1. Development of
the efficient
regulatory
system in
Ukraine
For the meeting with the Prime
Minister of Ukraine Arseniy
Yatsenyuk
Kyiv, 29/09/2014
2. 2
Contents Page
А. Main points 3
А.1. Deregulation strategy 4
А.2. Status of the deregulation strategy implementation 7
B. Further steps 8
C. Team 9
D. Necessary resources 10
3. 3
~100 organizatіons interviewed and ~800 “pain
points” for business identified while developing
deregulation strategy
~800
~700
Source: Working group
~70
IT
~40
Oil&Gas
TOTAL
Eliminat
ed
initiative
s
Initial
number
of
initiatives
~30
Constructio
n
Electricity
~70
Economy
-wide
initiatives
Agricultur
e
~100
Food
~90
~400
~1 500
KEY ORGANIZATIONS INVOLVED
А.1 DEREGULATION STRATEGY OF UKRAINIAN ECONOMY
4. 4
A.1 DEREGULATION STRATEGY OF UKRAINIAN ECONOMY
Prioritization is based on two criteria: economic
effect and ease of implementation
APPOACH TO INITIATIVES PRIORITIZATION
easy
EASE OF
IMPLEMENTATION 1)
ІІ-nd І-st priority
priority
5 Cancelling of license on veterinary
EFFECT FROM IMPLEMENTATION 2)
1) Criterion «Ease of implementation» considers both technical (passing laws/acts) and nontechnical (lobby, social resistance) aspects of
implementation
2) Criterion «Effect from implementation» provides expert evaluation of economic effect on Source: Working group industry and economy
ІІІ-rd
priority
small large
difficult
ІV-th
priority
ILLUSTRATIVELY
1 Selling of 3G licenses
2 Liquidation of the
State Agricultural
Inspection
3 Cancelling the
moratorium on the
sale of agricultural
land
4 Introduction of liability for
regulatory bodies in the area
of consumer rights
protection during inspections
business
5. 5
А.1 DEREGULATION STRATEGY OF UKRAINIAN ECONOMY
Total economic effect from deregulation strategy
implementation is estimated at ~UAH 300 billion
BASIC INDUSTRY AND REGULATORY AREAS INDICATORS
Source: Working group
Permission and licensing
system
Other issues
10 16
14
24
21
Control system
Tax system
11
Agriculture
Technical regulation
Customs
6
30
11
8
12
8
7
6
8
Electricity Construction
Oil&Gas
ІТ
Food
1 2 4 5 6 7 9 10 11 12 13 14 15 16 21
5
4
3
2
1
3 8 17 18 19 20 22 23 24 25
CORRUPTION REDUCTION, UAH BN
REDUCTION IN STATE EXPENDITURES, UAH BN
2 Economic effect from initiatives implementation, [UAH bn]
6. 6
А.1 DEREGULATION STRATEGY OF UKRAINIAN ECONOMY
In order to ensure the maximum transparency of the
work in the field of deregulation, the team has launched
a website
WEBSITE – WWW.EASYBUSINESS.IN.UA
WEBSITE COMMENTS
• At the end of August 2014 the
team launched the website
www.easybusiness.in.ua
• The main goal of the website is to
show publicly the process of
deregulation initiatives’
implementation, which were
included in the «Deregulation
Strategy of Ukrainian Economy»
• The website is designed in a way
that every registered user is able
to comment on all the initiatives,
track the progress of the initiative
implementation, and suggest own
initiatives
• As of now, the team has received
more than 100 suggestions from
the public, 50 of which were
selected for further analysis www.easybusiness.i
n.ua
Source: Working group
7. 7
А.2 STATUS OF THE DEREGULATION STRATEGY IMPLEMENTATION
As of now, 12 draft laws are registered in Verhovna
Rada, which are aimed at deregulation in various
industries
STATUS OF THE DEREGULATION STRATEGY IMPLEMENTATION
STATUS OF THE LEGAL ACTS PREPARATION LEGAL ACTS EXPLANATION (selectively)
1. Draft law is in VR
3. Draft law is being
developed
4. Draft resolution is
ready
Source: Working group
17
6
10
12
11
5. Draft resolution is
being developed
6. No legal acts
106
2. Draft law is ready,
but not submitted to VR
