Reforms Under the Microscope As of April 2017
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Reforms under the Microscope As of April 2017 REANIMATION PACKAGE OF REFORMS Reforms under the Microscope As of April 2017 Kyiv, 2017 UDC 323.2(477):351(477) ББК 66.3(4УКР)+67.9(4УКР) R 34 ISBN 978–617–7031–61–0 This publication has been produced with the assistance of the Euro- pean Union within the project «Enhancement of the Reanimation Package of Reforms coalition» which is implemented by the Centre for Democracy and Rule of Law. The contents of this publication are the sole responsibility of the Centre for Democracy and Rule of Law and can in no way be taken to reflect the views of the European Union. Team of contributors: Andriy Baranov, Natalia Best, Tetiana Boiko, Olha Hamankova, Andriy Hevko, Volodymyr Dybrovskyi, Artem Zakharov, Yevhen Krapyvin, Roman Kuibida, Oleksandr Liemienov, Ivan Lukerya, Vadym Miskyi, Roman Nitsovych, Serhiy Ponomariov, Olena Prokopenko, Yevhen Radchenko, Maria Repko, Igor Rozkladaj, Dmytro Romanovych, Ksenia Serdiuk, Serhiy Soroka, Tetiana Tevkun, Taras Tkachuk, Yulia Cheberiak, Zoriana Chernenko, Ruslan Chornyi, Anna Shumeiko, Dmytro Yablonovskyi, Oleksandr Yabchanka. R 34 Reforms under the Microscope (as of April 2017) / ed. V. Miskyi, Kyiv: Sofiya-А, 2017. – 132 p. Illustrated. ISBN 978–617–7031–61–0 In this publication, experts of the Reanimation Package of Reforms – Ukrainian coalition of non-governmental organi- zations – analyze the key tasks that Ukraine is facing on its path towards institutional, economic, and social reforms, as well as assess the status of their regulatory support and implementation over 2016 and in early 2017. Overview of each reform includes the description of its progress and stakeholders’ participation, as well as presents recommendations for the authorities for further action. UDC 323.2(477):351(477) ББК 66.3(4УКР)+67.9(4УКР) © Compiled by the Centre for Democracy and Rule of Law, 2017 Foreword In more than three years after the Revolution of Dignity, the the Corruption Prevention”. According to these changes, progress of reforms is obvious in various spheres of public leaders and all members of anticorruption non-governmen- policy. Experts of the Reanimation Package of Reforms tal organizations, their contractors and even participants not only prepare dozens of draft laws, but also encourage of anticorruption campaigns initiated by these NGOs shall the authorities to execute them in a timely and sustainable submit declarations of persons authorized to perform the manner, ensuring the implementation of reforms. functions of the state. Ukrainian civil society and the inter- national partners of xUkraine have strongly condemned The period under review has been marked by the follow- the introduction of discriminatory regulations, non-existing ing achievements: ensuring full-fledged operation of the in any civilized country, and continue to demand that they National Anticorruption Bureau and the Specialized Anti- are abolished. corruption Prosecutor’s Office; launching the e-declaration system; transferring all public procurement to the Prozorro We call on the responsible authorities to focus their efforts system; launching the judicial reform through adoption of on the continuation of the initiated reforms: to properly the constitutional amendments on justice; further amalga- implement the constitutional amendments on justice, mation of territorial communities within the decentralization to form a bona fide Supreme Court without any discred- reform; establishing a public broadcaster; appointing first ited officials, to continue improving the judicial system, to state secretaries. Rehabilitation of the banking system establish a system of anticorruption judicial institutions as and deregulation are in progress; a number of important the last link in the system of prosecution for high-level cor- laws in the sphere of energy and environmental protection, ruption, to set up the State Bureau of Investigation and bringing Ukraine closer to the European standards, have to delegate investigative functions to it, to unblock the been adopted. land market, to implement the healthcare and the pension reforms, to introduce an open list proportional electoral Relentlessly fighting for a proper implementation of system in the process of parliamentary election, to ensure reforms, the RPR has counteracted the attempts to roll proper financing of a public broadcaster, to continue the back the key changes, particularly, in the anticorrup- reform of public administration and decentralization, to tion sphere: to change the regulations on the crimes to develop competitive electricity and heat markets, and to be investigated by the National Anticorruption Bureau, to improve the energy efficiency of housing sector. introduce