Good governance

  • Subvention for socio-economic development: how to stop public funds allocation according to political preferences

    06.06. 2018

    The very first time when subvention for socio-economic development appeared in the Budget was 2005. The total amount of subvention for the period of 2007-2017 is 25,6 billions of hryvnias measured in 2017 prices.First and foremost aim of the subvention is economically reasonable support of infrastructural projects on the regional level. However, in practice subventions are transferred to regions where local branches of parties that belong to governing coalition are in power. Moreover, amount of funds provided for subventions increases prior to parliamentary or local elections. This what we have found as a result of statistical analysis of the subvention on socio-economic development allocation for the 2007-2017 period. At the same time, there is an alternative mechanism for the subvention on socio-economic development – Regional Development Fund. The fund’s functions are in similar fashion to subvention, while transfers from ... Read more
  • What should be the role of Accounting Chamber in Ukraine?

    12.04. 2018

    Accounting Chamber has to be an effective instrument of the public control of fiscal effectiveness, to have tangible influence on the government policy making and on the parliament’s decisions. However, according to the survey Ukrainians evaluate the current activity of the ACU as unsatisfactory with an average rating of 3 points out of 10. Transparent, proactive and effective communication will help ACU to raise awareness among target audience. That are the conclusions of the report “Accounting Chamber of Ukraine: perception and awareness”, prepared by the Centre for Economic Strategy. The survey was conducted on behalf of German and UK Governments by the federal enterprise Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. The goal of the survey is to explore the level of general awareness of the ACU, target audiences of the ACU, ACU’s communication products, and to evaluate current performance of the ACU ... Read more
  • Second-Pillar Pension Design

    12.02. 2018

    The purpose of this paper is to describe international practice of implementing second-tier pension schemes, with a special focus on the problems encountered by the new member states of the European Union, and to develop recommendations for key policy directions of Ukraine. Read more
  • Сivil servants remuneration reform

    05.07. 2017

    The amount and structure of remuneration of civil servants should be competitive and comparable to the level of payment in the private sector. Presently, the salary level in central public administration sector in Ukraine is lower than in the private sector. This can lead to the outflow of qualified workers from public administration sector to the private sector or create the preconditions for corruption. The objectives of our research are to study international experience of the remuneration reform in public sector, analyze the mechanism of the salaries formation in public administration sector and total expenditures on remuneration in public sector in Ukraine (as well as other countries), determine if the remuneration in public sector is competitive compared to the private sector. Based on the analysis, suggest ways to improve current remuneration system in public administration sector, which will not cause ... Read more
  • Freeing Ukraine’s captured state

    15.03. 2017

    In public discourse, oligarchs are often named as one of the reasons for Ukraine’s slow economic development. The main difference between an oligarch and a typical businessman is in an oligarch’s influence on politics and state authorities that they use to set the rules of the game for the benefit of their own businesses. Illegal competitive advantages are one of the sources of oligarchs’ profits. In particular, restraining competition and monopolization of certain economic sectors, which is achieved through political influence, allows them to increase their prices. Tax concessions, subsidies, and preferences in access to public resources allow them to reduce expenses. Influencing politics through changes in laws, policy, and regulation of unfair benefits for a particular business is a form of corruption described by the term “state capture”. State capture leads to significant social losses. Capture of regulators enables to restrain competition. ... Read more
  • Electricity and energy market – theory and practice of tariff regulation

    28.07. 2016

    The purpose of the study is to describe international practice in tariff formation in the electrical energy sector and the energy market, as well as to develop recommendations for key policy directions of Ukraine. The note will contain a theory of monopoly market regulation and an overview of international experience in energy sector regulation. We will provide options for applying this knowledge to the specific situation in the Ukrainian market and the development of public policy on tariff regulation. Read more