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  • Municipal Competitiveness Index 2021

    28.01.2021

    In January 2021, the USAID Competitive Economy Program in Ukraine (CEP)[KVP1] , Info Sapiens, and the Institute for Economic Research and Policy Consulting (IER) launched the second wave of the Municipal Competitiveness Index 2021 survey (MCI 2021). It will cover 45 cities: 24 oblast centers that participated in the MCI 2019/2020, and 21 cities with a population starting from 73 thousand people. 

    Approximately 9,000 business entities will be interviewed, and according to the results, a rating of cities by favorable business climate and efficiency of economic governance will be developed.

    The survey is conducted by Info Sapiens (INFO SAPIENCE LLC) with USAID CEP support. Researchers and interviewers are not members of USAID CEP. 

    The analysis of the data collected through the survey will be carried out by the Institute for Economic Research and Policy Consulting (IER), which, together with Info Sapiens, is involved in developing the MCI. The IER will also collect and process the statistics and official documents needed to establish the MCI.

     

    How is the survey conducted?

    In order to develop the MCI, business owners and managers are interviewed. Entrepreneurs are randomly selected from open registers. The survey is conducted by computerized telephone interview (CATI). Duration of the field stage: January 13 - April 30, 2021. 

    Owners and managers of enterprises are invited to participate in the survey to express their opinion on the city authorities’ efforts to create a favorable business climate. Respondents do not benefit from participating in the survey. Participation in the survey is voluntary and does not pose any risks to business owners and managers. If respondents do not want to participate or answer certain questions, they are not forced to do so. Respondents can change their minds at any time during the interview. If respondents choose not to participate in this interview, there will be no consequences for them. 

    The answers during the survey will be kept confidential by Info Sapiens. Only Info Sapiens will have access to the recordings that will be made during the interview. Names, positions, and company names will not appear in any report. 

    According to the MCI survey 2019/2020, six cities (Khmelnytsky, Ivano-Frankivsk, Lviv, Vinnytsya, Ternopil, and Chernihiv) are the cities with the most favorable business climate and effective economic governance. Five cities (Kropyvnytskyi, Mykolayiv, Sumy, Ternopil, and Chernihiv) will participate in the MCI Improvement Program (MCIP), which will help cities improve the business climate according to the key indicators of the MCI 2019/2020.

     

    Additional information: 

     

    MCI — is an analytical tool to evaluate business climate in municipalities, including economic governance effectiveness. 

    The purpose of the MCI is to stimulate local government leadership in economic development, identify regulatory barriers, corruption, and non-transparency that need to be overcome to improve the business climate. MCI aims to stimulate competition between cities in creating a favorable business climate. 

    MCI is needed to: 

    1.      Evaluate the economic governance at the national and municipal levels.
    2.      Consider local businesses’ attitude when evaluating municipal business climate.
    3.      Rank cities by economic governance effectiveness and business-enabling environment.
    4.      Monitor changes in the effectiveness of economic governance and business climate in municipalities.

     

    MCI will help businesses better understand and provide suggestions for improving the business environment in the city. MCI will provide a presentation of local businesses’ vision for entrepreneurship development policy. For investors, MCI can be the basis for decision-making on the feasibility of investing in cities. 

    MCI will allow the municipal authorities to identify best practices and differences in cities’ business climate, identify "weaknesses", and opportunities for improvement. MCI can be a tool for dialogue between municipalities and the Central Government of Ukraine, help improve the business climate and disseminate best regulatory practices at the local and national levels.

    Business associations, NGOs, and activists will be able to use MCI to advocate for change in their cities, drawing on the best practices from other cities. International donors can also use MCI to identify priority areas for donor support.

     PCM is an aggregate index consisting of 10 sub-indices (components), which assess various aspects of urban competitiveness:

    1.      Starting a business
    2.      Access to public property
    3.      Transparency and data openness
    4.      Compliance cost
    5.      Taxes and duties
    6.      Informal payments and corruption
    7.      Security of operating a business
    8.      Leadership of municipal authorities
    9.      Development resources
    10.    Support for innovations

     

    USAID Competitive Economy Program in Ukraine (CEP) promotes a strong, diverse, and open economy by enhancing the business environment for small and medium enterprises (SMEs), improving competitiveness in key industries, and enabling Ukraine to benefit from free trade.

    Info Sapiensresearch agency (INFO SAPIENS LLC) conducts public opinion research, social, political, and marketing research, and also health care research. According to the Ukrainian Marketing Association as of 2019, Info Sapiens is the largest Ukrainian research company, following the representatives of the international companies. Info Sapiens complies with all research standards of ICC/ESOMAR. 

    The Institutefor Economic Researchand Policy Consulting(IER)   is  a  leading  Ukrainian  independent,  nonpartisan think tank that focuses on economic research and policy advice. The IER’s special focus is on promoting the EU-Ukraine Association  Agreement. IER’s mission is to provide alternative solutions to key problems of social and economic development in Ukraine based on the rule of law, democracy, and market economy principles. Founded 20 years ago, the IER has experience in economic analysis and modelling, conducting business surveys, implementation of advocacy, and information campaigns as well as CSOs capacity building in Ukraine. By providing analytical support of economic reforms  and  policy  dialogue  among  stakeholders,  the  IER  is  contributing  to  developing  a  business  enabling environment in Ukraine.

     

    List of cities, covered in MCI 2021

              City

    Oblast

    1

    Vinnytsya

    Vinnytsya

    2

    Lutsk

    Volyn

    3

    Dnipro

    Dnipropetrovsk

    4

    Kryvyi Rih

    Dnipropetrovsk

    5

    Kamianske

    Dnipropetrovsk

    6

    Nikopol

    Dnipropetrovsk

    7

    Pavlohrad

    Dnipropetrovsk

    8

    Mariupol

    Donetsk

    9

    Kramators

    Donetsk

    10

    Sloviansk

    Donetsk

    11

    Bakhmut

    Donetsk

    12

    Zhytomyr

    Zhytomyr

    13

    Berdychiv

    Zhytomyr

    14

    Uzhhorod

    Zakarpattia

    15

    Mukachevo

    Zakarpattia

    16

    Zaporizhzhia

    Zaporizhzhia

    17

    Melitopol

    Zaporizhzhia

    18

    Berdiansk

    Zaporizhzhia

    19

    Ivano-Frankivsk

    Івано-Франківська

    20

    Kyiv

    Kyiv

    21

    Bila Tserkva

    Kyiv

    22

    Brovary

    Kyiv

    23

    Kropyvnytskyi

    Kirovohrad

    24

    Oleksandriia

    Kirovohrad

    25

    Sievierodonetsk

    Luhansk

    26

    Lysychansk

    Luhansk

    27

    Lviv

    Luhansk

    28

    Drohobych

    Lviv

    29

    Mykolaiv

    Mykolaiv

    30

    Odesa

    Odesa

    31

    Poltava

    Poltava

    32

    Kremenchuk

    Poltava

    33

    Rivne

    Rivne

    34

    Sumy

    Sumy

    35

    Konotop

    Sumy

    36

    Shostka

    Sumy

    37

    Ternopil

    Ternopil

    38

    Kharkiv

    Kharkiv

    39

    Kherson

    Kherson

    40

    Khmelnytskyi

    Khmelnytskyi

    41

    Kamianets-Podilskyi

    Khmelnytskyi

    42

    Cherkasy

    Cherkasy

    43

    Uman

    Cherkasy

    44

    Chernivtsi

    Chernivtsi

    45

    Chernihiv

    Chernihiv

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