Economist Impact launches Ukraine Reform Tracker
MOSCOW. July 4 (Interfax) - Economist Impact, which is part of Economist Group, will present the Ukraine Reform Tracker at the Ukraine Recovery Conference (URC) in Lugano on Monday.
"The continuous impulse from the Ukrainian ambitious reform program will be important for the national recovery. For the purpose of promotion and support to the discussion of this issue at the URC, Economist Impact presents a system for tracking Ukrainian reform progress," Ukrainian media outlets said, quoting materials released in Lugano before the tracker launch.
According to the materials, the Ukraine Reform Tracker will be analyzing the progress of reforms in four key areas, namely, economic reforms, environmental and energy reforms, social reforms, and management reforms (consistent with the key themes of URC 2022).
Before launching the tracker, Economist Impact prepared an analytical note for every reform area based on three criteria: progress made in the reforms since 2014, the reform sustainability in 2022, especially amid the stressful situation, and the outlook for reforms with emphasis on the role they would play in helping restore Ukraine.
The presentation will be made on July 4 at the URC Civil Society Event with the theme, Paving the Way to a Successful and Inclusive Recovery Process of Ukraine.
The Economist Impact materials note, in particular, that the post-crisis moment will present an opportunity for Ukraine. Considering the commitment of the domestic and international audiences to the recovery and development of Ukraine, substantial pressure is likely to continue and accelerate the implementation of the reform program, the experts said.
In their opinion, the continuation of business reforms in the economic field will allow Ukraine to carry on de-regulation, privatize inefficient public enterprises wherever that is necessary, and improve the procurement process.
Besides, liberalization of agriculture and expansion of trade infrastructure amid the stable financial sector will attract foreign investors and motivate domestic businesses, thus leading to a faster growth and increasing budget revenue alongside a decline in expenditures.
In the opinion of Economist Impact, despite the significant progress in proving Ukrainian business climate, especially from the angle of de-regulation, the creation of conditions for business flourishing is a key to an improvement of the situation.
The post-crisis moment may give a chance to finalize the challenging land reform, by allowing legal entities, including those foreign, to buy agricultural lands (although such a bill can be adopted only after a referendum). The opening of doors for international investments in agriculture is likely to increase the efficiency of this sector, alongside its competitiveness on the EU market. Becoming Europe's breadbasket once again also presents an unprecedented opportunity for Ukraine's economic recovery, the experts said.
Despite the blow dealt to the budget, the overall production and trade in the short-term period by the destruction or loss of numerous metallurgical and machine building enterprises and mines in eastern Ukraine, that will allow refocusing political efforts and investment in the Ukrainian economy in a more distant future. They said.
Light industry, especially pharmaceutical, electrical, plastics, rubber, furniture, textile, food and agricultural production, are more competitive and less capital-intensive. Such a new focus will stimulate the overall competitiveness and will increase the overall output, Economist Impact said.
In the opinion of experts, the provision of lasting stability and transparency of the financial sector is a mandatory condition for the economic recovery of Ukraine.
Although urgently needed in the current extreme environment, the early removal of currency controls will restore competitiveness in the financial sector and the broader economy, the documents said.
Retaining import exemptions for certain goods will cut revenues, but may be a price worth paying for increased competition and innovation of certain Ukrainian industries, they said.