Index for Monitoring Reforms (IMoRe). Release 2

The IMoRe tracks regulatory changes, which upon their successful implementation, will move the country forward towards (or backward from) the goal of a more efficient, more liberal and less corrupt state

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Index for Monitoring Reforms is a survey-based index. The IMoRe tracks regulatory changes, which upon their successful implementation, will move the country forward towards (or backward from) the goal of a more efficient, more liberal and less corrupt state. The Index is calculated once in two weeks based on an expert survey.

The IMoRe value over the second monitoring period (January 12-25, 2015) stood at +1.3 points out of maximum possible range of -5.0 to +5.0.

Chart 1. Value of IMoRe and its components over current and previous rounds

The IMoRe value over the second monitoring period (January 12-25, 2015) stood at +1.3 points out of maximum possible range of -5.0 to +5.0. IMoRe rose slightly from +1.1 points in the previous round, but remained below 2-3 points, which we consider to be an acceptable pace of reforms.

An event that received the highest grade from experts (+3.5) was the decision to liquidate executive and registration services by the Ministry of Justice (MJ). The experts considered liquidation to be positive development, because named entities had overlapping competences, but pointed that further streamlining of respective procedures is necessary. Another important event was decision of the Cabinet of Ministers to eliminate 15% discount at oil auctions, which according to our experts opinion liquidates one of corruption schemes and contributes to creation of level-playing field. The event received +3.0 points.  Thanks to these two decisions as well as to cancelation of export licenses on a number of goods the overall progress in Governance and anti-corruption direction was estimated at +1.75 points.

Chart 2. Average value of Index components since beginning of monitoring (January 1, 2015 to January 25, 2015)

Experts noted that the above-mentioned liquidation of two government bodies by MJ will lead to reduction of budget expenses. Besides, moderately positive assessment was given to the law on tax compromise, as certain group of taxpayers was expecting this law in order to settle their tensions with tax administration. But experts suggested that one should not expect much de-shadowing due to this law. Overall progress of the Public Finance direction is estimated at +1.5 points.

A grade of +1.0 point was given in Monetary Policy and Financial Markets direction, thanks to two NBU resolution conducive to quicker rehabilitation of the baking system through easier merger of problematic banks and increased responsibility of investors during banks rehabilitation. Same number of points (+1.0) were given to International trade direction – for cancelling of some export licenses –  and to Energy independence direction  – for already mentioned change in the oil auctions procedure and somewhat loosening the rules for usage of special accounts by heating companies.

(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.

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Index of Reform Monitoring

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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