Ukraine advances in Doing Business survey, with further growth promised

Ukraine climbed
seven levels to 64 place on the World Bank’s annual Doing Business survey, the
epravda.com.ua news site reported on Oct. 24. It is Ukraine’s highest rank ever
on the survey and a dramatic improvement from 2012, when Ukraine ranked 152 out
of 190 countries. Ukraine ranked highest out of 10 categories in dealing with
construction permits (rising to 20 from 30 place), getting credit (moving to 32 from 37) and protecting
minority investors (rising to 45 from 72). Ukraine ranked worst in getting
electricity (rising to 128 from 135) and resolving insolvency (rising to 145
from 146), a ranking that will improve next year after the new bankruptcy code
took effect as of Oct. 21, according to the Union of Ukrainian Entrepreneurs.

Legislation approved
by the new parliament in recent weeks should enable Ukraine to improve its rank
by at least 15 levels by next year’s survey, the union said in an analysis
performed jointly with epravda.com.ua. This includes Bill No. 1059 approved on
Sept. 20 to stimulate investment in Ukraine, Bill No. 1048 approved on Oct. 2
to amend the Customs Code, Bill No. 1052 approved on Oct. 3 to amend
construction norms, Bill 1056-1 approved on Oct. 3 to improve the protection of
property rights and Bill No. 1049 approved on Oct. 4 to streamline tax revenue
and social security collection.

Zenon Zawada: The Zelensky administration and
People’s Servant party laid the foundation for improving business conditions in
the next year. They will bear some fruit in the mid-term (three to five years).
But these reforms won’t spark significant investment and economic growth
without a genuine fight against corruption at all levels (including
prosecutions and convictions) and an overhaul of the judicial system and
courts. There are many countries with nice laws and regulations on the books,
belying the actual conditions on the street.