Good governance

  • How much does the budget lose due to the lack of good governance?

    05.12. 2018

    The lack of the rule of law in Ukraine has been repeatedly called as one of the main reasons for underinvestment, hence the slow economic growth in the country. The positions of Ukraine in the international ratings remain extremely mediocre: according to WJP Rule of Law index Ukraine holds 77th place out of 113 countries with the score of 50 points; according to Corruption Perception Index (CPI) Ukraine is at 130th place among 180 countries with 30 points; according to Rule of Law WGI dimension Ukraine with -0.77 score points holds 160th place among 209 countries; according to Control of Corruption WGI dimension Ukraine with -0.84 points holds 168th place among 209 countries. Corruption and lack of trust in the judiciary for three years in a row remain the main obstacles for foreign investors. We obtained the same results during a survey of strategic and portfolio investors conducted ... Read more
  • 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