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LEADERSHIP IN ECONOMIC GOVERNANCE (LEV) PROGRAM
QUARTERLY REPORT
OCTOBER 1, 2016 – DECEMBER 31, 2016
Submitted to Evgenia Malikova Agreement Officer’s Representative
January 20, 2017
Cooperative Agreement AID-121-A-15-00001
This publication was produced for review by the United States Agency for International Development. It was prepared by the East Europe Foundation in partnership with the Institute for Economic Research and Policy Consulting, the Center for Social and Economic Research (CASE – Ukraine), and the Kyiv Economics Institute
The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.
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CONTENTS
Program Background 4
Key Achievements under the LEV Priority Areas 5
LEV Success Stories 16
Legislative Reform Developments 19
Program Activities and Events in the Quarter 21
Ongoing Activities 21
Specific Events 21
Program Activity under the Objectives 24
OBJECTIVE 1 Identify legal, regulatory, and administrative measures that improve the business environment for Ukrainian SMEs 24
OBJECTIVE 2 Provide support to the central and local governments in drafting, promoting and implementing effective laws, regulations, and procedures in line with the recommendations identified in Objective 1
OBJECTIVE 3 Coordinate with and support stakeholders in the business community to promote economically-practical and fiscally-responsible reforms 41
Plans 48
ANNEX 1 Accomplishments based on PMP indicators and milestones 50
ANNEX 2 Media about the LEV Program 56
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PROGRAM BACKGROUND
On December 19, 2014, the USAID Leadership in Economic Governance (LEV) Program in Ukraine was launched under a Cooperative Agreement Number No. AID-121-A-15-00001. LEV in Results The Program is implemented by the East Europe Foundation in cooperation with the implementing partners: the Institute for 5 Road Maps on SME Economic Research and Policy Consulting, the Center for support and development Social and Economic Research (CASE – Ukraine), and the were prepared and Kyiv Economics Institute. advocated by local NGOs from the LEV target regions The LEV Program aims to improve the business environment, combine the efforts of reform oriented civil society LEV and Ukrainian Catholic organizations and government institutions to facilitate the University launched in Lviv oblast necessary changes in policy preparation, and implementation the first in Ukraine Regulatory Hub of the law, as well as ensure specific institutional reforms contributing to development of small and medium-sized 187 representatives of enterprises (SME). The Program focuses its activity on the business associations took following objectives: part in advocacy trainings Objective 1: Identify legal, regulatory, and administrative organized by LEV measures that improve the business environment for Ukrainian LEV supported the SMEs. establishment of 2 SMEs coalitions Objective 2: Provide support to the central and local governments in drafting, promoting and implementing effective LEV and the State laws, regulations, and procedures in line with the Regulatory Service of recommendations identified in Objective 1. Ukraine conducted workshops on the M-Test implementation for civil Objective 3: Coordinate with and support stakeholders in the servants and local business community to promote economically-practical and government officials in 13 fiscally-responsible reforms. oblasts of Ukraine
The Program activities at the regional level will be focused on Kyiv, Kherson, Lviv, Ternopil and Vinnytsia oblasts.
The LEV Program focuses on the most pressing issues related to doing business in Ukraine. In Year 2016, the following priority areas were selected for the LEV Program interventions: Area 1. State SME Development Policy. Area 2. Administrative Services. Area 3. Regulatory Policy issues related to SMEs Development Area 4. Access to Utilities: Getting Electricity. Area 5. Export promotion of SMEs.
The LEV Program concentrated its efforts on establishing effective regulatory policy in Ukraine as one of the most important prerequisites for creating favorable conditions for Ukrainian SME development.
The LEV Program focuses on capacity building in both business associations and government institutions, with the ultimate goal to foster sustainable partnership between the private and public sectors, create a favorable business environment and strengthen the civil society in Ukraine. In order to achieve the program goals, the LEV team established effective cooperation with the government institutions, in particular, the Ministry of Economic Development and Trade, the State Regulatory Service of Ukraine, the Parliamentary Committee on Industrial Policy and Entrepreneurship, the National Bank of Ukraine, the National Commission for State Energy and Public Utilities Regulation, etc. This report covers the activities carried out during the period of October 1, 2016 through December 31, 2016. The USAID LEV accomplishments (according to PMEP indicators) achieved during October 1, 2016 through December 31, 2016 are presented in Annex A to this report.
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KEY ACHIEVEMENTS UNDER THE LEV PRIORITY AREAS
During the reporting period, the USAID LEV Program continued its work under the Program priority areas. The key achievement as well as tasks fulfilled are introduced in this Section.
Area 1. State SME Development Policy.
I. The SME Development Strategy in Kherson Oblast by Year 2020 is one of the key achievements of Q4 2016. The work on the policy documents for Kherson oblast is a part of the USAID LEV Program activities aimed to assist local authorities and businesses in pilot regions in elaborating of policy documents to promote SME development. The draft Strategy of Small and Medium Enterprises Development in Kherson Oblast by Year 2020 was developed by the USAID LEV experts during the latter half of 2016, and presented to local authorities, business community, and business associations in Kherson in late December 2016. Following the presentation, Kherson Oblast State Administration will post the draft SME Development Strategy on its website for public discussion in line with the requirements of Ukrainian legislation. The document is based on the principles of the Small Business Act for Europe. It identifies key objectives aimed at improving the regulatory environment for local SMEs and lists the relevant action steps to reach these objectives as well as indicators of success. The Strategy also includes the SWOT analysis of SME sector in Kherson oblast.
The meeting of the working group on development of the Regional SME Strategy for Kherson oblast until 2020 (December 20, 2016): the final comments to the document are taken as the USAID LEV experts present the draft Strategy.
The SME Development Strategy in Kherson Oblast is a key document in the regional package of policy documents for Kherson oblast drafted with the support of the USAID LEV Program. Two other documents of the “regional package” incorporate SME Profile and Export Profile for Kherson oblast presented earlier this year. It is important to stress, that based on the USAID LEV Program approach towards the development of the regional strategic documents, participation and input of local authorities and representatives of local SMEs and business associations serve as the key success factor in elaboration of strategic documents. All comments and suggestions received from the stakeholders during the meetings with local businesses and authorities were taken into account and incorporated into the document.
During the next reporting period, the USAID LEV Program will start developing a Strategy-based Action Plan for Kherson oblast, which will be the fourth document in the regional package of policy documents.
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II. The greatest achievement in the area is sharing experience of the USAID LEV target oblasts with other Ukrainian regions. Cherkasy Oblast State Administration requested assistance of the USAID LEV Program in developing of the oblast strategic documents on SME development. They studied successful experience of Ternopil oblast – one of the LEV target oblasts - on drafting “The Strategy of Small and Medium Enterprises Development in Ternopil Oblast by Year 2020” and expressed their willingness to include the same activities and outputs for Cherkasy Oblast Strategy. The request from Cherkasy Oblast was focused on the following prerequisites: (1) need in developing of a strategic document that identifies key goals and priority directions of SME development in the region and (2) need in establishing proper communication with the main stakeholders in the course of elaboration and further implementation of the document. The USAID LEV approach to develop such regional strategic documents (“regional package”) meets the above needs. LEV experts helped to draft documents using the best national expertise and competences as well as assisted in establishing and maintaining of proper communication with businesses and other stakeholders in a working group format to ensure that each member has equal rights to the created document. The working group consisting of all key stakeholders will be established under Cherkasy Oblast State Administration and will be facilitated by the LEV experts.
During the reporting period, the USAID LEV experts started working with local authorities and businesses in Cherkasy oblast to draft an SME Development Strategy. In November 2016, USAID LEV experts participated in the meeting of the working group on Cherkasy oblast Strategy development, where Deputy Head of Economic Department of Ternopil Oblast State Administration Oleh Kazmirchuk shared successful experience of Ternopil Oblast in drafting the SME Development Strategy. Another meeting of USAID experts with the working group in Cherkasy took place in December 2016. Similarly to the previous Strategies in other pilot regions, the SME Development Strategy of Cherkasy oblast is based on the Small Business Act for Europe. In the next reporting period, the USAID LEV Program will finalize the Strategy for Cherkasy oblast.
Oleh Kazymirchuk, the representative of Ternopil Oblast State Administration, in front of Cherkasy oblast entrepreneurs, representatives of state administration and civil society shares his experience of working with the USAID LEV Program on the new regional SME Strategy for Ternopil oblast (November 9, 2016): the Strategy is an official policy document developed by the USAID LEV experts and adopted by the Ternopil Oblast Council.
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III. One more achievement in the reporting period is involvement of all LEV target regions in the development of strategic documents with assistance of the LEV experts: oblast authorities of all target regions are committed to work with the USAID LEV Program to develop regional SME Development Strategies, Actions Plans to the Strategies and Oblast SME Profiles. In the reporting period, the USAID LEV experts and regional authorities in two more Program target regions – Vinnytsia and Lviv oblasts – expressed their willingness to start working on SME Development Strategies in these regions.
The first meeting of the working group on development of the new Regional SME Strategy for Vinnytsia oblast until 2020 (November 3, 2016): development of a strategic document always starts with the discussion on the Strategy’s main principles and brainstorming of ideas.
The USAID LEV experts visited both regions to present a concept of the Strategy. In December 2016, the USAID LEV experts participated in Vinnytsia Business Forum “Successful Business Development as the Key to Economic Growth of the Region” and presented a concept of the SME Development Strategy for the region. Also in December 2016, the USAID LEV experts presented a concept of the SME Development Strategy in Lviv oblast during the meeting with the Director of the Economic Policy Department of Lviv Oblast State Administration Roman Fylypiv and the leaders of local business associations. They explained the purpose and process of developing an SME Development Strategy and described the results of the ABCA 2015 survey in Lviv oblast. In 2017, the USAID LEV Program will continue its work with local authorities and businesses in Lviv oblast to develop the Strategy.
In the reporting period, the LEV experts prepared regional SME Profiles for Cherkasy, Kyiv, Lviv, and Vinnytsia oblasts. Earlier in 2016, the USAID LEV Program developed Regional SME Profiles for Ternopil and Kherson oblasts. A Regional SME Profile is a monitoring and evaluation tool that allows tracking the dynamics of the SME sector development, in particular, at the oblast level as well as evaluating the impact of regional regulatory policy on SMEs development. The Regional SME Profiles have standard structure and include statistical indicators such as number of small and medium businesses, SME sector employment, the share of exporting SMEs, etc. Also, they include the data collected through business
7 | Leadership in Economic Governance (LEV) surveys that reveal business activity, demand for bank loans, barriers for business, and other indicators pertaining to SMEs’ estimation of business climate and market situation. The recommendations of the USAID LEV Program given in policy documents were used for short-term regional SME policy planning. In December 2016, Ternopil Oblast Council voted for the Program of SME Development in Ternopil Oblast for Years 2017 and 2018, which includes policy action steps outlined in the Action Plan for SME Development elaborated by the USAID LEV Program.
In the next reporting period, LEV will start elaborating the SME Development Strategies for Lviv, Vinnytsia, and Kyiv oblasts and finalize the Strategy for Cherkasy oblast.
IV. The next key achievement in the area of the State SME Development Policy is facilitation of public- private dialog at the national and regional levels. In the reporting period, the USAID LEV Program organized a discussion between public authorities and expert community on the use of statistical information for policymaking purposes in the SME sector.
In December 2016, LEV in partnership with the National Bank of Ukraine hosted a roundtable discussion “SMEs in Ukraine: Qualitative and Quantitative Indicators of the Sector Development”. A number of Ukrainian government agencies – the State Statistics Service, the National Bank of Ukraine, the Ministry of Economic Development and Trade of Ukraine – collect statistical information about SME sector, which is further used for policymaking purposes. However, the data collected by the government institutions fail to reflect the full picture of SMEs development, and the exchange of data between the agencies is not efficient. Moreover, SMEs are reluctant to share their information with public agencies due to time constrains and lack of trust to the government. The USAID LEV experts shared the Program's experience in collecting SME data through the surveys and using this information for making policy decisions. The LEV Program conducts the Annual Business Climate Assessment (ABCA) survey of SMEs, which provides information about market behavior and expectations SMEs as well as provides a demographic portrait of business owners and top managers of businesses in the country: overall assessment of business environment (evaluation index of business environment) by female and male owners and top managers of businesses, evaluation of financial and economic situation (evaluation index of financial and
Gender portrait of business owners and top managers of businesses Infographics: Women Entrepreneurship. Ukraine based on the results of the Annual Business Climate Assessment survey 2015 of SMEs in Ukraine.
8 | Leadership in Economic Governance (LEV) economic situation) by female and male owners and top managers of businesses . The ABCA survey data are used in the following regional policy documents developed by the USAID LEV Program: SME Development Strategies, Regional SME Profiles and Export Profiles.
V. During the reporting period, LEV achieved significant progress as regards the preparatory work to develop institutional capacity of local authorities in the field of strategic planning of SME development.
The LEV experts drafted a Guide for local authorities on drafting of the regional SME development strategies. The document is titled “Developing Regional SME Development Strategy: Step-by-Step Guide”. It describes the USAID LEV Program’s approach towards elaboration of the regional SME development strategies by involving in the process of preparation and communication all the stakeholders in a working group format to ensure that each member has equal rights to the created document. The working groups are comprised of the representatives of local authorities, leaders of business associations, and experts from think tanks or academia. The Guide, prepared by the USAID LEV experts, includes detailed information on the process of developing an SME development strategy during every meeting of a working group: the parts of the strategy to be discussed, the content of these parts, and the expected results of the discussion. This guide will be used as a base of training program for local authorities and will help them elaborate the strategy of SME development in a consistent and phased manner drawing on the input of business and expert communities.
VI. LEV experts continue working on the SME policy document at the national level. In the reporting period, USAID LEV experts continued providing their input to the national SME policy by preparing a concept to a draft Law “On Support to Small Entrepreneurship”. Also, the recommendations of the USAID LEV Program were included in the draft SME Development Strategy 2020. USAID LEV experts prepared a document containing suggestions to the structure of the Law “On Support to Small Entrepreneurship”. This document summarizes the results of the second round of discussing proposals on the concept of the Law on SME development, held under the USAID LEV Program framework. This document represents a summary of key provisions, which the USAID LEV experts suggested to include in the law and consists of two parts. The first part provides the proposed structure of the draft Law, and the second part focuses on the theses and paragraphs of the legal provisions that are proposed to be included in the Law. The suggested sections of the Law comprise principles and tasks of the governmental support policy to SMEs, its institutional structure, policy areas and envisaged actions as well as strategic planning of SME development, etc. In November 2016, the Ministry of Economic Development and Trade of Ukraine presented the SME Development Strategy 2020, which incorporated research and recommendations of the USAID LEV Program. The Strategy includes several areas, on which the USAID LEV Program focused its efforts, in particular, simplification of tax administration and export promotion of SMEs. The Strategy also refers to the results of 2015 Annual Business Climate Assessment survey conducted by the USAID LEV Program demonstrating that the survey data were used for policy decisions. The USAID LEV Program started working on the national SME Development Policy documents back in 2015, when the Program published the White Paper on SME Development Policy in Ukraine.
Area 2. Administrative Services.
During the reporting period, the work within the Area 2. Administrative Services was concentrated on the development of trainings for CASP staff. USAID LEV experts studied the experience of the state enterprise “Public Services Center” of the city of Odesa and «Transparent Offices» of the city of Vinnytsia. The program of the first training workshop “Service Standards in the CASP” was developed and scheduled for the end of February 2017. The training workshop is aiming at involving chief administrators of CASPs to improve their management skills for further motivation of employees to provide high quality administrative services. USAID LEV experts investigated the market of companies and trainers for CASP staff to select the training company on a competitive basis for holding workshops according to the introduced service standards.
Area 3. Regulatory Policy issues related to SMEs Development
Supporting the implementation of changes to the CMU Resolution dated March 11, 2016 No. 308 “On Approving the Methodologies for Conducting Regulatory Impact Analysis”
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The USAID LEV Program in the reporting period continued its comprehensive assistance and support to the State Regulatory Service of Ukraine in implementing the Small business test (M-test) through training seminars for civil servants, officials of local governments as well as the representatives of regional business associations. During the seminars, the participants acquired theoretical knowledge and practical skills of applying new effective regulatory instrument.
The following trainings were conducted: - Seminar in the city of Dnipro, October 31, 2016, 82 participants; - Seminar in the city Zaporizhzhia, November 1, 2016, 98 participants; - Seminar in the city Ivano-Frankivsk, November 28, 2016, 75 participants; - Seminar in the city Chernivtsi, 29 November 2016, 64 participants; - Seminar in the city Uzhgorod, 16 December 2016, 68 participants.
In this reporting period, the activities were launched in partnership with the Chamber of Commerce of Ukraine allowing to involve more representatives of the regional associations, since it is critically important to ensure that they are acquainted with the M-test methodology to develop high quality regulations with reduced corruption risks, the businesses could benefit from. In this respect, it is important to factor in the role of the regional associations in selecting and providing incoming data for the RIA assessment to regulatory agencies.
Also, on December 2, 2016, a specialized event – press-meeting “The results of the regulatory policy and its outcomes for the SME development in 2016” was conducted with the participation of the SRSU Head Ksenia Liapina. Participating in the meeting were the representatives of the regional and national media specializing on such topics as economics and legislative changes. At the meeting, the media representatives were informed about the new global indicator of regulatory policy for public administration introduced by the World Bank. In line with the above indicator, Ukraine was ranked at the same level with other leading European countries. Also, during the event, the LEV Program presented the key fundamentals of the RIA methodology to the media and explained in details the possibility to apply those in their professional journalist activities on the example of the M-test.
Ksenia Lyapina opens the press-lunch devoted to regulatory policy issues (December 2, 2016): Over 20 journalists representing national and regional media were introduced to the results of the state regulatory policy implementation in the context of SME sector development.
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Activities of the Analytical Expert Group on the Regulatory Policy
During the reporting quarter, the experts of the Analytical Group on the regulatory policy continued its activities on the chosen priority directions. In particular, in cooperation with the Ministry for Education and Science of Ukraine, the experts analyzed the regulation of activities of public kindergartens (nursery schools) and prepared preliminary proposals as for simplification of regulatory conditions to promote small businesses development, establishing of private kindergartens, and launching of individual professional certification of nursery-school teachers. For more details please see page 36.
Also, the Program experts extensively studied the priority area “placement of temporary structures” (MAFs), analyzed the existing regulations as regards MAFs placement in different cities in the USAID LEV pilot regions, and held consultations with entrepreneurs on practical issues in this area. The Program specialists held meetings with officials of Kyiv and Lviv City Councils, since the regulation of MAF placement in these cities requires special attention and is considerably different in terms of conceptual approaches.
Under the LEV Program framework, the Analytical Group experts participated in developing a draft Law on introducing amendments to some legislative acts of Ukraine as regards placement of outdoor advertising. The draft Law concept was presented as part of a series of roundtables held in the cities of Kyiv, Vinnytsia, Lviv, and Sumy. Additionally, as part of advocating these developments, an article devoted to this issue was prepared and posted on the website of the Ukrainian version of Forbes magazine:http://forbes.net.ua/opinions/1425645-reklamnyj-kollaps-kieva-vse-slozhno-no-vyhod-est. For more details please see Annex B Media about the LEV Program (page 56).
First developments under Lviv Regulatory Hub Initiative
During this quarter, a preparatory phase of establishing Lviv Regulatory Hub was completed and the practical implementation of the initiative started by joint efforts of the USAID LEV Program, Ukrainian Catholic University (UCU), Lviv Oblast Committee of Entrepreneurs with the support of Lviv Oblast State
The signing ceremony of the Memorandum of Understanding between the USAID LEV Program and the Ukrainian Catholic University (December 15, 2016). The Memorandum aims to determine further directions of the joint cooperation as regards the Lviv Regulatory Hub Initiative implementation.
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Administration. The Hub coordinator and interns - UCU master’s degree students, held consultations with the first recipients of the Hub Initiative (city councils of Lviv, Vynnyky and Chervonohrad, and Zhovtenets and Grabovetsk united territorial communities). Based on the results of these consultations, the experts developed a list of top priority and most relevant topics for local communities, including the organization of parking in the cities, placing summer playgrounds by local cafes and restaurants, creating an inventory of property of the united territorial communities (UTC), and the distribution of funds among the budgets of the villages- UTC members.
On December 15, 2016, the first public presentation of the Hub developments under the framework of the Lviv Regulatory Hub Initiative was held in the city of Lviv. The event was attended by the Head of the State Regulatory Service of Ukraine Ksenia Lyapina, Head of SRSU Sector Taras Medvetskyi, First Deputy Head of Lviv Oblast State Administration Rostislav Zamlynskyi, Rector of the Ukrainian Catholic University Fr. Bohdan Prach, President of the Committee of Entrepreneurs of Lviv Oblast Andriy Dyachyshyn, and the representatives of local governments, business associations, and non-government organizations and experts. Also, the USAID LEV and Ukrainian Catholic University signed a Memorandum on Cooperation in order to consolidate intentions to jointly implement the above initiative.
The presented developments triggered a lively discussion, proving the urgency and complexity of the chosen issues. Later in the following quarter of 2017, LEV Program plans to conduct a series of discussions with the cities and UTC who are recipients of the Initiatives to ensure maximum participation and fullest account of the views of local communities.
Cooperation with the National Academy for Public Administration under the President of Ukraine
During the reporting period, the LEV Program intensified cooperation with the National Academy for Public Administration under the President of Ukraine. On November 10 and December 16, 2016, LEV held two seminars on the regulatory policy issues for the teaching staff of the Academy. The USAID LEV international expert Andriy Palyanytsia conducted the seminars devoted to both theoretical principles and practical cases of regulations. These seminars serve as a preparatory step preceding the development of a training course on the regulatory policy issues, as envisaged in the Memorandum on Cooperation signed on March 10, 2016 between the LEV Program, SRSU and NAPA.
Creating a Database “Regulatory Map of Ukraine”
As per the request of the State Regulatory Services to create a unified database of regulations, the USAID LEV Program issued the terms of reference for the creation of a database "Regulatory Map of Ukraine", which should provide an open access to complete information about the regulations at all levels and stages of their development, consideration, adjustment, approval, and implementation. Draft terms of reference is currently being considered by the SRSU, a tender to determine a software developer is scheduled for January-February 2017.
