The World Bank announced new rating of doing business easiness “Doing Business 2018”, in which Ukraine took 76th place. Compared with last year, the result has improved by 4 positions.
The “Doing Business” rating is compiled by the World Bank annually for the next year and compares the simplicity of entrepreneurial activity in different countries of the world. Over the past year, Ukraine has significantly improved the business climate, but its final position in the rating has affected significant positive changes in other countries, because many of them in their internal activities are guided by the Doing Business rating.
The World Bank rating is compiled on 10 criteria. Four of them showed Ukraine’s growth. The greatest growth our country shows in the component “Dealing with Construction Permits”: from 140 to 35 position. +105 positions is the largest increase in the component among all other countries.
Under the component “Paying Taxes” Ukraine rose from 84 to 43 place. +41 point is the result of reduction and unification of the single social contribution rate. These changes occurred in 2015, but due to the peculiarities of the rating methodology, they were enrolled only now.
The World Bank report positively noted that the National Commission on Securities and the Stock Market introduced a requirement to disclose information on related-party transactions. Unfortunately, this did not affect the increase in Ukraine’s position on the “Protecting Minority Investors” component, because the evaluation for the other two indices (rights of shareholders and corporate transparency) that also forms this component decreased.
Ukraine also rose by 2 positions in the “Getting electricity” component due to the reduction in the cost of connection of electrical installations to Kyivenergo networks and to the 1st position in the component “Resolving Insolvency” (due to technical adjustments of indicators).
Unfortunately, there has been no improvement in Ukraine’s position on criteria such as “Starting a business”, “Getting credit”, “Trading across borders”, “Enforcing contacts”, “Registering Property”. It is not enough positive changes in Ukraine in these areas in comparison with the successes of other countries.
“We are moving forward. Perhaps not as fast as we would like, but we clearly know in which direction we need to move. This year the mission of the World Bank came to Ukraine to our invitation, so that their conclusions were as objective as possible. I think we will continue this practice in the future. And of course, work on business climate improvement, – Stepan Kubiv, First Vice Prime Minister – Minister of Economic Development and Trade of Ukraine commented.
“+4 positions is good, but we want better. Bill №. 6540, which was jointly developed by the Ministry of Economic Development and the Office for Effective Regulation has to help Ukraine to enter the Top 40 rating. We need to take it as soon as possible, because speed is important in deregulation. Other countries are also guided by a rating and do much, after all, as well as we, are interested in attraction of investors. To stay on the same place in the rating, you have to run, and to move forward – to run twice faster. Therefore, we emphasize the necessity for early adoption of the bill №6540, which will significantly improve the investment climate in Ukraine” – Maxym Nefodov, First Deputy Minister of Economic Development and Trade of Ukraine said.
The Ukraine profile in the Doing Business 2018 ranking is available in English here.
The World Bank’s Doing Business assessment covers a number of indicators for 189 countries and is processed using feedback from government representatives, scientists, practitioners and reviewers.
The rating is intended to provide an objective basis for understanding and improving the regulatory and legal regulation of business activities throughout the world.