MUNICIPAL COMPETITIVENESS INDEX 2021 PRESENTATION

1. 1
MUNICIPAL COMPETITIVENESS INDEX 2021
PRESENTATION
Kyiv, September 2, 2021

2. ІНДЕКС КОНКУРЕНТОСПРОМОЖНОСТІ МІСТ 2021 2
MUNICIPAL COMPETITIVENESS INDEX:
WHAT FOR AND WHAT IS IT ALL ABOUT?
For the GOVERNMENT OF
UKRAINE
MCI sets prerequisites for
stimulating sound competition
among municipalities and
economic growth, scaling up best
regulatory practices from local to
the national level.
For LOCAL AUTHORITIES
MCI helps to reveal regulatory
barriers, risks of corruption and
lack of transparency, to identify
and introduce the best practices
of public-private dialogue
For INVESTORS
MCI can give the rationale for
making decisions about
investing in the municipalities
participating in the MCI
For LOCAL BUSINESSES
MCI offers an opportunity to
voice their opinions regarding
improvement of local business
environment and to participate
in forming transparent,
competitive local business
an analytical tool to evaluate municipal business climate,
including economic governance efficiency
MCI

3. ІНДЕКС КОНКУРЕНТОСПРОМОЖНОСТІ МІСТ 2021 3
MCI COMPONENTS
1. Starting a business
2. Access to public property
3. Transparency and openness of
data
4. Compliance cost
5. Taxes and duties
Indicator 1. Bribes and gifts
Indicator 2. Anticorruption activities
6. Informal payments and
corruption
7. Security of business operation
Indicator 1. Business development support
Indicator 2. Public-private dialogue
8. Leadership of municipal
authority
9. Development resources
Indicator 1. Human resources
Indicator 2. Financial resources and infrastructure
Indicator 3. Business support infrastructure
10. Support of innovations

4. MCI 2021 PARTICIPATING MUNICIPALITIES
7454 surveyed companies and
individual entrepreneurs (CATI)
+ statistic data collection
ІНДЕКС КОНКУРЕНТОСПРОМОЖНОСТІ МІСТ 2021
Kyiv
Vinnytsia
Lutsk
Dnipro
Zhytomyr
Ivano-Frankivsk
Lviv
Mykolaiv
Odesa
Poltava
Rivne
Sumy
Ternopil
Kharkiv
Kherson
Khmelnytskyi Cherkasy
Chernivtsi
Chernihiv
Kryvyi Rih
Kamianske
Nikopol
Pavlohrad
Mariupol
Sloviansk
Kramatorsk
Bakhmut
Berdychiv
Uzhhorod
Mukachevo
zaporizhzhia
Melitopol Berdiansk
Bila Tserkva
Brovary
Kropyvnytskyi
Oleksandriia
Sievierodonetsk
Drohobych
Kremenchuk
Konotop
Shostka
Kamianets-Podilskyi
Uman
Lysychansk
45 largest cities:
24 oblast centers
21 municipality with
population over 73000
4

5. ІНДЕКС КОНКУРЕНТОСПРОМОЖНОСТІ МІСТ 2021 5
SIZE OF BUSINESSES SECTORS
Micro
85,5%
Small 11,8%
Medium
2,2%
Large 0,4%
Agriculture 1,6%
Industry 8,8%
Construction
8,5%
Trade 36,8%
IT and
telecommunication
services 12,1%
Real estate
9,6%
Other services
22,7%
7454
business entities
50% individual entrepreneurs
50% legal entities
32% women
68% men
MCI 2021 PARTICIPANTS PROFILE

6. MCI 2021 RESULTS
FOR OBLAST CAPITALS AND NATIONAL MCI
6

7. MCI 2021 CONTAINS TWO RANKONGS:
1) For the 24 cities participating in MCI 2019/2020
2) For 45 municipalities of MCI 2021
• Ranking of 45 largest municipalities
• Incomparable with the previous wave due to sample
differences
• Shorter set of indicators was used due to lack of
representation of subsamples in smaller municipalities
The results allow comparing competitiveness of
municipalities of any size and location.
MCI-Oblast capitals 2021
• 24 cities – Kyiv and 23 Oblast capitals
• The same selection of cities and set of indicators were
used as in MCI 2019/2020
• The results are comparable with MCI 2019/2020
The results allow tracing progress of the municipalities
against the previous wave of the survey.
ІНДЕКС КОНКУРЕНТОСПРОМОЖНОСТІ МІСТ 2021 7
MCI 2021: HOW DID WE CALCULATE?
(the results of the two rankings differ in the sample of the municipalities
and the set of indicators, therefore are not to be compared against each
other)
MCI 2021