Providing technical assistance for RIA calculations, including based on the M-test methodology by the experts of Kyiv School of Economics
During the reporting quarter, the USAID LEV experts from Kyiv School of Economics continued providing technical assistance to the State Regulatory Service of Ukraine to develop RIA calculations as requested by the regulatory authorities. In particular, the Ministry of Agrarian Policy and Food of Ukraine approved the RIA materials developed by our experts and posted RIA calculations as part of the relevant draft documents on the Ministry’s official web-page: http://minagro.gov.ua/uk/regulatory?nid=22800&add=ria. The draft is currently being consideration by the SRSU.
The USAID LEV specialists also participated in the work related to the request of the State Agency for Fisheries of Ukraine to develop a RIA, including M-test of the draft Law on reducing the rent rate for lands of water fund to improve the regulatory environment of doing business in the field of fish farming in the rented ponds. The Program experts analyzed the data provided by the AIC Department of Vinnytsia Oblast State Administration and the State Agency for Fisheries of Ukraine and came to the conclusion, that the relevant available data was insufficient. Therefore, it was agreed to conduct a survey among the tenants of water ponds, which will be organized by the State Agency for Fisheries of Ukraine using the questionnaires, developed by the LEV experts. The survey is scheduled for Q2 FY 2017. For more details
12 | Leadership in Economic Governance (LEV) about technical assistance for RIA calculations provided by the USAID LEV experts please see task 3.1 b), page 41.
Area 4. Access to Utilities: Getting Electricity
In the reporting period, LEV has been advocating changes to the draft Law on Electricity Market of Ukraine (# 4493, approved in first reading on September 23, 2016) in the part related to getting electricity access (Article 21). Basic principles of the model of transparent pricing for getting electricity access were accepted by the Head of the VR Subcommittee on Fuel and Energy Lev Pidlisetskiy and were introduced as amendments and submitted for the second reading as part of the draft Law. We identified few attempts to dilute the model of transparent pricing for getting electricity access, that USAID LEV advocates, with extra corrections to Article 21. The USAID LEV publicly criticized those efforts and so far our version of amendment to Article 21 is left unchanged. We will keep monitoring closely the developments in relation to Article 21 of the draft Law on Electricity Market of Ukraine (# 4493). Remarkably, in November 2016, there was an effort of the National Energy and Utilities Regulatory Commission (NEURC) to approve the new methodology on getting electricity access, which was recognized as a positive step. However, the methodology envisaged streamlined procedures only for near 10% of connections (in the range of 160kW - 5000kW), which is only a partial solution to address the existing problem. As soon as the draft Law on Electricity Market of Ukraine (# 4493) is voted into the law, the NEURC will have to align its methodology with the principles of the model envisaged by the Law.
Area 5. Export promotion of SMEs.
I. The main achievement is preparation of export profiles for the LEV target regions. In the reporting period, the USAID LEV experts continued working on the development of the Regional Export Profiles of Ternopil, Vinnytsia, Lviv, and Kyiv oblasts. The developed documents were submitted to Oblast state administrations for comments and proposals by late December 2016. Ternopil and Vinnytsia Export Profiles include special parts (Annexes) that detail prospective areas for export in these oblasts and list foreign countries importing these items in the highest volumes. Lviv and Kyiv oblasts Export Profiles will be finalized and amended with Annexes in January 2017 due to lack of information from the regional authorities. II. The second achievement in the field of SME export promotion addresses information needs of SME exporters by issuing two regular newsletters for SME exporters: (1) quarterly newsletter In order to address “Exporter’s Guide” and (2) quarterly newsletter “Export from A to Z”. information needs of As reported by SMEs, lack of information prevents many of them exporting SMEs, the from starting to export efficiently. To this end, the USAID LEV USAID LEV issued two Program issues two publications to meet the information needs of regular newsletters: Ukrainian SMEs about legislative requirements and market “Exporter’s Guide” and conditions for export. The first publication is the quarterly newsletter “Export from A to Z”: “Exporter’s Guide” (“Putivnyk Exportera” in Ukrainian). During the reporting period, two issues of Exporter’s Guide were published. The newsletters offer news The third issue of the Exporter’s Guide was prepared and and legislation updates, disseminated in October 2016, the fourth issue of the newsletter information about world was prepared in December 2016 and will be disseminated in markets trends, Ukraine’s January 2017. The newsletter includes news and legislation foreign trade and price updates, information about trends in the world markets, Ukraine’s indices, as well as foreign trade, and price indices. Similarly, it lists upcoming trade success stories of the forums and offers a success story of one of the Ukrainian exporting Ukrainian exporting SMEs. SMEs. This newsletter provides Ukrainian exporting SMEs and the enterprises considering exporting with important up-to-date information that will help them learn about market demands and important changes to the trade-related laws.
The second publication developed by the USAID LEV Program for exporting SMEs is the quarterly newsletter “Export from A to Z” (“Export vid A do Ya”). Every issue of the newsletter is devoted to one specific topic relevant to the current and potential exporters in Ukraine. The third issue of the Export from A to Z published in October 2016 was devoted to digital economy. The European Union lists the Digital Single Market – the one with free movement of persons, service and capital – as one of its top priorities. In 2016, Ukraine discussed with the EU the ways to create a Digital Community, an online information 13 | Leadership in Economic Governance (LEV) community of the EU and Eastern Partnership countries to facilitate information exchange among the member countries and streamline joint projects in cyber security, informational security, e-government, open data, and other areas. The newsletter describes the opportunities that digital cooperation between countries and growing global sector of e-commerce offers for Ukrainian SMEs. It also provides sources of export-related information that SMEs could find online and includes a Q&A section with a Ukrainian logistics company that successfully entered new markets.
The fourth issue of “Export from A to Z” titled “Export Credit Agencies” was prepared in December 2016 and will be disseminated in January 2017. This topic is highly relevant today due to the fact that on December 20, 2016, the Parliament of Ukraine supported the draft Law of Ukraine No.2142 “On Ensuring the Expansion of Large-scale Export of Ukrainian Producers through Insurance, Guarantee and Reducing the Cost of Export Lending.” The draft Law envisages the establishment of a JSC "Export Credit Agency" that will provide insurance, reinsurance, contract guarantees etc. to secure the development of exports. According to the Law, the Agency will also partially participate in compensating the interest rates for export credits. Foreign experience of such agencies was also described in the fourth issue of “Export from A to Z.”
III. An analytical note on Business to Consumer (B2C) digital trade based on the policy paper “Internationalization of SME through digitalization: policy recommendations for Ukraine based on international experience.
The analytical note on B2C digital trade outlines the dynamics and importance of such distribution channel in Ukraine. The trade flows and other indicators in Ukraine are compared with those of other European countries. Given the growing share of e-commerce in B2C trade and Ukraine’s potential to join the European single digital market, the necessity of introducing a unified payment system provider such as PayPal increases. Moreover, entrepreneurs should take into account and apply new distribution strategies and mechanisms such as Omni-channel approach.
VI. USAID LEV experts cooperate with the Business Ombudsman Office to change the draft legislation on foreign trade. In the reporting period, the USAID LEV experts held two meetings with the Deputy Business Ombudsman Tetyana Korotka and discussed the ways to reduce administrative barriers of foreign trade. The meeting participants agreed that the USAID LEV Program would prepare the following documents: a draft request to the NBU regarding liberalization plans of currency regulation activities in terms of foreign exchange earnings from export-import contracts, including investment activities and return on dividends; a concept description of information portal for exporters; a concept of reducing administrative barriers for foreign economic activity entities(including licensing and certification procedures); and analysis of the necessary changes in terms of liberalization of the use of special sanctions imposed for violation of the Law "On Foreign Economic Activity" and other related laws of Ukraine.
To review the situation, the USAID LEV experts prepared the policy paper Review of sanctions and fees in international trade and their impact on SMEs, which lists the sanctions that may be imposed on the enterprises involved in foreign trade. The policy paper explains the prerequisites for applying certain sanctions, specifies which government authorities impose a sanction, and the conditions when a specific sanction could be lifted. The policy paper also discusses how nontransparent and inconsistent practice of applying sanctions impacts businesses in Ukraine and offers recommendations on how to reduce discretion and legal conflicts as regards the Government’s sanctions for business.
Policy paper. Review of sanctions and fees in international trade and their impact on SMEs.
Sanctions and fees may be applied to exporting and importing enterprises in Ukraine for violating foreign trade legislation and regulations in the fields of currency, customs clearance, taxation, etc. The rules and practice regarding foreign trade sanctions in Ukraine create barriers for enterprises, as the sanctions are applied in a nontransparent manner: the Government acts on the principle of presumption of guilt of an enterprise, and fails to inform an enterprise about the imposed sanctions. The application of sanctions lacks consistency and does not always follow the procedures envisaged by the laws, allowing government officials to make decisions individually, which puts pressure on business and opens ways to corruption.
To this end, the USAID LEV Program published a policy paper “Review of sanctions and fees in international trade and their impact on SMEs” that details sanctions for businesses involved in foreign trade, describes the existing problems, and offers recommendations on how to make foreign trade 14 | Leadership in Economic Governance (LEV) regulation more transparent and fair. The paper recommends amending the law of Ukraine regulating foreign trade to make application of sanctions more transparent and consistent, reduce discretion as well as resolve legal conflicts. The paper also recommends analyzing court rulings regarding the appeals against the application of sanctions and investigates the impact of sanctions on the market behavior of businesses.
The USAID LEV experts also prepared a review of the main barriers to foreign trade and developed proposals on their elimination (a table). The above document, prepared by the USAID LEV experts in December 2016, serves as a basis of the concept of the draft Law “On Amendments to Certain Legislative Acts as regards Elimination of Barriers to Foreign Trade”. The Concept was agreed upon with the Deputy Business Ombudsman Tetyana Korotka and, in 2017, the USAID LEV experts plan to develop on its basis several draft laws tasked to simplify conditions for Ukrainian companies in the field of foreign trade
VI. Simplification of foreign currency regulation rules. On November 3, On November 3, 2016 2016, Verkhovna Rada of Ukraine with 270 votes adopted the Law “On the Parliament adopted Amendments to Certain Legislative Acts of Ukraine as regards the Law of Ukraine Elimination of Administrative Barriers to Exports of Services.” On “On Amendments to November 30, 2016, the President of Ukraine Petro Poroshenko Certain Legislative signed the bill into the Law. The Law, eliminating overcomplicated Acts of Ukraine (as to currency control procedures affecting the export of services, came into elimination of effect on January 3, 2017. Now, the exporters of services can administrative barriers conclude cross-border contracts in e-form with no translation required, in the field of export of and invoices can serve as contracts and the primary accounting services)” document. These and other improvements will help legalize the developed and currency earnings from the exported services and reduce the costs to advocated by the USAID entrepreneurs. For more details please see the LEV success story LEV experts. “Lifting of administrative barriers to export of services will contribute to freelance development in Ukraine” (page 18). The Law came into force on January 03, 2017. VII. Eliminating licensing for foreign currency accounts abroad (simplifying B2C exports). In this reporting period, the LEV experts conducted meetings and consultations with the MEDT, NBU, and the State Financial Monitoring of Ukraine on potential cancelation of licensing for individual foreign currency accounts abroad. This initiative was discussed with potential beneficiaries of the legislative changes, like the community of freelancers. The proposal was well received and supported by the NBU and MEDT. The main counterparts recognized that cancellation of licensing would simplify legal collection of export proceeds for small entrepreneurs. It is also important that such step (cancelation of licensing for individual foreign currency accounts abroad) will give green light to promote a fully-fledged use of PayPal for Ukrainian users. In particular, a user will be able to link his/her account abroad to PayPal and thus withdraw money from PayPal - the option that is currently not available for Ukrainians. By the date of issuing this report, the legislative proposal on eliminating of licensing for foreign currency accounts abroad is prepared. The initiative will be presented publicly and advocated as a draft law.
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LEV SUCCESS STORIES
USAID LEV AND UKRAININAN CATHOLIC UNIVERSITY WITH THE SUPPORT OF LVIV OBLAST STATE ADMINISTRATION AND LVIV OBLAST COMMITTEE OF ENTERPRENEURS INAUGURATED THE FIRST IN UKRAINE REGULATORY POLICY HUB
The initial idea of creating a regulatory hub dates back to March 2016,
f when a series of consultations was conducted with the State Regulatory Service of Ukraine. Following the preliminary negotiations, Ukrainian Catholic University, Lviv Regional State Administration, and Committee of Entrepreneurs partnered to shape the concept of this initiative.
From the very onset, the initiative was focused on developing functional proposals which will be further implemented in practice. Together with the first recipients - city councils of Lviv, Vynnyky and Chervonohrad as well as Grabovets and Zhovtanets territorial Interns’ opening speech at Lviv communities, we developed a list of the existing problems of local Regulatory Hub during the communities to be addressed under the Hub framework. These issues public presentation of the include the organization of parking in the cities, placing summer regulatory developments on December 15, 2016 in the city of playgrounds by public dining facilities, creating an inventory of Lviv property of the united territorial communities (UTC), and the distribution of funds among the budgets of the villages - UTC The main tasks of the Hub members. Initiative include monitoring and analysis of the existing On December 15, 2016, the first public presentation of the Hub regulatory framework and draft developments was held in the city of Lviv. It is planned to further acts, including the M-test improve these proposals in direct cooperation with the recipients and estimations in the context of the local communities. To this end, a series of roundtables in the impact on the SME sector respective towns and villages will be conducted in Q1 2017. development as well as elaboration of new regulations Specifically, on December 15, 2016, East Europe Foundation and for businesses and communities Ukrainian Catholic University signed a Memorandum on Cooperation addressing the highest priority in order to consolidate intentions to jointly implement the above issues in line with best existing initiative. practices. This pilot initiative aims to A very important distinction of the Hub initiatives lies in its focus to demonstrate the importance of strengthen the management capacity of Lviv region. To attain this proper formation of the goal, we engaged in Hub activities young specialists - students and regulatory environment, its graduates of Ukrainian Catholic University as well as other universities impact on improving the business climate, and achieving in the region. The First Deputy Head of Lviv Oblast State positive results for local Administration Rostislav Zamlynskyi declared the willingness to enroll communities. the Hub interns for the internship at the Oblast State Administration, In future, we plan to scale up the thus giving them an opportunity to gain practical experience in the experience of Lviv Regulatory development and implementation of the regulatory policy at different Hub to other regions of Ukraine. levels (community, UTC, city, oblast). This will enable creating a pool of young professionals who possess both theoretical and practical expertise on the regulatory policy and who will be able to further effectively implement these reforms at both local and national levels.
The Head of the State Regulatory Service of Ukraine Ksenia Lyapina during the Hub presentation emphasized that this initiative was a crucial step aimed to change the system and approach towards decision-making, and develop comprehensive and informed regulations as well as increase the role of civil society.
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WITH THE USAID SUPPORT, ENTERPRENEURS OF KHMILNYK, VINNYTSIA OBLAST, COULD REALLY INFLUENCE THE LOCAL BUSINESS ENVIROMENTAL
Khmilnyk is a small resort town of regional importance located in Vinnytsia oblast. Given the city’s potential, entrepreneurship activity could be significantly higher. Therefore, the application of Khmilnyk NGO "PRAVO" to improve the local regulatory environment, submitted under the framework of the roadmaps competition, hosted by the USAID Leadership in Economic Governance (LEV) Program, attracted attention and was supported by the competition commission. The USAID LEV Roadmaps competition is a grant competition for NGOs to create a roadmap for small and medium enterprises (SMEs) in the region, conducted in 5 pilot Program regions, including Vinnytsia oblast. A roadmap
presents a set of sequential steps (actions), the Luibov Hamak, Deputy Mayor, Head implementation of which will reduce regulatory barriers and of the Finance Department of improve the business environment for SMEs in the region. Khmilnyk City Couincil: The main idea behind the roadmaps competition is to involve all stakeholders - businesses, government and civil society in Our Khmilnyk is one of those cities the development of the relevant tools to promote SMEs in the in Ukraine, where human and region, and only afterwards offer to incorporate these natural resources are available, but commonly developed tools into the regional strategic are used inefficiently to ensure a significant boost and economic document. growth in the region. I am sure, a NGO PRAVO brought together all stakeholders of the town of roadmap for SME development Khmilnyk - businesses, experts, public officials, and the media designed in cooperation with the during the first roundtable aimed to identify the most pressing government aided and abetted by problems facing the local entrepreneurs. Afterwards, a series USAID LEV Program could be of the of focus groups was conducted to get a better insight into the effective ways to address this existing issues. Three focus groups were held with the problem. In order to develop an representatives of different business areas (trade, production, optimal working strategy and service sector). One more focus group - with the determine what could hinder businesses, the public, representatives of executive bodies of the City Council, who entrepreneurs, and the government significantly influence the business environment in the city, conducted a roundtable to discuss since they develop all local regulatory documents. NGO the problems and find the relevant PRAVO experts also met with the future local entrepreneurs - solutions. This is a step towards the the youth of the city. These efforts resulted in clearing up such successful development of our important issues as identification of existing challenges, and small and medium enterprises, who specifying the regulatory barriers in the business environment are also major taxpayers, since it is of the city of Khmilnyk as well as designing the relevant their contributions that consitute actions of the roadmap along with the ways to address the the lion's share of the city budget. existing problems. USAID LEV experts helped make these actions fiscally responsible, i.e. ensuring efficient use of budget funds to support the local SMEs in the long run.
On October 27, 2016, the Executive Committee of Khmilnyk City Council approved the Roadmap for SME Development of the city of Khmilnyk, Vinnytsia oblast. The document envisages around 30 steps, in particular: improvement of regulations, creating a register of public property, increasing transparency, and enhancing expertise of local authorities.
It is important that the Roadmap was adopted not as a part of the existing program or strategy, but as a single comprehensive document. Consequently, the local government showed its willingness to listen to all the recommendations developed in cooperation with the businesses and local community. In line with the decision of
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the Executive Committee, the actions, envisaged in the roadmap, will be included in Khmilnyk SME Development Program for 2017-2018.
LIFTING OF ADMINISTRATIVE BARRIERS TO EXPORT OF SERVICES WILL CONTRIBUTE TO FREELANCE DEVELOPMENT IN UKRAINE
“Imagine you are a bus driver”, says the founder of the community "beFree – freelance for Ukrainians" Phylyp Dukhliy. But passengers do not simply give you money in exchange for a bus ticket. You should sign a separate contract with every passenger who gets on a bus, and delivery and acceptance act when a passenger leaves the bus. Ridiculously? However, freelancers have to follow exactly the same procedures, as envisaged by the law.”
Presently, export of freelancers’ services brings USD 350 million of foreign currency earnings into the country. Ukraine USAID LEV Program experts present the leads in Europe in terms of freelancers’ revenues. The main provisions of the Draft Law #4496 at prospects for exports of services, involving mostly small and the International Exhibition-Congress «E- medium businesses are huge. However, due to different EXPORT 2016» administrative barriers, Ukrainian exporters of services spend time and money to meet the requirements of these rudimentary procedures.
USAID Leadership in Economic In 2015, in order to address the issue of administrative Governance Program in cooperation with barriers to exports of services, the experts of the Leadership the National Bank of Ukraine and the in Economic Governance (LEV) Program funded by the US Ministry of Economic Development and Agency for International Development (USAID) initiated the Trade developed a simplified foreign establishment of a joint working group with National Bank currency control model for export of and the Ministry of Economic Development and Trade of services. Based on the above model, a draft law No. Ukraine. 4496 was developed, which provides for an opportunity to independently choose a USAID LEV experts suggested the concept of the draft Law, form of the foreign trade agreement, and according to which exporters of services will have a obliges the supervisory agencies to possibility to choose a form of foreign economic agreement, recognize an invoice as a primary use an invoice instead of a contract and will not have to document. provide a bank with translation of the documents in case Additionally, the draft Law abolishes they are available in English. foreign currency control for exports of services, since currently it is virtually It was also suggested to recognize an invoice as the primary impossible to control the moment of the document for the unification of financial statements of services provision. freelancers and businesses. On November 3, 2016, the draft Law No. 4496 (the Law No.1724-VII) was approved by the Verkhovna Rada of Ukraine and The working group elaborated a draft Law of Ukraine "On will be put into effect already on January Amendments to Certain Legislative Acts of Ukraine 3, 2017. (regarding elimination of administrative barriers to exports of services)," which was registered by the Parliament under No. 4496.
On November 3, 2016, the Verkhovna Rada approved the draft Law No. 4496, which became the result of the joint efforts of the USAID LEV experts, and the representatives of the Ministry of Economic Development and Trade of Ukraine, Members of Parliament as well as other expert organizations.
The Law No.1724-VII comes into force on January 3, 2017.
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Phylyp Dukhliy like thousands of other exporters of services can now forget about the necessity to put "stamps" on every single document as well as approval of contracts with foreign currency control agencies and other tedious procedures. Now, instead of spending time on administrative matters, entrepreneurs will be able to pay more attention to their businesses to successfully compete in the international market.
LEGISLATIVE REFORM DEVELOPMENTS
During the reporting period the USAID LEV Program actively cooperated with the Verkhovna Rada Committee on Industrial Policy and Entrepreneurship, the Ministry of Economic Development and Trade, the State Regulatory Service of Ukraine, the National Bank of Ukraine with regard to creating favorable environment for SMEs through launching the relevant legislative reforms. The most significant draft Laws developed with assistance and contribution of the LEV experts are as follows:
The following draft Laws were developed by the USAID LEV Program experts:
Draft Law “On Amendments to Certain Legislative Acts of Ukraine as to Placement of Outdoor Advertisement”, Regulation No.-/- (not registered by the VRU).
Current status: underway (advocacy campaign for promotion of the draft Law); Lead GOU contacts – Ministry of Economic Development and Trade of Ukraine, Vinnytsia Oblast State Administration.
Lead NGO contact – All-Ukrainian Network of the Outdoor Advertising Market Operators, Ukrainian Association of the Visual Industry, Business Association “Stina” (Wall) (Vinnytsia), Association of Local Operators of the Advertising Market (Sumy).
Significance: the USAID LEV experts developed proposals aimed at elimination of administrative barriers and simplification of procedures for placement of outdoor advertisement and unification of typical constructions used for placement of advertisement as well as introduction of the self-regulation principles in the given area.
Experts involved: Liubomyr Chornii, Andrii Savarets.
Law “On amendments to certain legislative acts of Ukraine (as to elimination administrative barriers in the field of export of services)” No 1724-VII from 03.11.2016 (reg. № as a draft 4496)
Lead GOV contacts – Victor Halasiuk, Head of the VRU Committee on Industrial Policy and Entrepreneurship, Roman Borysenko, Acting Deputy Head of the NBU, Natalia Mykolska, Deputy Minister of Economic Development and Trade of Ukraine.
