20.10.15 21:32

Pace of reforms in Ukraine continues to slow down, - VoxUkraine

The pace of reforms in Ukraine continues to slow down - the index for monitoring reforms (iMoRe) from VoxUkraine dropped to its lowest value in the recent period.

Censor.NET reports citing VoxUkraine's latest report.

The index for monitoring reforms (iMoRe) from VoxUkraine aims to provide a comprehensive assessment of reform efforts by Ukraine's authorities. The index is based on expert assessments of changes in the regulatory environment in five areas. The iMoRe value for the 20th monitoring period (Sept. 28 - Oct. 11, 2015) was +0.4 points out of the possible range from -5.0 to +5.0 points.

"Even the highest marks, given to the sectors of Industrial Organization and Trade Policy and Monetary Policy and Financial Markets, are significantly lower than the acceptable speed of reforms (considered to be +2,0 points and higher)," the report notes.

In contrast with the previous rounds, where certain events would get high marks, the 20th round has no events with marks higher than 1 point, partially due to the absence of events that have impact on more than one sector. The slowdown has been noted by the experts: "We see the move in the right direction, but it is very slow," Veronika Movchan, the academic director at the Institute for Economic Research and Policy Consulting says.

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In absolute terms the largest number of positively marked events have happened in the Industrial Organization and Trade Policy sector (overall progress marked at +1.0 point), where 4 events were marked with +1,0 point: the government has allowed "Ukrspyrt" to export the spirits with less than 80% alcohol content (Cabinet's resolution No. 627 of Sept. 26, 2015); the registration of nitrate fertilizers was simplified (Cabinet's resolution No. 756 of Sept. 2, 2015); corn, barley, dry milk and butter were excluded from the list of goods under price regulation for 2015/16 (Cabinet's resolution No. 771 of Sept. 30, 2015); the deadline for the exclusion of cancelled notifications and declarations of the beginning of construction from the registry has been cut to 1 day (Cabinet's resolution No. 747 of Aug. 26, 2015). At the same time, the experts note that such reforms are partial and isolated.

The sector of Monetary Policy and Financial Markets, which has received the score of +0.5, occupies the second place. In this sector the main event was the decision of the NBU (No. 637 of Sept. 29, 2015) to empower the oversight committee to apply sanctions to banks (+1.0 point). Another NBU decision (No. 655 of Oct. 1, 2015) - to make the banks more accountable for executing their proposals in foreign currency auctions - has received significantly lower marks (+0.1 points).

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Cabinet's resolution (No. 750 of Sept. 8, 2015) that the local governments would only be responsible for accepting into service the construction facilities of I-IV categories inside the communities was rated at +1.0 point, while Governance and Anti-Corruption sector grade amounted to +0.3 points.

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Of interest is the fact that both events in the Public Finance sector - allowing disabled persons to own used cars older than 10 years (Law 688-VIII of Sept. 15, 2015) and the ratification of International Labor Organization Convention (Law 692-VIII of Sept. 16, 2015) have received zero points, as well as the overall progress for this sector. Finally, there were no significant events in Energy Independence sector, the direction scored 0.0 points.
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