8. 8
MCI 2021 and MCI 2019/2020 FOR OBLAST CENTERS:
RANKING AND GROUPING OF MUNICIPALITIES (USING MCI 2019/2020
METHODOLOGY)
35,96
37,42
41,39
41,74
42,57
42,87
43,30
44,60
49,29
49,62
53,24
54,42
54,84
55,26
56,10
57,62
60,13
61,23
62,96
67,54
68,65
68,66
69,56
71,02
0 10 20 30 40 50 60 70 80
24. Odesa
23. Poltava
22. Cherkasy
21. Zaporizhzhia
20. Mykolaiv
19. Dnipro
18. Kherson
17. Kharkiv
16. Sievierodonetsk
15. Rivne
14. Kyiv
13. Uzhhorod
12. Zhytomyr
11. Sumy
10. Kropyvnytskyi
9. Kramatorsk
8. Chernivtsi
7. Lutsk
6. Chernihiv
5. Vinnytsia
4. Lviv
3. Ivano-Frankivsk
2. Ternopil
1. Khmelnytskyi
31,62
40,80
42,41
44,10
44,91
46,07
49,50
49,52
49,91
50,68
50,81
51,80
53,69
53,75
54,53
55,33
58,72
58,84
62,88
63,89
65,45
66,15
66,95
72,96
0 10 20 30 40 50 60 70 80 90 100
24. Kherson
23. Odesa
22. Zaporizhzhia
21. Kyiv
20. Poltava
19. Cherkasy
18. Sievierodonetsk
17. Mykolaiv
16. Sumy
15. Dnipro
14. Kropyvnytskyi
13. Kharkiv
12. Uzhhorod
11. Zhytomyr
10. Rivne
9. Lutsk
8. Chernivtsi
7. Kramatorsk
6. Chernihiv
5. Ternopil
4. Vinnytsia
3. Lviv
2. Ivano-Frankivsk
1. Khmelnytskyi

9. 9
MCI 2021 OBLAST CAPITALS ON THE MAP OF UKRAINE

10. City
MCI 2021
score
MCI 2021
ranking
Ranking
difference
Score difference
Score
2019/2020
Ranking
2019/2020
Khmelnytskyi 71,02 1 =0 -1,94 72,96 1
Ternopil 69,56 2 ↑+3 +5,67 63,89 5
Ivano-Frankivsk 68,66 3 ↓-1 +1,71 66,95 2
Lviv 68,65 4 ↓-1 +2,50 66,15 3
Vinnytsia 67,54 5 ↓-1 +2,09 65,45 4
Chernihiv 62,96 6 =0 +0,08 62,88 6
Lutsk 61,23 7 ↑+2 +5,90 55,33 9
Chernivtsi 60,13 8 =0 +1,41 58,72 8
Kramatorsk 57,62 9 ↓-2 -1,22 58,84 7
Kropyvnytskyi 56,10 10 ↑+4 +5,29 50,81 14
Sumy 55,26 11 ↑+5 +5,35 49,91 16
Zhytomyr 54,84 12 ↓-1 +1,09 53,75 11
Uzhhorod 54,42 13 ↓-1 +0,73 53,69 12
Kyiv 53,24 14 ↑+7 +9,14 44,1 21
Rivne 49,62 15 ↓-5 -4,91 54,53 10
Sievierodonetsk 49,29 16 ↑+2 -0,21 49,5 18
Kharkiv 44,60 17 ↓-4 -7,20 51,8 13
Kherson 43,30 18 ↑+6 +11,68 31,62 24
Dnipro 42,87 19 ↓-4 -7,81 50,68 15
Mykolaiv 42,57 20 ↓-3 -6,95 49,52 17
Zaporizhzhia 41,74 21 ↑+1 -0,67 42,41 22
Cherkasy 41,39 22 ↓-3 -4,68 46,07 19
Poltava 37,42 23 ↓-3 -7,49 44,91 20
Odesa 35,96 24 ↓-1 -4,84 40,8 23
scored higher than the
national average
(MCI 2019/20 – 9 cities)
10
MCI 2021 and MCI 2019/2020: COMPARING THE RESULTS
12 cities
scored more than 50 (MCI
2019/2020 - 15 cities)
14 cities

11. 11
None of the indicators received a
high score (7 and above)
Subindex MCI 2021
MCI
2019/2020
MCI 2021 vs. MCI
2019/2020
Component 1. Starting a business 6,20 5,77 ↑0,43
Component 2. Access to public property 5,51 5,24 ↑0,27
Component 3. Transparency and openness of data 5,54 5,33 ↑0,21
Component 4. Cost of compliance 6,28 7,08 ↓-0,80
Component 5. Taxes and duties 5,19 5,69 ↓-0,50
Component 6. Informal payments and corruption 5,45 5,19 ↑0,26
Component 7. Security of business operation 6,31 5,59 ↑0,72
Component 8. Leadership of municipal authority 5,02 5,31 ↓-0,29
Component 9. Resources for development 4,69 4,66 ↑0,03
Component 10. Support of innovations 4,48 4,86 ↓-0,38
Національний ІКМ 54,68 54,72 ↓-0,04
NATIONAL MCI 2021 (OBLAST CAPITALS)
54,68
– national MCI 2021
It is 0.04 points less than the
national MCI 2019/2020 –
54.72.

