State regulatory policy in Ukraine: existing shortcomings and ways of its improvement

Shcherbak Anatolii
PhD (Economics), Senior Researcher of Market Mechanisms and Structures Department, Institute of Market and Economic & Ecological Research of the National Academy of Sciences of Ukraine, Ukraine, e-mail: av.shcherbak@gmail.com, ORCID ID: https://orcid.org/0000-0002-7607-5266

Muzhaylo Vasyl
PhD (Economics), Associate Professor of Public Management and Administration Department, Odessa National Technological University, Ukraine, e-mail: stas560823@ukr.net,, ORCID ID: https://orcid.org/0000-0001-8283-0988

Cite this article:

Shcherbak, A., & Muzhaylo, V. (2023). State regulatory policy in Ukraine: existing shortcomings and ways of its improvement [Derzhavna rehuliatorna polityka v Ukraini: isnuiuchi nedoliky ta shliakhy yii polipshennia], Socio-economic research bulletin, Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 3-4 (86-87), pp. 122-133.

Abstract

The article considers or investigates the problems of improving the state regulatory policy in Ukraine based on the best world experience. The relevance of the research is related to the fact that the existing system of state regulation does not ensure the formation of a business environment favorable for investments and innovations. The purpose of the article is to identify the shortcomings of the state regulatory policy in Ukraine and to propose measures for improving of its efficiency. It is shown that the possibility of using state regulation depends on the efficiency of governance in a particular country. If the efficiency is higher, the greater the probability that the goal declared during the implementation of the regulation will be achieved. It is substantiated that low efficiency of governance in Ukraine leads to the fact that state regulatory measures often have a negative impact on economic development. It is shown that the period from 2000 to 2008 was the most successful in the modern history of Ukraine. The driving force behind the rise was a set of reforms aimed at deregulating the economy and developing competition, which was implemented in the late 1990s. The regulatory policy of the EU is analyzed. It is found that in modern conditions the emphasis is not on deregulation of certain markets, but on improving the quality of regulatory acts through their evaluation throughout the entire life cycle and establishing effective feedback in the regulatory process. Measures to deregulate the economy implemented in Ukraine and the reasons for their low effectiveness are studied. It is analyzed how the requirements of the Law of Ukraine «On the Principles of State Regulatory Policy in the Field of Economic Activity» are fulfilled. It is considered what changes to this Law the State Regulatory Service of Ukraine proposes to make. There is a well-founded need for regulatory reform, which should ensure the creation of a system that minimizes the risks of adopting acts that are ineffective or promoted by lobby groups. It is proposed to organize an independent review of the most important regulatory acts, to more actively involve the business community and the public in the revision of the legislation, to implement a compensatory approach, when the condition for the introduction of new regulations will be the cancellation of outdated acts.

Keywords

state regulatory policy; state regulation of the economy; deregulation; regulatory impact assessment.

JEL classification:L510; O520; DOI:https://doi.org/10.33987/vsed.3-4(86-87).2023.122-133

UD classification: 338.24(477)(045)

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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