On 23.09.2015 Ukrainian MP Andriy Nemirovsky registered a draft law that would make prostitution legal in Ukraine and consider prostitutes to be entrepreneurs who provide sexual services for money. These services can be provided by individuals as well as organizations (e.g. brothels). The draft law requires for regulation of these services and introduces legal entry barriers (e.g. age limits and medical checks). In this article Alexander Muravyev, Tymofiy Mylovanov, and Oleksandr Talavera are analyzing what regulatory regime would fit Ukraine best.
When experts or newspapers are talking about the drivers of the Ukrainian economy they mainly mention agriculture and IT. These two sectors for sure can help maintain Ukrainian economy alive when industrial production and construction are declining at the annual pace of more than 20%. However, there are other sectors that Ukraine can develop in order to strengthen its economy and long-term competitive position. In this article Oleg Vitkovskyi is focusing on the transportation sector and, in particular, on the benefits of transforming Kyiv Boryspil airport into one of the largest regional air hubs.
Index for Monitoring Reforms (iMoRe) from VoxUkraine aims to provide a comprehensive assessment of reform efforts by Ukraine’s authorities. The Index is based on expert assessments of changes in the regulatory environment in five areas. The iMoRe value for the 20th monitoring period (September 28 – October 11, 2015) was +0.4 points out of the possible range from -5.0 to +5.0 points. The pace of reforms continues to slow down – the index value is at its lowest value for the last 7 rounds. Even the highest marks, given to the sectors of Industrial Organization and Trade Policy and Monetary Policy and Financial Markets, are significantly lower than the acceptable speed of reforms (considered to be +2,0 points and higher).
One of the most controversial tariff innovations which the rail transport market (or rather monopoly) expects is the abolition of “discriminatory” tariffs by type of goods (tariff determined for each cargo separately), and the transition to a fee for use of infrastructure (price depends on the weight and distance). These generally positive European practices can significantly reduce railway traffic in Ukraine and deepen the stagnation of the Ukrainian economy.
This year’s Nobel Prize in Economic Science is awarded to Angus Deaton, a British-American economist of Princeton University. The Nobel Prize committee emphasized three related achievements: an approach to estimating demand for different goods, the studies of the relationship between income and consumption, and the work on measuring living standards and poverty.
How Ukraine’s Central Bank Wrecked the Country’s Nascent Economic Recovery in 2011 and Why It Should Not Do It Again
Andrei Kirilenko argues that in 2011, the National Bank of Ukraine (NBU), the country’s central bank, made money so scarce that inflation ended up well below the target and the country’s fragile economic recovery turned into a massive recession that continues to this day. Author also argues that the NBU should not take an aggressive anti-inflationary stance before economic growth has returned to its potential.
Needed to Enforce Anti-Corruption Laws in Ukraine: Special Detectives, Special Prosecutors and Special Judges
Bohdan Vitvitsky is sure that Ukraine is slowly moving towards creating a semi-autonomous anti-corruption unit of prosecutors. As international experience has demonstrated, if cases of systemic corruption, any serious attempt to reduce corruption requires a special, i.e., separate and independent from existing structures, unit of detectives, a special unit of prosecutors, and a special unit of judges.
Vladimir Dubrovskiy is sure that strategically the main problem is that the Ukrainian economy is in a trap. But in authors opinion the MinFin’s proposal for the tax reform doesn’t help to escape this trap. It even does not try to address any of major issues of the Ukrainian tax system, while the most dramatic change suggested by the Ministry – cut of the payroll tax rate (“single social contribution”) is already stipulated by acting legislation.
The Ukraine Reform Monitor provides independent, rigorous assessments of the extent and quality of reforms in Ukraine. The Carnegie Endowment has assembled an independent team of Ukraine-based scholars to analyze reforms in four key areas. This second memo covers August and September 2015. During analyzed period the Ukrainian government accomplished two major breakthroughs. It succeeded in negotiating a debt-restructuring deal with creditors, and it made progress toward parliamentary approval of a decentralization package.
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