12. 12
10 KEY OBSERVATIONS OF MCI 2021
(Oblast capitals)
6.5 days – average time for business
registration (MCI 2019/2020 – 6.1 days).
73.4 days – the average time for
receiving land lease/ownership papers
(MCI 2019/2020 – 72.4 days).
Access to public procurement is most
transparent but received only 23.9% of
positive evaluations (MCI 2019/2020 -
17,3%).
5.7 days needed for compliance with
local regulations (was 1.5 times shorter –
4 days).
Business spends 51.7 days for tax
payments (MCI 2019/2020 – 58.6 days)
10.5% of the respondents experienced
corruption, but only 31.9% are aware
about local anticorruption programs (MCI
2019/2020 – 9.9% and 31.8%,
respectively)
2.7% of the respondents experienced
raider attacks (MCI 2019/2020 – 2.5%).
31.1% of the respondents believe that
the authorities treat business “well” or
“very well” (MCI 2019/2020 – 20.0%).
83.5 days needed to connect to
electricity networks (MCI 2019/2020 -
85).
1.98 – average score of the financial
support provided by the local authorities
to the innovation programs (MCI
2019/2020 – 1.92).

13. MCI 2021 RESULTS
FOR 45 UKRAINIAN MUNICIPALITIES
13

14. 14
MCI 2021 RANKING AND GROUPING OF MUNICIPALITIES
53,03
54,14
54,62
55,26
56,77
56,81
56,89
57,15
57,19
57,39
57,92
58,01
59,96
61,02
62,22
62,27
63,75
64,47
64,55
64,61
64,75
65,41
67,65
0 10 20 30 40 50 60 70 80 90 100
23. Zhytomyr
22. Kramatorsk
21. Sloviansk
20. Kropyvnytskyi
19. Berdychiv
18. Shostka
17. Chernivtsi
16. Kamianets-Podilskyi
15. Lutsk
14. Bila Tserkva
13. Konotop
12. Nikopol
11. Chernihiv
10. Melitopol
9. Oleksandriia
8. Mariupol
7. Vinnytsia
6. Ternopil
5. Bakhmut
4. Mukachevo
3. Lviv
2. Ivano-Frankivsk
1. Khmelnytskyi
36,84
39,75
41,42
41,68
41,96
42,19
43,26
43,64
44,59
45,26
47,27
47,63
47,81
48,30
49,70
50,27
50,96
51,53
52,06
52,25
52,36
52,70
0 10 20 30 40 50 60 70 80 90 100
45. Odesa
44. Poltava
43. Kamianske
42. Cherkasy
41. Zaporizhzhia
40. Kherson
39. Uman
38. Dnipro
37. Mykolaiv
36. Kharkiv
35. Kremenchuk
34. Brovary
33. Kryvyi Rih
32. Rivne
31. Sievierodonetsk
30. Kyiv
29. Drohobych
28. Sumy
27. Pavlohrad
26. Berdiansk
25. Uzhhorod
24. Lysychansk

15. 15
MCI 2021 ON THE MAP OF UKRAINE

16. ІНДЕКС КОНКУРЕНТОСПРОМОЖНОСТІ МІСТ 2021 16
ІКМ 2021: ЛІДЕРИ КОМПОНЕНТІВ
1ST place 2nd place 3rd place 4th place 5th place 6th place
1. Starting a business Bakhmut Oleksandriia Konotop Berdychiv Rivne Uzhhorod
2. Access to public property Sloviansk Bakhmut Khmelnytskyi Pavlohrad Chernivtsi Kryvyi Rih
3. Transparency and openness of
data
Bakhmut Khmelnytskyi Nikopol Lviv Mariupol Vinnytsia
4. Cost of compliance Kramatorsk
Kamianets-
Podilskyi
Nikopol Ternopil Mukachevo Pavlohrad
5. Taxes and duties Shostka Berdychiv Mukachevo
Kamianets-
Podilskyi
Brovary
Kamianets-
Podilskyi
6. Informal payments and
corruption
Mariupol Berdiansk Vinnytsia Khmelnytskyi Kyiv Nikopol
7. Security of business operation Конотоп Bakhmut Nikopol Lysychansk Mariupol Vinnytsia
8. Leadership of municipal
authority
Bakhmut Ivano-Frankivsk Khmelnytskyi Vinnytsia Mukachevo Melitopol
9. Resources for development Khmelnytskyi Ivano-Frankivsk Lviv Mukachevo Vinnytsia Shostka
10. Support of innovations Lviv Ivano-Frankivsk Lutsk Kyiv Mariupol Khmelnytskyi

