing agent.

d. Fuels for automobiles (besides gasoline and diesel): Alcohol - (either ethanol or methanol)/Throughout history, alcohol has been

used as a fuel. The first four aliphatic alcohols (methanol, ethanol, propanol, and butanol) are of interest as fuels because they can be synthesized chemically or biologically, and they have characteristics which allow them to be used in internal combustion engines.

Biodiesel – refers to a vegetable oil- or animal fat-based diesel fuel consisting of long-chain alkyl (methyl, ethyl, or propyl) esters. Biodiesel is typically made by chemically reacting lipids (e.g., vegetable oil, animal fat (tallow[1][2])) with an alcohol producing fatty acid esters.

Vegetable oil – is a triglyceride extracted from a plant. Such oils have been part of human culture for millennia.

e. Solar panels is a set of solar photovoltaic modules electrically connected and mounted on a supporting structure. A photovoltaic module is a packaged, connected assembly of solar cells.

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Landfill gas extraction from landfills – Landfill gas production results from chemical reactions and microbes acting upon the waste as the putrescible materials begins to break down in the landfill.

Mechanical biological treatment – system is a type of waste processing facility that combines a sorting facility with a form of biological treatment such as composting or anaerobic digestion. MBT plants are designed to process mixed household waste as well as commercial and industrial wastes.

Recycling – is a process to change materials (waste) into new products to prevent waste of potentially useful materials, reduce the consumption of fresh raw materials, reduce energy usage, reduce air pollution (from incineration) and water pollution (from landfilling) by reducing the need for "conventional" waste disposal, and lower greenhouse gas emissions as compared to plastic production.

Wind generators – is a device that converts kinetic energy from the wind into electrical power. A wind turbine used for charging batteries may be referred to as a wind charger.

7. Energy

Alternative energy include the following:

Solar energy is the use of sunlight. Light can be changed into thermal (heat) energy and electric energy.

Wind energy is the generation of electricity from the wind.Geothermal energy is the use of the earth's internal heat to boil water for heating buildings

or generating electricity.Biofuel and Ethanol are plant-derived gasoline substitutes for powering vehicles.Nuclear binding energy uses nuclear fission to release energy.Hydrogen is burned and used as clean fuel for spaceships and some cars.

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We have considered the countries that are the locomotive of the EU: Germany, France,

Italy. They have succeeded in reconstruction from the ruins due to their brave and wise

economic decisions.

Ukraine needs to tend to European quality of life following the experience of Poland and

Czech Republic that gave us a good example of how to develop the country and how to

form relationship with Europe.

Ukraine needs to draw the right outputs and learn from the example of the integration of

Bulgaria and Romania. "The last six years indicate that post-accession conditionality

achieves only slow progress. In future accessions, every effort must be made to ensure

that all reforms are irreversible prior to accession, as post-accession mechanisms are both

undesirable and unlikely to prove effective." – the peers of European Parliament.

The surveys show that the overwhelming majority of Ukrainian people live under extremely

poor economic conditions and experience material difficulties.

The majority of Ukrainian respondents expresses profound dissatisfaction with their living

and everyday conditions.

In the opinion of the Ukrainians, the quality of life level needs a substantial growth, and it

will increase with the signing the association.

Among our foreign respondents, the majority also believes that the EU-Ukraine association

agreement will improve the quality of life of people and the country as a whole.

“EU's door still open to Ukraine” - EU Commissioner for Enlargement and European

Neighborhood Policy Stephan Fuller

Association with the EU - it is a complicated procedure that does not pass over a single day or

month. It is a long process of transformation, absolutely is vital for Ukraine to get over.

Furthermore, our conclusion is endorsed by 200,000 people on the “Maidan” in the center of

Kiev and thousands of people around the world who are actively express their choice about the

euro integration.

If Ukraine choose to enter EU and follow the way of Western societies, it is necessary to wait

for changing (or its better say “transformation”) the system of our social values, because

Ukrainians need get over gap in value system that is result of economic situation and present

social well-being.

4. Conclusion

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EU-Ukraine Joint S&T Committee UNESCO Statistical Yearbook; Freedom in the World: The Annual Survey of Political Rights and Civil Liberties; U.S. State Department; The United Nations Office for Drug Control and Crime Prevention; Yale University’s Environmental Performance Index; The Freedom House Survey; Statistical Abstract of the United States; The World Factbook; The World Almanac and Book of Facts; The World Bank Atlas; U.S. Department of State Indexes of Living Costs Abroad, Quarters Allowances, and

Hardship Differentials; The World Health Organization; UN Statistical Yearbook; The Economist World in Figures. Muradyan Olena: "Social exclusion and social well-being: Ukraine in comparison with

Europe"

5. List of references

i http://en.wikipedia.org/wiki/Quality_of_life

ii http://www1.internationalliving.com/qofl2011/show_country.php?country=Ukraine

iii http://www.numbeo.com/quality-of-life/rankings_by_country.jsp?title=2013-Q1

iv http://www.tradingeconomics.com/

v http://content.library.ccsu.edu/cdm/ref/collection/ccsutheses/id/1487

vi http://en.wikipedia.org/wiki/Italian_economic_miracle

vii http://data.worldbank.org/indicator/NY.GNP.PCAP.CD/countries/UA-DE-FR-IT-CZ-PL-BG?display=graph

viii http://en.poland.gov.pl/Poland%E2%80%99s,way,to,UE,458.html

ix http://en.wikipedia.org/wiki/2007_enlargement_of_the_European_Union

xhttp://www.euronews.com/2012/07/18/five-years-after-eu-dream-romania-and-bulgaria-behind-on-reform/

xi http://www.economicshelp.org/europe/costs-euro/

xii http://www.economicshelp.org/europe/benefits-euro/

xiii http://www.gfmag.comxiv http://ukraine-eu.mfa.gov.ua/en/ukraine-eu/relations