500 commitments, 17 section and 77 pages. This forms an agreement on the coalition of deputy factions “European Ukraine” that was signed by the Verkhovna Rada in 2014. This was a historic moment as the Verkhovna Rada entered into a series of commitments for the first time in the history of independent Ukraine.
What has changed over these five years? What progress has Ukraine made in the declared reforms? Has the situation for businesses improved because of deregulation processes?
We assessed the conformity of positions specified in the Agreement, since more than 90% of the term of the current Parliament has expired, and there is a small chance that most of draft laws, including those we initiated, will be adopted, so we should revise a number of positions.
So, when analyzing the agreement, in addition to the obvious “yes” and “no” marks, we also used the “partially” and “in process” marks. “Yes” means the full compliance of the obligation at least by the Parliament itself (if the paragraph does not include the implementation).
“No” means non-fulfillment and no promising attempts (for example, revoked draft laws).
“Partially” means that only one of several paragraph components is performed or only for a certain number of cases.
“In process” means that the work is really progressing (there is a draft law included in the current session agenda).
In general, more than half of paragraphs were fully implemented (mainly) or at least partially. Almost one fifth of paragraphs are in the process of implementation, so some of them still have chances. Finally, a little more than a quarter of paragraphs were not implemented at all (and they are unlikely to be implemented by the end of the current parliamentary session).
In such a way, TOP-10 “victories” are:
|Regime renewal and anti-corruption reform||Establishing the National Anti-Corruption Bureau of Ukraine (NABU)|
|Introducing Open Data Standards|
|Decentralization||Providing proper resourcing of local self-government|
|Public Administration Reform||Introducing a public e-procurement system (Prozorro)|
|Modernization of the privatization mechanism|
|Improving the corporate governance in state-owned enterprises|
|Financial Sector Reform||Liberalization of currency regulation and currency control|
|Energy Reform and Energy Independence||Separating natural gas transportation and distribution from other types of activities|
|Changing the functioning of the electricity market|
|Health Care System Reform||Ensuring the implementation of the principle of patients’ free choice of physician|
However, the situation is even more complicated. Only two of the top-level legislative innovations are implemented more or less properly. It is “Prosorzo” and open data initiatives. The implementation of the NABU activity, privatization, corporate governance in state-owned enterprises and “Naftogaz” unbundling is slowed down. The medical reform has been carried just recently and is not yet fully operational. The currency liberalization took effect not so long ago, and the launch of a new model of the electricity market is still ahead.
The attempt to improve the business environment in Ukraine at the legislative level (according to the Doing Business rating) also failed.
|Electoral Legislation Reform||Introducing a proportional electoral system of elections to the Verkhovna Rada (majority-vote component cancellation)|
|Decentralization||Providing local government bodies with a basic level of real authorities|
|Regulatory Policy||Improving the business environment in Ukraine (according to the Doing Business rating)|
|Adopting a new Labor Code|
|Financial Sector Reform||Strengthening the quality of the financial sector regulation to ensure more balanced consolidated prudential control|
|Agriculture Reform||Completion of agricultural land inventory and demarcation (preparation for the moratorium cancellation)|
|Energy Reform and Energy Independence||Codification of subsoil use regulatory framework|
|Infrastructure and Transport||Separating the railway infrastructure and locomotives from transportation (Ukrzaliznytsia unbundling)|
|Environmental Management Reform||Implementing the ‘polluters pays’ principle and increased producer responsibility|
|National Security System Reform||Amended Law “On Security Service of Ukraine”|