meeting with the prime minister
DESCRIPTION
-TRANSCRIPT
Kyiv, 29/09/2014
For the meeting with the Prime Minister of Ukraine Arseniy Yatsenyuk
Development of the efficient regulatory system in Ukraine
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
~100 organizatіons interviewed and ~800 “pain points” for business identified while developing deregulation strategy
Source: Working group
IT
~70
Oil&Gas
~40
TOTAL
~800
Eliminated initiatives
~700
Initial number of initiatives
~30
Construction Electricity
~70
Economy-wide
initiatives
Agriculture Food
~100
~90
~400
~1 500 KEY ORGANIZATIONS INVOLVED
А.1 DEREGULATION STRATEGY OF UKRAINIAN ECONOMY
4
Prioritization is based on two criteria: economic effect and ease of implementation APPOACH TO INITIATIVES PRIORITIZATION
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 industry and economy Source: Working group
EASE
OF
IMPL
EMEN
TATI
ON 1)
EFFECT FROM IMPLEMENTATION 2)
І-st priority ІІ-nd priority
ІІІ-rd priority small large
difficult
easy
ІV-th priority
ILLU
STRA
TIVE
LY
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
5 Cancelling of license on veterinary business
A.1 DEREGULATION STRATEGY OF UKRAINIAN ECONOMY
5
Total economic effect from deregulation strategy implementation is estimated at ~UAH 300 billion BASIC INDUSTRY AND REGULATORY AREAS INDICATORS
Source: Working group
А.1 DEREGULATION STRATEGY OF UKRAINIAN ECONOMY
14
24
21
116
30
11
1610
8
12
8
7
6
2 1 21 16 15 14 13 12 11 10 9 7 6 5 4
5
4
3
2
1
3 8 25 24 23 22 20 19 18 17
8
Technical regulation
Customs Tax system
Permission and licensing system
Other issues
Oil&Gas ІТ
Food
Electricity Construction
Agriculture
CORRUPTION REDUCTION, UAH BN
Control system
REDU
CTIO
N IN
STA
TE E
XPEN
DITU
RES,
UAH
BN
2 Economic effect from initiatives implementation, [UAH bn]
6
In order to ensure the maximum transparency of the work in the field of deregulation, the team has launched a website
WEBSITE COMMENTS
WEBSITE – WWW.EASYBUSINESS.IN.UA
• 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.in.ua
А.1 DEREGULATION STRATEGY OF UKRAINIAN ECONOMY
Source: Working group
7
As of now, 12 draft laws are registered in Verhovna Rada, which are aimed at deregulation in various industries
А.2 STATUS OF THE DEREGULATION STRATEGY IMPLEMENTATION
Source: Working group
17
6
11
10
12
5. Draft resolution is being developed
6. No legal acts
4. Draft resolution is ready
3. Draft law is being developed
106
2. Draft law is ready, but not submitted to VR
1. Draft law is in VR
LEGAL ACTS EXPLANATION (selectively) STATUS OF THE LEGAL ACTS PREPARATION
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 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. Draft Law №5021 on fees for natural monopolies networks connection 2. Draft Law №1587 on copies of audiovisual goods distribution
STATUS OF THE DEREGULATION STRATEGY IMPLEMENTATION
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
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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
B
Source: Working group
> 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
FURTHER STEPS
CANCELLATION OF REGULATORY RESTRICTIONS
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
Deregulation team’s organizational structure consists of several levels ORGANIZATIONAL STRUCTURE
PROJECT MANAGERS
ARTEM RAFAELYAN, ІТ, CONSTRUCTION
OLGA OLEFIROVA, LICENSES AND PERMITS
ALINA SVIDERSKA, OIL&GAS
OLEG PROTSENKO, CUSTOMS, TAXES, AGRO
YAROSLAV GOLUB, FOOD, ELECTRICITY
ANDRIY ZINCHUK, AGRO, FOOD
INNA SLOBODIANIUK CONSTRUCTIONECONOMY-WIDE
OLENA MINICH, TELECOM
VOLODYMYR POPERESHNIUKDOING BUSINESS
ANDRIY SHPAKOV, ANALYTICAL SUPPORT
OLENA IAGNIUK, ANALYTICAL SUPPORT
ANALYTICS
PROJECT LEADERSHIP
DAN PASKO, STRATEGIC LEADER
MYKHAILO OBOLONSKYI, OPERATIONAL LEADER
NICK GAIDAI, OPERATIONAL LEADER
ADVISORS
ANDRIY PALIANYTSIA WORLD BANK
PETER LADEGAARD WORLD BANK
TEAM C
Source: Working group
10
At present, the team is trying to handle several organizational issues KEY ORGANIZATIONAL ISSUES
RECOURCES NEEDED D
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
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»)
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
Source: Working group
