Only a lazy local politician isn’t speaking now about the simplification of business conditions in our country. At the same time, this process has become almost an end in itself for many of them. However, if we look at the European countries, it is clear to all that the goal of state policy there is much different from objectives declared by our country.
This difference is quite simple – the goal of European politicians is not the ridiculous simplification of business conditions, but the growth of prosperity of citizens and the economy in general as well as reducing unemployment. Probably, this definition will seem to be similar for many people, but, in fact, the difference is significant.
We must realize that the economy gets a good stimulus for growth only with the properly set tasks. In our reality, the situation is often different – a big business that used to obtain unjustified profits due to deliberately created gaps in the regulatory field is trying now to get conditions that are even more favorable by taking advantage of this situation and not to care about the welfare of citizens and the state budget revenues.
The big business has perfectly learned how to influence the state apparatus when it comes to defending its own interests. A good example of this fact is our railway system, which forced by the decision of the officials to de facto subsidize certain economy sectors annually due to artificially low tariffs on transportation of certain goods. The volumes of these subsidies amount to tens of billions of hryvnyas per year.
At the same time, it should be noted that most of these sectors are export-oriented and sell their products in foreign markets at market prices. However, they receive additional income at the cost of the state railway system and ordinary citizens of Ukraine, who have to travel by old passenger cars and terrible commuter trains due to the aforementioned subsidies.
Currently, the amount of de facto subsidies to certain sectors of Ukraine’s economy can be compared with the cost of buying more than 1,000 new passenger cars per year even at current prices.
Undoubtedly, the legal framework plays a key role in economic development, the growth of welfare of citizens and reducing unemployment. However, regulation focuses should be shifted from the unconscious formula “simplification of business conditions” to a smart state regulation aimed at implementing effective regulation for small and medium businesses as well as restraining wants of the big business and protecting the interests of citizens and budget from them. Only then, the country can succeed and its citizens – feel the improving of their well-being.