How to create quality regulation in Ukraine: the first BRDO results

The Better Regulation Delivery Office (BRDO) prepared 21 draft regulations, began to review the regulatory legislation and create an analytical system that will become a common information field for state and business representatives during the first months of its activity. The BRDO head Oleksiy Honcharuk announced that during the presentation of projects and first working results.   

The independent non-governmental structure BRDO (Better Regulation Delivery Office) was established in autumn 2015 to improve the regulation. The Ministry of Economic Development and Trade of Ukraine initiated the Office’s establishment.

12According to the Minister of Economic Development and Trade of Ukraine Aivaras Abromavičius, deregulation is one of the key reforms in Ukraine, because it covers all sectors of economy. The last year showed positive trends of its implementation. In particular, more than 100 barriers for business operation were removed. “We initiated the BRDO by taking the experience of a similar structure in the UK in order to speed up these processes,” Abromavičius said.

The Deputy Minister Yuliya Klymenko noted that it is necessary to analyze and process many adopted laws, resolutions, orders and so on to create the effective regulation in Ukraine. It is so because any regulatory act has a certain effect on business. And, this effect can and should be measured in money.


Yuliya Klymenko

“While realizing that no ministry has sufficient resources to quickly analyze and change regulatory frameworks now, the Ministry of Economic Development and Trade has initiated the BRDO’s establishment. We made significant efforts to gather a powerful team that is independent and even today helps public authorities and economic sectors reduce regulatory burdens,” Yuliya Klymenko said.

The head of the State Regulatory Service Kseniya Lyapina expressed the hope that the Better Regulation Delivery Office together with the State Regulatory Service would be able to break down the matrix of the post-Soviet government.

The BRDO’s primary focus is on four economic sectors, which need improving the effectiveness of state regulation the most, in particular – in the area of SME’s activities. Therefore, agriculture, construction, energy industry and transport became a priority for analysis. Particular attention is also paid to the control and supervision area.

The team of five sector managers, lawyers and economists was created as well as successful projects were started during the first months of its work. First and foremost, the Office is working in two directions: law-drafting activity (drafting regulations) and analytics (reviewing regulatory environment and developing effective regulation concepts).

Law-drafting activity

14The BRDO together with the ministries and deputies prepared 21 draft regulations in priority areas. 9 of these draft laws will have a significant impact on improving Ukraine’s positions in the World Bank’s Doing Business rating. According to Oleksiy Honcharuk, the ranking is not a goal in itself, but implementing the best international practices can solve a number of problems in Ukraine by creating more favorable conditions for business and increasing the investment attractiveness.

Regulatory environment review

An important focus of the BRDO analytical work is a systematic assessment of the regulatory environment – Rolling Review. According to the manager of this project Oleksiy Dorohan’, the Office developed a method, by which each document can be reviewed on certain criteria.

335 regulations have been already analyzed. Based on the results of the analysis, about 25% of regulatory acts are acting outside the fundamental principle of legality. The effectiveness of regulatory acts can be estimated only in 5% of cases. You can get additional information on the Rolling Review results at the BRDO website.

Analytical system “Prostir”

To make the system efficient, it is important to create a predictable and effective regulatory environment that will take into account real needs of society and economic needs of business with the state functionality in a balanced way.

Therefore, the BRDO is working on the information and analytical system “Prostir” (simple smart regulation). The system will enable law makers and regulators to analyze the combined effect of any regulatory function on certain markets and make informed decisions based on the analysis of macroeconomic indicators.