One of the first objectives of the Ministry of Economic Development and Trade of Ukraine is to increase business activity so that Ukrainian economy would have returned to growth in 2016.
We have chosen a simple and effective mechanism for reducing the burden on business and encouraging economic growth – deregulation. It provides revocation of excessive regulatory restrictions and inefficient procedures of control, abolishment of excessive licensing, obsolete certification systems, monitoring, implementation of expert examinations and other restrictions for business.
With revocation of regulatory restrictions and inefficient procedures we will not only reduce the administrative burden on business and fight corruption, but also give businesses the opportunity to focus on their core activity.
Deregulation is carried out in three main stages:
1. Removal of key regulatory barriers to business;
2. The “regulatory guillotine” – a full review of the regulatory framework upon condition, that from now forth government agencies will prove the need for certain limitations for business operations;
3. Implementation of a preventive mechanism that will not allow for recovery of excessive administrative pressure.
From the very beginning we have identified the most “painful” restrictions for business and have already approved:
• The Law on simplifying business, which has canceled 16 inefficient regulatory restrictions, harmonized a system of land lease and created a system of “one-stop shop” to start a business just for 2 days;
• Amendments to the Law on licensing, which abolished the licensing of 26 types of economic activity;
• Governmental Decree on deregulation, which has cancelled the need for inefficient certificates in the agricultural sector and monitoring of subsoil use, that have been opening significant opportunities for corruption;
• The Law on protection of investors, which has brought standards of our legislation to all-European level and ensured adequate protection of minority shareholders.
The next steps of the Ministry of Economic Development and Trade of Ukraine lay in further abolishment of another 130 inefficient regulatory constraints that have been identified by us together with the business as the main “painful spots” for its operation. To do this, the government has recently adopted the “Action Plan for Deregulation” and we have already started implementing it. In addition, we are preparing the second phase of our reforms – the “regulatory guillotine” in order to begin the process of the full review of the regulatory framework in the nearest future.