Current status: The Law No.1724-VII) (reg. № as a draft 4496) was approved by the Verkhovna Rada of Ukraine On November 3, 2016 and will be put into effect already on January 3, 2017
Significance: the Law aims to simplify the procedures for exports of services in order to support export development and create more favorable conditions to ensure SMEs’ access to foreign markets. The main idea is to streamline and simplify unreasonable bureaucratic procedures through replacing the Foreign Economic Agreements and Acceptance and Transfer Acts with a single document – an invoice (including in e-form).
Experts involved: Andrii Savarets, Dmytro Boyarchuk
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Draft Law of Ukraine "On Amendments to the Decree of the Cabinet of Ministers of Ukraine On Currency Regulation and Currency Control” (to eliminate bureaucratic barriers to export of goods)" No.-/- (not registered by the VRU).
Current status: in progress Lead GOV contacts: Roman Borysenko, Acting Deputy Head of the NBU; Maxim Nefiodov, Deputy Minister for Economic Development and Trade.
Significance: the draft Law is aimed at lifting administrative barriers to export of goods by way of abolishing individual licenses for placement of currency values of residents (legal entities and individuals) on the bank accounts outside Ukraine.
Experts involved: Andrii Savarets, Dmytro Boyarchuk
The USAID LEV experts contributed to the development of the following draft Law:
Draft Law “On Limited and Additional Liability Companies”, reg. № 4666 (passed by the VR in the first reading on December 20, 2016).
Current status: adopted in the first reading on December 20, 2016. Lead GOV contacts: Yaroslav Zheleznyak, Advisor to the Minister of Economy and Trade.
Significance: The draft aims to improve the regulation of creation, operation, and termination of limited and additional liability companies as well as eliminate major drawbacks of the current legislation and bring it in line with the standards and conceptual approaches specific to the legislation of European Union and EU Member States.
Experts involved: Vira Nedzvedska, Andrii Savarets.
Draft Law “On Amendments to Some Legislative Acts of Ukraine as regards the Regulation of Money Transfer”, reg. № 5361.
Current status: consideration pending Lead GOV contacts: Roman Borysenko, Acting Deputy Head of the NBU; Yaroslav Zheleznyak, Advisor to the Minister of Economy and Trade.
Significance: the proposed changes to the draft Law are intended to improve the regulation of payment systems, organize the NBFIs in the market of payment services, provide the right of issuing electronic money to nonbank financial institutions, improve oversight of payment systems, and align national criminal laws with the European legislation.
Experts involved: Vira Nedzvedska, Andrii Savarets.
Draft Law on Amendments to Certain Legislative Acts of Ukraine (regarding improvement of licensing system and eliminating licensing of certain types of business activity) No.-/- (not registered by the VRU).
Current status: in progress Lead GOV contacts: Ksenia Lyapina, Head of the SRSU, Yaroslav Zheleznyak, Advisor to the Minister of Economy and Trade.
Significance: the draft Law aims to improve certain provisions of the licensing system as well as reduce the number of business activities subject to mandatory licensing.
Experts involved: Liubomyr Chornii, Vira Nedzvedska.
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For more information about the USAID LEV activities on supporting the central and local governments in drafting the relevant laws and regulations, please see attached the USAID LEV Legal Tracker for Quarter 1 FY2017.
PROGRAM ACTIVITY AND EVENTS IN THE QUARTER
Ongoing Activities:
Coordinating activities with the representatives of the beneficiary institutions: the Ministry of Economic Development and Trade; the State Regulatory Service of Ukraine; the Verkhovna Rada Committee on Industrial Policy and Entrepreneurship; the National Bank of Ukraine.
Coordinating activities with foreign donors and technical assistance organizations (the European Commission, UNDP, CIDA as well as USAID implementing partners) in the field of the common priority activities;
Conducting of the ABCA 2016 survey;
Development of the SME development Strategy for Kherson and Cherkasy oblasts;
Supporting implementation of the regional SME development roadmaps by the winners of the Roadmap Competition 2015;
Supporting the SRSU in its effort of the M-test piloting and implementation: conducting trainings on the specifics of M-test and RIA across Ukraine in cooperation with the Ukrainian Chamber of Commerce;
Implementation of the Regulatory Hub Project in Lviv oblast in cooperation with the Ukrainian Catholic University;
Designing trainings “Service Plus Practice” for the ASC specialists form the LEV target oblasts based on the experience of Odesa pilot of the Center for Administrative Service Provision;
Developing and conducting advocacy campaigns at the national and regional local levels;
Conducting advocacy trainings for representatives of business associations in the LEV pilot regions;
In cooperation with the UCCI conducting a training program “Comprehensive Approach to Exporting” trainings on export promotion for the representatives of SMEs in all LEV target regions;
Launching cooperation with the business associations - the LEV partners at the national and regional levels.
Specific Events
October 12-13 Strategic session with the business associations willing to become the USAID LEV partners (Kyiv)
October 20 Roundtable discussion on the problems of regulation in the field of outdoor advertising (Sumy)
October 24 Signing of the Memorandum of Understanding between East Europe Foundation in the framework of the USAID “Leadership in Economic Governance” Program and the Ukrainian Chamber of Commerce and Industry
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Seminar on the Regulatory Policy Issues “M-test” (joint event with the State Regulatory Service of Ukraine and the Ukrainian Chamber of Commerce and Industry, Dnipro)
October 10 Seminar on regulatory policy issues for the professors of the National Academy for Public Administration under the President of Ukraine (Kyiv)
November 1 Seminar on the Regulatory Policy Issues “M-test” (joint event with the State Regulatory Service of Ukraine and the Ukrainian Chamber of Commerce and Industry, Zaporizhia)
November 2 Working group on the discussion of the “Strategy for the development of SME in the Vinnytsia region”.
November 17 Workshop "What should the SMEs know about competition and opportunities to protect their rights and interests using antimonopoly legislature?" in the cooperation with the Antimonopoly Committee of Ukraine, the Ukrainian Chamber of Commerce and Industry, Arzinger law office, national and international experts (Lviv)
November 22 Advocacy training for the coalition for SMEs of the Lviv region with discussion of the regulatory restrictions in the field of outdoor advertising (Lviv)
November 23 Roundtable discussion on the problems of regulation in the field of outdoor advertising where the USAID LEV experts introduced the proposed amendments for the Law of Ukraine “On Advertising” aiming at strengthening transparency in the field of outdoor advertising (Lviv)
November 23 Training session of the training program "Integrated approach to the exports as key indicator of the international success of the company" in cooperation with the Ukrainian Chamber of Commerce and Industry (Kyiv)
November 28 Seminar on the Regulatory Policy Issues “M-test” (joint event with the State Regulatory Service of Ukraine and the Ukrainian Chamber of Commerce and Industry, Ivano-Frankivsk)
November 29 Seminar on the Regulatory Policy Issues “M-test” (joint event with the State Regulatory Service of Ukraine and the Ukrainian Chamber of Commerce and Industry, Chernivtsi)
November 29 Training session of the training program "Integrated approach to the exports as key indicator of the international success of the company" in cooperation with the Lviv Chamber of Commerce and Industry (Lviv)
December 1 Meeting of the working group on the discussion of the SME development strategy for Cherkasy region, Cherkasy Oblast State Administration
December 2 Press-meeting “The results of the regulatory policy and its outcomes for the SME development in 2016” with representatives of the regional and national media specializing on such topics as economics and legislative changes conducted with the participation of the SRSU Head Ksenia Liapina (Kyiv)
December 12 Roundtable discussion for the representatives of the main institutions that prepare statistics for Ukrainian business "Ukraine SME: qualitative and quantitative indicators of the sector development" at the National Bank of Ukraine. (Kyiv)
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December 15 Public presentation of the developments under the framework of the Lviv Regulatory Hub Initiative (Lviv)
December 15 Training session of the training program “"Integrated approach to the exports as key indicator of the international success of the company" at with the presentation of the approaches of the target market analysis for the representatives of SMEs of Kyiv region.
December 15 Presentation of the draft strategy on the SME development for Vinnytsia region (Vinnytsya)
December 16 Seminar on regulatory policy for the professors of the National Academy for Public Administration under the President of Ukraine (Kyiv)
December 16 Seminar on the Regulatory Policy Issues “M-test” (joint event with the State Regulatory Service of Ukraine and the Ukrainian Chamber of Commerce and Industry, Uzhgorod)
December 16 Training session of the training program “"Integrated approach to the exports as key indicator of the international success of the company" in the Lviv region.
December 19-20 Presentation of the draft SME Development Strategy for Kherson region (Kherson)
December 19 Advocacy training for representatives of SMEs and business associations and the roundtable discussion on the problems of regulation in the field of outdoor advertising (Ternopil)
December 23 Meeting of the USAID LEV experts with the representatives of Lviv Oblast State Administration and leading business associations of Lviv region on the results of the ABCA (Annual Business Climate Assessment) 2015 survey for the Lviv region.
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PROGRAM ACTIVITY UNDER OBJECTIVES
OBJECTIVE 1 Identify legal, regulatory, and administrative measures that improve the business environment for Ukrainian SMEs
Task 1.1. Identify and prioritize economic, legal, and regulatory reform measures based on the recent work of civil society, the business sector, and the government.
The efforts of the USAID LEV team under this task were focused on analyzing the problems related to SMEs development, elaboration of the policy recommendations in close cooperation with the Government of Ukraine and through consultations with other stakeholders.
1.1.a) Review and analyze regulatory barriers to business and reform efforts, as presented by both various domestic stakeholders (the GOU, businesses, NGOs, and research institutions) as well as international donors and organizations Businesses in Ukraine face a number of impediments that increase operational costs, compromise integrity of private businesses, and hinder their development. To accomplish the task of reviewing the barriers to business, the USAID LEV Program launched a quarterly SME Monitoring Newsletter and a series of analytical (policy) papers “On elimination of main impediments to the SME development” dealing with the pressing issues of business climate improvement.
I. The Quarterly SME Monitoring newsletter was developed to monitor the barriers for Ukrainian SMEs and analyze the reasons and context of these barriers as well as conditions for SMEs’ operation and development. Every issue of the Newsletter covers a “top event” of the previous quarter and discusses major existing barriers for SMEs.
During the reporting period, the third issue of the quarterly SME monitoring newsletter was prepared and disseminated. Tax reform announced by the Government and envisaged in several draft laws to amend the Tax Code became the issue’s highlight. The authors commented on the suggested amendments that were likely to impact SME development. Other sections of the newsletter were devoted to economic, financial, regulatory, tax, and political barriers. In particular, the authors mentioned that barriers in the SME sector were decreased and consumer demand partially recovered. Still insufficient demand remained the major economic barrier for SME development. Financial barriers were also somewhat reduced since banks partially lowered interest rates on credits, even the conditions of issuing credits for SMEs still remain relatively restrictive. Deregulation efforts of the Government and liberalization steps by the NBU resulted in reduced regulatory pressure imposed on SMEs. At the same time, SMEs reported high pressure of tax administration. Overall, the USAID LEV experts state that Ukraine’s economic recovery is going to be very gradual and will require further actions on part of the Government to improve investment climate.
The third issue of the newsletter was prepared in October and published on October 27, 2016. During November and December 2016, the USAID LEV experts started collecting data for the preparation of the fourth issue of the newsletter, which will be published in January 2017.
II. Special attention was paid to conducting deeper analysis of the “burning” issues of business climate in the series of analytical (policy) papers “On Elimination of Main Impediments to SME Development.”
In the reporting period, the USAID LEV experts prepared a policy paper “Price Regulation and State Supervision: Implications for SME Development” and complemented a previous draft of another policy paper “SMEs and the State: How to Restore Mutual Trust” with an additional analysis of survey data. The policy paper “Price Regulations and State Supervision: Implications for SME Development” analyzes the impact of price regulations and inspections by the government authorities on businesses. The paper uses statistics and business opinion surveys to advocate cancellation of price regulations and reforming the state oversight system.
The USAID LEV experts also conducted a deeper analysis of the ABCA survey to study statistical relationship between the state’s perception of the surveyed businesses and other business characteristics. The description of the findings was included in the policy paper “SME and the State: How to Restore Mutual Trust.” In order to pursue the above objective of restoring mutual trust, the LEV Program suggests improving the process of communication between the state and businesses. The analysis showed that SMEs that face corruption and complicated tax administration are more likely to perceive the state as an “enemy of business” in contrast to those that consider the state to be a “partner 24 | Leadership in Economic Governance (LEV) of business”. It implies that a special attention should be paid to tax reform, in particular all improvements and changes undertaken to improve the tax service in Ukraine should be properly and timely communicated to business community. The results of this work are expected to be used for advocacy campaign 2017 aimed at increasing the level of entrepreneurs’ trust to the state (including recent efforts of the Government in 2016). The advocacy campaign plan will be developed in Q1 2017.
Policy paper “Price Regulation and State Supervision: Implications for SME Development”
Inadequate and ineffective public administration and cumbersome government regulations pose significant problems for SMEs in Ukraine. In particular, administrative price regulation and state oversight create severe constraints and raise costs for daily operation of businesses. Therefore, the USAID LEV Program published the policy paper “Price Regulation and State Supervision: Implications for SME Development” where the impact of price regulations and inspections of SMEs is explained using statistical data and the data collected through the ABCA 2015 survey.
In this paper, the USAID LEV experts concluded that the experimental lifting of price restrictions for basic food products in October 2016 did not lead to the surge of prices, as predicted by the opponents. There was a moderate growth in prices for these products in late 2016 that could be explained by inflation and increased seasonal demand. The paper also shows that SMEs reported spending much time and costs on inspections done by the government agencies. Businesses have to pay fines even for merely formal mistakes, and the amount of these fines becomes a considerable burden for small-sized enterprises. The USAID LEV experts conclude that the Government of Ukraine should cancel price regulations and launch a comprehensive reform of the state oversight that would make legislation more specific and business- friendly, and inspections - more transparent.
The USAID LEV experts also published three articles in Ukrainian and European press that discuss the results of the ABCA 2015 survey and offer recommendations on the necessary reforms to improve the conditions for small and medium business development in Ukraine. In the article “Ukrainian SMEs Want Deregulation and Friendlier Tax Authorities,” USAID LEV expert Iryna Fedets cites the results of the ABCA survey that demonstrate that SMEs in Ukraine are burdened with numerous regulations and inspections, which hinder their further development. While the businesses do not expect immediate economic growth, their long-term outlook is more optimistic – if conditions for doing business in the country improve.
In the article “Inspections of Businesses: What to Expect from State Supervision in 2017,” USAID LEV expert Victoriya Bespalko refers to the data of the ABCA 2015 survey to ascertain that SMEs will benefit from the temporary moratorium on business inspections in Ukraine, but stresses that a comprehensive reform of the government oversight system is needed. And in the article “Small and Medium Businesses in Odesa Hope to Get Back on Feet after Economic Downturn” USAID LEV expert Iryna Fedets compares the opinions and expectations of the SMEs in Odesa region with those of SMEs in Ukraine.
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Links to the publications mentioned above:
Iryna Fedets, Ukrainian SMEs Want Deregulation and Friendlier Tax Authorities http://4liberty.eu/ukrainian-smes-want- deregulation-and-friendlier-tax-authorities/ Ukrainian translation of the article “Ukrainian SMEs Want Deregulation and Friendlier Tax Authorities”: http://thinktwiceua.org/uk/tt- updates/ukrayinskyj-malyj-ta-serednij- biznes-vymagaye-deregulyatsiyi-ta- krashhogo-stavlennya-do-sebe-u-podatkovij/ Victoriya Bespalko, Inspections of Businesses: What to Expect from State Supervision in 2017 http://www.epravda.com.ua/publications/201 6/11/30/612656/ Iryna Fedets, Small and Medium Businesses in Odesa Hope to Get Back on Feet After Economic Downturn http://odessareview.com/small-medium- businesses-odessa-hope-get-back-feet- economic-downturn/
For more information, please see Annex 2. Media about the LEV Program (page 56).
1.1.b) Prepare a unified list of barriers to the institutional development of business and the corresponding needs for reform, as well as select the top five “priority” areas
In this reporting period, the LEV Program activities were focused on the established ‘priority areas’ for LEV Program Cycle Year 2 (for more information please see “PROGRAM BACKGROUND” Section). All Program achievements within the priority areas are presented in the section “KEY ACHIEVEMENTS UNDER THE LEV PRIORITY AREAS”.
Task 1.2 Conduct a detailed, independent assessment of additional regulatory barriers to conducting business as these potential barriers are implemented throughout the course of future legislative proceedings
To complete this task, the USAID LEV Program developed a methodology for measuring the cost of regulatory burdens for SMEs “How to measure the cost of regulatory burdens for Ukrainian enterprises”. The LEV Program also designed the Annual Business Climate Assessment (ABCA) tools, in particular: (i) a questionnaire for the enterprise survey; (ii) guides for focus group discussions; and (iii) questionnaire for in-depth interviews with the representative of regional authorities and civil society.
All the tools were designed to study the business climate in Ukraine, the existing challenges for SMEs, and expected reforms. The questionnaire for enterprises additionally included detailed questions that helped evaluate the cost of doing business for Ukrainian enterprises. The assessment will be repeated on an annual basis. The first wave of the ABCA survey (ABCA 2015) was completed in early 2016.
The polling company GfK Ukraine surveyed 1837 Ukrainian SMEs including 503 private entrepreneurs and interviewed 83 representatives of oblast state administrations, regional offices of the State Regulatory Service of Ukraine in all oblasts of Ukraine as well as the representatives of central authorities. Ten focus group discussions were held in five pilot regions. The results were published in the report “Annual Business Climate Assessment 2015” prepared by the USAID LEV experts and presented
26 | Leadership in Economic Governance (LEV) at the Annual USAID LEV Program Conference “Improving Ukrainian Business Environment: From Recognizing the Challenges to Specific Actions” and later, during a press conference. Special reports on the survey results for the LEV target regions were also issued and disseminated. The second wave of the ABCA survey (ABCA 2016) began in Q3 2016. The relevant activities included updating of information about stakeholders’ needs, reviewing the current situation in SME sector, running tender competition to select a survey company, and selecting the winner of tender competition to conduct the ABCA 2016.
The field work related to the ABCA 2016 survey began in this reporting period. The USAID LEV experts also updated the ABCA 2016 survey tools (questionnaires, guides, instructions for the fieldwork etc.). The LEV team responsible for the ABCA briefed the GfK field staff on the content and specific features of the survey to improve the quality of the survey.
1.2.a) Develop instruments for monitoring and evaluating the business climate to identify barriers to SME business development, and compile a list of top-priority economic, legal, and regulatory reforms
In the reporting period, the USAID LEV experts continued processing the results of the ABCA 2015 and ABCA 2016.
I. Activities under the framework of the ABCA 2016 implemented in the reporting period
The USAID LEV experts added several new questions to the questionnaire to ensure a quantitative survey of SMEs and get a deeper insight into several important areas for SMEs in Ukraine. The new questions cover assessment of deregulation reform in Ukraine, subjective assessment of the impact of different regulatory procedures on businesses, informal ties between the government officials and businesses, and the issue of trust between SMEs and the state. To improve the quality of the obtained data, the USAID LEV experts briefed the GfK Ukraine that conducts the SMEs’ survey under the ABCA to explain complicated parts of the survey and coordinate technical details of data collection. By doing so, the LEV team expects to improve the overall quality and accuracy of the survey.
The USAID LEV experts also updated the guidelines for the key informant interviews (KII) and guidelines for focus group discussions. The new KII guidelines was complemented with the questions on regulatory procedures, the issue of trust between businesses and state institutions, corruption, and industrial parks.
The focus group guidelines cover eleven topics that will be discussed in different combinations during ten focus group discussions. Additionally to the ABCA 2015 topics devoted to (1) SME policy, (2) tax policy and (3) export promotion for SMEs, in 2016 the USAID LEV experts developed guidelines for focus group discussions on the following issues (4) small business opportunities and barriers for the youth and ATO veterans; (5) barriers to growing businesses, and the image and perception of entrepreneurs in the society; (6) influence of oligarchs on reforms and government policy; and (7) trust between businesses and state institutions. The USAID LEV experts also updated the previous guidelines on SME policy paying special attention to the following issues: (8) shadow economy as a competitiveness factor, (9) expertise of public officials for business assistance, (10) innovations of SMEs, and (11) challenges of finding personnel with the required skills.
The field stage of the ABCA 2016 survey will be completed in Q1 2017.
II. Using of the ABCA 2015 results
During the reporting period, the USAID LEV Program prepared two special reports on the results of the ABCA 2015 survey conducted in two pilot regions – Vinnytsia and Lviv oblasts. For each specific report, the USAID LEV experts calculated the cost of regulations for the region and compared it with the average cost of regulation in Ukraine. In the reporting period, the USAID LEV experts presented the survey results in Vinnytsia and Lviv oblasts, as well as presented gender portrait of SMEs in Vinnytsia and Lviv oblasts in comparison with all Ukraine’s gender portrait of business (please see the infographics below) . Thus, a comparative analysis of the gender aspects of entrepreneurship in the relevant regions and Ukraine on the whole was performed based on the following indicators: the number of registered businesses with female/male executives and/or owners, types of businesses chosen by female and male executives (individual entrepreneurs and legal persons), the number of employees in enterprises, sectors of
27 | Leadership in Economic Governance (LEV) economic activity, the main obstacles businesses face in the respective oblasts, and key expectations of male and female executives and/or owners of businesses as regards future reforms:
Gender portrait of business owners and top managers of businesses Infographics: Women Entrepreneurship. Vinnytsia oblast based on the results of the Annual Business Climate Assessment survey 2015 of SMEs in Ukraine.
During Q4 2016, the USAID LEV Program published two infographics that illustrated the results of the ABCA 2015 survey. The infographics “Exporters vs Non-Exporters” was published in the third issue of the USAID LEV Program quarterly newsletter “Exporter’s Guide”. The infographics “Inspections in 2015: Who Was Not Saved by the Moratorium” was published along with the article “Inspections of Businesses: What to Expect from State Supervision in 2017” by Victoriya Bespalko on Ukrainian news web-site “Ekonomichna Pravda”.
Task 1.3 Develop roadmaps for reforms in “priority” areas and ensure sustainable policy dialogue and advocacy of business friendly reforms
The roadmap competition in 2016 (RMC-2016) was focused on the improvement of business environment for SMEs at the regional level, in particular at the lowest level of the territorial community (“hromada”). Under the RMC-2016 framework local civil society organizations (CSOs), including business associations (BAs) developed proposals on the interrelated actions aimed at improving the business environment for SMEs at the regional level.
