Index for Monitoring Reforms (IMoRe). Release 7

The Index is calculated once in two weeks based on an expert survey

Author:

The Index is calculated once in two weeks based on an expert survey. The IMoRe value for the seventh monitoring period (March 23rd – April 5th, 2015) totaled +1.8 points out of the possible range from -5.0 to +5.0 points.

The main driver behind accelerated index growth from +0.7 points in the previous round was the substantial progress in deregulation and anti-corruption.

Chart 1. IMoRe dynamics

Chart 2. IMoRe and its components in the current round

The IMoRe value for the seventh monitoring period (March 23rd – April 5th, 2015) totaled +1.8 points out of the possible range from -5.0 to +5.0 points. The main driver behind accelerated index growth from +0.7 points in the previous round was the substantial progress in deregulation and anti-corruption. Thanks to a number of important events in these spheres index value was almost as high as after the adoption of the “IMF package” of laws (+2.2 points).

Chart 3. Value of IMoRe components and number of events March 23 – April 5, 2015

 

Changes to the law on joint stock companies received the highest grade in the seventh period – overall +6.0 points (remember that an event grade is the sum of grades this event receives under several sub-indices of reforms and therefore can be higher than +5.0 points). The law reduces the quorum at shareholder meetings of joint stock companies from 60% to 50%, thus depriving shareholders of large but not controlling stakes of the possibility to block meetings. In case of joint stock companies with substantial government shares, this decision will also contribute to increase in government revenues in the form of dividends. Disclosure of procurement information by companies subordinated to the Ministry of Infrastructure received slightly lower score (+5.3 points). Experts pointed out that this step will increase the transparency of public procurements, reduce opportunities for corruption, and therefore reduce budget losses caused by the fraud in this area. Experts also assigned a high grade to the launch of the National Agency for Corruption Prevention (overall +3.0 points) but noted that only the results of its future work will allow evaluating the actual importance of this agency. Cancellation of a number of licenses (+3.0 points) and the law on deregulation (3.0 points) also received high grades. According to experts, these laws improve the business climate and reduce opportunities for corruption. Liquidation of the state enterprise “Ukrekoresursy” was another positive development that destroys corruption in the sector of waste management.

As for Monetary Policy and Financial Markets direction, the establishment of the Financial Stability Council received the highest grade (+2.0 points). Experts noted that the council will coordinate the financial system supervision and identify risks. However, its overall performance will depend on timing and specificity of its recommendations and of course on their implementation. In the sector of Energy Independence, separation of gas transportation from the supply scored +2.0 points. This decision harmonizes regulation of the gas industry with the EU legislation.

Given the significant number of positive changes in deregulation, business climate improvement and corruption reduction, Governance and Anti-Corruption direction scored +3.0 points, which is the highest grade in the seventh monitoring period and the highest value since the start of observations (January 2015). Monetary Policy and Financial Markets, as well as Energy Independence, received +2.0 points, while progress in Public Finance direction was estimated at +1.8 points. On the other hand, reforms in Foreign Trade area lag behind – sector scored 0.0 points, just like in the previous round, as there were no significant events.

(Please see charts on the next pages and on the website http://imorevox.in.ua/?page_id=577http://imorevox.in.ua/list_rounds.php)

Note: 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:

  1. Governance and Anti-Corruption
  2. Public Finance and Labor Market
  3. Monetary Policy and Financial Markets
  4. Industrial Organization and Foreign Trade 
  5. Energy Independence

For details please visit imorevox.in.ua.

VoxUkraine is a group of global economists and members of the Ukrainian policy community who are working on reforms in Ukraine. The goals of VoxUkraine are to promote research-based policy analysis and commentary on economic developments in Ukraine, to formulate a systemic approach to reforms, to provide high-quality discussion platforms, and to integrate Ukraine into the global network of economists and public policy leaders.

Main media partner                                                                                                 Project partners

logos partners

Index of Reform Monitoring

VoxUkraine is a unique content worth reading. Subscribe to our e-mail newsletter, read us on Facebook and Twitter, see the latest video on YouTube.

We believe in the power of words and that ideas have the main impact. VoxUkraine gatherers the best economists and help them to deliver their ideas to tens thousands of Ukrainians. Content VoxUkraine is free (and always will be free), we don’t sell ads and we don’t make lobbyism. For do more research, create new influenced projects and publish more quality articles we need clever people and money. We have people! Support VoxUkraine. Together we will do more!


Disclaimer

The authors do not work for, consult to, own shares in or receive funding from any company or organization that would benefit from this article, and have no relevant affiliations