countless amendments to the law on the pre- vention of corruption, etc. However, politicians have been We are looking forward to continuing an effective coopera- unnerved by the civil society which demonstrated its deter- tion in order to achieve tangible changes. mination in the protection of anticorruption regulations and achievements of the Revolution of Dignity: the parliament Best regards, has adopted discriminatory amendments to the law “On the Team of the Reanimation Package of Reforms Anticorruption reform th nd «Barrier No.1 144 142 th st place place 131 130 place to investments» place 56% Ukraine’s of Ukrainians consider corruption – this is how foreign investors ranking in one of the major problems in assess large-scale corruption the Corruption the country (Transparency in Ukraine (Dragon Capital and 2013 2014 2015 2016 Perception Index International, November 2016) EBA, November 2016) Challenges and goals of public policy More than 70% of Ukrainians are convinced that the level mentioning the development of an anticorruption strategy of corruption in the country has not decreased, and the gov- for 2014-2017, the adoption of new laws “On the corrup- ernment does not want to expose corrupt officials. This is tion prevention”, “On the National Anticorruption Bureau”, demonstrated by the survey “The World Corruption Barom- “On the State Bureau of Investigation”, amendments to the eter – 2016” conducted by the anticorruption organization law “On the Prosecutor’s Office” (concerning the Special- Transparency International1. Of all the respondents, 56% ized Anticorruption Prosecutor’s Office), and laws “On the consider corruption one of the main problems in the country. National Agency of Ukraine for identification, search, and Almost half of the respondents have no doubts that govern- management of assets derived from corruption and other mental decisions are influenced by oligarchs. Finally, 86% crimes”, “On public procurement”, “On the prevention of of survey participants have a negative attitude towards the and counteraction to political corruption,” etc. attempts of Ukrainian authorities to eradicate corruption. According to the presidential “Strategy 2020”5, the main According to the portfolio investors and strategic foreign goal of the anticorruption reform is to significantly reduce investors, polled by Dragon Capital and the European corruption in Ukraine, minimize the losses of the state Business Association2, large-scale corruption and a lack budget and businesses caused by corruption, and improve of trust in the judicial system are the biggest obstacles Ukraine’s position in international ratings assessing the to capital inflow to Ukraine. Since the Revolution of Dig- level of corruption. At the same time, this strategy mentions nity, Ukraine has ascended only 13 positions in the global the need to overcome political corruption by reforming the annual Corruption Perception Index – from being 144th in political financing system. The presidential Strategy focuses 20133 it became 131st in 20164. There is little dynamics; on two anticorruption agencies – the National Anticorrup- and in fact, in 2015 this indicator was better than in 2016. tion Bureau of Ukraine (NABU) and the National Agency on Corruption Prevention (NACP). According to the Govern- Over the past three years, a number of laws and regu- ment’s Action Plan – 20166, the Specialized Anticorruption lations have been adopted enabling the launch of a real Prosecutor’s Office is also one of the cornerstones of the anticorruption reform in Ukraine. First of all, it is worth anticorruption reform along with NABU and NACP. 6 A lack of independent judiciary is a key challenge in the system met enormous resistance from several state insti- process of combating corruption. The newly established tutions and was completed only due to mounting pressure NABU has already proved its capacity of investigating high- from civil society and international partners of Ukraine. The level corruption. In particular, its effectiveness is confirmed collegial form of NACP management proved ineffective, by its tense relations with the “old” investigative agency so it is advisable to revise the way the NACP leader is – the General Prosecutor’s Office of Ukraine – which wors- selected, making him/her bear sole responsibility for the ened in August 2016. The amendments to the Constitution agency’s activity. regarding justice and the new law “On the judiciary and the status of judges”, adopted in June 2016, provide for the As to the prevention of political corruption in 2016, parlia- establishment of the High Anticorruption Court as a spe- mentary parties have for the first time received payments cialized court of first instance to consider the cases within from the state budget for their statutory activities. How-