Current analysis

Half-Step Forwards: Our Country Has Moved Just 3 Steps Up in the Ease of Doing Business Ranking


Volodymyr Dubrovsky, Center for Social and Economic Research CASE Ukraine`s senior economist, commented to the ‘Expres’ media outlet on how Ukraine has changed its place at Doing Business rating.

– This ranking is rather relative, – Volodymyr Dubrovsky, Center for Social and Economic Research CASE Ukraine`s senior economist, explains. – It reflects what is comparable between the countries. It allows a very large error for our country, because our formal and informal institutions are very different. That is, there are in Ukraine so many things that do not exist in the developed countries. For example, they are not aware of the collecting taxes plans.

- In what other areas one can consider progress?

Volodymyr Dubrovsky: ‘I think this is the introduction of M-test which is a tool to help businessmen in calculating the costs following the new regulations. We have a lot of problems, but the business environment is being simplified. During the survey, entrepreneurs say it has not got worse. And this is good. The important point is also reducing tax burden as the Single social payment has been decreased for employers up to 22%. But this tax reform step will be reflected in the next ranking. We have managed to a certain extent to regulate VAT refunds, although the two registers problem yet exists.

– What indicators show that we are pulling up the rear?

Volodymyr Dubrovsky: We are at the ranking`s low position because of international trade obstacles. In my opinion, this figure declined through the work of customs. So far I see no possibility to reform it and disagree with our government officials who believe that it is possible to do. Customs should be outsourced as at one time that was done by Bulgarians and Georgians. They fired State Customs Service officials and instructed a foreign company with a good reputation to organize the work of customs. It actually had headhunted new professionals. Afterwards the status quo has significantly improved.

November 7, 2016