Index for Monitoring Reforms (IMoRe). Release 8

Pay attention! We have revised methodology for Index of monitoring reforms. The Index is calculated once in two weeks based on an expert survey

Author:

Pay attention! We have revised methodology for Index of monitoring reforms. Changes concern two directions. Deregulation and competition policy were excluded from Governance and Anti-Corruption sub-index

This sub-index now includes fighting corruption, decentralization, public administration and provision of public services. At the same time, Foreign Trade sub-index was expanded and became Industrial Organization and Trade Policy, which includes deregulation, competition policy and foreign trade. The previous IMoRe values will be recalculated in accordance with the new methodology in the next round.

The Index is calculated once in two weeks based on an expert survey. The IMoRe value for the 8th monitoring period (April 6th – 19th, 2015) totaled +0.9 points out of the possible range from -5.0 to +5.0 points. The pace of reform decelerated notably. While changes in governance, anti-corruption and deregulation had a positive impact on Index value, absence of significant events in Public Finance and Energy Independence areas slowed down the index pace.

Chart 1. IMoRe dynamics

Chart 2. IMoRe and its components in the current round

Issue 8: Moderate progress in governance, anti-corruption and deregulation

The IMoRe value for the 8th monitoring period (April 6th – 19th, 2015) totaled +0.9 points out of the possible range from -5.0 to +5.0 points. The pace of reform decelerated notably. While changes in governance, anti-corruption and deregulation had a positive impact on Index value, absence of significant events in Public Finance and Energy Independence areas slowed down the index pace.

In the 8th round experts assigned the highest grade to the introduction of online service by the Ministry of Justice. For a fee that can be paid by a banking card online, anyone can get an extract of information from the Unified State Register of legal entities and individual entrepreneurs. Experts emphasized that introduction of this online service significantly lowers business costs and reduces opportunities for corruption. This reform received +5.0 points (a combined grade for this reform as it was also included and evaluated within “Governance and Anti-Corruption” sub-index), whereas Industrial Organization and Trade Policy sub-index scored +2.0 points overall.

Chart 3. Value of IMoRe components and number of events April 6 – April 19, 2015

Governance and Anti-Corruption section received +1.5 points in the last monitoring period as (in addition to creation of online service mentioned above) experts also gave +2.0 points to the law on reforming the internal affairs services. Moreover, the news about the transfer of functions from The State Agency for Land Resources of Ukraine (being liquidated) to The State Service of Ukraine for Geodesy, Cartography and Cadaster scored +2.0 points, since experts welcomed a decrease in the number of government agencies. Experts also assigned +1.5 points to a reform that allows an accelerated real estate registration procedure (within a 3-5 day period) for a double fee – it is believed to improve the quality of public services.

In the “Monetary policy and financial markets” section, experts positively assessed the establishment of the Bank Audit Committee – this event received +2.0 points. Survey participants noted that the decision will strengthen the auditors’ accountability, improve the quality of bank audits, and consequently enhance the credibility of financial statements. Yet, given lack of other notable events, “Monetary policy and financial markets” section was awarded 1.0 point.

There were no noticeable events in Public Finance and Energy Independence section over the last monitoring period (April 6th-19th), implying 0.0 point for each of these areas.

(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