Problem

2.2.4. Ineffective government regulation, which hinders the growth of honest businesses and fosters corrupt practices

General information about the problem

The lack of essential reliable information and reasonable recommendations based on it significantly complicates decision-making in the field of public policy, including regulatory policy.
The main reasons for the problem are: insufficient quality of analytical documents; improper requirements for the supporting documents; the lack of knowledge, skills, and abilities of public policy makers; the lack of established methods for conducting analysis, consultations and preparation of reasonable recommendations; flawed public consultation procedures; the lack, irrelevance, and unreliability of data; the lack of traditions and public demands to justify the feasibility of decision-making and the substance of decisions.
The current system of remuneration of civil servants is characterized by significant disproportions, unjustified incentive payments, and low wages at the local level. Vesting managers with a significant amount of discretionary powers in determining the amount of salary leads to corruption risks. There is no functional classification of civil service positions, which makes it impossible to remunerate staff based on the functional specialization, complexity, and responsibility of the position.
The current mechanism of formation and allocation of the civil service payroll is not transparent. There is no legal certainty about the mechanism of planning and allocation of the payroll fund among state bodies.
The existing system of remuneration at local self-government bodies results in local self-government officials receiving different salaries for performing the same work (job duties) at the same local self-government body. The structure of salaries and the algorithm of their formation have led to unreasonably high or low salaries of officials.
In the forestry sector, there are problems with high corruption risks associated with illegal deforestation, a non-transparent and non-competitive timber market, and poor traceability of timber origin from the site of harvesting to the place of sale and export. This is due to weak control over the activities of forestry enterprises engaged in forestry, logging, sale and export of timber.
The imbalance in the system of legal relations between forestry entities is manifested in conflicts of interest in the management of state and municipal enterprises, and a low level of public trust when it comes to corruption risks in the forestry sector.
A key condition for implementing reforms in the telecommunications sector, as well as fulfilling the commitments under the Association Agreement between Ukraine, on the one hand, and the European Union, the European Atomic Energy Community and their Member States, on the other hand (in particular, Directive (EU) 2018/1972), in this area is to ensure the independence and administrative capacity of the industry regulator.
At present, there is still a problem with the practical implementation of the reform, which is due to the lack of some of the bylaws necessary for the reform envisaged by the Law of Ukraine On Electronic Communications.
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Implementation of SACP measures within the limits of the problem

The total number of OSR – 4
All measures of the SACP
measures, the implementation of which as of 30.09.2024
is about to begin to be completed
6 1 11 3
21
Implemented Partially implemented In progress Not started
Measures implemented (fully and partially) - 7 (33.3%)

Deadlines for all measures

01.03.2023 - 31.12.2025

Implementation of SACP measures within the scope of the Problem by main main performers

National Agency of Ukraine on Civil Service

53.8%
13

Ministry of Environmental Protection and Natural Resources of Ukraine

0%
4

Ministry of Justice of Ukraine

0%
1

State Forest Resources Agency of Ukraine

0%
1

National Commission for the State Regulation of Electronic Communications, Radiofrequency Spectrum and the Provision of Postal Services

0%
1

Ministry of Digital Transformation of Ukraine

0%
1

Achievement of ESR within the limits of the Problem

The total number of OSR – 4

SUMMARIZED GENERAL INFORMATION ON THE IMPLEMENTATION OF THE PROGRAM MEASURES IN TERMS OF DIRECTIONS, PROBLEMS AND EXPECTED STRATEGIC RESULTS

