On May 31, 2017, the World Bank experts stop considering changes and start processing data for the annual ease of doing business index “Doing Business”. Countries entering the top ten of the Doing Business ranking receive 50 times more foreign direct investments than those countries entering the last ten. Ukraine ranked 80 among 190 countries in the Doing Business index. What results should we expect at the end of this year? This topic was discussed at the briefing “Doing Business 2018: what to expect?” in the CMU’s press center on May 30.
The First Deputy Minister of Economic Development and Trade of Ukraine Maksim Nefyodov declared that the Ministry of Economic Development has initiated making amendments to the Resolution of the Cabinet of Ministers of Ukraine No.1406 “On approval of the Action Plan for implementation of best practices of quality and efficient regulation as reflected in the World Bank Group’s methodology of the Doing Business Index for 2016”.
“Doing Business is one of the main rankings targeted by investors when choosing countries for investment. This year, we initiated the visit of a mission, which will assess the reforms implemented by interviewing business representatives and experts, in Ukraine. Last year, this commission was not involved, so we failed to receive several positions in the ranking. If they consider all changes, we estimated that it would give Ukraine 10 positions in the ranking,” Maksim Nefyodov said.
Oleksiy Honcharuk, the Head of the Better Regulation Delivery Office, presented the steps taken last and this year to improve Ukraine’s positions. The key steps include: introducing administrative responsibility for government officials for refusing to accept documents without seals and simplifying the registration of land ownership.
The access to electricity networks was improved – now electricity supply companies undertake to pay compensation to consumers if electricity interruptions last more than 24 hours.
In addition, the Ministry of Economic Development initiated making amendments to the List of dual-use goods, which reduced the number of such goods simplifying the work of importers and exporters. It is expected that this reform will improve Ukraine’s positions in terms of the International Trade component.
“Progress in the ranking can not be an end in itself, but this ranking is a marker of reforms implemented. The Ministry of Economic Development together with the Better Regulation Delivery Office developed an Action Plan to improve the investment attractiveness of Ukraine. Increased positions in the ranking will help attract more foreign investment,” Oleksiy Honcharuk said.
The Deputy Minister of Regional Development, Construction, Housing and Utilities of Ukraine Lev Partskhaladze said about innovations in the construction sector that will have a significant impact on the ranking:
“The new law No.2020-VIII to improve the conditions for construction, which came into force on May 12, 2017, will improve Ukraine’s positions in the Doing Business ranking in terms of the component “Getting Construction Permits” as well as facilitate the deregulation of economic activities in the sector. It will simplify the construction business activity due to cancellation of the procedure to obtain data and technical specifications from the State Emergency Service, which is duplicated, since this procedure is also prescribed in designing. The law also improves the quality of performance monitoring, since it provides for compulsory higher education of performers of construction works,” he said.
In addition, according to Lev Partskhaladze, this document determines the legal conditions to improve the collection of state statistical reporting data on finished facilities accepted for operation – the functions of architectural and construction control were transferred to local authorities, but there are no obligations to provide statistical data in this area.
Doing Business is one of the most popular rankings of countries prepared by the World Bank. The ranking characterizes the investment climate of countries.
The World Bank’s Doing Business ranking is a result of annual researches that assess the ease of doing business based on 10 indicators in 189 countries. Components of the ranking assess the regulatory acts that regulate activities of small and medium enterprises throughout their life cycle as well as their actual use in practice.
To improve the business climate in Ukraine and increase Ukraine’s positions in the Doing Business ranking, the Ministry of Economic Development together with the Better Regulation Delivery Office has developed the roadmap consisting of 43 points. This roadmap was approved by the CMU Resolution 1406 dated December 16, 2015.