meeting with the prime minister

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  • 1. Kyiv, 29/09/2014For the meeting with the Prime Minister of Ukraine Arseniy YatsenyukDevelopment of the efficient regulatory system in Ukraine

2. 2Contents Page. Main points 3.1. Deregulation strategy 4.2. Status of the deregulation strategy implementation 7B. Further steps 8C. Team 9D. Necessary resources 10 3. 3~100 organizatons interviewed and ~800 pain points forbusiness identified while developing deregulation strategySource: Working groupIT~70Oil&Gas~40TOTAL~800Eliminatedinitiatives~700Initialnumber ofinitiatives~30Construction Electricity~70Economy-wideinitiativesFood Agriculture~100~90~400~1 500KEY ORGANIZATIONS INVOLVED.1 DEREGULATION STRATEGY OF UKRAINIAN ECONOMY 4. 4Prioritization is based on two criteria: economic effect and ease of implementationAPPOACH TO INITIATIVES PRIORITIZATION1)Criterion Ease of implementation considers both technical (passing laws/acts) and nontechnical (lobby, social resistance) aspects of implementation2)Criterion Effect from implementation provides expert evaluation of economic effect on industry and economySource: Working groupEASE OF IMPLEMENTATION 1)EFFECT FROM IMPLEMENTATION 2)-st priority-nd priority-rd prioritysmalllargedifficulteasyV-th priorityILLUSTRATIVELY1Selling of 3G licenses2Liquidation of the State Agricultural Inspection3Cancelling the moratorium on the sale of agricultural land4Introduction of liability for regulatory bodies in the area of consumer rights protection during inspections5Cancelling of license on veterinary businessA.1DEREGULATION STRATEGY OF UKRAINIAN ECONOMY 5. 5Total economic effect from deregulation strategy implementationis estimated at ~UAH 300 billionBASIC INDUSTRY AND REGULATORY AREAS INDICATORSSource: Working group.1 DEREGULATION STRATEGY OF UKRAINIAN ECONOMY142421116301110 168128761 2 4 5 6 7 9 10 11 12 13 14 15 16 21543213 8 17 18 19 20 22 23 24 258Technical regulationCustomsTax systemPermission and licensingsystemOther issuesOil&GasFoodElectricity ConstructionAgricultureCORRUPTION REDUCTION, UAH BNControl systemREDUCTION IN STATE EXPENDITURES, UAH BN2 Economic effect from initiatives implementation, [UAH bn] 6. 6In order to ensure the maximum transparency of the work in the field of deregulation, the team has launched a websiteWEBSITECOMMENTSWEBSITE WWW.EASYBUSINESS.IN.UAAt the end of August 2014 the team launched the website www.easybusiness.in.uaThe main goal of the website is to show publicly the process of deregulation initiatives implementation, which were included in the Deregulation Strategy of Ukrainian EconomyThe 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 initiativesAs of now, the team has received more than 100 suggestions from the public, 50 of which were selected for further analysiswww.easybusiness.in.ua.1DEREGULATION STRATEGY OF UKRAINIAN ECONOMYSource: Working group 7. 7As of now, 12 draft laws are registered in Verhovna Rada, whichare aimed at deregulation in various industries.2 STATUS OF THE DEREGULATION STRATEGY IMPLEMENTATIONSource: Working group1761110125. Draft resolution isbeing developed6. No legal acts4. Draft resolution isready3. Draft law is beingdeveloped1062. Draft law is ready,but not submitted to VR1. Draft law is in VRLEGAL ACTS STATUS OF THE LEGAL ACTS PREPARATION EXPLANATION (selectively)1. Draft Law 4954 on technical regulation2. Draft Law 4743 on reducing the number of licenses3. Draft Law 2306 on electronic commerce4. Draft Law 4150 on increasing the role of local communities in managing landrecourses5. Draft Law 4266 on packaging and packing6. Draft Law 4280-1 on feed safety and hygiene1. Draft Law on amending the Subsoil Code of Ukraine2. Draft Law 1682 on natural monopolies3. Draft Law 3145 on production and usage of motor fuels with bio-components1. Draft Law 5021 on fees for natural monopolies networks connection2. Draft Law 1587 on copies of audiovisual goods distributionSTATUS OF THE DEREGULATION STRATEGY IMPLEMENTATION1. Cancel the CMU Resolution 9152. Draft Resolution 444 on import of the energy efficient equipment3. Draft Resolution 9931. 557 - on approving the Order of classifying construction objects as the I-Vdifficulty category objects2. 775 on licensing of particular economic activities 8. 8Cancellation of the excessive regulatory restrictions is currently of first priority, then two processes will be launched: functional analysis and development of the effective mechanismBSource: 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 mediaFURTHER STEPSCANCELLATION OF REGULATORY RESTRICTIONSFUNCTIONAL ANALYSIS AND OPTIMIZATIONDEVELOPMENT OF THE EFFECTIVE APB MECHANISMEFFICIENT 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. 9Deregulation teams organizational structure consists of several levelsORGANIZATIONAL STRUCTUREPROJECT MANAGERSARTEM RAFAELYAN, , CONSTRUCTIONOLGA OLEFIROVA, LICENSES AND PERMITSALINA SVIDERSKA, OIL&GASOLEG PROTSENKO, CUSTOMS, TAXES, AGROYAROSLAV GOLUB, FOOD, ELECTRICITYANDRIY ZINCHUK, AGRO, FOODINNA SLOBODIANIUK CONSTRUCTIONECONOMY-WIDEOLENA MINICH, TELECOMVOLODYMYR POPERESHNIUKDOING BUSINESSANDRIY SHPAKOV, ANALYTICAL SUPPORTOLENA IAGNIUK, ANALYTICAL SUPPORTANALYTICSPROJECT LEADERSHIPDAN PASKO, STRATEGIC LEADERMYKHAILO OBOLONSKYI, OPERATIONAL LEADERNICK GAIDAI, OPERATIONAL LEADERADVISORSANDRIY PALIANYTSIA WORLD BANKPETER LADEGAARD WORLD BANKTEAMCSource: Working group 10. 10At present, the team is trying to handle several organizational issuesKEY ORGANIZATIONAL ISSUESRECOURCES NEEDEDD3RAISING 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 ones2INFRASTRUCTURE>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)1INSTITUTIONALIZATION 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 authoritiesSource: Working group 11. Thank you for your attention!www.easybusiness.in.ua

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