13C13 International cooperation and neighbourhood programs with third countries.

Patrycja Wolinska – Fund Raiser in ChelmCity Office

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Development of Polish-Ukrainian cooperation with Phare CBC support
as a chance for sustainable growth of bordering regions.

In the middle of year 1989 the most developed countries decided to establish a special fund, managed by European Commission, which would help Poland and Hungary to implement political and economic changes. This program was called: "Poland and Hungary: Assistance for Restructuring their Economies” (PHARE). In the following years the scope of beneficiaries expanded to other countries of Central and Eastern Europe, but the name stayed the same. PHARE is the biggest program of non-repayable financial help, that benefits ten new European Union countries (increase from 1 May 2004) in addition to Albany, Macedonia, Bosnia which are benefiting until today. In countries which have applied to join European Union the PHARE Program was aiming to assist them in preparations for the entry. In other countries PHARE supports political and economic transformation processes. Between 1990 and 1999, a 10.31 billion Euro was consumed by all the beneficiaries. The actual EU 2000-2006 budget for PHARE Program, allocates 1.56 billion Euro per year.

The PHARE structure consists of national, multi-country horizontal and Cross-Boarder cooperation programs. National programs are executed on the basis of annual financial memorandum, negotiated with European Commission by the government of each country. In the beginning of PHARE most of the financial help was applied towards building market economy, raising entrepreneurship and democratisation of political sphere. Nowadays PHARE program co-finances projects preparing countries to access the arena of modern infrastructure, transportation, and environmental protection. It also assists in developing civil societies in those countries.

PHARE Cross-Border Co-operation program’s objective is to support changes in regions of Central and Eastern Europe which share the borders with European Community. This support presents itself through financing international projects. Legal basis for this kind of programs is EU Commission Regulation No. 1628/94 from July, 4th 1994, changed by Regulation No. 2760/98 on December, 18th 1998. Project selection procedures and their implementation are similar to INTERREG Community Initiative procedures. Applications for PHARE CBC can be submitted once a year in accordance with EU Commission financial decision. In Poland, this Program was introduced for the first time in 1994 on Polish-German border. Between years 1994 and 1999, Cross-Border Co-operation Program accounted for 26.1% of annual EU’ assistance for Poland within PHARE. From 1994 European Union transferred to Poland over 424 million Euro of non repayable assistance for developing cross-border cooperation, and 170,5 million Euro for strengthening security and border infrastructure. Western regions of Poland benefited the most from this assistance. This help was visible not only in substantial infrastructure modernisation, but equally in social development. Local authorities from eastern regions of Poland wanted the same instruments of development available to them. Since 1999 regions of Eastern Poland were allowed to benefit from PHARE CBC Program. Small Projects Facility within PHARE CBC was the first tool of EU’ assistance for Eastern Poland. Management and implementation of these means, were entrusted to the Implementing Authority (functioning by Ministry of Internal Affairs) and also to the euro-regions of the lands. Lubelskie voivodship, where ChelmCity is situated, together with bordering regions of Belarus and Ukraine comprise the Euroregion Bug. Local authorities and non-governmental organisations from Poland could request assistance for the projects that are collaborated with partners from Belarus or Ukraine in the field of culture, tourism and sport.

Some undertakings could only have non-investment character. Different kinds of meetings, conferences where partners could exchange their experiences and good practices were allowed to gain the assistance. In the beginning beneficiaries did not exactly know how to manage a project and what was meant „by project”. Initially, the needs were focused on lack of basic infrastructure and good transportation system. At that time we did not know the specific rules governing EU assistance – that would help us solve the indicated problems in the borderland. We did not realize that we need to act together with other organisations as partners, that any action needs preparation and evaluation. Within PHARE Program there were many schoolings and trainings for people responsible for technical and social development of the region like deputies from local authorities, politicians, civil servants and officers, plus people from non-governmental organizations. It was necessary to learn how to act rationally and responsibly, how to manage funds and prioritize the needs.

In 1996 ChelmCity set up a Sister Bond with KovelCity in Ukraine, Volhynia Region. Chelm is located only 70 kilometres away from Kovel, so the bonds are natural and people are similar in spite of different nationalities, languages and traditions. At that time having a sister city was rather for show – nobody thought that this relationship could bring measurable results. When possibility of benefiting from PHARE CBC funds has appeared the authorities of ChelmCity renewed the partnership with Kovel and organized the first meeting during the city fest in 1999. Since then Chelm together with Kovel has accomplished many cultural, tourism and economic undertakings. They were always co-financed by PHARE CBC. During cultural events such as plain-air painting, folklore dance shows, historical exhibitions, many international friendships were born. The next step in building strong cross-border partnership was to establish economic cooperation. Important events that intensified cross-border economic contacts were the international trade fairs in Chelm (which took place in March 2004), and also opening of the EasternTradeCenter. Both undertakings were part of a big project co-financed by PHARE CBC Small Projects Facility. The EasternTradeCenter is an institution managed by Chelm City Office and it’s aim is to deliver useful information concerning running business in Ukraine and Belarus. After a big success of this project ChelmCity authorities decided to organise similar trade fair every year. Good economic cooperation between neighbouring nations, especially between Poland and Ukraine, is necessary for sustainable growth of borderlands. Together with its’ sister city of Kovel, Chelm City has organised a cycle of trainings for non-governmental organisations from the borderland about their significant role in building a civil society and possibilities for gaining funds for their actions.