The developed roadmaps vary by their level – starting from the roadmap for the community level in Lviv region down to the roadmap for the whole oblast (Ternopil oblast). The competition winners in each region improved their roadmaps according to the fiscal responsibility criteria under the mentorship of the USAID LEV experts and conducted a series of public debates and advocacy events to present their roadmaps to the stakeholders.
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The regional authorities of Vinnytsia and Lviv oblasts accepted roadmaps as independent policy documents, and in Kherson and Ternopil oblasts the actions proposed in the roadmaps were included into the regional SME development programs and action plans for 2017/18. In Kyiv oblast, the regional councils of all three regions participated in the roadmap project to adopt the roadmaps as independent policy documents in January 2017.
1.3. a) Organize a competition to develop roadmaps among representatives of civil society in each priority area
In the previous reporting period, the Institute for Economic Research and Policy Consulting (hereinafter – the IER) as an administrator of the Roadmap competition entered into agreements with the selected four winners which represent respectively four regions of Ukraine: (i) Khmilnyk District NGO «PRAVO» (Vinnytsia oblast), (ii) Center for Regional Development (Lviv oblast), (iii) The Union of Landowners (Ternopil oblast), (iv) Public Organization “Agency of Regional Development of the Tavria Association of Territorial Communities” (Kherson oblast). The winners received a grant to the amount of approximately UAH 100,000 for improving the regional roadmaps and launching the relevant advocacy campaign.
1.3. b) Conducts a detailed analysis of policy from areas defined as “priority” areas, as well as evaluate the fiscal responsibility of proposed solutions
Based on the conducted analysis of the national and regional SME policy, the RMC winners identified problems and barriers hampering SME development in their regions. Most common problems included (i) lack of capacities of the regional authorities to support SMEs, (ii) poor awareness of SMEs about changes in the regulatory and legislative systems along with the complexity of these systems, and (iii) insufficient knowledge and experience of entrepreneurs on doing business resulting in low level of strategic planning for SMEs. The roadmap competition winners proposed in the roadmaps their own solutions how to address the given situation by developing a system of interrelated actions aimed at improving business environment for SMEs at the regional level. Afterwards, together with the USAID LEV experts they evaluated the fiscal responsibility of the proposed solutions. Since not all of the proposed actions were fiscally responsible, all roadmaps were gradually improved under direct supervision of the USAID LEV experts in order to increase the level of fiscal responsibility of the developed roadmaps. In Kherson region, the roadmap competition winner also developed an SME support program for the Tavria subregion that consists of the respective programs for Kakhovka and Beryslav raions of Kherson region as well as for the cities of Kakhovka and Nova Kakhovka. These programs based on the roadmaps were also assessed against the criteria of fiscal responsibility.
1.3.c) Conduct an assessment of developed roadmaps against the criteria of fiscal responsibility
A roadmap was recognized as fiscally responsible in case it received at least 22 out of 28 possible points according to the methodology developed by the USAID LEV experts. In case a roadmap got less than 22 points, it had to be further improved and re-evaluated. During the reporting period, the USAID LEV experts assessed the roadmaps of four regions (Vinnytsia, Kyiv, Kherson, Ternopil) based on this methodology. The roadmap from Lviv region (developed for Trostyanets community) was estimated as fiscally responsible (with 24 points) in the previous reporting period.
All roadmaps went through at least three rounds of assessment before being approved. The roadmaps demonstrated evident progress in their quality from round to round, e.g. the roadmap developed by the Regional Development Agency of Tavria Association of Territorial Communities for Tavria subregion got only 9 points in the first round. Assistance of the USAID LEV experts allowed the team to improve the roadmap significantly; finally, it received 25 out of maximum 28 points and was considered as fiscally responsible. The roadmaps of Vinnytsia and Ternopil regions were also considered as fiscally responsible with 22 and 23 points respectively. The roadmap for Poliskyi, Ivankiv and Pereyaslav-Khmelnytskyi raions of Kyiv region developed by NGO Women’s Civic Organization “Nadiya” received 20 points and therefore was considered as partly fiscally responsible. The reason is that the roadmap was focused exclusively on SME development in the tourism sector, while the questionnaire for the roadmaps assessment is meant to consider more comprehensive documents with several priority areas. This issue will be taken into
29 | Leadership in Economic Governance (LEV) consideration for the future reporting period when the methodology on evaluation of fiscal responsibility will be updated.
1.3 d) Organize a series of individual meetings and round table discussions to assess each roadmap
In the previous reporting period (August-September 2016), NGO “Pravo” (Vinnytsia region) and NGO Women’s Civic Organization “Nadiya” (Kyiv region) held a number of individual consultations and meetings with the representatives of executive authorities of Khmilnyk City Council and heads of Pereyaslav- Khmelnytskyi, Poliskyi and Ivankiv oblast administrations to discuss the main provisions of their roadmaps.
NGO Regional Development, the winner of the LEV’s RMC in Lviv oblast, elaborated an SME Development Roadmap for Trostyanets united territorial community. Trostyanets united territorial community is the key beneficiary of the roadmap, but NGO Regional Development took a step further and made several suggestions to the Business Support Program in Lviv oblast for 2017-2020 based on their work on the roadmap development. During the reporting period, Cover of the Roadmap on the SMEs Development in Poliskyi, Ivankiv and Pereyaslav- NGO Regional Development Khmelnytskyi raions of Kyiv oblast developed by the local NGO Women’s Civic organized several meetings Organization “Nadiya”– winner of the roadmap competition 2016 organized by the USAID LEV Program: in January 2017, the roadmap is planned to be adopted by the to discuss this Program, regional councils of the mentioned raions. including with the officials of the Department of Economic Policy of Lviv Oblast State Administration. In particular, the meeting participants discussed SME development in Lviv oblast, problems and opportunities for SMEs as well as SME support tools that could be implemented in Lviv oblast in the upcoming years. Experts of NGO Regional Development also met with the permanent Commission for Budget, Social and Economic Development of Lviv Oblast Council to discuss the Program. The members of Lviv Oblast Council agreed to include actions suggested by NGO Regional Development into the regional SME development policy documents, which will be also drafted in cooperation with the USAID LEV Program. Based on the created roadmap for SME development in Tavria subregion, Рublic Organization Regional Development Agency оf Tavria Association of Territorial Communities, the RMC competition winner in Kherson region, also developed a draft SME support program for Tavria subregion. This program is a comprehensive document that consists of four independent programs for territorial units of Tavria subregion, namely Kakhovka and Beryslav raions of Kherson region, and the cities of Kakhovka and 30 | Leadership in Economic Governance (LEV)
Nova Kakhovka. In October-November 2016, experts of the Regional Development Agency оf Tavria Association of Territorial Communities discussed this program with respective regional authorities who supported the idea of including the proposed actions into the regional SME development programs and action plans for 2017/18. In November 2016, the Union of Landowners presented and discussed the developed roadmap for Ternopil region with the Permanent Commission for Economic Development of Ternopil Oblast Council. The Commission members supported the idea of announcing 2017 as the year of entrepreneurship and recommended that Ternopil Oblast State Administration included the actions stipulated in the roadmap to the SME development program and action plan for 2017/18 which is being developed with the expert support of the USAID LEV Program.
1.3.e) Prepare and publish roadmaps in each “priority” area
The roadmap competition winners prepared 5 roadmaps under the supervision of the USAID LEV experts. These roadmaps contain interrelated actions aimed at improving the conditions for SMEs at the regional level in all USAID LEV pilot regions. The policy actions outlined in the Roadmap developed by the Center for Regional Development (Lviv region) for Trostyanets community were grouped into three priority areas: (i) increasing institutional capacity of local governments to cooperate with small businesses; (ii) preparing offers for investors; and (iii) developing entrepreneurship in tourism sector. NGO “Pravo” developed a roadmap for Khmilnyk city, a small city in Vinnytsya oblast. There are three main groups of actions proposed in the document. The first one is aimed at increasing capacities of local authorities to help SMEs in their daily activities, in particular through monitoring and further improvement of services rendered by the Centers of Administrative Services Provision (CASPs). The second block includes the steps to improve regulations, in particular: (i) revision of the current legislation; (ii) development of specific regulations for Khmilnyk city, e.g. regulation on seasonal trade and a comprehensive advertising plan for the city; and (iii) elaboration of Khmilnyk City Development Strategy for 2017-2018. The third block of actions is aimed at improving information support of SMEs and increasing the skills and capacities of entrepreneurs, in particular through establishment of a consultation center for entrepreneurs and business school for young entrepreneurs; development of city’s new information portal; organizing regular seminars for SMEs on public procurement using ProZorro; issuing quarterly newsletters for entrepreneurs etc. The roadmap in Kherson region developed by the Regional Development Agency of Tavria Association of Territorial Communities for Tavria subregion includes the following actions (i) development of a comprehensive monitoring and evaluation system of the regional programs for SME development in Tavria subregion; (ii) implementation of IT-open data system in local government; (iii) introduction of the electronic system for land plots allocation for business purposes; (iv) creation of an information resource center for entrepreneurs; and (v) hosting educational events for young entrepreneurs. The draft SME support programs for Kakhovka and Beryslav raions of Kherson region and the cities of Kakhovka and Nova Kakhovka developed by Tavria Association of Territorial Communities suggests grouping the actions into four categories which is quite typical for such documents: (i) improvement of regulations in the field of SMEs; (ii) financial, credit, and investment support to SMEs; (iii) information support; and (iv) development of SME support infrastructure. The roadmap for Poliskyi, Ivankiv and Pereyaslav-Khmelnytskyi raions of Kyiv oblast developed by NGO “Nadiya” represents rural tourism as the most prospective sector for SME development in the region. It includes such steps as analysis of the region’s tourism potential; raising awareness of local authorities as regards possible ways of SME development in the tourism sector; educating the main target groups in the field of Rural Tourism; creating Municipal tourist information and resource center in Krasiatychi (the administrative center of Poliskyi raion); informing journalists and tour operators about the recreation opportunities in Polissia zone; preparing and regularly updating tourism information materials; and developing of SMEs in rural areas. Only one out of five roadmaps deals with the development of the whole oblast. It is the roadmap of Ternopil oblast developed by the Union of Landowners. The main priorities of the Roadmap encompass creating favorable investment climate, promoting deregulation, improving access to finance, promoting export, contributing to the development of social entrepreneurship, and supporting cooperatives and young entrepreneurs.
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Roadmaps of Lviv and Kyiv regions were published as separate brochures, while other roadmaps were published in the newsletters issued by the winners of the roadmap competition. NGO Regional Development (Lviv oblast) also published a brochure with their suggestions to the Program of Business Support in Lviv oblast for 2017-2020 based on their work on the roadmap. They also developed and published infographics based on these suggestions. The printed brochures were distributed through different channels, in particular disseminated among the members of Regional Councils and officials of Oblast State Administrations, business associations, and NGOs in Lviv and Kyiv regions. The RMC winners in Lviv and Kyiv oblasts also plan to distribute printed materials during other events and individual meetings dedicated to monitoring of the roadmaps implementation process.
1.3.f) Launch a regular newsletter that monitors policy modifications in the “priority” areas
In October-December 2016, all RMC winners continued issuing regular newsletters where they presented different stages of the roadmap development and its further implementation. Finally, according to the agreements with the winners, 33 issues of the newsletter were issued: 8 in Kyiv and Ternopil region, 6 in Vinnytsia and Lviv regions, and 5 in Kherson region. The newsletters covered a wide range of issues: the process of roadmap development, results of the conducted focus groups, roundtables and other advocacy events, detailed information about specific actions suggested in the roadmaps, specific topics that could be interesting for entrepreneurs (e.g. decentralization opportunities for SMEs, information on special credit programs and grants for SMEs etc.), success stories of entrepreneurs.
The recent issue of “Entrepreneur’s Information Digest in Tavria Region”, a newsletter that informs the community of local entrepreneurs on the updates and news The newsletters were regarding the SME development in Tavria region of Kherson Oblast. The newsletter is distributed mostly prepared by the local NGO – winner of the roadmap competition 2016 organized by the electronically via web pages USAID LEV Program and Facebook of the NGOs that won the roadmap competition as well as through official web pages of the regional authorities in the USAID LEV partner regions. The Regional Development Agency of Tavria Association of Territorial Communities, the RMC winner in Kherson region, also printed the second issue of the newsletter dedicated to decentralization opportunities for SMEs and distributed the newsletter during special events organized under the framework of the ІХ International Investment Forum ‘TAVRIA HORIZONS’. Later on, after official closing of the roadmap project, Tavria Association of Territorial Communities plans to issue the newsletter using their own resources. 32 | Leadership in Economic Governance (LEV)
The NGO Women’s Civic Organization “Nadiya” that failed to prepare high quality newsletters in the previous reporting period due to lack of resources, managed to fix the problem by hiring a new person responsible for the newsletter. This step along with continued mentoring on behalf of the USAID LEV experts allowed them to publish all the planned issues of the newsletters, with the quality of materials remaining high. Inspired by the idea of the newsletters issued by the Center for Regional Development (Lviv region), Trostyanets territorial community decided to launch their own regional newspaper dedicated to the social and economic development of their community and SMEs, which can be considered as sustainable result provided by the USAID LEV Program through the roadmap competition.
1.3.g) Organize a series of public debates and advocacy events
In October-December 2016, the winners of the USAID LEV-sponsored roadmap competition continued their advocacy campaigns, which resulted in the official approval of the developed roadmaps as independent documents in Vinnytsia, Lviv, and Kyiv oblasts. Kherson and Ternopil roadmaps became part of the regional SME development programs and action plans for 2017-2018. Vinnytsia region became the first among the USAID LEV regions to approve the roadmap. On October 27, 2016, the Executive Committee of Kmilnyk City Council approved the SME Development Roadmap for the city of Khmilnyk. The Roadmap was developed by NGO "Pravo" based in the city of Khmilnyk, Vinnytsia oblast, the winner of the roadmap competition funded by the USAID LEV Program. The roadmap was adopted as a comprehensive document implying that the city committed to follow all the recommendations envisaged in the document. These recommendations will be also included in Khmilnyk SME Development Program for 2017/18 as well as other local regulatory acts. In November 2016, during the press briefing, the experts of NGO "Pravo” explained in detail how the SME Development Roadmap would transform into local policies. Specifically, they discussed what recommendations of the roadmap would be included in Khmilnyk SME Development Program 2017/18. In November 2016, NGO "Nadiya", the winner of the USAID LEV-sponsored roadmap competition in Kyiv oblast, organized a series of public discussions of the actions to be included in the roadmaps with entrepreneurs and local authorities of Poliskyi, Ivankiv and Pereyaslav-Khmelnitskyi raions of Kyiv oblast. It allowed finalizing the SME Development Roadmap in Kyiv oblast. Given that two of three raions (Poliskyi and Ivankiv) are located in the vicinity of the closed Chornobyl nuclear plant, it was suggested to develop additional attractions for tourists visiting Chornobyl. A representative of Chornobyl tour travel agency offering excursions to the closed Chornobyl plant explained during the meeting that they faced problems with getting permissions to open new tourist attraction in Ivankiv. The dialog between businesses and regional authorities initiated during this event and supported by the USAID LEV Program finally brought positive results and in late December 2016, “Chornobyl tour” got permissions to launch new tourist attraction. This situation only proves that a roadmap project can create additional positive effects for a specific business. In December 2016, the NGO "Nadiya" presented the developed roadmap in each of the three raions as well as at Kyiv Oblast State Administration. As a result of the conducted advocacy campaign, the roadmap was included into the agendas of the regional councils of Poliskyi, Ivankiv and Pereyaslav- Khmelnitskyi raions to be adopted as an independent policy document in January 2017. It is also planned to include the roadmap into the SME support program of Kyiv oblast for 2017/18.
On December 8, 2016, the deputies of Trostyanets united territorial community in Lviv oblast voted to adopt the SME Development Roadmap drafted by NGO Center for Regional Development in cooperation with local businesses and authorities under the USAD LEV-funded roadmap development project. The deputies of Trostyanets united territorial community initially planned to include the Roadmap as an attachment to Trostyanets United Territorial Community Development Strategy, but finally opted to adopt it as an independent policy document. The Head of Trostyanets United Territorial Community stressed that the roadmap would serve as a guide for local authorities in their work with local entrepreneurs.
In early October 2016, the Union of Landowners launched an advocacy campaign at a press conference to present the Roadmap to local media and the general public. Later, they organized a public discussion of the Roadmap with over 60 representatives of the regional authorities, businesses, and expert community. The Resolution of the discussion recommends Ternopil oblast authorities to approve the Roadmap and include action steps outlined in the Roadmap in a number of special regional development programs. On December 22, 2016, Ternopil Oblast Council approved the SME Development Program in
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Ternopil oblast for 2017/18, which includes policy action steps outlined in the roadmap developed by the Union of Landowners and in the Action Plan for SME Development elaborated for Ternopil oblast by the USAID LEV Program. The draft SME support programs based on the roadmap for Tavria subregion (consisting of the respective programs for Kakhovka and Beryslav raions of Kherson region and for the cities of Kakhovka and Nova Kakhovka) developed by Tavria Association of Territorial Communities, were officially included into the agendas of the regional councils to be voted in late December 2016 – early January 2017. All advocacy campaigns of the roadmap competition winners were successful and resulted in transformation of the roadmaps into SME policy support documents.
Task 1.4 Assist in the preparation of position papers, recommendations to improve existing legislation, and other analytical and technical materials to support advocacy campaigns in each “priority” area
This activity is scheduled for future reporting periods.
1.4. a) Facilitate the preparation of position papers related to “priority” areas by business associations and their coalitions as well as provide further analytical and technical support
This activity is scheduled for future reporting periods.
Task 1.5 Expand the organizational and project-management capacity of CSOs that can monitor the business enabling environment
In the reporting period, the LEV team finalized a competition for the selection of business associations (BA) – LEV partners. On October 12-13, 2016, the LEV Program conducted the final stage of the selection process, i.e. a strategic session with the business associations willing to become the USAID LEV partners. The session aimed to present to business associations the components, instruments, and activities of the LEV Program. The representatives of business associations of Kyiv, Kherson, Ternopil, Vinnytsia, and Lviv oblasts participated in the session and shared their expectations from the cooperation with the USAID LEV. During this 2-day event, the business associations had a possibility to introduce their organizations and local activities, get to know the LEV Program experts, as well as establish both business and friendly relations with their colleagues from other Ukrainian regions. In the course of hosting such practical strategic session, the LEV team had a possibility to determine potential areas of cooperation with every organization that joined the session as well as identify common institutional development tools, the application of which pose specific interest for all future partner organizations. Based on the results of the conducted competition, the following organizations were selected as LEV partner organizations:
1. Union of Entrepreneurship Protection (Союз захисту підприємництв) – national level, registered in the city of Kyiv 2. Club of Business People (Клуб Ділових Людей) - national level, registered in the city of Lviv 3. Vinnytsia Club of Business People (Вінницький клуб ділових людей) – Vinnytsia region 4. Business Community “Stina” – Vinnytsia region 5. Association of Constructers “Budindustria” (“Будіндустрія”) – Lviv region 6. Institute of Regional Development (Інститут регіонального розвитку) – Lviv region 7. Union of Land Owners (Спілка власників землі) – Ternopil region 8. League of Entrepreneurs "Ukrainska Sprava” (Українська справа) – Ternopil region 9. Regional Development Agency of Tavria Unitied Territorial Communities (Агенція регіонального розвитку Таврійського об’єднання територіальних громад) – Kherson region 10. Business association "My – Khersontsi” ("МИ - ХЕРСОНЦІ") – Kherson region 11. NGO “GoLocal” – Kyiv region.
The following institutional support will be offered to the selected organizations: Assist in the implementation of assessment /self-evaluation, development of strategic plans and individual institutional development programs. Practical trainings (effective fund-raising, working with the members of the organization and customers, business networks and coalitions, analytical work of the organization, communication and media strategies, etc.).
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Consulting support (marketing of the organization and its services, fund-raising strategy, preparation of the project proposals, cooperation and clustering, legal and accounting issues, etc.). Strengthening of communication capacity (consulting and/or other assistance in developing or updating of communication tools, consulting on the development of information digests, printed publications and other materials). Micro-grants to support specific initiatives (participation in the development of policy and regulatory environment for SMEs, implementation and promotion of policy tools, cross-sector dialogue and partnership). Support the exchange of experience between regions (support of travel of partner organizations to study the experience and share the best practices). Assist in establishing international cooperation (assistance in finding foreign partners, support for joint public events in Ukraine, help in creation of common information resources and networks).
Cooperation with the selected organizations will be implemented during 2017.
Participants of the strategic session with the business associations - potential partners of the USAID LEV Program (October 12-13, 2016)
OBJECTIVE 2 Provide support to the central and local governments in drafting, promoting and implementing effective laws, regulations, and procedures in line with the recommendations identified in Objective 1
Task 2.1 Assist the government in drafting, reviewing, and enacting EU-compliant laws and regulations regarding the SME sector
2.1. a) Apply the deliverables and concepts developed under Objective 1 in the relevant context
On November 30, 2016, the President of Ukraine Petro Poroshenko signed the bill into the Law On Amendments to Certain Legislative Acts of Ukraine as regards Elimination of Administrative Barriers to Exports of Services” that was developed and advocated by the LEV experts in cooperation with private sector. The Law, eliminating overcomplicated currency control procedures affecting the export of services, came into effect on January 3, 2017. Now, the exporters of services can conclude cross-border
35 | Leadership in Economic Governance (LEV) contracts in e-form with no translation required, and invoices can serve as contracts and the primary accounting document. These and other improvements will help legalize the currency earnings from the exported services and reduce the costs to entrepreneurs. For more details please see the LEV success story “Lifting of administrative barriers to export of services will contribute to freelance development in Ukraine”, page 18.
Through the reporting period we also moved on with getting electricity access issue: the Head of the VR Subcommittee on Fuel and Energy Lev Pidlisetskiy included USAID LEV proposal on getting electricity access model as a correction to the draft Law on Electricity Market of Ukraine (#4493) for the second reading.
