Ukraine Improves Business Regulations but Local Entrepreneurs Still Face Challenges
October 23, 2012
Washington, D.C., October 23, 2012 — A new IFC and World Bank report finds that Ukraine ranks 137 among 185 economies globally on the ease of doing business.
Released today, Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises finds that Ukraine improved its business environment over the past year, yet challenges still remain for local entrepreneurs. Ukraine ranks among the bottom 20 percent of economies in five of 10 areas of regulation measured by the report. In particular, there is room for improvement in dealing with construction permits, where it ranks 183 among 185 economies. Ukraine has the worst rankings in Eastern Europe and Central Asia on registering property and resolving insolvency.
Ukraine made starting a business easier by eliminating the minimum capital requirement for incorporation as well as the requirement to have incorporation documents notarized. It made paying taxes easier by implementing electronic filing and payment for medium-size and large enterprises. Finally, Ukraine made property transfers faster by introducing an effective time limit for processing transfer applications at the land cadastre in Kiev.
“While we are encouraged by Ukraine’s regulatory improvements in the past year, local entrepreneurs still spend hundreds of days awaiting the outcome of standard business procedures,” said Augusto Lopez-Claros, Director, Global Indicators and Analysis, World Bank Group. “Ukraine’s reforms in company incorporation, taxes, and property transfer are counterbalanced by the struggle local entrepreneurs face with burdensome construction and electricity regulations.”
According to Doing Business 2013, Ukraine compares unfavorably with its neighboring countries: the Slovak Republic is ranked 46, Poland – 55, Belarus – 58, Romania – 72, Moldova – 83 and the Russian Federation - 112.
“The World Bank remains committed in its partnership with Government of Ukraine to continue promoting a sound business environment,” said Qimiao Fan, World Bank Director for Ukraine, Belarus and Moldova.
Since 2005, the Eastern Europe and Central Asia region leads the world in enhancing the business climate for local firms. The region overtook East Asia and the Pacific to become the world’s second most business-friendly, after OECD high-income economies.
About the Doing Business report series
Doing Business analyzes regulations that apply to an economy’s businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and resolving insolvency. The aggregate ease of doing business rankings are based on 10 indicators and cover 185 economies. Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure the quality of fiscal management, other aspects of macroeconomic stability, the level of skills in the labor force, or the resilience of financial systems. Its findings have stimulated policy debates worldwide and enabled a growing body of research on how firm-level regulation relates to economic outcomes across economies. This year’s report marks the 10th edition of the global Doing Business report series. For more information about the Doing Business report series, please visit www.doingbusiness.org. Join us on Facebook.
About the World Bank Group
The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.
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