Feedback

Unbearable lightness of exports: What hinders Ukraine in Doing Business ranking?

Author : Yuriy Panchenko

Source : eurointegration.com.ua

In published ranking Ukraine has shown minimal growth, rising per year by three positions (or rather - one position, given that calculation methodology has changed)
21:34, 1 November 2016

Read the original article at eurointegration.com.ua

112 Agency

Promoting exports – it is one of the most popular phrases, ever pronounced in Ukrainian government. At least in its economic block.

And there’s a reason for it. On the one hand, the war with Russia has its economic reflection. Among its results are many restrictions of the supply of Ukrainian goods to Russia and a struggle with Ukrainian transit to Asia.

On the other hand - the start of free trade zone with the EU. It 's the agreement, which gives a lot of opportunities, but these opportunities we still haven’t use.

Business forums, training for exporters, promises to create export agency (for which authorities found no money) - all this forms the main agenda for Ukrainian exports support.

And now – another jump to reality.

In published by the World Bank ranking of Doing Business-2017 Ukraine has shown minimal growth, rising per year by three positions (or rather - one position, given that calculation methodology has changed).

About this is already written enough. In this regard it should be noted that this ranking is often criticized - and people have reasons for that! A couple of years ago the World Bank even seriously thought about closing the project.

Related: Kyiv to host session of council of investors and exporters, - Klimkin

However, despite all the shortcomings, Doing Business is still one of the most popular rankings that allow evaluating the economic policies of governments.

For assessing the export promotion, one of the important sub indexes of the rating is "ease of international trade." By this measure we possess not so honorable 115th place, falling down by 6 positions over the year (5 positions – by the revised methodology).

This is not the worst position Ukraine ever occupied. For example, in resolving problems of insolvency we occupy 150th place, on the ease of obtaining building permits - 140th place, and on ease of connection to the electricity - 130th place.

However, in ease of international trade was registered the greatest Ukrainian setback. This regression – is a beautiful illustration of what happens if nothing is changed in the country.

Like a year ago, now experts, who create the Doing Business rating, estimate the cost of obtaining all permits for export at $ 292. And taking about time, it takes 96 hours.

In turn, the state border passage takes 26 hours and costs $ 75. It is necessary to explain – these are only the official charges without corruption component.

Even worse is situation with import - obtaining permits takes 168 hours, and passing the border - 72 hours.

But on imports we see at least some progress. Namely - the cost of a full package of permits for the year decreased from $ 292 to $ 212. The cost of passing the state border for the importer remains unchanged - $ 100.

However, we will talk about exports.

Related: Ukraine set a new grain export record

Indicators that Ukraine is now demonstrating are not just "below average". They are worst in Europe.

Moreover, exactly the European countries traditionally are the leaders in simplicity of exports.

Among the leaders are: Hungary, Czech Republic, Croatia, Denmark, France, Netherlands, Poland ... In all these countries, collecting the full package of documents required for export takes one hour. At the same time, the cost of this service, as well as the cost of passing the border is zero.

This is exactly the exports promotion, which we should strive to.

Or at least – we should put the task to catch up with neighboring countries with which we could compete to attract investment. All of them have higher ratings than Ukraine.

In particular, in terms of ease of international trade Lithuania holds 19th place, Latvia - 25th, Moldova - 34th, Bosnia and Herzegovina - 36th, and Montenegro - 43rd.

In absolute numbers this means the following.

To export goods from Albania (24 place in the ranking) you need to spend 6 hours and pay $ 10. And from Belarus (30th place) - 4 hours and $ 140.

Apparently, not always the countries that are significantly ahead of Ukraine, cancel fees for the exporters.

The losses of time are much more important for businessmen.

However, this reform has not yet started in Ukraine.

Related: Music for export: young Ukrainian bands abroad

Related: National Bank forecasts further decrease of export of Ukrainian goods to Russia

Topics:
Система Orphus

If you find an error, highlight the desired text and press Ctrl + Enter, to tell about it

Comments
see more