• 25.02.2019

    Use of the BTS Methodology for Monitoring of Business Perceptions Towards Corruption in Ukraine


    Ukraine is perceived as highly corrupt country where political, grand and petty corruption has become an integral element to social interaction. Corruption causes losses to both the State and its population due to inefficient use of budget funds and low level of government services as well as piles uncertainty in the environment where economic agents and households function. Excessive regulation is one of the key contributors to corruption at enterprise level.

    International studies demonstrate that excessive regulation of business activity promotes corruption. The more procedures a business needs to go through and the longer these procedures take, the more likely it is that the level of corruption in the country is high. This assumption is backed by findings of the 2009 World Bank Investment Climate Research Study. The cause and effect link here works in both directions: government regulation of business generates corruption, and corruption can lead to the government introducing a regulation promoting one company or sector at the expense of others or at the expense of the population in general. That is why deregulation is an important tool in the anti-corruption framework, as it reduces the possibilities for abuse. Developing instrument for monitoring and evaluating the business climate, regulatory environment identification of barriers to business development to compile a list of top-priority economic, legal, and regulatory reforms based on feedback from business as main stakeholder of reform is among key priorities of public policy agenda in the country.

    In the article, we describe of our experience in construction of corruption perceptions’ indicators, present the indicators based on results of last decades BTS survey. In addition, we try to compare the indicators of regulatory climate and corruption perceptions (Annual Indicator of Business Environment Burdens and Annual Corruption Perception Indicators) with IER Industrial Confidence Indicator and IER Index of Business Condition that based on BTS data. It is important to check the hypothesis that in complicated regulatory climate the corruption perceived by enterprises as way to solve a problem of excessive, unclear and complicated regulations, and not as single problem. It is important message that should be taken into account when anti-corruption measures are developed in the country. In terms of real policymaking process in Ukraine such message means that measure aimed at deregulation of economy should be successfully completed.

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    The article was published in the Journal "PUBLIC POLICY.BG", VOL 10, NO 2 (2019). See the full information about the journal and the Editorial Board here

    Authors:  Kuziakiv Oksana
    Research spheres:  Business trends
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