Seminarreihe des Arbeitsbereichs Ökonomie am IOS
Zeit: Dienstag, 13.30–15.00 Uhr
Ort: Leibniz-Institut für Ost-und Südosteuropaforschung (IOS); vorerst online via Zoom, Link wird mit den Einladungen verschickt!
Forschungslabor: „Geschichte und Sozialanthropologie Südost‐ und Osteuropas“
Zeit: Donnerstag, 14–16 Uhr (Lehrstuhl) oder 16–18 Uhr (Graduiertenschule und Leibniz-WissenschaftsCampus)
Ort: WiOS, Landshuter Str. 4 (Raum 017)
Deregulation and Development of Business
Dr. Manuela Troschke, IOS
The most detailed chapter of the Ukrainian reform programme is devoted to problems in the business sphere and the formulation of necessary steps for improvement of the poor business climate. In 2010, according to the World Bank Doing Business report, Ukraine was ranked as 145 (142 before the index recalculation in 2010) out of 183 countries. The Independent International Experts Commission (see report) suggested Ukraine's goal should be to progress in this ranking by 40 positions during 2010. The reform programme itself is far less ambitious and claims to reach this goal by 2012. Looking at the slight improvement of only two points made in 2010 according to the Doing Business 2011 report, the expectations in this reform area should not be too high.
The programme lists ten reform areas, out of which three - food safety, technical regulation of standards and norms, and reforms of customs control - are focused on harmonisation with EU and WTO rules and will in fact lead to more, but better regulation with respect to international competitiveness. However, as long as the red tape is a usual means of dealing with administrative barriers, positive trade effects of harmonised regulations will be overcompensated by negative effects of additional bureaucratic burden born by enterprises.
The high number of permits requested for business activities, including permits for construction, is envisaged to be reduced substantially already in 2010. In fact, the World Bank Doing Business 2011 report states achievements in the ease to start a business and upgrades the country by 18 points in this area. However, these achievements do not stem from a change of requested permits, but from the reduction of minimum capital requirements for opening an enterprise. Also permits requested for construction have not been reduced so far. In the area of licensing the reform programme promises to cut the number of activities that are subject to governmental licensing by 30% already in 2010. Since the World Bank reports do not control for this general item and official websites do not publish comprehensive information here, such achievement cannot be validated. Closing a business shall become easier, but in fact became more complicated (minus five positions in the Doing Business Report 2011). The problem of planned and unplanned inspections of different state agencies is acknowledged to impose a heavy time and money burden on enterprises, and inspections shall be reduced, but no concrete success indicators are provided in the programme. To improve investments, the program focuses on the establishment of service-centres, the introduction of public-private partnerships, setting up of clusters, better information of foreign investors and other measures related to business infrastructure, but the core problems remain untouched.
While being of utmost importance to future economic development of the country the self-commitment of the state to deregulate and control its bureaucracy is extremely weak. The only measurable success indicator which will be available during the life-span of the programme is the Improvement of the Business Climate by 2012. In fact, deregulation conflicts with individual interests of bureaucrats of all administrative levels as well as with big vested interests who profit from the current status quo. Thus reforms in this area are deeply connected with successful administrative reforms, namely the fight against corruption, but this sphere is not touched in the programme (scope of the programme).