Another important progress of the quarter is finalized proposal on cancelation of licensing for individual foreign currency accounts abroad. The initiative targets to simplify operations on exports of goods for small entrepreneurs. To address the problem of collecting exports’ proceeds for small entrepreneurs, which practices B2C, we have developed a proposal to cancel licensing for individual foreign currency accounts abroad which was presented at a draft law of Ukraine "On Amendments to the Decree of the Cabinet of Ministers of Ukraine" On Currency Regulation and Currency Control "(to eliminate bureaucratic barriers to export of goods)".
During the reporting period, the LEV Program also actively worked in the areas of outdoor advertising placement, water fund objects, activities of public kindergartens (nursery schools), and state support of the SME development.
Outdoor advertisement In the reporting period, the LEV experts worked on the development of a draft Law on amending some legislative acts of Ukraine as regards outdoor advertising placement. During Q4 2016, the LEV Program held a series of roundtables involving the stakeholders at the local and national level. By the end of the reporting period, the draft Law was prepared for the submission to the Parliament. Please see more details about this LEV activity on page 39.
Regulation of activities of public kindergartens (nursery schools) This LEV’s priority area aims to address a range of comprehensive issues related to the development of women's entrepreneurship in general andthe sector of preschool education services, in particular. Creating favorable regulatory environment for the development of private enterprises in the sector of preschool education will contribute to increased number of entrepreneurs who are willing to provide such services. The rapid growth could be explained by an extraordinary demand for preschool education. Currently, the existing system of public pre-school education facilities and insignificant share of private enterprises in this sector fails to satisfy the current demand for these services. Moreover, insufficient offer of nursery schools prevents a lot of women of working age with small children from being actively involved in the labor market, and possibly from creating or developing their own business. Additionally, creation of favorable regulatory conditions for doing business in the sector of pre-school education will promote mostly women’s entrepreneurship, since it is essentially women who have a natural inclination and interest in providing preschool education services.
In order to address all these issues, the LEV experts in cooperation with the Ministry for Education and Science of Ukraine analyzed the regulation of activities of public kindergartens (nursery schools) and prepared preliminary proposals as for simplification of the regulatory conditions to promote small businesses development, establishment of private kindergartens, and launching of individual professional certification for nursery-school teachers.
The concept envisages the following deregulation activities: - cancellation of licensing; - abolition of regulations establishing mandatory nutrition standards; - changing the certification requirements; - introducing a declarative approach to creating kindergartens; - introducing vouchers for low-income families.
The above mentioned deregulation concept was presented to the Deputy Minister of Education and Science Pavlo Khobzei. The USAID LEV experts conducted 10 focus groups to discuss the concept in the cities of Lviv, Kherson, and Kyiv with educators, directors of state and private kindergartens, and parents. The next steps will include the concept discussion under the working group framework with the relevant representatives of the Ministry of Education and field-specific associations. The deregulation 36 | Leadership in Economic Governance (LEV) concept based on the comments collected during the consultations and focus groups will further serve as a basis for developing a legislative proposal.
Water fund objects In the reporting period, the USAID LEV started developing the Terms of Reference (ToR) for a map of water fund objects for fish farming in the rented ponds of Vinnytsia oblast. At the first stage, the LEV Program decided to create a test version of the database for one district and upon successful trial effort, scale down the experience to other districts of Vinnytsia oblast. The draft ToR was considered and approved by Vinnytsia Oblast State Administration. Through January-February 2017, the LEV team will conduct a tender for selecting a subcontractor for developing the relevant software to create a map of water fund objects. The USAID LEV specialists also participated in the work related to the request of the State Agency for Fisheries of Ukraine to develop a RIA, including M-test of the draft Law on reducing the rent rate for lands of water fund to improve the regulatory environment of doing business in the field of fish farming in the rented ponds. The Program experts analyzed the data provided by the AIC Department of Vinnytsia Oblast State Administration and the State Agency for Fisheries of Ukraine, and came to the conclusion, that the available data was insufficient. Therefore, it was agreed to conduct a survey among the tenants of water ponds, which will be organized by the State Agency for Fisheries of Ukraine using the questionnaires, developed by the LEV experts. The survey is scheduled for Q2 FY 2017.
State support and development of SMEs The USAID LEV experts prepared a document containing suggestions to the structure of the Law “On Support to Small Entrepreneurship”. This document summarizes the results of the second round of discussing proposals on the concept of the Law on SME development, held under the USAID LEV Program framework. This document represents a summary of key provisions, which the USAID LEV experts suggested to include in the law and consists of two parts. The first part provides the proposed structure of the draft Law, and the second part focuses on the theses and paragraphs of the legal provisions that are proposed to be included in the Law. The suggested sections of the Law comprise principles and tasks of the governmental support policy to SMEs, its institutional structure, policy areas and envisaged actions as well as strategic planning of SME development, etc.
2.1 b) Identify through a specific taskforce using feedback from entrepreneurs “bottlenecks” in current legislation and the difficulties of implementing business legislative initiatives
The USAID LEV Program in close cooperation with entrepreneurs identified the problems, which entrepreneurs who practice B2C face as regards the revenues from export activities. In consultations with freelancers and small businesses that use B2C scheme, the USAID LEV found a solution to the above problem (canceling licensing for individual foreign currency accounts abroad).
As per request of business associations, the USAID LEV experts also addressed the problems of arranging parking places, placement of summer terraces of cafes and restaurants as well as placement of temporary construction forms (all above initiatives are addressed under Lviv Regulatory Hub activity) and outdoor advertisement, and usage of water fund objects. The possible ways for addressing these issues were developed in consultations with business-associations.
2.1. c) Regularly examine legislative initiatives relevant to project activities
In this reporting period, the LEV Program maintained close cooperation with the State Regulatory Service of Ukraine and Parliamentary Committee on Industrial Policy and Entrepreneurship. In particular, the team of LEV lawyers processed a legislation analysis request received from the institutions. The LEV legal taskforce regularly monitored and analyzed the SME legislation. For more information please see Section “Legislative Reform Developments” and the LEV Legislation Tracker.
In Q4 2016, the LEV legal experts performed a semi-annual analysis of the novelties of legislation relevant for the SME sector and disseminated through the LEV communication channels: LEV Facebook page and the website.
Task 2.2 Provide technical assistance to support the implementation of legal and regulatory reforms
2.2.а) Technical assistance to help implement effective laws, regulations, and procedures
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M-test implementation
During the reporting period, the USAID LEV Program provided comprehensive assistance to the State Regulatory Service of Ukraine (SRSU) with regard to implementing of effective laws and regulations related to the regulatory policy issues. During the reporting period, the USAID LEV Program conducted 5 trainings on the M-test implementation (for more details please see Area 3. Regulatory Policy issues related to SMEs Development, page 9). The participants received all necessary training materials and handouts published with the USAID LEV support. The LEV experts also developed a Manual on M-test in the form of questions and answers, that was published on the SRSU and LEV websites. In the course of this work, the analytical group closely cooperated with the SRSU experts.
Infographic: a simple-to-understand visual form what M-test is, when and how it is used This infographic is developed by the SRCU and USAID LEV experts.
Also, the LEV experts in close cooperation with the SRCU developed and presented infographic on M- test as a tool for calculating the costs of meeting regulatory requirements for small businesses. This infographic demonstrates in a simple-to-understand visual form what M-test is, when and how it is used, and reveals the general principles of the regulatory impact analysis. Such infographics help to spread and popularize knowledge about the regulatory impact analysis, including M-test, among journalists, representatives of business associations and a wide range of stakeholders.
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2.2. b) Undertake efforts to further elaborate upon developed policy proposals to advocacy groups (the promotion of the developed legislation, along with explanatory work)
Advocacy campaigns conducted within the reporting period:
Outdoor advertisement
Consulting (working meetings) and advocacy (workshops, roundtables) events of the USAID LEV Program conducted in Q3 and Q4 2016 were devoted to regulation of outdoor advertisement placement and resulted in elaboration of a comprehensive draft Law. At the same time, hosting of such events allowed the LEV experts to get a better insight into the existing local problems (which were factored in when developing a draft Law) as well as receive broad support of the specialized and local business associations interested in solving the problems of legal regulation of outdoor advertising.
As part of advocacy campaign in the field of outdoor advertising the USAID LEV Program conducted the following events:
Roundtable on regulation of outdoor advertising and means of identification, October 20, 2016, the city of Sumy
Sumy Association of Outdoor Advertising Operators and Sumy SME Coalition organized the roundtable on legal and regulatory issues of outdoor advertising placement aided and abetted by the USAID LEV Program experts. The USAID LEV experts presented their proposals on how to improve the legislation in the field of outdoor advertising and crosscutting areas as well as discussed them with the representatives of local operators of the outdoor advertising market. The USAID LEV Program invited to participate in the roundtable the representatives of outdoor advertising companies and business associations from Vinnytsia and Poltava oblasts, the city of Kiev as well as the representatives of Ukrainian Association of Visual Industry. The roundtable participants shared their views on the existing problems and the possible ways of addressing them at the legislative level.Participating in the roundtable discussion of the presented proposals were also the deputies of Sumy City Council, the advisor to the Head of Sumy City Council and the representatives of local business associations.
Working meeting with the representatives of Ukrainian Association of Visual Industry November 15, 2016, the city of Kyiv
The working meeting addressed such issues as identifying of common views and differences as regards legislative regulation of problematic issues in the field of outdoor advertising and visual industry (in particular, signs, plates and other identifiers of economic and professional activities). The meeting participants discussed the proposals developed by the USAID LEV experts and adjusted the main provisions of the basic draft Law.
Working meeting with the representatives of the Department of Economics of Lviv City Council on the regulation of outdoor advertising and means of identification November 21, 2016, the city of Lviv
The working meeting was dedicated to studying best practices and experience related to regulation of outdoor advertising and means of identification of places for performing business activities (plates, signs, plaques, etc.) in the city of Lviv. The meeting participants defined critical issues, common views and differences as regards the placement of outdoor advertising and means of identification. The USAID LEV experts presented and discussed the main proposals on how to improve the relevant legislation.
Specialized workshop on advocacy and roundtable on regulation of outdoor advertising and means of identification, November 22, 2016, Lviv
The training was focused on the preparation and conducting of advocacy campaigns, in particular on the example of advocacy campaign on regulation of placement of outdoor advertising and means of identification of the places of performing business activities (plates, signs, plaques, etc.). The workshop
39 | Leadership in Economic Governance (LEV) and training participants included the representatives of companies-operators of outdoor advertising market and the market of visual industries in the city of Lviv, local business associations, and regulatory policy experts (in particular, Lviv Regulatory Hub experts). Participating in the training were also the representatives of associations of outdoor advertising market operators from Vinnytsia oblast and the city of Kyiv, who shared their experience of advocating the interests of the companies-operators of outdoor advertising market. Under the training framework, the participants discussed the problems of legislative regulation as well as implementation of local regulations that determine the procedure for placement of outdoor advertising and means of identification of places for pursuing business activities in the city of Lviv. The roundtable became a platform for discussion of the proposals on how to improve the relevant legislation prepared by the USAID LEV experts.
Working meeting with the representatives of All-Ukrainian Association of Operators of Outdoor Advertising Market, December, 6, 2016, the city of Kyiv
The meeting aimed to determine major proposals as regards legislative resolution of problematic issues related to outdoor advertising (in particular, identifying common views and differences, alternatives and compromising means of regulation). The meeting participants coordinated the key provisions of the final version of the basic draft Law, discussed the format and restrictions of advocacy campaign.
Specialized workshop on advocacy and roundtable on regulation of outdoor advertising December, 20, 2016, the city of Ternopil
The roundtable discussion on lobbying and advocacy in regulation of outdoor advertising held under the framework of the USAID LEV advocacy training in the city of Ternopil (December 22, 2016): the USAID LEV experts presented developed the proposals on the improvement of the procedures for outdoor advertising placement to the representatives of local business associations, entrepreneurs, city and oblast officials.
The training was focused on elaboration and conducting of advocacy campaigns, on the example of advocacy campaign on regulation of outdoor advertising placement. The workshop and training participants included the representatives of companies-operators of outdoor advertising market in Ternopil oblast, local business associations, and public activists. Participating in the training were also the representatives of associations of outdoor advertising market operators from 40 | Leadership in Economic Governance (LEV)
Vinnytsia oblast and the city of Kyiv, who shared their experience of tackling the problematic issues of regulating of outdoor advertising and means of identification of the places of performing business activities (plates, signs, plaques, etc.). During the roundtable, the USAID LEV experts presented and discussed with the participants the main proposals on the improvement of legislation in the field of outdoor advertising.
2.2. c) Training for local and central government officials on improving the regulatory procedures and communicating the results
The USAID LEV Program in the reporting period continued its comprehensive assistance and support to the State Regulatory Service of Ukraine in implementing the Small business test (M-test) through training seminars for civil servants, officials of local governments as well as the representatives of regional business associations. During the seminars, the participants acquired theoretical knowledge and practical skills of applying new regulatory instrument.
In this reporting period, the activities were launched in partnership with the Chamber of Commerce of Ukraine allowing to involve more representatives of the regional associations, since it is critically important to ensure that they are acquainted with the M-test methodology to develop high quality informed regulations, the businesses could benefit from. In this respect, it is important to factor in the role of the regional associations in selecting and providing incoming data for the RIA assessment to regulatory agencies.
The following activities and events were conducted: - Seminar in the city of Dnipro, October 31, 2016, 82 participants; - Seminar in the city Zaporizhzhia, November 1, 2016, 98 participants; - Seminar in the city Ivano-Frankivsk, November 28, 2016, 75 participants; - Seminar in the city Chernivtsi, 29 November 2016, 64 participants; - Seminar in the city Uzhgorod, 16 December 2016, 68 participants;
OBJECTIVE 3 Coordinate with and support stakeholders in the business community to promote economically-practical and fiscally-responsible reforms
Task 3.1 Promote effective cooperation in instituting regulatory improvements affecting business among
3.1.a) Organize a “Modernizing SMEs: Advocacy, Policy Analysis and Monitoring” workshop as an inaugural meeting of the LEV Program in a series of trainings and workshops, during which discussions will be held regarding ways to strengthen SMEs position in the economy, the motivations and needs of entrepreneurs (based on data from surveys and interviews), and the political views of policymakers
The third USAID LEV Annual conference is scheduled for June, 2017.
3.1.b) Organize semi-annual workshops on regulatory policy for think tanks, business associations, and local governments
Within the process of preparation of regulatory policy workshops, the USAID LEV experts continued to work on regulatory impact assessment and M-test examples in close collaboration with the State Regulatory Service of Ukraine (DRSU). In particular, work was concentrated on a set of draft legal initiatives that regulate plants’ sorts register, testing etc. In addition, on December 11th, LEV expert Ilona Sologub presented practical aspects and application of the regulatory impact analysis, including M-test, of the draft CMU decree “On Approval of the Order of Evaluation of the Soil Suitability for Organic Production” (CMU decree #308) prepared within the framework of the USAID LEV Program to the representatives of the parliamentary committees involved in analysis of draft laws.
Over the reporting period, LEV experts Hanna Vakhitova, Vera Nedzvedska and Ilona Sologub actively worked with the representatives of the State Fishery Agency (SFA) on the issue of cost of economic regulation and industry cost structure analysis to revitalize the fishery industry in Ukraine.
Within this activity, on December 7th LEV experts Hanna Vakhitova, Vera Nedzvedska and Ilona Sologub met with the representatives of the State Fishery Agency (SFA) to discuss policies that would help develop fishery in Ukraine, and possible lines of the regulatory impact analysis and advocacy campaign for such policies. The main problems of the industry identified in the course of the discussion were:
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1) rather long (no less than three years) production cycle and high fixed cost in the industry. Thus, lowering land taxes would reduce this fixed cost;
2) a large share of shadow producers in the industry, which stems from two main causes (1) poor inventory count of lakes and ponds and (2) rather high [local] taxes on fish farms (according to legislation, a fish farm should pay for both land under and around the water object and for water itself);
3) complicated legislation concerning property rights. Thus, the land and water objects within a village or town are owned by local community and managed by local administration, whereas water objects outside of village/town borders are managed by oblast administrations. Sometimes, a lake or a pond partially lies within a village/town and partially outside of it, which complicates renting of this object. Furthermore, water constructions (such as dams) are owned by the state, therefore it is unclear who is responsible for their maintenance;
4) Ukrainian tradition of “common” water objects complicates contract enforcement – thus, if a pond or lake is rented by an entrepreneur for fishery, local people often do not recognize the fact that they cannot fish there anymore.
All these problem lead to large share of “shadow” economic activity as it is often more convenient for both an entrepreneur and local government to stick to some informal arrangement rather than develop a formal contract for usage of water objects. To solve the problem, State Fishery Agency proposes to cap the tax rate for land under water objects at 3% (currently it can range from 3% to 12% of the land value and is set by local government). While they admit that this will not solve the problems of fishery farms, they think that it is the most doable thing and will help them gain credibility within the industry.
LEV experts proposed the SFA to organize a focus group with industry representatives to identify the conditions and policies which could help de-shadow it. Specifically, such a discussion can reveal the potential effect of lowering the tax rate and thus lay the ground for regulatory impact analysis of the proposed policy measure. In addition, recommendations for other policy measures can be developed. SFA representatives agreed to contact fish producers on their willingness to participate in such focus group, whereas LEV experts will take on the methodological part.
Task 3.2 Assist SME organizations in conducting effective monitoring and advocacy to ensure favorable business conditions
3.2.a) Strengthen the capacities of SME organizations to conduct advocacy, policy analysis, and monitoring
In the reporting period the LEV team held two regional advocacy trainings in L’viv oblast and Ternopil oblast with the thematic focus on better regulation in outdoor advertising. The choice of the theme was determined both by the requests from local business associations and LEV team work on the draft law on outdoor advertising.
The training in L’viv oblast was conducted on November 22. During the training the USAID LEV experts trained representatives of L’viv SMEs business associations, City Council, companies and business organizations of the region providing advocacy skills in relation to the subject of better legislation and regulation in the area of outdoor advertising. Also the USAID LEV experts shared world best practices on how to influence local regulatory policies, and presented new legal proposals on the improvement of the procedures for outdoor advertising. The training was followed by a roundtable held by USAID LEV experts and representatives of local business association. As a result of the roundtable, a unified resolution was signed demonstrating support for the presented amendments to the legislation developed by the USAID LEV Program. Resolution was drafted by USAID LEV experts and finalized and signed by Business Community Club, L’viv Chamber of Commerce and Industry and L’viv Regulatory Hub. Representatives of Business Community Club are currently spreading the word about the resolution among other operators of the outdoor advertising market and some of them already expressed interest in joining the resolution. The sustainability of the advocacy component of the USAID LEV program has been strengthened by the decision of Business Community Club to open permanent department of advocacy that will help Club members with their advocacy needs. Business Community Club has been recently selected as a partner organization of USAID LEV program given its reputation and widespread network of members among SMEs in different regions of Ukraine.
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Advocacy training in Lviv (November 22, 2016) held by the USAID LEV jointly with its regional partner organization, Business Community Club: the key focus of advocacy training is educating the business community about the main principles of advocacy and lobbying campaigns, grass-roots and grass-tops, mechanisms of coalition building and stakeholders engagement for effective advocacy campaigns.
On December 20th the USAID LEV Program in partnership with Ternopil division of Business Community Club continued efforts to consolidate support in outdoor advertising reform and held the advocacy training in Ternopil. As in trainings in other region, the USAID LEV experts trained participants in the application of the main tools of advocacy and lobbying as well as legal aspects of regulation of outdoor advertising in Ukraine. The audience of the training consisted of the representatives from the business community, public authorities and local experts. The main focus of the first part of the advocacy training was to inform the audience about nature and main principles of advocacy and lobbying campaigns, grass-roots and grass-tops, mechanisms of coalition building and stakeholders engagement for effective advocacy campaigns. M-test, anti-corruption expertise, rules of ethical behavior in competition, oversight and participation in public budgeting at local levels, engagement of territorial communities in campaigns were outlined as essential instruments of strengthening of SME rhetoric during advocacy and lobbying campaigns. USAID LEV experts and moderators also informed the participants about the latest trends and legislative changes related to the development of favorable conditions for small and medium business in Ukraine. The second part of the trainings was devoted to a roundtable discussion on lobbying and advocacy in regulation of outdoor advertising. During the roundtable discussion, the specific proposals on the improvement of the procedures for outdoor advertising placement developed by USAID LEV experts were presented to the representatives of local business associations, entrepreneurs, city and oblast officials. As a result of the roundtable discussion, a resolution supporting changes to the current legislation on outdoor advertising was discussed. Representatives from Ternopil division of Business Community Club are currently finalizing the resolution draft prepared by the USAID LEV representatives.
Task 3.3 Facilitate associations' efforts to support integration of Ukrainian SMEs in European and global markets
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3.3.a) Organize semi-annual workshops for the representatives of business community by means of cooperative efforts with business associations
During the reporting period the USAID LEV team launched joint with the Ukrainian Chamber of Commerce and Industry (UCCI) the training program for SMEs “Comprehensive Approach to Exporting”. The Memorandum with the UCCI was signed by the President of the East Europe Foundation, Viktor Liakh representing USAID LEV Program and Head of the UCCI, Gennadiy Chyzhykov on October 24th in order to joint efforts in promoting export competiveness of the small and medium business through comprehensive training program held in each of the USAID LEV Program target region. The Memorandum outlines the scope of the program and responsibilities of the USAID LEV and UCCI. It stresses the importance of the cooperation between UCCI and USAID LEV Program aimed at stimulating exports by SMEs to the European and global markets. It is also aimed to foster capacity building of the regional chambers of commerce, as their employees will be trained along with the small and medium business representatives to ensure sustainability of the training program.
The Memorandum of Cooperation between the USAID LEV Program and the Ukrainian Chamber of Commerce and Industry (UCCI) signed in the city of Kyiv (October 24, 2016): USAID LEV and UCCI joined their efforts to promote export competiveness of small and medium businesses through a comprehensive training held in each of the USAID LEV Program target regions.
The objective of the training program is to provide small and medium-size businesses with practical skills and comprehensive approach to export activities. The program consists of six one-day training sessions that provide small and medium-size businesses with practical skills and instruments needed to exporting. The program is build around the stages of the exporting process as presented in the outline below. The target audience is small and medium business (up to 80%) as well as representatives of business associations and experts of regional chambers of commerce. Each training is conducted by two experts, one of which has practical experience in exporting. The practical tools that participants will master during the trainings will allow them in the future to build successful strategies to access new markets, develop international contacts and build lasting relationships with partners. The program will be held in each pilot region with the support from regional Chambers of Commerce and Industry. The start of the program is sequential so that participants that for some reasons missed one training can attend it in another region. Only participants, who will complete the entire training cycle, will receive certificates. It is assumed that on average in each region will be trained at least 30 participants.
