dismissal within certain departments. There is no mechanism for replacing these officials that would guarantee that qualitatively different persons would occupy these posts. VI. ECONOMIC AND SOCIAL RIGHTS The fighting in the eastern regions continues to have a negative impact on economic, social and cultural rights, not only in the Donetsk and Luhansk regions, but in the whole country. As of July, there was evidence of further decline in the economic situation: the GDP decreased by 4.7% compared to last year, capital investments dropped by 23.1%, the consumer price index grew by 11.6% and the unemployment rate increased from 8 to 8.8%. In order to finance the security operation in the east and to address reconstruction in the Donetsk and Luhansk regions (the main strongholds of armed groups), Parliament approved amendments to the budget on 31 July which will make cuts in social programmes, pensions, unemployment and disability benefits, and salaries of state employees. These cuts will negatively affect women disproportionately, as they constitute 67% of the population over 65 years old, 55% of the registered unemployed and 75% of state employees. At the same time on 31 July, the Government introduced a 1.5% “military tax” to be paid from all salaries and wages until 1 January 2015. Already there are large wage arrears in Ukraine, amounting to 970.7 million UAH (about 72.5 million USD) as of July 2014, with the highest rates in Kyiv region (125 million UAH), Donetsk region (121.1 million UAH) and Kharkiv region (102.6 million UAH). These factors will have negative impacts on businesses and households. The principal driver of the further deterioration of the economic and social situation in the east is the continuation of the fighting which is concentrated in densely-populated areas. On 14 August, an UN-led preliminary response plan on the humanitarian aspects of the situation in eastern Ukraine was presented to a donors’ conference. According to the plan, some 3.9 million people live where fighting is ongoing or where fighting was taking place until very recently. The population remaining in the Donbas region, even those not directly affected by hostilities, face reduced or disrupted services, with water and electricity supply and transportation badly affected. According to the Ministry of Social Policy, as of 15 August, the security situation made it impossible to deliver pensions to 11 towns and districts in the Donetsk region: Snizhne, Horlivka, Yenakieve, Zhdanivka, Kirovske, Makiivka, Torez, Khartsyzk and Shahtarsk town and district. In the Luhansk region, pensions could not be paid in 5 districts. Elderly people are particularly affected as many have been left alone when their families fled the area. According to Donetsk Regional authorities, about 20,000 persons with disabilities and the elderly, were left alone in their homes in Donetsk, Makiivka and Horlivka, have no access to their pensions and food. Other social welfare benefits (for families living in poverty, families with children, children with disabilities) could not be paid in 14 towns and districts of the Donetsk region: Avdiivka, Horlivka, Yenakieve, Zhdanivka, Kirovske, Makiivka, Snizhne, Torez, Khartsyzk, Marjivka, Shahtarsk town and district, Yasynuvate town and district and Donetsk city. Due to technical difficulties, State allocations for social welfare benefits could not be delivered to the Luhansk region. The situation is particularly critical in Luhansk city, directly affecting the 250,000 residents who remained. According to the Luhansk city council, as of 15 August, the city had been under continual shelling for 13 days, without electricity, water and mobile/telephone connection. There was a shortage of food, potable water and medications. Water had not been sanitised and the rubbish had not been collected for more than two weeks. 219 | P a g e