Based on the recently presented Regional Doing Business 2020 rating, the Better Regulation Delivery Office developed a set of recommendations for Ukrainian regional centers to facilitate doing business.
According to the study, a systemic failure of almost all regional centers is related to the time-consuming formal procedures. It implies not only the number of days that businesses spend on necessary bureaucratic stages but also the number of visits to government agencies. This can be no less a source of damage to businesses than spending money.
Excessively bureaucratized formal procedures create unfavorable conditions for investment, and in some cases create serious obstacles (complicated by the pandemic) for entrepreneurs.
“One of the main tasks of the government is to reduce the regulatory burden on business, so the rating will be useful to produce solutions in the context of deregulation reform and entrepreneurship development. Local authorities need to clearly understand what to do next to increase the regional investment attractiveness. We developed such a road map for all regional centers,” Oleksii Dorohan, BRDO CEO, said.
According to him, the rating results showed that even this year’s leader — Zhytomyr region — still has a lot to improve.
Recommendations for all regional centers can be found here (in Ukrainian): https://bit.ly/3vbR26B
The Regional Doing Business 2020 rating is based on a survey of Ukrainian entrepreneurs in accordance with the adapted World Bank’s Doing Business methodology. The assessment included the number of contacts with representatives of licensing authorities (“visits”); the number of calendar days spent on obtaining permits (“time”); and the costs of entrepreneurs (“money”).
According to the rating, Zhytomyr (with 356 points) has the best business climate among all regional centers. Mykolayiv, Khmelnytsky, and Kherson regions (with 303, 304, and 310 points respectively) ranked last in the rating.