Comprehensive Approach to Exporting
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Program Outline
Stages of exporting 1. Decision to 2. Market selection (analysis) 3. Preparing for 4. Partner 5. Exporting export exports selection targets Training 1 Training 2 Training 3 Training 4 Training 5 Training 6 Tools that will be studies at each of the stages - Export capacity Market Choice of the Export business Search and Sustainable evaluation of a requirements market, planning and selection of development of firm comparative strategy business the business -Identifying analysis of the partners abroad relations with consumers markets foreign trade partners
The training program started from Kyiv region on November 1, the first training helps participants to evaluate existing capacity to export and draft commercial offer for products with export potential. The second region where the program started in Y2Q4 was L’viv oblast (first training was held on November 29). During the reporting period, USAID LEV jointly with UCCI conducted three trainings (out of six) in Kyiv region and two trainings in L’viv region. Training 2 and Training 3 are focused on increasing capacity of the SMEs to find information about market requirements and analyze potential markets for exporting their products. The trainings in Kyiv and L’viv oblast will continue in Q1Y3. The next region where the program will be launched is Kherson oblast. It is expected that the training program will be completed in all regions by November 2017.
Participants taking notes during the Training #1 held in the city of Lviv (November 29, 2016) within the joint USAID LEV and UCCI Program “Comprehensive approach to exporting”: the program consists of six one-day training sessions that provide small and medium-sized businesses with practical skills and instruments needed to start exporting as well as deals with the stages of exporting process.
3.3.b) Facilitate communication between local and foreign business associations and the domestic chambers of commerce
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Over the reporting period USAID LEV team had made a decision to postpone activities under this Task until later periods taking into account the intensive implementation of the comprehensive export training program.
Task 3.4 Facilitate the public-private sector dialogue to support SME reform agenda
3.4.a) Organize quarterly round table discussions and similar events on SME development, inviting governmental policymakers and SME organizations to engage in dialogue
During the reporting period, the USAID LEV jointly with its main beneficiary, the State Regulatory Service of Ukraine (SRSU), held a press-lunch on the changes in the regulatory policy in the context of SME sector development to journalists from the national and regional media. During the event, the SRSU Head, Ksenia Lyapina also presented the World Bank Global Indicators of Regulatory Governance, according to which Ukraine scored a total of 5.2 out of 6. This high ranking is comparable with the corresponding numbers of the leading countries, particularly, Germany (5.2), France (5.6), Finland (5.0), and Sweden (5.4). The WB Global Indicators of Regulatory Governance measure quality of good regulatory management practices in three core areas: publication of proposed regulations, consultation around their content, and the use of regulatory impact assessments. http://rulemaking.worldbank.org. In 2016, the SRSU and USAID LEV jointly implemented a variety of tasks in the field of the regulatory policy improvement to create a favorable business environment for SMEs in Ukraine at both national and regional levels. These efforts contributed significantly to achieving such a high ranking of Ukrainian regulatory governance reform. During the press-lunch, the mass media representatives had opportunity to learn about regulatory impact analysis tool introduced in 2016 – M-test and examples of its application. The M-test can become a useful tool for journalists analysis as it provides quantitative measures on the impact of different changes in the legislation on the most vulnerable group of economic agents - small business. In addition, the mass media representatives received a set of educational materials on regulatory policy, including the infographics on M-test and its applications, specifically developed by the USAID LEV Program experts.
Task 3.5 Disseminate information on reform actions and the benefits for and practical implications for
3.5.a) Set up a project communication team
The LEV Program communication team was set up in May, 2015.
3.5.b) Organize public information campaigns using existing online platforms, social media, and partner websites to circulate information regarding reform actions.
In the reporting period, the LEV communication team conducted significant efforts on raising Ukrainian public awareness of the Program activities and specific products. In cooperation with LEV program experts, overall 9 expert opinion columns have been written and shared through online platforms, social networks and other media resources. These columns focused on such Program areas as electricity connection, removal of barriers for exporters, legal aspects of regulation of outdoor advertising in Ukraine, etc. In particular, USAID LEV Objective 2 Coordinator Dmytro Boyarchuk published a number of columns in Economichna Pravda, leading online economic outlet, in which he drew attention to the problem of electricity connections and explained to the general public the concept of the two-rate methodology developed by the USAID LEV experts. The particular attention was paid to information support of the Law if Ukraine “On Amendments to Certain Legislative Acts of Ukraine (regarding the removal of administrative barriers to exports of services)”, approved by the Parliament and signed by the President in November, 2014. For this purpose, the USAID LEV legal expert Andriy Savarets wrote two columns for the Business and Forbes-Ukraine magazines, which were reprinted by other media outlets, where he explained the main changes that the new Law would bring for the exporters of services but also outlined further steps to remove barriers for exports.
USAID LEV team continued to use findings from the ABCA 2015 survey to draw attention to the problems that small and medium business faced in Ukraine. Thus, USAID LEV expert Viktoria Bespalko in her column for Economichna Pravda discussed the cost of the inspections of the small and medium business by various government officials using findings from the ABCA to support her arguments.
USAID LEV efforts at the regional level have been also widely recognized by the regional media. In particular a number of media reports were devoted to development of regional strategies, USAID LEV training efforts, implementation of road maps by the winners of the road map competition. The complete media coverage is presented in the appendix to this report.
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Moreover, the LEV communication team continued to work on the improvement of the Program website launched in Q4FY2016. The website serves as an online platform to promote activities and achievements of the USAID LEV, including educational, communication, advocacy activities. In particular, during the reporting period, the concept and ToR of the online catalog for potential exporters was finalized. The catalog is structured in the form of 10 steps for successful exporting with links to USAID LEV own resources and external resources on exporting. The catalog is expected to be functional on the website in Q1Y3. The platform as well enables access by the SMEs to other resources related to advocacy and regulatory policy updates. It also being used as a feedback mechanism for business on the business and regulatory environment changes introduced by the USAID LEV team.
Task 3.6: Strengthen the capacity of business associations to engage with stakeholders in government
3.6.a) Supporting business association in the implementation of field activities to advocate for improvements in the business environment through a re-granting process
This activity is scheduled for future reporting periods
3.6.b) Offer technical support to business associations in the implementation of advocacy campaigns
In the process of preparation of advocacy training in L’viv and Ternopil oblast, USAID LEV team provided legal support to SME coalitions in analysis of the regulatory acts.
As part of the training on advocacy and lobbying USAID LEV experts analyzed local regulations regarding the placement of temporary structures in cities Kakhovka and Nova Kakhovka (on request of the coalition of the Kherson region SMEs), and local regulations on outdoor advertising in Vinnytsia, L’viv, Ternopil for respective coalitions of the SMEs in Vinnytsia, L’viv and Ternopil region. As part of this work, USAID LEV experts made comparative analysis of the local regulations and legal acts of higher jurisdiction (laws, CMU resolutions, etc.) and the identified legally contradicting provisions in the local regulations.
The experts also provided detailed recommendations on possible ways to eliminate these inconsistencies in local acts ranging from appeal procedure to the local councils and initialization of the abolition of local regulations or making amendments to them to appeal procedures of local acts in administrative courts (in the absence of adequate response from local authorities).
During the trainings, the USAID LEV legal experts provided advice on possible use of the existing procedures specified by the law "On Principles of Regulatory Policy" to influence the decisions of local authorities in the sphere of economic activity. In particular, experts highlighted the importance of detecting violations in procedures for disclosure and discussion of regulations as a direct reason for their abolition by the court). USAID legal experts also provided technical assistance in drafting final resolutions for the roundtable discussions held within advocacy trainings.
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3.6.c) Develop informational and educational materials regarding advocacy
In this reporting period, the LEV team distributed during advocacy trainings the booklet on the foundations of advocacy campaigns “Advocacy campaigns as a tool to influence SME policy (in Ukrainian) developed in 2016.
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PLANS
For the next reporting period the following activities under the respective Objectives are planned:
Objective 1: Identify legal, regulatory, and administrative measures that improve the business environment for Ukrainian SMEs.
Issuing of the Quarterly SME Monitoring newsletter (No.4), January, 2017. Developing of the SME Development Strategy for Cherkasy, Vinnytsia, and Lviv oblasts. Finalizing of the SME profile for Kyiv oblast. Launching of the Roadmap Competition 2017. Issuing of the quarterly newsletter on the SME export promotion “Putyvnyk exportera” No.4. Launching cooperation with the selected business association – the USAID LEV partners.
Objective 2: Provide support to the central and local governments in drafting, promoting and implementing effective laws, regulations, and procedures in line with the recommendations identified in Objective 1:
Advocating for the draft Law on simplification of getting electricity access; Implementing the Law of Ukraine “On Amendments to Several Legislative Acts of Ukraine as to Elimination of Administrative Barriers to Export of Services”, (Reg. # 1724-VIII): monitoring the application and facilitating response when necessary. Developing proposals for simplifying foreign economic activity. Submitting to the Parliament and advocating for the draft Law “On Amendments to Certain Legislative Acts of Ukraine (as to outdoor advertisement placement)”. Developing a draft Law related to the use of water fund objects (on decreasing the rental payment (unification). Conducting a workshop to discuss the required skills of CASP staff related to effective and prompt work with the visitors (based on Odesa PSC and Vinnytsia “Transparent offices” experience). The workshop is aimed to create general approach to service standards and commitment to implement it in the leading CASPs of the pilot regions; Developing a regulatory policy curriculum for the National Academy for Public Administration under the President of Ukraine. Developing the “Regulatory Map of Ukraine” in cooperation with the State Regulatory Service of Ukraine. Implementation of the Regulatory Hub Project in Lviv oblast in cooperation with the Ukrainian Catholic University. Conducting seminars on the regulatory policy issues “New Instrument of the Regulatory Impact Analysis - M-test” jointly with the State Regulatory Service of Ukraine and the Ukrainian Chamber of Commerce in all regions of Ukraine.
Objective 3: Coordinate with and support stakeholders in the business community to promote economically-practical and fiscally-responsible reforms:
Conducting a workshop on advocacy for business associations (Kyiv oblasts); Conducting a quarterly roundtable (the topic is to be confirmed). Conducting the training program “Complex Approach to Exporting” - all LEV target oblasts.
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ANNEX 1: LEV ACCOMPLISHMENTS ACCORDING TO PMEP INDICATORS AND MILESTONES FY 2017
Quarter 2 Quarter 3 Quarter 1 Quarter 4 FY 2017 FY 2017 FY 2017 FY 2017 FY 2017 FY 2017 Evaluation and Monitoring Indicators January -March April-June No. October – July - September Targets 2017 2017 Actual December 2016 2017
Goal: To join efforts of a highly-active, reform oriented civil society in Ukraine proactively coordinated with the government to draft the legislation necessary for vital improvements to Ukraine's business climate
Indicator name: Cost of doing business for SME UAH UAH 29,760.71 29,760.71 1.1 (Measures the direct (official fees of procedures) and indirect (USD 1365) (USD 1365) (assessment of time that SME spent on complying the procedures) cost of doing business for SME in Ukraine)
Indicator Name: Person hours of training completed in business enabling environment supported by USG
1.2 assistance (standard indicator 4.6.1-16) 4000 3456 (Measures the number of hours of USG supported training course x Number of people completing that training course)
Indicator Name: Number of days of USG funded technical assistance in business enabling environment provided to counterparts or stakeholders (standard 2000 542 1.3 indicator 4.6.1-17)
(Measures the number of days of USG funded technical assistance in business enabling environment provided to counterparts or stakeholders)
Quarter 2 Quarter 3 Quarter 1 Quarter 4 FY 2017 FY 2017 FY 2017 FY 2017 FY 2017 FY 2017 Evaluation and Monitoring Indicators January -March April-June No. October – July - September Targets 2017 2017 Actual December 2016 2017
Indicator Name: Number of institutions/organizations undertaking capacity/competency strengthening as a 1.4 result of USG assistance 12 5
(Measures the number of institutions/organizations undertaking capacity/competency strengthening as a result of USG assistance)
540 Number of participants in USG Indicator Name: 650 (F321/ M219) supported business enabling environment trainings (Public
(disaggregated by public/private and gender) 300/Private 1.5 (Public 350 391/Private (Measures the number of participants in USG supported business F325/M325 149) enabling environment trainings (disaggregated by public/private and gender)
Objective 1. Identify legal, regulatory, and administrative measures that improve the business environment for Ukrainian SMEs
Index of Business Environment for SME (USAID LEV Index) 1.1.0 0,01 0,01 Unit of Measure: Value of Index
51 | Leadership in Economic Governance (LEV)
Quarter 2 Quarter 3 Quarter 1 Quarter 4 FY 2017 FY 2017 FY 2017 FY 2017 FY 2017 FY 2017 Evaluation and Monitoring Indicators January -March April-June No. October – July - September Targets 2017 2017 Actual December 2016 2017
1.1.1 Number of road maps/policy recommendations developed 11 3
1.2.1 Number of public discussions on business regulatory issues held 15 10
1.2.2. Number of information materials been public available 24 26
Number of policies/regulations/administrative procedures analyzed as 1.3.1 a results of USG assistance (4.6.24A) 15 5
1.3.2 Number of policy papers received by GoU 11 3
1.4.1 Number of pieces of legislation adopted by GoU 5 1
Number of partner CSOs/business associations which improved organizational, financial and managerial capacity (measured by 1.5.1 Organizational Capacity Assessment (OCA) tool) 5 0
52 | Leadership in Economic Governance (LEV)
Quarter 2 Quarter 3 Quarter 1 Quarter 4 FY 2017 FY 2017 FY 2017 FY 2017 FY 2017 FY 2017 Evaluation and Monitoring Indicators January -March April-June No. October – July - September Targets 2017 2017 Actual December 2016 2017
Objective 2. : Provide support to the central and local governments in drafting, promoting and implementing effective laws, regulations, and procedures in line with the recommendations identified in Objective 1
2.1 Number of laws and regulations drafted as a result of USG assistance 5 3
2.2 Number of laws and regulations adopted as a result of USG assistance 5 2
Number of policy reforms/regulations/administrative procedures drafted and presented for public/stakeholder consultations to enhance sector 2.3 governance and/or facilitate private sector participation and 7 4 competitive markets as a result of USG assistance (standard indicator 4.4.1-13)
2.1.1 Number of laws/amendments and regulations drafted with input from the private sector 7 1
2.1.2 Number of laws/amendments and regulations passed with input from the private sector 5 1
2.2.1 Level of corruption in business practices (100 – no corruption, 0 – very corrupt) 27 27
53 | Leadership in Economic Governance (LEV)
Quarter 2 Quarter 3 Quarter 1 Quarter 4 FY 2017 FY 2017 FY 2017 FY 2017 FY 2017 FY 2017 Evaluation and Monitoring Indicators January -March April-June No. October – July - September Targets 2017 2017 Actual December 2016 2017
2.3.1 Number of laws, regulations and procedures which comply with EU standards (drafted with LEV assistance) 5 2
2.4.1 Number of laws, regulations and procedures which increase efficiency of state business regulations 2 1
2.5.1 Number of Sub-National Government Entities receiving USG assistance to improve their performance (2.2.3-5) 5 5
Number of local government professionals trained in improved 300 387 2.5.2 regulatory procedures (male/female) (F150 /150M) (F251/M136)
Number of managers of municipal services using new skills learned 240 387 2.5.3 from training (male/female) (120F/120M) (F251/M136)
2.6.1 Number of innovations and technology initiatives which reduce burdens, corruption and administration costs 1 0
Objective 3. Coordinate with and support stakeholders in the business community to promote economically-practical and fiscally-responsible reforms
3.1 Number of economically rational and fiscally responsible reforms adopted by GOU 3 1
3.1.1 Number of NGOs that participated in business advocacy campaigns conducted 6 13
3.2.1 Number of business associations monitoring progress in business regulatory environment 11 0
54 | Leadership in Economic Governance (LEV)
Quarter 2 Quarter 3 Quarter 1 Quarter 4 FY 2017 FY 2017 FY 2017 FY 2017 FY 2017 FY 2017 Evaluation and Monitoring Indicators January -March April-June No. October – July - September Targets 2017 2017 Actual December 2016 2017
Number of members of the business associations that are trained to 3.3.1 advocate for business enabling environment, professional standards 90 65 and interests of business groups they represent
3.3.2 Number of business advocacy campaigns conducted 5 1
Number of organizations (business associations, NGOs) that are 3.4.1 involved in capacity strengthening activities 12 0
3.5.1 Number of people who increased their awareness about opportunities 200 and benefits of exporting to EU and other global markets 79
3.5.2. Number of SMEs that started to export as a result of enhanced awareness regarding the potential opportunities of foreign markets 10 0
55 | Leadership in Economic Governance (LEV)
ANNEX 2 MEDIA ABOUT THE LEV PROGRAM
Розрахунок ставки за 1 кВт приєднуваної потужності для приєднання до електромереж має здійснюватися на основі реальної собівартості виконання робіт з індексацією на інфляцію – експерти USAID та BRDO 03.10.2016 Джерело: uacrisis.org, http://uacrisis.org/ua/47742-stavki-za-1-kvt
Київ, 3 жовтня 2016 року – Громадськість має пильно стежити за тим, щоб стаття 21 законопроекту 4493 «Про ринок електричної енергії України» про запровадження двоставкової методики приєднання до електричних мереж на момент голосування залишилася у її теперішньому вигляді. Зокрема, це стосується методики розрахунку ставки за 1 кВт приєднуваної потужності. Із таким закликом звернулися представники Офісу ефективного регулювання (BRDO), Програми USAID «Лідерство в економічному врядуванні» (ЛЕВ) та проектної організація «Мережі та системи» під час прес-брифінгу в Українському кризовому медіа-центрі. «Наша пересторога у тому, що навіть якщо базово приймається та модель, потрібно, щоб вона дійшла до фінішу у початковому вигляді, у якому вона є зараз. Ця модель руйнує певні доходи, і тому не завжди буде сприйматися позитивно», – зазначив Дмитро Боярчук, координатор напрямку Програми USAID «Лідерство в економічному врядуванні» (ЛЕВ).
За словами експертів, ліцензіати та Національна комісія, що здійснює державне регулювання у сферах енергетики та комунальних послуг (НКРЕКП) вже розглядають можливість взяти цю методику за основу, проте залишаються суперечності щодо розрахунку ставки 1 кВт приєднуваної потужності. Дмитро Боярчук пояснив, що експерти від громадськості пропонують розраховувати її на основі реальної собівартості виконання робіт з індексацією на інфляцію. «Та методологія, яка пропонується з боку ліцензіатів, базується на вартості активів. За попередніми оцінками, це дорожче, ніж те, що пропонуємо ми», – зазначив Дмитро Боярчук.
Similar republications: - «Розрахунок ставки за 1 кВт приєднуваної потужності для приєднання до електромереж має здійснюватися на основі реальної собівартості виконання робіт з індексацією на інфляцію – експерти USAID та BRDO», tutvse, 03.10.2016, http://tutvse.com.ua/news/rozrahunok- stavki-za-1-kvt-priednuvanoi-potuznosti-dlya-priednannya-do-elektromerez-mae-zdijsnuvatisya-na- osnovi-realnoi-sobivartosti-vikonannya-robit-z-indeksacieu-na-inflyaciu-eksperti-usaid-ta-brdo-38276/ - «Облэнерго будут компенсировать украинцам часть расходов», ВСЕКОММЕНТАРИИ.com, 04.10.2016, http://vsekommentarii.com/news/2016/10/04/12053303.htm - «Облэнерго будут компенсировать украинцам часть расходов», gigamir.net, 04.10.2016, http://gigamir.net/money/economics/pub2848111 - «Облэнерго будут компенсировать украинцам часть расходов», В курсе, 04.10.2016, http://vkyrse.info/oblehnergo-budut-kompensirovat-ukraincam-chast-raskhodov/ - «Облэнерго будут компенсировать украинцам часть расходов», FOREX.NEWS, 04.10.2016, http://forexnews.com.ua/2016/10/oblenergo-budut-kompensirovat-ukraincam-chast-rasxodov/ - «Облэнерго будут компенсировать украинцам часть расходов», Всеукраинская ассоциация пенсионеров, 04.10.2016, http://www.uarp.org/ru/news/1475574617 - «Облэнерго будут компенсировать украинцам часть расходов», vrp-team.ru, 04.10.2016, http://vrp-team.ru/oblenergo-budut-kompensirovat-ukraincam-chast-rasxodov.html - «Эксперты предлагают законодательно определить стоимость присоединения к электросетям», BIN, 04.10.2016, http://bin.ua/news/economics/faec/195217-yeksperty-predlagayut- zakonodatelno-opredelit.html
Як приєднатися до електромереж без "чайових" 13.10.2016 Джерело: Економічна правда, http://www.epravda.com.ua/columns/2016/10/13/607867/ Автор: Дмитро Боярчук, координатор Програми USAID “Лідерство в економічному врядуванні”
Приєднання до електричних мереж — ключова перепона для залучення інвесторів. Активісти розробили модель, яка дозволяє вирішувати проблему онлайн.
