Monthly Archive: October 2015

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Index for Monitoring Reforms (iMoRe). Release 21

Index for Monitoring Reforms (iMoRe) from VoxUkraine aims to provide a comprehensive assessment of reform efforts by Ukraine’s authorities. The Index is based on expert assessments of changes in the regulatory environment in five areas. The iMoRe value for the 21st monitoring period (October 12 – 25, 2015) was +1.0 point out of the possible range from -5.0 to +5.0 points. The index is slightly higher compared to the minimum reached in the previous period (+0.4 points), but the pace of reform remains low. Reforms in Governance and Anti-Corruption sector made an exception this period, receiving high grades from the experts.

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Did The Leaderless Revolution Bring New Leadership

The president, the prime minister, some of the high ranked members of the government, some of the governors in the regions, and many of the MPs in the parliament had belonged to the ruling elite long before the revolution of 2013-2014. But there are many new faces in among the new leaders of the country: 65% of people in the new parliament have not served there under the previous president. The reforms conducted in Ukraine under the guidance of the semi-new elites and international community can break the old connections and open the way for the new leaders, not captured by the ghosts from the past. This article provides an overview of staff changes in the executive branch of the national government. Authors look at two statistics: the downsizing rate (net % of staff laid off) and the renewal rate (% of staff who has not served under the previous government).

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De-Dollarization of a Dollarized Economy

A discussion of real systemic risks and problems of dollarization caused by national currency devaluation, inflation, asset & currency substitution and the resulting search for sustainable policy through effective monetary and fiscal measures. An article that tries to answer key central bank and government questions on monetary economics in Ukraine.

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What Will it Take to Change the Elites in Ukraine

In Ukraine over the last 25 years, we have formed such a small governing elite. The same deck of politicians is endlessly shuffled, migrating from one party to another, from one era to the next. Svyatoslav Vakarchuk is sure that one of the reasons for such stagnation is the lack of social mobility for young politicians. This, in its turn, is a consequence of the fact that the only place in Ukraine where you can show your worth is Kyiv and the central government.

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Ukrainian Railway Reform: Debating Two Good Ways to Create Competition

In Russell Pittman’s opinion the one weakness of plan of Ukrzaliznytsia has to do with long-term investments in the infrastructure. If the European experience is any guide, reforms under this model may be expected to be successful in creating competition and incentivizing private investment in locomotives and rolling stock. Still it seems that the need for investment in the rail infrastructure in Ukraine is just as great as that for locomotives and rolling stock.

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Legalizing Prostitution in Ukraine: to Be or Not to Be

On 23.09.2015 Ukrainian MP Andriy Nemirovsky registered a draft law that would make prostitution legal in Ukraine and consider prostitutes to be entrepreneurs who provide sexual services for money. These services can be provided by individuals as well as organizations (e.g. brothels). The draft law requires for regulation of these services and introduces legal entry barriers (e.g. age limits and medical checks). In this article Alexander Muravyev, Tymofiy Mylovanov, and Oleksandr Talavera are analyzing what regulatory regime would fit Ukraine best.

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Kyiv as One of the Largest Regional Air Hubs

When experts or newspapers are talking about the drivers of the Ukrainian economy they mainly mention agriculture and IT. These two sectors for sure can help maintain Ukrainian economy alive when industrial production and construction are declining at the annual pace of more than 20%. However, there are other sectors that Ukraine can develop in order to strengthen its economy and long-term competitive position. In this article Oleg Vitkovskyi is focusing on the transportation sector and, in particular, on the benefits of transforming Kyiv Boryspil airport into one of the largest regional air hubs.

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Index for Monitoring Reforms (iMoRe). Release 20

Index for Monitoring Reforms (iMoRe) from VoxUkraine aims to provide a comprehensive assessment of reform efforts by Ukraine’s authorities. The Index is based on expert assessments of changes in the regulatory environment in five areas. The iMoRe value for the 20th monitoring period (September 28 – October 11, 2015) was +0.4 points out of the possible range from -5.0 to +5.0 points. The pace of reforms continues to slow down – the index value is at its lowest value for the last 7 rounds. Even the highest marks, given to the sectors of Industrial Organization and Trade Policy and Monetary Policy and Financial Markets, are significantly lower than the acceptable speed of reforms (considered to be +2,0 points and higher).

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Ukrzaliznytsia’s New Tariff Policy: How to Find a Balance with the National Economy

One of the most controversial tariff innovations which the rail transport market (or rather monopoly) expects is the abolition of “discriminatory” tariffs by type of goods (tariff determined for each cargo separately), and the transition to a fee for use of infrastructure (price depends on the weight and distance). These generally positive European practices can significantly reduce railway traffic in Ukraine and deepen the stagnation of the Ukrainian economy.

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2015 Nobel Prize in Economics Goes to Angus Deaton

This year’s Nobel Prize in Economic Science is awarded to Angus Deaton, a British-American economist of Princeton University. The Nobel Prize committee emphasized three related achievements: an approach to estimating demand for different goods, the studies of the relationship between income and consumption, and the work on measuring living standards and poverty.