Ukraine improves Doing Business ranking by 4 positions

Ukraine ranked 83rd out of 189 countries, improving its rating by four positions, in the World Bank Group’s Doing Business annual survey released on Oct. 27.  Under the methodology employed this year, Ukraine would have ranked 87th last year, instead of 96th (based on the prior methodology). The only source of improvement was due to simplified procedures in starting a business (a dramatic growth of 40 positions in the ranking). Minor improvements were reported in registering property (+3 positions) and getting electricity (+1 position).  At the same time, Doing Business reported worsening conditions in getting credit (-2), securing construction permits (-1), paying taxes (-1) and protecting minority investors (-1).

Alexander Paraschiy: Ukraine’s improved ranking is positive, especially in the context of the war that was being waged. However, we should keep in mind that (a) a large part of the changes was initiated even before the EuroMaidan, and (b) Ukraine still remains in the middle of the ranking with a majority of its impediments to business unchanged. It will be much more revealing to see Ukraine’s rank next year, which will better assess the reforms of the post-EuroMaidan leadership.