Приєднання до електромереж — ключова перепона для залучення інвесторів, і це давно не новина. Про це я писав ще рік тому у статті "Зачаровані" електромережі, або Анатомія інвестиційного прокляття". З того часу було створено багато робочих груп, і певні зрушення відбулися. Як відомо, основною проблемою приєднання до електромереж є непрозорість процесу. Ким би ви не були, вам ніколи чітко не скажуть, скільки буде коштувати приєднання і коли воно може відбутися. Така загадковість процесу створює широкі можливості для "торгів" з клієнтом та "вичавлювання" з нього максимальної вигоди. Українські підприємці якось з цим живуть, а от іноземці просто переносять виробництво в інші країни. Відомі десятки випадків відмови будувати виробничі потужності саме через проблему приєднання. Бізнесменам багато не треба. Вони хочуть знати тут і зараз, на етапі бізнес-плану, скільки їм буде коштувати приєднання і коли воно буде виконане. Без цього ніяке планування, а отже, й масштабні інвестиції, неможливі. На жаль, чинна модель приєднання до електромереж не дає відповіді на ці два прості питання. Саме тому незалежні експерти за підтримки громадського сектора розробили та запропонували іншу модель — "двоставкову методику приєднання до електромереж": ставка за 1кВт потужності, що приєднується, і ставка за 1 км ЛЕП. Суть її проста. Є усередненні дані вартості будівництва елементів електричних мереж на різних класах напруги та в різних умовах завантаженості мереж. Ці дані чітко відповідають на питання, скільки буде коштувати приєднання в конкретній точці для заданого рівня замовленої потужності. Жодних можливостей для торгів. Пройшло немало часу, поки ця ідея почала сприйматися на офіційному рівні. Зараз дана концепція, розроблена незалежними експертами, стала офіційною позицією НКРЕКП. Можна було б відкорковувати шампанське, якби не одне "але": ставка за 1 кВт замовленої потужності залишається дискусійним питанням. У чому ж проблема? НКРЕКП та ліцензіати наполягають, що ця ставка повинна відображати вартість активів обленерго. Натомість незалежні експерти переконані, що ставка мусить розраховуватися на основі відновлюваних вартостей і повинна враховувати клас напруги та реальну завантаженість мереж. За таких умов вартість приєднання для споживачів буде ближча до собівартості виконання робіт і, за оцінками експертів, буде помітно меншою, ніж за умови розрахунків на основі вартості активів. Крім того, ставка на основі відновлюваної вартості інфраструктури виключає можливість для "маневру", тоді як ставка на основі вартості активів залежатиме від того, хто і як буде їх оцінювати. Важливо враховувати стан електричної мережі в районі, де відбувається приєднання. У районах, де незначне завантаження мереж, вартість приєднання буде складатися тільки з вартості будівництва лінії електропередачі, а плата за потужність може навіть дорівнювати нулю. Власне, "ціна питання" і є тією критичною точкою, яка не дає нам спокійно спостерігати за ніби позитивними зрушеннями у цьому процесі. Якщо для бізнесу приєднання можуть бути дешевші, то чому б не користатися цією конкурентною перевагою для залучення інвесторів? Насамкінець — приємна новина. Якщо "двоставкова методика приєднання до електромереж" буде втілена в життя, то послуга приєднання стане доступною онлайн. Якщо у вас є чітка ставка за 1 кВт потужності і ставка за 1 км ЛЕП, то ніщо не буде заважати порахувати вартість приєднання, відмітивши точку на мапі. Так може виглядати послуга приєднання до електромереж: калькулятор обрахунку вартості приєднання
Similar republications: - «Як приєднатися до електромереж без "чайових"», dilovamova.com, 13.10.2016, http://www.dilovamova.com/index.php?page=5&nbdmua=1_1_n639236 - «Як приєднатися до електромереж без "чайових"», В курсе, 13.10.2016, http://vkyrse.info/kak- prisoedinitsya-k-ehlektrosetyam-bez-chaevykh/ - «Як приєднатися до електромереж без "чайових"», UAZMI, 13.10.2016, http://uazmi.net/news/dMvNG6OXZVI8C040f3gcTC
Критична... «розетка» інвестора 7.10.2016 Джерело: «День», https://day.kyiv.ua/uk/article/ekonomika/krytychna-rozetka-investora Коли ви купляєте холодильник чи, скажімо, пральну машину і привозите цю досить коштовну річ додому, то далі не маєте клопоту. Щоб підключити її до електромережі, достатньо вставити вилку
57 | Leadership in Economic Governance (LEV)
електричного шнура в розетку і отримувати задоволення. Інша річ, коли ви неймовірними фінансовими та фізичними зусиллями збудували навіть не позаміський палац, а звичайнісіньку хатинку. Як приєднати її до електромережі? Вам краще цього й не знати до початку будівництва, бо руки мимохіть опустяться. На цю справу в Україні йшли довгі роки й купа грошей, більша частина яких діставалася корупціонерам…
.... Обов’язковою умовою сьогоднішніх процедур приєднання є безпосереднє залучення інвестора до обговорення складних технічних деталей, в яких він за визначенням не орієнтується, — відзначає координатор напрямку програми USAID «Лідерство в економічному врядуванні» Дмитро Боярчук. — Ми повинні увесь процес «замкнути» в середині ліцензіату, вказавши лише точку на карті, де має відбутися приєднання». Тим часом власний досвід автора, щоправда, лише у підключенні побутового споживача (йшлося не про кілометри, а буквально про один метр) свідчить, що маючи всі необхідні документи, а головне — конкретну і недвозначну вказівку виконавцям від керівництва, кількарічну тяганину вдалося без жодних грошей припинити за лічені дні.
Ukrainian SMEs Want Deregulation and Friendlier Tax Authorities OCTOBER 16, 2016 4Liberty.eu, http://4liberty.eu/ukrainian-smes-want-deregulation-and-friendlier-tax-authorities/ BY IRYNA FEDETS
The survey of Ukrainian small and medium enterprises conducted by the USAID LEV Program showed that SMEs are burdened with numerous regulations and inspections that hinder their development. This survey not only quantified the expenses of businesses in terms of time and money that they spend on compliance with the legal procedures, but also revealed how SMEs assess business climate in the country and what they expect from Ukrainian government. While Ukrainian SMEs do not think that economic growth will occur immediately, their long-term outlook is more optimistic – provided that conditions for doing business improve.
Last year, the USAID ‘Leadership in Economic Governance’ (LEV) Program launched a comprehensive survey of small and medium enterprises in Ukraine that aimed to measure the cost of regulations for SMEs and identify impediments for their growth. It is called the Annual Business Climate Assessment (ABCA) survey, and the USAID LEV Program plans to repeat it several years in a row to monitor the changes in the situation for SMEs in Ukraine.
The USAID LEV Program’s objective is to improve business climate in Ukraine by implementing reforms in SME sector. Therefore, in the ABCA survey more than 1800 representatives of Ukrainian small and medium businesses – private entrepreneurs as well as executives and managers of SMEs – were asked what regulations-related problems they face and what kind of policy actions they think Ukrainian government should take to make doing business easier. Also the participants of the survey described the regulatory procedures that their businesses usually have to go through and indicated how much time and money is spent on each procedure.
In late 2015 – early 2016, when the ABCA survey was conducted, Ukrainian small and medium businesses mostly assessed business climate in the country as neutral or negative. Only 6% of the polled SMEs believed that business climate was favorable. The reasons for such a poor assessment are the economic and political problems that businesses in Ukraine have to deal with
This is what Ukrainian businesses will need over the following months and years to grow out of recession. SMEs generally do not expect economic recovery to happen very soon: only 29% of the polled businesses thought that business climate in the country would improve in the first half of 2016, and only 35% of SMEs estimated that their businesses will perform better over this time period. But speaking about a couple of years into the future, SMEs in Ukraine were more optimistic. 53% of them said they hoped to expand their business activity over the following two years. To ensure this, Ukrainian government will have to implement business-oriented reforms: curb regulations, rethink tax procedures, and take action against corruption and political volatility.
Український малий та середній бізнес вимагає дерегуляції та кращого ставлення до себе у податковій 24.10.2016
58 | Leadership in Economic Governance (LEV)
Джерело: think twice, http://thinktwiceua.org/uk/tt-updates/ukrayinskyj-malyj-ta-serednij-biznes- vymagaye-deregulyatsiyi-ta-krashhogo-stavlennya-do-sebe-u-podatkovij/ Автор: Ірина Федець, експерт Програми USAID “Лідерство в економічному врядуванні”
Опитування українських малих та середніх підприємств, проведене Програмою USAID ЛЕВ, показало, що вони обтяжені регулюванням та численними перевірками, що перешкоджає їх розвитку. Це дослідження не лише кількісно обчислило витрати бізнесу з точки зору часу і грошей, які підприємці затрачають на те, щоб виконувати вимоги регулювання, але і показало, як малі та середні підприємства (МСП) оцінюють діловий клімат у нашій країні та чого вони очікують від уряду. Українські МСП не сподіваються на те, що економічне зростання відбудеться миттєво. Разом з тим, довгострокові прогнози у них більш оптимістичні – якщо тільки умови для ведення бізнесу стануть кращими. У минулому році Програма USAID «Лідерство в економічному врядуванні (ЛЕВ)» провела масштабне опитування малих та середніх підприємств в Україні, метою якого було оцінити вартість регулювання для малих та середніх підприємств та виявити перешкоди для їх зростання. Це опитування отримало назву «Щорічна оцінка ділового клімату в Україні» або скорочено – ABCA за англомовною абревіатурою (Annual Business Climate Assessment). Програма USAID ЛЕВ планує повторити це опитування протягом декількох років поспіль, щоб прослідкувати за змінами в ситуації для малого та середнього бізнесу в Україні. В цілому, метою Програми USAID ЛЕВ є покращити діловий клімат в Україні шляхом втілення реформ у секторі малого та середнього бізнесу. Через це у дослідженні ABCA у понад 1800 представників українського малого і середнього бізнесу – приватних підприємців, а також керівників та менеджерів малих та середніх підприємств (МСП) – запитали, з якими проблемами, пов’язаними з регулюванням підприємницької діяльності, вони стикаються, і яких заходів, на їхню думку, повинна вжити влада, щоб спростити ведення бізнесу. Також учасники опитування описали регуляторні процедури, обов’язкові для їхнього бізнесу, та детально вказали, скільки часу і грошей витрачається на кожну процедуру. Наприкінці 2015 – на початку 2016 року, коли було проведено опитування ABCA, малий та середній бізнес України переважно оцінював діловий клімат у державі нейтрально або негативно. Лише 6% опитаних МСП вважали діловий клімат сприятливим. Причинами таких низьких оцінок є економічні та політичні труднощі, з якими доводиться стикатися українському бізнесу. Нестабільна політична ситуація – це найбільша перешкода для ведення бізнесу в Україні: 51% опитаних підприємств повідомили, що вона перешкоджає їхньому розвитку. Малим та середнім підприємствам важко працювати і планувати свою діяльність в умовах, коли державна політика часто є складною і непередбачуваною, а вимоги до ведення бізнесу постійно змінюються. Ця ситуація непевності виснажує МСП і стримує їхнє зростання. Другою за значущістю проблемою для малого та середнього бізнесу України є несприятливі економічні умови, про які повідомляють 39% опитаних МСП. Під впливом війни та економічного спаду купівельна спроможність. Проблеми з оподаткуванням – одна з основних перешкод для ведення бізнесу в Україні, яка охоплює як власне розмір податкових платежів, так і складність процедур, пов’язаних зі сплатою податків. Високі податкові ставки створюють труднощі для МСП
Експортер без бар’єрів: що дає ухвалення парламентом законопроекту №4496 02.11.2016 Джерело: Бізнес http://www.business.ua/zakonn/eksporter_bez_bar_r_v_shcho_da_ukhvalennya_parlamentom_zakonopr oektu_4496-355669/ Автор: Андрій Саварець, експерт з правових питань Програми USAID “Лідерство в економічному врядуванні” Прийнятий парламентом законопроект №4496 здешевить ведення бізнесу українським експортерам, збільшить валютну виручку України та зробить українців зручними партнерами для іноземців Наразі вітчизняні експортери послуг – ІТ-розробники, дизайнери, економісти, юристи, архітектори тощо –щоб отримати валютну виручку, яка вже надійшла на їхні рахунки, мають доводити, що кошти отримані ними саме у зв’язку з зовнішньоекономічною діяльністю: треба надати перекладені українською мовою контракти і акти виконаних робіт з підписами і печатками. Такий порядок стимулює експортерів залишати валюту за кордоном. 59 | Leadership in Economic Governance (LEV)
Ключова річ валютного контролю – це повернення валютної виручки в обумовлений законом термін, що складає 180 (а фактично 120) днів. Датою початку відліку цього терміну є момент надання послуг, який має підтверджуватися датою підписання акту виконаних робіт. При цьому, акти виконаних робіт часто підписуються «заднім» числом або взагалі «малюються», оскільки іноді іноземні контрагенти не розуміють, що від них вимагається. Тобто можна «намалювати» будь-яку дату, і таким чином уникнути «пропуску» строку. Що контролює банк? Справжність підпису іноземного контрагента? Чи автентичність печатки? Наразі немає практично жодних законодавчих перешкод для залишення валюти за кордоном або не повернення її в установлений строк. Для тих, хто не планує заводити валютну виручку в Україну, валютний контроль – фікція, для інших – головний біль. Також, аби обійти забюрократизованість валютного контролю, експортери послуг користуються електронними платіжними системами, і валютна виручка залишається «в тіні», що не сприяє покращенню платіжного балансу країни. Прийнятий 3 листопада законопроект № 4496 створює умови для того, щоб експортери послуг заводили валютну виручку в Україну, а не користуватися електронними платіжними системами. Законопроект також передбачає спрощення процедури укладення зовнішньоекономічних договорів (контрактів), зокрема шляхом виставлення інвойсу або шляхом прийняття публічної оферти. І все це можливо буде здійснювати в електронній формі. Значно спрощується бухгалтерський облік та фінансова звітність, оскільки той самий інвойс виступатиме первинним документом, а не акт виконаних робіт, як це передбачено чинним порядком. Ще один важливий момент! Не потрібен переклад документів, якщо вони викладені англійською мовою. Цей тягар має бути перекладений на плечі банків. Прийнятий закон створить стимули для повернення валютної виручки при експорті послуг. Це важливо для стабілізації курсу гривні. Також важливим є спрощення ведення підприємницької діяльності для малого та середнього бізнесу. По-перше, українці стають більш привабливими діловими партнерами для іноземних замовників, яким не треба пояснювати навіщо пересилати в Україну документи з «мокрими» печатками та підписами. По-друге, існуючі адміністративні бар'єри не будуть додатковими стимулами для переїзду, наприклад ІТ-розробника, у країни з більш сприятливим регуляторним середовищем.
Нардепи дозволили фрілансерам укладати зарубіжні договори по email 3.11.2016 Джерело: Економічна правда, http://www.epravda.com.ua/news/2016/11/3/609962/ Верховна Рада схвалила закон щодо усунення адміністративних бар'єрів для фрілансерів та дозволяючий укладати зарубіжні договори по email і інвойсу. За прийняття закону 4496 проголосували 270 нардепів. Згідно з чинним законодавством, експорт послуг підлягає валютному контролю. Для зняття експортної операції (експорт послуг) з контролю банк змушений вимагати від експортера послуг подання: зовнішньоекономічного договору; надання акту виконаних робіт; переклад документів українською мовою; скріплення документів підписами і печатками. Необхідність виконання вимог банків створює зайве адміністративне навантаження: зовнішньоекономічний договір, особливо для малого та середнього бізнесу (МСБ), часто не існує як такий та/або викладений тільки іноземною мовою (публічна оферта), відбиток печатки також відсутній, оскільки сторони обмінюються документами виключено у електронній формі. Прийняття закону дозволить максимально зменшити адміністративні бар’єри під час процедур укладення зовнішньоекономічних договорів (контрактів), зарахування валютної виручки, а також бухгалтерського обліку та фінансової звітності для малого та середнього бізнесу. У пояснювальній записці зазначається, що переважна більшість фрілансерів внаслідок складності і надмірної бюрократизації процесу не працює у легальному полі, а користується системами Payoneer, PayPal тощо. Через це обсяги експорту послуг дедалі скорочуються. У 2015 році експорт послуг склав лише 83% від показника 2014 року (дані Держстату). Комп’ютерних послуг надано на майже 966 млн. дол. США, а це лише 88% від обсягів 2014 року. Цей закон, на думку нардепів, дозволить максимально зменшити адміністративні бар’єри під час процедур укладення зовнішньоекономічних договорів (контрактів), зарахування валютної виручки, а також бухгалтерського обліку та фінансової звітності. "Це значно зменшить часові та грошові витрати всіх, хто поставляє послуги за кордон. Тому всі фрілансери, айтішніки, юристи, бухгалтери, дизайнери та інші надавачі послуг, однозначно відчують полегшення в своїй діяльності", – зазначає один із авторів законопроекту, народний депутат Вікторія Пташник.
60 | Leadership in Economic Governance (LEV)
Законопроект був розроблений Програмою USAID "Лідерство в економічному врядуванні" спільно із Міністерством економічного розвитку та торгівлі, за участі Асоціації "Інформаційні технології України", фріланс-біржі Upwork, Центру економічної стратегії та EasyBusiness.
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Дихати дозволено: як законодавці спростили життя українським фрілансерам Що за новації містяться у законі, на який так довго чекали вітчизняні експортери послуг 4.11.2016 Джерело: Forbes Україна, http://forbes.net.ua/opinions/1423512-dyshat-mozhno-kak-zakonodateli- uprostili-zhizn-ukrainskim-frilanseram Автор: Андрій Саварець, експерт з правових питань Програми USAID “Лідерство в економічному врядуванні”
Учора, 3 листопада, Верховною Радою було прийнято у другому читанні проект закону України №4496 «Про внесення змін і доповнень до деяких законодавчих актів (щодо усунення адміністративних бар’єрів для експорту послуг)», більш відомий широкій громадськості як «Закон 61 | Leadership in Economic Governance (LEV)
про фрілансерів». «За» цей документ проголосувало 270 депутатів. Як наголошували його розробники напередодні голосування, прийняття цього законопроекту дозволить максимально зменшити адміністративні бар’єри під час процедур укладення зовнішньоекономічних договорів (контрактів), зарахування валютної виручки, а також бухгалтерського обліку та фінансової звітності для малого та середнього бізнесу. Історія взаємовідносин українських експортерів послуг з вітчизняним законодавством – складна та суперечлива. При тому, що наша країна вже декілька років посідає топові позиції у рейтингах експортерів ІТ-послуг у світі, а ринок українського фрілансу оцінюється державними структурами у сотні мільйонів доларів, питання легальної співпраці з роботодавцями та офіційного отримання оплати за свої послуги були вкрай зарегульованими. Певне полегшення надійшло наприкінці минулого року – у вигляді інструкції щодо формування грошових відносин (отримання валютної виручки), розробленої провідними фріланс-біржами та погодженої з Національним банком і найбільшими фінустановами. Законопроект був розроблений Програмою USAID «Лідерство в економічному врядуванні» спільно із Міністерством економічного розвитку та торгівлі, за участі Асоціації «Інформаційні технології України», фріланс-біржі Upwork, Центру економічної стратегії та EasyBusiness. Спеціально для Forbes основні віхи підготовки цього документу та його позитивні наслідки коментує експерт з правових питань Програми USAID «ЛЕВ» Андрій Саварець. Улітку 2015 року Програма USAID «Лідерство в економічному врядування» вивчала головні перепони, які заважають експортній діяльності малого та середнього бізнесу. У ході спілкування із підприємцями ми визначили, що не завжди питання маркетингу, позиціонування себе на зовнішніх ринках є причиною зменшення українського експорту. Перш за все, провина в українських регуляторних бар’єрах. Для вітчизняних експортерів послуг – ІТ-розробників, економістів, юристів, дизайнерів, архітекторів тощо – такою перешкодою були адміністративні бар’єри. Саме вони, зокрема, відіграли відчутну роль у зменшенні обсягів експорту послуг з України – з $11,5 млрд у 2014 році до $9,6 млрд у 2015- му. Згідно з законодавством, експорт послуг підлягав валютному контролю. Для зняття експортної операції (експорт послуг) з контролю банк змушений був вимагати від експортера послуг подання: зовнішньоекономічного договору; надання акту виконаних робіт; переклад документів українською мовою; скріплення документів підписами і печатками. Необхідність виконання цих вимог банків створювала зайве адміністративне навантаження: зовнішньоекономічний договір, особливо для малого та середнього бізнесу (МСБ), часто не існує як такий та/або викладений тільки іноземною мовою (публічна оферта), відбиток печатки також відсутній, оскільки сторони обмінюються документами виключено у електронній формі. Отже, у підсумку можна констатувати, що ухвалення парламентом законопроекту №4496 матиме декілька позитивних наслідків як для малого та середнього бізнесу, так і для економіки України в цілому. Звільнення від необхідності шукати «обхідні шляхи» для отримання зароблених коштів здешевить ведення бізнесу експортерам послуг. Легалізація валютної виручки сприятиме активнішому надходженню валюти до країни, що допоможе стабілізувати платіжний баланс, а отже – і курс гривні. А відмова від зайвої забюрократизованості та використання «сірих» схем під час співпраці підвищить привабливість українських фрілансерів у якості бізнес-партнерів для іноземних замовників. Що, у свою чергу, з часом зіграє на відродження інвестиційної привабливості України.
Similar republications: - “Дышать можно: как законодатели упростили жизнь украинским фрилансерам», «Экономика», 4.11.2016 http://www.economica.com.ua/finance/article/65215136.html - “Дышать можно: как законодатели упростили жизнь украинским фрилансерам», uazmi, 4.11.2016 http://uazmi.net/news/dkp5mwqLlUgv5zVfeoe4gu - “Дышать можно: как законодатели упростили жизнь украинским фрилансерам», Вкурсе, 4.11.2016 http://vkyrse.info/dyshat-mozhno-kak-zakonodateli-uprostili-zhizn-ukrainskim-frilanseram/ - “Дышать можно: как законодатели упростили жизнь украинским фрилансерам», Днепр вечерний, 4.11.2016 http://dv-gazeta.info/opinion/dyishat-mozhno-kak-zakonodateli-uprostili-zhizn-ukrainskim-frilanseram.html - “Дышать можно: как законодатели упростили жизнь украинским фрилансерам», Курс, 4.11.2016 http://kurs.com.ua/novost/kak-zakonodateli-uprostili-jizn-ukrainsk-r332255 - “Дышать можно: как законодатели упростили жизнь украинским фрилансерам», fin.biz, 4.11.2016 http://1fin.biz/zakon-o-frilanserah
62 | Leadership in Economic Governance (LEV)
Украина упростила процедуру присоединения к энергосетям для бизнеса 23.11.2016 Джерело: Delo.ua http://delo.ua/business/ukraina-mozhet-uprostit-podkljuchenie-k-energosetjam-dlja-biznes-325180/
Нацкомиссия упростила методику расчета стоимости присоединения к сетям энергоустановок мощностью от 160 кВт до 5000 кВт. Теперь облэнерго не смогут накручивать «лишние» платежи для своих новых клиентов. Рейтинг Doing Business используется для оценки госрегулирования бизнеса в 190 странах. В наиболее свежем рейтинге (по итогам 2015 года) Украина расположилась на 81 месте. По мнению его составителей, у нас несложно получить кредит (19 место) и начать бизнес (24 место). Куда сложнее получить разрешение на строительство (137 место) или присоединиться к энергосетям (140 место).