Until now ChelmCity government has benefited from PHARE Program for implementing the non-investment projects in the amount of over 240 thousands Euro. European Union assistance for these undertakings allowed really to strengthen the bonds between neighbouring societies on both sides of the border. Cooperation established in 1996 has now different meaning and realistic shape. In 2003 for the first time in the eastern border regions history, the PHARE’s Small Infrastructure Project Facility (SIPF) has been launched. This fund has been co-financing small investments – up to 300 thousand Euro, which have great importance for cross-border cooperation improvements. Local authorities form Chelm have benefited for 6 projects concerning modernisation of city’ streets, CultureCenter and building city’s monitoring system for safety improvement. For these undertakings ChelmCity has gained almost 1 million Euro. This assistance is essential for proper development of frontier region and improvement of relationship between Poles and Ukrainians. Through the period of projects’ implementation both partners learned from each other and exchanged their observations. One of the main results of these activities was increase of Ukrainians’ knowledge how to manage a project, identified and solve problems. KovelCity government and NGO’s sector has applied for assistance from TACIS CBC Program. The European Commission, after analysing the effects of PHARE implementation has decided to introduce an assistance program for independent states of former Soviet Union and Mongolia. In 1991 EU has come up with a TACIS program - Technical Assistance for the Central Independent States. At the beginning its’ main objective was to create a solid administration for new, democratic conditions. In 2000 this program has been adjusted to accommodate different needs. Within TACIS program a Cross Border Cooperation part is functioning and is giving assistance for common activities and initiatives of member states and other 13 countries. After Russia, Ukraine is the biggest beneficiary of TACIS assistance. Priority in receiving assistance from this program have projects complimentary with the same projects financed from PHARE or INTERREG. Having a good experience both partners, Chelm and KovelCity, are preparing for other common activities to secure permanent growth.

From 2003 the main objective of PHARE CBC is to fortify the cross-border bonds between neighbouring countries. The Commission Communication „Paving the way for a New Neighbourhood Instrument” (COM/2003 393 of 1 July 2003) states that PHARE CBC programme is good and useful basis for Neighbourhood programs, such as INTERREG, designed to boost co-operation between the new, bigger EU and neighbouring non-candidate countries. This model envisions also the same assistance for Bulgaria and Romania, who candidate to enter to European Union. Polish experience shows that EU assistance within Cross Border Cooperation programs is a very effective way to improve borderland situation and this kind of activity should definitely be continued.

Polish eastern border in May 2004 has become an external border of enlarged European Union. For sustaining development of these regions a special Neighbourhood Programme Poland-Belarus-Ukraine INTERREG IIIA/TACIS CBC was introduced. The main goal of this program is to promote trans-national cooperation. The basic rules of planning and implementing remain the same as PHARE CBC, so it is a continuation of politics of good neighbourhood relationships with third countries.Neighbourhood program Poland-Belarus-Ukraine INTERREG IIIA/TACIS CBC supports undertakings which provide enhancement to standard of life of it’s citizens, and socio-economic cohesion of bordering regions. It is financed by European Regional Development Fund and TACIS programme. For 2004-2006 period, Poland has planned to receive 37,8 million Euro for this program and for Belarus and Ukraine 8 million Euro is allocated from TACIS.

All these programmes support bordering regions in the way of diminishing the negative aspects of being EU’s geographical periphery. One of the aims is to make bordering location a strong asset by promoting a sustainable economic growth and social development. The actions taken to fulfil this goal should be focused on natural environment protection, social education, cultural and sport exchange, safety assurance.

It is worth noticing that people of polish eastern border regions – podlaskie, lubelskie and podkarpackie voivodships, overwhelmingly endorsed Poland’s joining of the EU, in a public referendum. On average 75% of population from these regions said „yes”. Eastern regions’ communities, do see in cross-border cooperation a chance for a better future and permanent economic growth. Undoubtedly this is and will be possible only with European Union assistance – not only financial but equally technical and social. Effects of Cross-border Cooperation programs will be evaluated after a couple of years, but today we can notice the positive impact on societies’ awareness, throughout the countries who recently have transformed their political and economic regime.