Name of the ESR Name of the measure The main implementer Monitoring results (latest) Performance note % виконаних заходів (fully and partially)
1.1. ESR 2.2.4.1 The legislative and executive branches of government have introduced a structured and effective policy analysis process in their decision-making procedures as part of state policymaking, continued systemic analysis of market regulation and implementation of recommendations based on its findings 2.2.4.1.1. Arranging an analytical study followed by the issuance of conclusions and recommendations to government agencies, focused on the study, analysis, and consolidation of: 1) the nomenclature of—and structural and content requirements for—analytical and consultative documents of European Union institutions with a focus on the prospects of harmonization with these institutions of the nomenclature of—and structural and content requirements for—analytical and consultative documents used by entities responsible for shaping the government policy in the relevant sector in Ukraine; 2) the actual informational needs of entities responsible for shaping the government policy in the relevant sector in Ukraine and the prospects of such needs being met, including through improvements of the system for gathering, analyzing, consolidating, and accessing statistical data; 3) the practices of European Union institutions pertaining to consultations with stakeholders. National Agency of Ukraine on Civil Service The measure was not implemented on time and in full Implemented
200% 12/ 6
1.2. 2.2.4.1.2. Publicizing the conclusions and recommendations for government agencies based on the findings of the analytical study indicated in subclause 2.2.4.1.1 for their public and expert discussion; examining critical comments and proposals from discussion participants and revising the relevant conclusions and recommendations (if needed) National Agency of Ukraine on Civil Service The measure was not implemented on time and in full Implemented
1.4. 2.2.4.1.4. Arranging the development of a general professional (certification) program, a general short-term program on policy analysis issues National Agency of Ukraine on Civil Service There is progress in the implementation of the measure In progress
1.5. 2.2.4.1.5. Arranging the professional development in matters of policy analysis for civil servants at ministries and other central executive authorities National Agency of Ukraine on Civil Service There is progress in the implementation of the measure In progress
1.6. 2.2.4.1.6. Preparing new and annually revising existing methods of conducting policy analysis, holding consultations with stakeholders, and preparing substantiated recommendations on policy formulation National Agency of Ukraine on Civil Service There is progress in the implementation of the measure In progress
1.7. 2.2.4.1.7. Supporting the consideration of the Draft Law of Ukraine On Public Consultations (registration number 4254 dated October 23, 2020) in the Parliament of Ukraine (particularly if the President of Ukraine vetoes the draft law) Ministry of Justice of Ukraine There is no progress in the implementation of the measure In progress
2.1. ESR 2.2.4.2 Government agencies and local self-government bodies have introduced a system of remuneration based on the classification of positions and bonuses depending on personal contribution to the overall performance of the body; wages are competitive and predictable, which makes it possible to hire and retain a professional and motivated staff with integrity 2.2.4.2.1. Supporting the consideration of the Draft Law of Ukraine On Amendments to the Law of Ukraine On Civil Service Towards the Implementation of Unified Approaches to Remuneration of Civil Servants Based on the Classification of Positions in the Parliament of Ukraine (registration number 8222 dated November 23, 2022), which provides for: 1) the dependence of the variable salary on the personal contribution by the civil servant to the overall performance of the government agency, using it as a reward for personal initiative, timely completion of tasks up to quality standards, and completion of an additional scope of tasks; 2) establishing the sizes of salaries based on the classification of civil service positions, taking into account the juxtaposition of the level of remuneration for typical civil service positions with the private sector. National Agency of Ukraine on Civil Service There is progress in the implementation of the measure In progress
400% 32/ 8
2.2. 2.2.4.2.2. Adopting the Catalog of Typical Civil Service Positions and Criteria of Assignment to Such Positions National Agency of Ukraine on Civil Service The measure was implemented on time and in full Implemented
2.3. 2.2.4.2.3. Performing the classification of civil service positions National Agency of Ukraine on Civil Service The measure was implemented on time, but partially Partially implemented
2.4. 2.2.4.2.4. Drafting and submitting to the Cabinet of Ministers of Ukraine the draft resolution of the Cabinet of Ministers of Ukraine on approval of the conditions of remuneration for civil servants based on the classification of positions National Agency of Ukraine on Civil Service The measure was implemented on time and in full Implemented