…Новая методика должна убрать привилегированность и сделать присоединение доступным и прогнозируемым — хотя бы в цене. По словам Грегирчака, она упрощает расчет платы настолько, что предприниматель может просчитать стоимость присоединения с вероятностью в 90-95%. Опосредовано это сможет повлиять и на сроки подключения, хотя момент в документе отдельно не прописан…
«Речь идет о введении фактически стандартного присоединения для случаев до 5000 кВт. Единственное — к присоединениям от 160 кВт до 5000 кВт будет выделяться линейная составляющая (расстояние от подключаемого объекта до существующей сети — ред.)», — объясняет Дмитрий Боярчук, координатор Программы USAID «Лідерство в економічному врядуванні» (ЛЕВ), исполнительный директор CASE Украина.
Перевірки бізнесу: чого чекати від держнагляду у 2017 році 30.11.2016 Джерело: Економічна правда, http://www.epravda.com.ua/publications/2016/11/30/612656/ Автор: Вікторія Беспалько, експерт Програми USAID “Лідерство в економічному врядуванні” Верховна Рада ухвалила низку актів, які передбачають зменшення кількості перевірок бізнесу контрольними органами та чітке планування таких заходів. Чи полегшать нові закони життя малого та середнього бізнесу? За новим законодавством передбачається чітке планування та зменшення кількості перевірок бізнесу органами державного нагляду, конкретизація та звуження переліку підстав для проведення позапланових перевірок, розширення прав тих, кого перевіряють, конкретизація принципів державного нагляду. Водночас до кінця 2017 року планується запровадження мораторію на планові перевірки більшістю органів державного нагляду. Негативний вплив державного втручання на бізнес підтверджують результатикомплексного дослідження "Щорічна оцінка ділового клімату" Annual Business Climate Assessment — ABCA. Дослідження проводив Інститут економічних досліджень та політичних консультацій у листопаді 2015 року — січні 2016 року в рамках Програми USAID "Лідерство в економічному врядуванні". Дані ABCA показують, наскільки обтяжливий для малого та середнього бізнесу державний контроль. Ситуація з державним наглядом дозволяє зробити певні припущення та висновки щодо запровадження нового законодавства. За даними дослідження, у 2015 році перевірки проходило кожне друге мале та середнє підприємство. Здебільшого бізнес інспектували органи пожежної охорони — про такі перевірки повідомили 22% бізнесменів. З податківцями мали справу 18% підприємців, із санітарно- епідеміологічною службою — 10%. Скільки часу бізнес витрачає на перевірки Мораторій не вирішив проблем з обтяжливістю державного нагляду у 2015 році: підприємці, які потрапили під перевірки, мали значні часові та фінансові витрати.
63 | Leadership in Economic Governance (LEV)
В середньому органи державного нагляду перевіряли фірми чотири рази на рік, хоча 23% компаній повідомили, що їх перевіряли частіше. На проходження усіх перевірок підприємство витрачало в середньому 14 днів на рік… Скільки штрафів сплачував бізнес після перевірок Про обтяжливість перевірок для бізнесу свідчать і його грошові витрати. За повідомленнями підприємців, у 2015 році кожна третя перевірка закінчувалася сплатою штрафів. Також були випадки неофіційних платежів (хабарів) і конфіскації продукції — відповідно 6% і 1% малих та середніх підприємств.… Мораторій-2015 vs мораторій-2016-2017 Очевидно, що для полегшення ведення малого та середнього бізнесу в Україні необхідне реформування чинної системи державного нагляду… Вплив мораторію-2016-2017 може бути меншим, ніж у 2015 році, адже він стосується планових перевірок і не поширюється на низку державних органів.
На Львівщині відкрили перший в Україні регуляторний хаб 15-12-2016 Джерело: Львівська обласна державна адміністрація, http://loda.gov.ua/news?id=24948
У четвер, 15 грудня, в області відкрили перший в Україні хаб із регуляторної політики. Меморандум про його створення підписали у Львівській ОДА. Участь у цій знаковій події взяла голова Державної регуляторної служби України Ксенія Ляпіна.
Регуляторний хаб – це спільна ініціатива Програми USAID "Лідерство в економічному врядуванні" та Школи управління Українського католицького Університету за підтримки Львівської облдержадміністрації та Комітету підприємців Львівщини.
Як зазначив у вступному слові перший заступник голови ОДА Ростислав Замлинський, одним із пріоритетів облдержадміністрації є розвиток підприємництва, який неможливий без створення належного клімату. "Хочу подякувати всім, хто долучився до процесу створення Львівського регуляторного хабу. Я впевнений, що лише разом, об'єднавши наші зусилля, ми зробимо все для того, щоб Львівщина і, зрештою, вся Україна, стали місцем безпечного і прибуткового ведення бізнесу", - наголосив він.
На думку експертів, у результаті створення регуляторного хабу представники громади отримають прозорішу, стійкішу до корупційних викликів, а також ефективнішу систему місцевого самоврядування.
Слід зазначити, що завдання хабу полягає в аналізі проектів та вже існуючих місцевих регуляторних актів включно з розрахунками М-тесту, розробці на основі кращого існуючого досвіду регуляцій з питань, які є найбільш пріоритетними й болючими для підприємців та громад, щоб згодом поширити нові напрацювання на інші регіони країни.
Крім того, ініціатива має також посилити управлінський потенціал регіону, залучаючи молодих спеціалістів (студентів і випускників Українського католицького університету та інших ВНЗ Львівщини) до роботи в хабі. Зокрема, уже зараз його експерти розпочали роботу за такими напрямками: регулювання розміщення літніх майданчиків та паркування, проведення інвентаризації майна об’єднаних територіальних громад та розподіл коштів бюджету розвитку між селами - членами ОТГ.
Similar republications: «На Львівщині відкрили перший в Україні регуляторний хаб», lviv.tv, 15-12-2016, http://www.lviv.tv/news/lvivshhina/na-lvivshhini-vidkrili-pershij-v-ukra%d1%97ni-regulyatornij-xab/ «На Львівщині відкрили перший в Україні регуляторний хаб», ЗУНР.ІНФО, 15-12-2016, http://zunr.info/news/2016/12/16/533774-na-l-vivshchyni-vidkryly-pershyy-v-ukrayini-regulyatornyy-hab- foto.html «На Львівщині відкрили перший в Україні регуляторний хаб», galinfo.com.ua, 15-12-2016, http://galinfo.com.ua/news/na_lvivshchyni_vidkryly_pershyy_v_ukraini_regulyatornyy_hab_247288.html
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«На Львівщині відкрили перший в Україні регуляторний хаб», Стрічка.ком, 15-12-2016, http://strichka.com/article/56938057 «У Львові відкрили перший в Україні регуляторний хаб», Щоденний Львів, 15-12-2016, http://dailylviv.com/news/ekonomika/u-lvovi-vidkryly-pershyi-v-ukrayini-rehulyatornyi-khab-39771 «У Львові відкрили перший в Україні регуляторний хаб», Стрічка новин Львова, 15-12-2016, http://uanews.lviv.ua/society/2016/12/15/120175.html «У Львові відкрили перший в Україні регуляторний хаб», Depo.Львів, 15-12-2016, http://lviv.depo.ua/ukr/lviv/na-lvivshchini-vidkrili-pershiy-v-ukrayini-regulyatorniy-hab-20122016111700 «У Львові відкрили перший в Україні регуляторний хаб», ЛІГА:ЗАКОН, 15-12-2016, http://jurliga.ligazakon.ua/news/2016/12/15/154148.htm «У Львові відкрили перший в Україні регуляторний хаб», Львівський портал, 15-12-2016, http://portal.lviv.ua/news/2016/12/15/u-lvovi-vidkrili-pershiy-v-ukrayini-hab-iz-regulyatornoyi-politiki «У Львові відкрили перший в Україні Хаб з регуляторної політики: що це дасть місту», Твоє Місто, 15-12-2016, http://tvoemisto.tv/news/u_lvovi_vidkryly_pershyy_v_ukraini_hab_z_regulyatornoi_polityky_shcho_tse_da st_mistu_82702.html «У Львові відкрили перший в Україні Хаб з регуляторної політики: що це дасть місту», ГуРу, 15-12-2016, http://news.guru.ua/news/527525/U_Lvivskij_oblasti_vidkrili_pershij_v_Ukraini_reguljatornij_khab.html «Сьогодні відкрився перший в Україні реґуляторний хаб.», zbruc.eu, 15-12-2016, http://zbruc.eu/node/60017 «Регуляторний Хаб і його завдання - це аналіз місцевих проектів і актів з розрахунком М- тесту, розробка нового досвіду та регуляції питань влади, які є болючими для підприємців і громади», ПравдаТут, 15-12-2016, http://pravdatyt.com/news/37106-u-lvov-v-dkrili-pershii-v-ukra-n- hab-z-reguljatorno-pol-tiki.html «УКУ та USAID відкрили перший в Україні хаб із регуляторної політики», Український Католицький Університет, 16-12-2016, http://ucu.edu.ua/news/37913/ «На Львівщині відкрили перший в Україні хаб із регуляторної політики», Український журнал "Економіст", 16-12-2016, http://ua-ekonomist.com/14325-na-lvvschin-vdkrili-pershiy-v-ukrayin-hab-z- regulyatornoyi-poltiki.html
Рекламный коллапс Киева: все сложно, но выход есть 16-12-2016 Джерело: Forbes, http://forbes.net.ua/opinions/1425645-reklamnyj-kollaps-kieva-vse-slozhno-no-vyhod- estttps://www.opendemocracy.net/od-russia/vitaliy-atanasov/dni-minuvshey-slavy Автор: Александр Плива, эксперт Программы USAID «Лидерство в экономическом управлении»
На фоне общественного резонанса, вызванного массированным сносом киевских МАФов, немного в тень отошла проблема согласования или демонтажа (при отсутствии согласования) рекламоносителей в столице. Вопросы благоустройства города, в том числе и через упорядочение количества, качества и локации рекламных площадей, уже неоднократно поднимались на различных уровнях ─ от общественности до городских властей. Но поскольку эта проблема находится на пересечении бизнес-интересов нескольких групп влияния, ее решение требует взвешенности и постепенности. Между тем эксперты программы USAID «Лидерство в экономическом управлении» провели тематические исследования и выработали рекомендации по решению этого непростого вопроса. Главные выводы «ЛЭУ» предлагает читателям Forbes. Ситуацию с рекламой в столице сегодня лучше всего характеризуют следующие словосочетания: длительная неопределенность, отсутствие доверия, взаимное неуважение, манипулятивная открытость и постоянное нарушение законодательства. Перечень можно продолжить, но, очевидно, что такие характеристики присущи не только этой, а и многим другим сферам предпринимательской деятельности в Киеве. Чтобы что-то изменить, нужна не банальная констатация фактов, а тщательный анализ причин и объективное описание последствий, на основании которых можно формулировать сценарии на будущее. Поэтому для начала краткий экскурс в прошлое. Главной проблемой любого бизнеса в Украине был и остается чрезмерный интерес к нему со стороны представителей власти, и реклама является более чем ярким примером такой закономерности. В стране перманентного избирательного процесса, а тем более в ее столице, возможность использования одного из самых эффективных масс-медиа для влияния на электорат и для борьбы с политическими конкурентами (и освоения соответствующих бюджетов) играет определяющую роль. Поэтому экономические отношения в этой сфере обычно искажаются
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действиями различных групп влияния, что, в свою очередь, имеет многочисленные негативные побочные эффекты. … Прозрачность деятельности нового рабочего органа должно обеспечить создание действительно
открытой базы рекламных средств, своевременная обработка заявлений в порядке очередности их поступления, передача управлению полномочий по заключению договоров распространителями рекламы и перечисление платы за ее размещение на коммунальной собственности непосредственно в бюджет города Киева. А параллельно должна вестись работа над утверждением исполнительным органом Киевского городского совета нового порядка выдачи разрешений и изменениями в действующие решения Киевского городского совета с учетом интересов общества, малого, среднего и крупного бизнеса, при условии надлежащего контроля со стороны общественности и взаимного уважения всех сторон. И тогда все будет хорошо... Решить значительное количество проблемных вопросов в рекламной сфере, которые есть не только в столице, поможет долгожданное внесение изменений в рекламное законодательство. Программа USAID «Лидерство в экономическом управлении» вместе с партнерами, в активном диалоге с органами государственной власти, бизнес-ассоциациями, коалициями малого и среднего бизнеса сейчас ведет работу над комплексным законопроектом, который будет представлен на широкое обсуждение в ближайшее время.
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Similar republications: «Рекламный коллапс Киева: все сложно, но выход есть», UAZMI, 16-12-2016, http://uazmi.net/news/bzG0THatnKnE8sU3QDvxJS «Рекламный коллапс Киева: все сложно, но выход есть», ВЕСТНИК УКРАИНЫ, 16-12-2016, http://vestnik-ua.com/novosti/item/7353-reklamnyj-kollaps-kieva-vse-slozhno-no-vykhod-est
Реформа приєднань до електромереж: сюжет вартий Агати Крісті 21-12-2016 Джерело: Економічна правда, http://www.epravda.com.ua/columns/2016/12/21/615398/
Автор: Дмитро Боярчук, координатор Програми USAID “Лідерство в економічному врядуванні”
7 листопада Дмитро Вовк, голова Національної комісії, що здійснює державне регулювання у сферах енергетики та комунальних послуг (НКРЕКП), оголосив про чергову перемогу.
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Комісія прийняла постанову, яка спрощує правила приєднань споживачів до електромереж потужністю від 160 кВт до 5 мВт. Спостерігачі завмерли в очікуванні стрімкого покращення рейтингу України у Doing Business, однак в цій історії не все так просто. Чому рішення НКРЕКП дуже "особливе"? Слід почати з того, що постанова була прийнята напередодні голосування за закон "Про ринок електричної енергії України", де вже закладалася погоджена та відшліфована модель приєднання споживачів до електромереж. Дана модель проходила через багато фільтрів та експертних груп і базувалася на прозорості ціноутворення. Це саме те, чого не вистачає іноземним інвесторам у відносинах з обленерго у питаннях приєднання до електромереж. Детально про це я писав у статті "Як приєднатися до електромереж без "чайових". Модель погодила і навіть підтримала НКРЕКП. Єдиним каменем спотикання була вартість ставки за 1 кВт приєднуваної потужності. Ліцензіати і НКРЕКП наполягали на методології, яка закладала у вартість ставки певну "премію". Незалежні експерти та громадськість наполягали на тому, що "премія" — це зайве. Питання вийшло у публічну площину і саме на цьому етапі на сцені з'являється постанова НКРЕКП про 5000 кВт, яку як перемогу ретранслюють усі реформатори. Сама постанова не така погана, тільки є одне але: це невелика жертва у великій грі збереження шалених "чайових" від ринку приєднань. Суть у тому, що постанова спрощує життя лише близько 10% приєднань — саме стільки приєднань відбувається у діапазоні від 160 кВт до 5000 кВт. Крім того, вартість усередненого 1 кВт приєднань обіцяє бути далеко не дешевою. Раніше НКРЕКП розглядала запровадження подібної схеми за умови встановлення додаткової абонплати за використання приєднуваної потужності. Іншими словами, в очах пересічних спостерігачів постанова НКРЕКП "нарешті вирішила болючу проблему приєднань до електромереж". І тепер саме час тихо займатися "коригуванням" законопроекту. В одній з останніх версій правок до законопроекту ми знайшли ось таку формулу: (110(150)/(20)10(6) кВ та 110(150)/35(20)/(20)10(6) кВ). Може здатися, що це чисто технічні речі. Справді, хто з нормальних людей може подумати, що в цьому наборі цифр закладені аж дві схеми для заробляння грошей на приєднаннях? Перша схема — законодавче закріплення переведення всієї електромережі України на клас напруги 20 кВ. За прибутковістю цей проект — те саме, що провести кілька чемпіонатів "Євро- 2012". Друга схема — самі "чайові" за 1кВт приєднуваної потужності. Ось так легким рухом "технічних змін" можна узаконити схеми на зразок "Роттердам+". Словом, боротьба за приєднання до електромереж триває. Тимчасом 16 грудня прем'єр-міністр Володимир Гройсман відзвітував громадськості, що завдяки "введеним стандартам підключення до енергомереж" Україна підніметься на 13 місце у рейтингу Doing Business 2017 року.
Similar republications: «Реформа приєднань до електромереж: сюжет вартий Агати Крісті», 04141.com.ua - Сайт міста Новограда-Волинського, 21-12-2016, http://www.04141.com.ua/article/1486463 «Реформа приєднань до електромереж: сюжет вартий Агати Крісті», allday24.ru, 21-12-2016, http://allday24.ru/obshhestvo/reforma-priiednan-do-elektromerezh-syu.html «Реформа приєднань до електромереж: сюжет вартий Агати Крісті», UAZMI, 21-12-2016, http://uazmi.net/news/db0QOyGn0KZCFRG5OvJfXW
Валютное регулирование мешает продавать украинские товары на экспорт через интернет 16.12.2016 Джерело: Hubs, http://hubs.ua/discussions/andrej-savarets-valyutnoe-regulirovanie-meshaet-prodavat- ukrainskie-tovary-na-eksport-cherez-internet-99994.html Автор: Андрей Саварец, эксперт по правовым вопросам Программы USAID “Лидерство в экономическом управлении” «Export or die», «Экспортируй или умри» — таким был лозунг тяжелых послевоенных лет в Великобритании. После Второй мировой войны, несмотря на победу союзников, страна оказалась в тяжелой экономической и финансовой ситуации. Чтобы пополнить валютные резервы, власти Великобритании приказали всем производителям продавать свою продукцию в другие страны. И это сработало.
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Данный пример показывает, что в сложных экономических условиях экспорт действительно может обеспечить выживание и развитие не только крупного и среднего бизнеса, но и малым предпринимателям. Что же касается Украины, то один из самых перспективных каналов продажи наших товаров за границу — интернет-торговля. Согласно прогнозам eMarketer «World Retail Ecommerce Sales: The eMarketer Forecast for 2016», в 2016 году мировой объем продаж интернет- магазинов составит $2 трлн. Необходимо отметить, что сейчас каждая пятая покупка в интернете приходится на США. Например, на Amazon ежегодно покупают товары более 300 млн человек. Этим я хочу подчеркнуть, что нашим предпринимателям есть кому предложить свои товары. Но есть одно «но». Для продажи товаров на Amazon необходимо иметь расчетный счет, открытый в США, Великобритании, Австралии, Новой Зеландии, Индии, Гонконге, Канаде или в стране Єврозоны. В свою очередь для того, чтобы открыть счет за границей, необходимо получить индивидуальную лицензию НБУ. И вот тут начинается самое интересное! Во-первых, физическое лицо-предприниматель для получения лицензии обязан предоставить развернутую (постатейную) смету. Во-вторых, НБУ может запросить любой дополнительный документ, а в случае «недостаточного обоснования необходимости» может отказать в выдаче лицензии, ничем этот отказ не аргументируя. В-третьих, срок действия лицензии составляет только один год, опции автоматического продления нет – весь пакет документов необходимо подавать заново. Корень проблемы в том, что Нацбанк объективно не имеет возможности проконтролировать открытие гражданами счетов за границей. Летом 2015 года эксперты ЛЕВ инициировали упрощение валютного контроля при экспорте услуг. В ходе разработки законопроекта №4496, который стал основой соответствующего Закона, мы столкнулись с аналогичной ситуацией, связанной с неоправданной бюрократизацией процедур и для экспорта товаров. Получается, что чрезмерный контроль со стороны Нацбанка, не облегчает жизнь предпринимателям, а наоборот стимулирует их использовать платежные системы в обход существующего регулирования. Хотя, несмотря на удобства, такие системы приводят к значительным транзакционным расходам даже при переводе небольших сумм, что невыгодно для микропредпринимателей, экспортирующих изделия hand-made и подобные товары. Что же необходимо делать? Минимизировать большие расходы можно путем открытия прямых счетов в иностранных банках без необходимости получать лицензию НБУ. Для этого необходимо внести изменения в Декрет Кабмина «О системе валютного регулирования и валютного контроля». Отмечу, что в НБУ понимают важность либерализации валютного регулирования, и мы надеемся, что эта норма найдет свое отражение в новом Законе о валютном регулировании, который находится в процессе разработки. По крайней мере, Нацбанк декларирует свою готовность, пусть не сразу, но отменить необходимость лицензирования открытия счетов за границей. И это должно стать очередным логичным шагом в дерегуляции экспортной деятельности малого и среднего бизнеса.
Small And Medium Businesses In Odessa Hope To Get Back On Feet After Economic Downturn 19.12.2016 Джерело: The Odessa Review, http://odessareview.com/small-medium-businesses-odessa-hope-get- back-feet-economic-downturn/ Автор: Ірина Федець, експерт Програми USAID “Лідерство в економічному врядуванні” The results of a USAID Leadership in Economic Governance Program survey of Odessan and Ukrainian SME provided some very interesting results about the state of the business climate. The economic and political turmoil in Ukraine in recent years has been something that small and medium businesses have experienced in their daily operations. In Odessa city as well as the region, and across wider Ukraine, small and medium enterprises have faced a drop in demand, declining incomes, and loss of employees. All this, in addition to burdensome regulations, corruption, strenuous taxation, and other persistent problems for enterprises in Ukraine, has resulted in business conditions far from conducive to SMEs. However, businesses are looking forward to economic recovery over the next several years, which they attribute to reforms and changes in government policy. This is what we saw in the answers that small and medium businesses gave us in a sociological survey that took place in late 2015 – early 2016. The USAID Leadership in Economic Governance Program where I work conducted this survey in all the regions of Ukraine (with the exception of occupied Crimea and parts of eastern regions). We wanted to learn how SMEs feel about the current business climate in the country, what problems they face, and what they expect from the government.
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With more than 100 SMEs polled in the Odessa region, one can compare the local business leader’s opinions to those held in Ukraine overall. The composition of the firms and individual business persons that we surveyed in Odessa region reflects the general makeup of the respondents to our survey: most of them are owners or managers of legal business entities, but one out of every five poll participants was a private entrepreneur. The sectors where their businesses operate also mostly follow the national breakdown. … The third thing SMEs want most is an online resource where they will be able to see all the laws, rules, and news that concern their business. With the frequently changing requirements from the state, business managers are looking for a straightforward way to access the information they need. The fourth action expected from the government is a transformation of the tax administration into a business-friendly agency that would treat taxpayers fairly and provide assistance. This is what Odessa businesses want, too. More than 70 percent of the SMEs that we polled in Odessa region supported these reforms. These actions will make it easier to do business in all of the country, including Odessa.
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