1. Draft Law №4954 on technical regulation
2. Draft Law №4743 on reducing the number of licenses
3. Draft Law №2306а on electronic commerce
4. Draft Law №4150 on increasing the role of local communities in
managing land recourses
5. Draft Law 4266а on packaging and packing
6. Draft Law 4280а-1 on feed safety and hygiene
1. Draft Law №5021 on fees for natural monopolies networks connection
2. Draft Law №1587 on copies of audiovisual goods distribution
1. Draft Law on amending the Subsoil Code of Ukraine
2. Draft Law №1682 on natural monopolies
3. Draft Law №3145 on production and usage of motor fuels with bio-components
1. Cancel the CMU Resolution №915
2. Draft Resolution №444 on import of the energy efficient equipment
3. Draft Resolution №993
1. №557 - on approving the Order of classifying construction objects as
the I-V difficulty category objects
2. №775 – on licensing of particular economic activities
8. 8
B
FURTHER STEPS
Cancellation of the excessive regulatory restrictions is
currently of first priority, then two processes will be
launched: functional analysis and development of the
effective АРВ mechanism
CANCELLATION
OF REGULATORY
RESTRICTIONS
> Deregulation
strategy
implementation:
initiatives of first,
second and third
priority
> Organization of
round tables with
lawyers, experts,
representatives of
central executive
authorities (CEA),
donors and media
Source: Working group
FUNCTIONAL
ANALYSIS AND
OPTIMIZATION
DEVELOPMENT OF
THE EFFECTIVE
APB MECHANISM
EFFICIENT
REGULATORY
POLICY
> Conducting
functional analysis to
determine the
optimal number of
officials to perform
the functions of
regulatory policy
> Optimizing the
number of officials
> Analysis of world
best practices
> Their adaptation in
Ukraine
> Addressing legal
framework problem
(amendments to the
Law on regulatory
policy)
> Strengthening the
skills of the
personnel of CEA
> Establishment of a
mechanism for
discussions with
public and business
9. 9
Deregulation team’s organizational structure consists of
several levels
ORGANIZATIONAL STRUCTURE
PROJECT MANAGERS
ARTEM
RAFAELYAN
,
ІТ,
CONSTRUCT
ION
OLGA
OLEFIROVA,
LICENSES
AND
PERMITS
ALINA
SVIDERSKA,
OIL&GAS
OLEG
PROTSENK
O,
CUSTOMS,
TAXES,
AGRO
YAROSLAV
GOLUB,
FOOD,
ELECTRICIT
Y
ANDRIY
ZINCHUK,
AGRO,
FOOD
INNA
SLOBODIANI
UK
CONSTRUCT
IONECONOM
Y-WIDE
OLENA
MINICH,
TELECOM
VOLODYMYR
POPERESHN
IUKDOING
BUSINESS
ANALYTICS
ANDRIY
SHPAKOV,
ANALYTICAL
SUPPORT
OLENA
IAGNIUK,
ANALYTICAL
SUPPORT
PROJECT LEADERSHIP
DAN
PASKO,
STRATEGIC
LEADER
MYKHAILO
OBOLONSKYI
,
OPERATIONA
L LEADER
NICK
GAIDAI,
OPERATION
AL LEADER
ADVISORS
ANDRIY
PALIANYTSI
A
WORLD
BANK
PETER
LADEGAAR
D
WORLD
BANK
C TEAM
Source: Working group
10. 10
D RECOURCES NEEDED
At present, the team is trying to handle several
organizational issues
KEY ORGANIZATIONAL ISSUES
1 INSTITUTIONALIZATION AND DEREGULATION TEAM STATUS
> Currently, team members have no official status that could ensure more efficient work on
the deregulation strategy implementation by contacting central executive authorities
2 INFRASTRUCTURE
> Currently, the team is not equipped with premises to work on the implementation of the
deregulation strategy
> The work is conducted in various places, which is financed by using personal funds (e.g.,
«Chasopys»)
3 RAISING FUNDS TO FINANCE THE WORK OF THE TEAM
> Development of the «Deregulation Strategy of Ukrainian Economy» was held in the
period from May to August 2014– the work was performed pro bono
> Currently, the team has moved to the stage of deregulation strategy implementation,
which needs more recourses, including financial ones
Source: Working group
11. Thank you for
your attention!
www.easybusiness.in.
ua