Economics

Ukraine enters TOP-100 in Doing Business-2015

29 october 2014 | 10:20

Even so, the Ukraine's neighbours show better results in the rating.

Business climate
Ukraine is among the TOP-100 in the influential ranking of Doing Business.
tsn.ua
Ukraine is in the top-100 of Doing Business-2015 rating, rising to 16 positions and ranking 96th place.

Doing Business is an annual report comparing business regulation in 189 economies.

A leader in the global ranking is traditionally Singapore. The top ten also includes New Zealand, Hong Kong, Denmark, South Korea, Norway, the USA, the UK, Finland and Australia.

Data was provided to ZN.UA in the report of the World Bank and the International Finance Corporation (IFC) experts.

According to the new report, nearest neighbours are ahead of Ukraine: Poland ranked 32nd place, Bulgaria - 38, Romania - 48, Belarus - 57, RF - 62, Moldova - 63.

However, the rating has noted a number of improvements in the business climate in Ukraine. Among them, for example, taxes are now simplified for companies by introducing electronic filing of returns and unified social tax payment.

Also value of the distance from the advanced countries has improved in Ukraine, from 59.2% last year to 61.5% (the higher the score on this indicator, the more favourable business environment is).

The analysis of the legal framework for doing business in Ukraine

The study of the World Bank Group has also reviewed the legal standards applicable to private enterprises throughout their life cycle, including creation and the beginning of operations, the implementation of foreign trade, taxation and resolving insolvency. Doing Business 2015 measures regulations affecting 11 areas of everyday business activity.

In the "Starting a business" Ukraine took 76 position, gaining 87.3 points out of a possible 100. The experts note that in order to start a business in Ukraine, it is necessary to pass about 6 licensing procedures that will take the entrepreneur is not less than 21 days and will require 1.2% of the initial capital of the company.

In the area "Dealing with construction permits" Ukraine is on 70th place with 75 points out of 100. In this segment the number of licensing procedures is increased to 8, the process of obtaining permits is stretched for 64 days, and the cost reaches 10.2% of the value of the future premises.

The indicator of "Getting electricity" pulls down Ukraine on which our country was ranked at 185th place with 32 points out of 100. The number of licensing procedures in this sector reaches 10, the process of obtaining permits stretches for 277 days, and the cost exceeds 165.5% of income per capita.

What was not considered by the study 

As noted, the increase of Ukraine's position in the Doing Business ranking in 2015, it is a signal about positive changes in the international assessments of the business climate (although this improvement can hardly be considered sufficient). At the same time, it is emphasized that the World Bank study does not take into account all aspects of the business environment that matter to firms and investors. For example, it is not evaluating the quality of fiscal management system, other aspects of macroeconomic stability, the skill level of the workforce, the stability of the financial system and so on.

In 2014 in the same ranking Ukraine rose by 25 positions to the 112th place.

Earlier it was reported that Vice Prime Minister for Regional Policy Volodymyr Groysman assessed the recovery of Eastern Ukraine at least UAH 11 billion.

Source: zn.ua

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