17. ІНДЕКС КОНКУРЕНТОСПРОМОЖНОСТІ МІСТ 2021 17
MCI 2021: COMPONENT LEADERS
Oblasts with leader municipalities
• Donetsk Oblast – 4 (of 4 municipalities participating in MCI 2021)
• Dnipropetrovsk Oblast – 3 (of 5 municipalities participating in MCI 2021)
• Khmelnytska Oblast – 2 (of 2 municipalities participating in MCI 2021)
• Zakarpattia Oblast – 2 (of 2 municipalities participating in MCI 2021)
• Zaporizhzhia Oblast – 2 (of 3 municipalities participating in MCI 2021)
• Sumy Oblast – 2 (of 3 municipalities participating in MCI 2021)
Municipalities included in the
Top-6 more than others
• Khmelnytskyi – 6 times
• Vinnytsia – 5 times
• Bakhmut – 5 times
• Nikopol – 4 times
• Mukachevo – 4 times
• Mariupol – 4 times
were recognized among Top-6 municipalities of Ukraine at least by one
component
27 of 45 municipalities

18. BARRIERS AND BUSINESS EXPECTATIONS
18

19. ІНДЕКС КОНКУРЕНТОСПРОМОЖНОСТІ МІСТ 2021 19
BARRIERS FOR BUSINESS OPERATION
Barriers ranked first and
second
СOVID-19 / Quarantine Low purchasing power
High taxes Lack of qualified labor
Military actions in the East
of Ukraine
9%
10%
10%
13%
13%
17%
23%
30%
33%
43%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
High cost of raw materials and parts
Complicated procedures of obtaining permits
Military actions in the East of Ukraine
Complexity of legislature
Corrupted municipal authorities
Lack of finance
Lack of qualified labor
High taxes
Low purchasing power
СOVID-19 epidemic / quarantine
Top-10 barriers for business operation

20. • Optimistic expectations of business operation
prevail over pessimistic
• 46% of business executives plan to expand their
business operations
• 45% plan to continue working at the current level
• 4% plan to cut down business operation, and 5%
– close their business
ІНДЕКС КОНКУРЕНТОСПРОМОЖНОСТІ МІСТ 2021 20
PLANS REGARDING BUSINESS OPERATION (1)
Plan to expand business
operation
46%
Plan to continue working at the
current level
45%
Plan to cut down business
operation
4%
Plan to close the
business
5%
Plans regarding business operation

21. THE OUTCOMES OF THE PROGRAM OF
IMPROVING MUNICIPAL COMPETITIVENESS
INDEX AND NEXT STEPS
21

22. ІНДЕКС КОНКУРЕНТОСПРОМОЖНОСТІ МІСТ 2021 22
THE OURCOMES OF THE PROGRAM OF MCI IMPROVEMENT
5 municipalities are selected to
participate in the Program: Zhytomyr,
Zaporizhzhia, Poltava, Rivne, Kherson
5 pilot municipalities participate in the
Program: Kropyvnytskyi, Mykolaiv, Sumy,
Ternopil, Chernihiv
4 out of 5 Program participants
improved their MCI rates in 2021
Expert support in improving
business climate is provided
Needs and gaps were analyzed Consultations with key stakeholders
were conducted
A 12-months feasible, evidence-based and
detailed plan of improving business climate
is elaborated
4 meetings of Intermunicipal Taskforce on
MCI improvement were conducted
The online platform for Intermunicipal
Taskforce was established:
https://erepublic.org.ua/ikm/

23. ІНДЕКС КОНКУРЕНТОСПРОМОЖНОСТІ МІСТ 2021 23
INTERMUNICIPAL
TASKFORCE ONLINE
PATFORM
https://erepublic.org.ua/ikm/

24. ІНДЕКС КОНКУРЕНТОСПРОМОЖНОСТІ МІСТ 2021 24
NEXT STEPS
• The MCI Improvement Program is extended to 5 municipalities: Zhytomyr, Zaporizhzhia, Poltava, Rivne,
Kherson
• Further extension of the Program is planned to include 10 more MCI-2021 municipalities
September
2021
October
2021
Beginning of work with the
municipalities
Announcement of 10 MCI 2021
municipalities selection
Application review and
selection of 10
municipalities
October - November
2021
Beginning of work with the
new Program participants

25. 9/2/2021 25
Resources and contacts: the USAID
Competitive Economy Program in Ukraine
info@cepukraine.org
@usaidcepukraine
@usaid_cep
@usaidcep.ua @InfoSapiensLLC
InfoSapiens
info@sapiens.com.ua
Institute of Economic
Research and Policy
Consulting
@IER.Kyiv
institute@ier.kyiv.ua