Reform Index №177: Reform in Education and Anti-reform in Public Procurement
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Reform Index №177: Reform in Education and Anti-reform in Public Procurement

Photo: ua.depositphotos.com / ozimicians
10 February 2022
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The Reform Index is +0.8 points for the period from January 3 to January 16, 2022, with values ranging from -5.0 to +5.0. In the previous round, the index was +0.7 points. 

Chart 1. Reform Index Dynamics

Chart 2. Reform Index and its components in the current round

Law on military education and science: +2.0 points

Military education is a part of the national education system. Military educational institutions are run by the Ministry of Defense, the Ministry of Internal Affairs, the Security Service, and the Foreign Intelligence Service. Unlike other universities, military educational institutions have limited academic autonomy. These government bodies determine the rules of university management, requirements for institutions’ heads and structural units, and influence the educational content, etc.

Law 1986-IX of December 17, 2021, extended the rules applicable to military universities to institutions training cadets, students, and adjuncts for the penitentiary system.

The law also provides detailed regulations on running military educational institutions and the powers of the government bodies governing them.

Information about the Reforms Index project, the list of Index experts and the database of the regulations assessed are available here.

New requirements of the law on ensuring transparency in extractive industries: +1.5 points

The Verkhovna Rada passed a law on ensuring transparency in extractive industries in 2018. It established reporting requirements for extractive companies in line with the Extractive Industries Transparency Initiative standard.

The standard has since been updated. In particular, it sets requirements to report on the environmental impact and disclose subsoil use contracts that investors enter into with the state.

Law 1974-IX of December 16, 2021, supplemented the existing requirements with provisions of the new standard.

Law on localization for machine building procurement, -1.5 points

Localization requirements are usually set to give preference to domestic manufacturers in public procurement.

Opponents of this policy argue that its use is unjustified as it restricts competition and reduces the quality of the products purchased.

Introducing such requirements has long been the subject of debate in Ukraine. However, supporters of the localization policy could not offer a solution that would not harm competition or violate Ukraine’s international obligations.

In the recently adopted law (1977-IX), the government introduced requirements for localization in procuring industrial machinery products (urban transport, railway equipment, equipment for the production and transmission of electricity, etc.). In procuring these products, localization must increase from 10% to 40% within ten years. To avoid violating Ukraine’s international obligations, these requirements will not apply to countries that have signed the WTO Agreement on Government Procurement, particularly the EU and the United States.

Chart 3. Value of Reform Index components and number of events

Reform Index 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: Governance, Public Finance, Monetary system, Business Environment, Energy.

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