Reform objective
To ensure equal rights for establishing self-regulatory organizations for all business and occupation types.
Mechanism
Creating a single comprehensive legislative and organizational framework for self-regulation.
Instruments
Draft Law #4221 “On Self-Regulation of Economic and Professional Activities” developed by experts from the Better Regulation Delivery Office (BRDO).
To allow Ukraine to choose the most effective self-regulation model, back in 2017, BRDO experts prepared a Green Paper “Self-regulation in Ukraine” that comprehensively analyzed the issue. In 2018, the Government adopted a Concept for reforming the self-regulation system in Ukraine developed with the BRDO participation. In 2020, the Verkhovna Rada registered draft law #4221 “On Self-Regulation of Economic and Professional Activities” developed by our experts.
Proposals
Equal rights for all business sectors
The Draft Law will give equal rights to all business and occupation sectors to allow them to create SROs and develop relevant markets by using self-regulatory tools. The document is not binding but gives the appropriate right. This is a necessary step towards deregulation and business environment improvement in Ukraine.
Better regulation
The gradual transfer of regulatory functions to SROs will make them participants in the state regulatory policy. Business owners know better what rules and requirements work in practice, and therefore they can offer relevant changes. This will also reduce the burden on the government that will be able to respond to business requests more quickly.
Common rules for all participants
It is necessary to solve current self-regulation problems: corruption and abuse of power in SROs arising often, in particular, due to gaps in the SRO regulatory framework, unresolved conflicts of interest, positions overlapping in SROs, and more.
Institutional capacity and transparency of SROs
SRO activities should be public and transparent. Each self-regulatory organization will be required to make public its decisions, internal rules and procedures, information on financial revenues, and the register of members.
Reducing administrative pressure on businesses
The reform establishes a framework to delegate relevant market regulation functions to SROs. The regulation will be professionalized, and public authorities will be free from functions that are not within their competence. Corruption risks from interaction with officials will be reduced for businesses. Most importantly, there will be a transition to civilized market mechanisms for regulating business activities.
Effective public administration, as well as control and supervision in the urban planning sector, the introduction of effective liability mechanisms for violations of urban planning laws, establishment of transparent rules of the game for all participants — all these steps will create conditions for the construction industry development, increase employment opportunities and enhance the well-being of citizens.