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Legislation that encourages business operations and investments must be applied to the affected area. Moreover, in light of the special difficulties of these territories, special provisions should apply only to the Chernobyl territories, such as special powers attributed to local governments there, more fiscal decentralization, the right of districts’ councils to impose local contributions, greater use of present legislation regarding special economic zones, and territories of priority development. Considering that attracting private credits could be a problem because of, among other things, lack of collateral, legislation that would help to establish trust funds and similar financial institutions should also be enacted. Legislation and institutional arrangements that would facilitate access to small credit schemes, such as credit unions or cooperative banks, should also be promoted.

8.REDESIGNING FINANCIAL TRANSFERS FOR INDIVIDUALS

The system of social assistance, including medical and resettlement assistance, should undergo not only improved targeting but, more importantly, a conceptual redesigning lest it continues to be underfinanced, corrupt and hardly manageable. Chernobyl-related social assistance could be usefully divided into assistance to individuals and to territories. Radiation, once absorbed by an individual, is an indisputable claim for social, medical and other assistance. The total value of legitimate State liabilities, however, may well be outside the limits of the State budget. Assistance could be in the form of lump sum payments such as seed money, and technical assistance to generate income in exchange for irrevocably surrendering claims to social assistance. The scheme could help to turn inaction and social apathy into action and taking individual responsibility.

9.REDESIGNING FINANCIAL TRANSFERS FOR LOCAL ADMINISTRATION

Nearly all payments to Chernobyl sufferers are transferred through local budgets and are administered by local administration. There is anecdotal evidence on misuse of these transfers. State budgets also finance such public infrastructure as gasification, road construction, and the construction of medical and social centres. Until recently, zone decontamination programmes included a very efficient component of roof and fence replacements, and the replacement of the upper soil layer. Local governments administered the budgets for these works as well. Although radioactivity protection measures

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and natural recovery processes caused significant reduction in the numbers of contaminated settlements in all contamination zones, local leaders continue to press for assistance from the State budget. The benefits to contaminated territories should be re-examined to represent the present day contamination marks. A deal between the Treasury on the one hand, and representatives of local communities on the other hand, may be attempted. Its essence could be a trade-off between surrendering legitimate claims related to territory contamination plus claims for additional investments outlays for public services infrastructure related to resettlements, in exchange for leaving some of these potential transfers at the disposal of the local governments and local communities in question, in order to help them finance their own development plans and initiatives.

10.DONOR COMMUNITY ASSISTANCE TOWARDS SQUARING THE CIRCLE

The June 2002 “National Workshops on Chernobyl” attended by many donor representatives, concluded that it was:

“…necessary to assist the people in the region affected by the Chernobyl disaster in creating a perspective of sustainable socioeconomic development while paying proper attention to the specific needs of the people in health care, psycho-social and rehabilitation services.”

To follow-up this recommendation and to maintain policy development processes regarding Chernobyl recovery, the UNDP Chernobyl Programme works towards:

—Intensifying policy dialogue with concerned government agencies on macro and sector policy issues related to the elaboration of the new Chernobyl strategy concept paper;

—Prioritizing the Chernobyl region within the United Nations Country Offices by selecting areas for pilot interventions, and developing and implementing special policy instruments;

—Enhancing the integration of United Nations activities, and local and national government initiatives, particularly with those that support the implementation of the new strategy;

—Strengthening local partnerships with donors and related resource mobilization; and

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—Enhancing public relations activities to support policy dialogue and promote the new paradigm of the United Nations strategy for Chernobyl recovery.

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