2.5. 2.2.4.2.5. Developing and submitting to the Cabinet of Ministers of Ukraine the draft Procedure for Forming the Wage Fund for Civil Servants at a Government Agency Taking into Account the New Salary Structure National Agency of Ukraine on Civil Service Not started
2.6. 2.2.4.2.6. Supporting the consideration of the Draft Law of Ukraine On Service in Local Self-Government Bodies (registration number 6504 dated January 5, 2022), which proposes the introduction of a system of remuneration for officials of local self-government bodies, which factors in local conditions and resources of the relevant local budgets, taking into account the need to ensure the wellbeing and retain highly-skilled personnel National Agency of Ukraine on Civil Service The measure was implemented on time and in full Implemented
2.7. 2.2.4.2.7. Approving the Procedural Recommendations on the Conditions of Remuneration for Local Self-Government Officials National Agency of Ukraine on Civil Service Implementation of the measure has not started Not started
2.8. 2.2.4.2.8. Implementing in 2023 the pilot project involving the application of the Procedure for Forming the Wage Fund for Civil Servants at a Government Agency National Agency of Ukraine on Civil Service The measure was implemented on time and in full Implemented
3.1. ESR 2.2.4.3 Effective and transparent timber accounting procedures and timber market have been introduced 2.2.4.3.1. Annually monitoring the performance of the unified state system of electronic accounting of timber of all permanent forest users in accordance with the resolution of the Cabinet of Ministers of Ukraine dated December 4, 2019, No. 1142 On Approval of the Procedure for Monitoring Domestic Consumption of Unprocessed Timber and Making Sure that the Volume of Domestic Consumption of Domestic Timber Is not Exceeded Ministry of Environmental Protection and Natural Resources of Ukraine There is progress in the implementation of the measure In progress
0% 0/ 5
3.2. 2.2.4.3.2. Publicizing the annual report on the findings of the monitoring indicated in subclause 2.2.4.3.1 no later than February of the year immediately following the year in which monitoring was undertaken Ministry of Environmental Protection and Natural Resources of Ukraine There is progress in the implementation of the measure In progress
3.3. 2.2.4.3.3. Annually monitoring and systematization of data on the sale of 100 percent of unprocessed timber at auctions and performance of the Law of Ukraine On Capital Markets and Organized Commodity Markets to the extent of the sale of timber through licensed commodity exchanges Ministry of Environmental Protection and Natural Resources of Ukraine There is progress in the implementation of the measure In progress
3.4. 2.2.4.3.4. Publicizing the annual report on the findings of the monitoring and systematization of data indicated in subclause 2.2.4.3.3 no later than February of the year immediately following the year in which monitoring and data systematization was undertaken Ministry of Environmental Protection and Natural Resources of Ukraine There is progress in the implementation of the measure In progress
3.5. 2.2.4.3.5. Supporting the consideration of the Draft Law of Ukraine On the Timber Market (registration number 4197-d dated September 10, 2021) in the Parliament of Ukraine (particularly if the President of Ukraine vetoes the draft law), which proposes, among other things: 1) instituting a mechanism whereby timber and specific timber products can be sold by forest owners and permanent forest users exclusively through electronic auctions or on the conditions of an offer, taking into account prior experience of forest management activities pertaining to procurement of timber; 2) defining the liability of buyers for failing to perform the conditions of a purchase and sale contract; 3) instituting the process for declaring processed timber, which will help producers, processors, sellers, and consumers to obtain clear proof of the legitimacy of timber harvesting; 4) mandating the reporting and publication of information about volumes, sale price, and buyers of timber and timber products by openly publishing it. State Forest Resources Agency of Ukraine There is no progress in the implementation of the measure In progress
4.1. ESR 2.2.4.4 The telecommunications sector has been reformed by reforming the telecommunications regulator and legislation as part of Ukraine’s commitments under the Association Agreement between Ukraine, on the one hand, and the European Union, the European Atomic Energy Community and their Member States, on the other hand, and on the basis of Directive 2018/1972 (EU) 2.2.4.4.1. Annually monitoring the progress of development and enactment of normative legal acts envisioned by the Law of Ukraine On Electronic Communications and making the findings public National Commission for the State Regulation of Electronic Communications, Radiofrequency Spectrum and the Provision of Postal Services There is progress in the implementation of the measure In progress
0% 0/ 2
4.2. 2.2.4.4.2. Drafting and submitting to the Cabinet of Ministers of Ukraine the draft Strategy for Development of the Sector of Electronic Communications Ministry of Digital Transformation of Ukraine Not started

Key sources on the state of the problem:

Assessment of the situation by international monitoring mechanisms and organizations: