- Privatization: Regional context
23.06. 2018The Centre for Economic Strategy is carrying out the project on support of the transparent process of the state enterprises privatisation in the regions. The fair and transparent privatisation devoid of corruption would become a source of investments, which is a requirement for an economic growth, which, in its turn, would result in increased well-being of population, and creation of new jobs. We are confident that liberalisation of the state enterprises from corruption and politicians’ control is possible through privatisation by a strategic investor. A fair and transparent privatisation would also boost performance levels of the Ukrainian enterprises as well as strengthen the positive social effect of their sale. Therefore, project’s purpose is to create a public demand for a fair and transparent privatisation of the Ukrainian enterprises to strategic investors among the population. To that end, the Centre for Economic Strategy shall ... Read more
- Subvention for socio-economic development: how to stop public funds allocation according to political preferences
06.06. 2018The 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
- How many Ukrainians have departed and what can be done about this
23.04. 2018How to count the real number of Ukrainians that are have decided to emigrate? Is there any evidence that Ukrainian economy faces critical level of emigration? What policy measures can the state use in order to sustain economic development in defiance of future migration? Policy analysts of Center for Economic Strategy explore those questions and present some policy solutions in the analytical paper “HOW MANY UKRAINIANS HAVE DEPARTED AND WHAT CAN BE DONE ABOUT THIS”. Ukraine is now one of the top ten countries of origin of the international migrants in the world. The estimated number of emigrant workers is 4 millions of people. While simultaneously around 2.6-2.7 millions of people are abroad. Why are 16% of working age population choosing to work in another country? The most influential factor is economic – Ukrainians are looking for higher wages. Migration flow is mainly ... Read more
- What should be the role of Accounting Chamber in Ukraine?
12.04. 2018Accounting 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
- Are the state owned enterprises less profitable than the private ones?
14.03. 2018Can a state ownership of 3444 enterprises be justified from a financial standpoint? Are there any other more important goals for a state than the obtaining of profits? The Centre For Economic Strategy experts offer the answers to these questions in the analytical note: “Are the state owned enterprises less profitable than the private ones?”. The state can own the enterprises with two primary objectives in mind. The first goal lies in obtaining a return on the capital employed, the second — in undertaking certain social mission. Results of the study demonstrated that, in 2016, the state failed to receive UAH 4.93 bln in profits from state-owned enterprises. On average, the public enterprises are 2.9% less profitable than the similar private ones. This figure is many times higher for an agricultural sector — public companies in this industry generate 14.8 % less profits ... Read more
- Budget-2018 overview
14.02. 2018This year no quantum leap happened in either budget planning or revenues/expenditures structure. The Parliament failed to adopt the medium-term budget resolution for 2018–2020 and scarcely ever link the new expenditure proposals to either strategic priorities for the state or corresponding income sources. Between the 1st and the 2nd hearing the MPs boosted the budget expenditures by almost UAH 40 bln. This means that should the budget be amended any time during 2018, the 2.5% of GDP budget deficit target is at risk. There are also several worrisome factors within revenues and expenditures incl. realistic achievement of pensions and non-tax revenues targets. The most significant change made to the expenditures in the budget for 2018 is the increase in expenditures on the economic activity, public order as well as on the general government functions against the previous year. To assess if this is right ... Read more