Instituto de Estudios Políticos y Derecho Público "Dr. Humberto J. La Roche"
de la Facultad de Ciencias Jurídicas y Políticas de la Universidad del Zulia
Maracaibo, Venezuela
Esta publicación cientíca en formato digital es continuidad de la revista impresa
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Vol.40 N° 72
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ISSN 0798- 1406 ~ De pó si to le gal pp 198502ZU132
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Vol. 40, Nº 72 (2022), 456-473
IEPDP-Facultad de Ciencias Jurídicas y Políticas - LUZ
Regulatory policy in the context of
eective public governance: evidence of
Eastern European Countries
DOI: https://doi.org/10.46398/cuestpol.4072.26
Irina Kosach *
Kostiantyn Shaposhnykov **
Anton Chub ***
Inna Yakushko ****
Dmytro Kotelevets *****
Oleksandr Lozychenko ******
Abstract
The purpose of the article is to study the regulatory policy of
Eastern Europe in the context of eective public administration
and to identify areas for ensuring its eectiveness in modern
development conditions. The need for conceptual substantiation
of the regulatory policy implementation directions, development
of appropriate applied nature recommendations taking into account public
administration system transformational processes has caused urgency of a
theme. The methods of comparative analysis, statistical analysis, method of
abstraction and formalization, grouping method, SWOT-analysis method
were used as empirical research methods. It was substantiated that modern
science considers this concept in the following aspects: complex, special,
normative and globalization. In the context of the Good Government
concept, regulatory policy was analyzed according to the transparency
* D.Sc. in Economics, Professor, Department of Public Administration and Organizations’ Management,
Chernihiv National University of Technology, 95 Shevchenko Str., 14035, Chernihiv, Ukraine. ORCID
ID: https://orcid.org/0000-0003-1730-7140
** D.Sc. in Economics, Professor, Honored Worker of Science and Technology of Ukraine, Department
of Research and Certication of Scientic Personnel, State Scientic Institution «Institute for
Modernization of the Content of Education», 36, Metropolitan Vasil Lypkivsky Str., 03035, Kyiv,
Ukraine. ORCID ID: https://orcid.org/0000-0003-0640-9934
*** D.Sc. in law, Doctoral Student (Economics), IHE «Academician Yuriy Bugay International Scientic
and Technical University», 3 Magnitogorsky Lane, Kyiv, 02000, Ukraine. ORCID ID: https://orcid.
org/0000-0002-6900-4865
**** PhD in Economics, Assistant Professor of the Department of Accounting and Auditing, Taras
Shevchenko National University of Kyiv, 60 Volodymyrska Str., 01033 Kyiv, Ukraine. ORCID ID:
https://orcid.org/0000-0003-1161-7383
***** PhD in Economics, Doctoral Student (Economics), IHE «Academician Yuriy Bugay International
Scientic and Technical University», 3 Magnitogorsky Lane, Kyiv, 02000, Ukraine. ORCID ID: https://
orcid.org/0000-0001-7778-6038
****** PhD in Economics, Doctoral Student (Economics), IHE «Academician Yuriy Bugay International
Scientic and Technical University», 3 Magnitogorsky Lane, Kyiv, 02000, Ukraine. ORCID ID: https://
orcid.org/0000-0003-4623-4227
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CUESTIONES POLÍTICAS
Vol. 40 Nº 72 (2022): 456-473
criterion. It was determined that the disadvantage for Ukraine is the lack
of regulatory policy transparency, the lack of single database with draft
regulatory acts and performance monitoring reports. It is proposed to use
SWOT-analysis as a strategic tool for regulatory impact analysis. Conceptual
bases of improvement of regulatory policy realization process have been
developed in the following directions: economic development, improvement
of internal business environment, harmonization of normative-legal
regulation system, stimulation of partnership in the regulatory policy eld.
Keywords: regulatory policy; regulatory inuence; public administration;
good governance; state regulation.
Política regulatoria en el contexto de una
administración pública ecaz: la experiencia de Europa
del Este
Resumen
El propósito del artículo es estudiar la política regulatoria de Europa
del Este en el contexto de una administración pública ecaz e identicar
áreas para garantizar su ecacia en las condiciones modernas de
desarrollo. Los métodos de análisis comparativo, análisis estadístico,
método de abstracción y formalización, método de agrupación, método
de análisis DAFO se utilizaron como métodos de investigación empírica.
Se fundamenta que la ciencia moderna considera este concepto en los
siguientes aspectos: complejo, especial, normativo y de globalización. En el
contexto del concepto de Buen Gobierno, se analizó la política regulatoria
según el criterio de transparencia. Se determinó que la desventaja para
Ucrania es la falta de transparencia de la política regulatoria, la falta de
una base de datos única con proyectos de leyes regulatorias e informes
de seguimiento del desempeño. Se propone utilizar el análisis DAFO
como herramienta estratégica para el análisis del impacto regulatorio. Se
concluye que, las bases conceptuales de la mejora del proceso de realización
de la política regulatoria se han desarrollado en las siguientes direcciones:
desarrollo económico, mejora del entorno comercial interno, armonización
del sistema de regulación normativo-legal, estimulación de la asociación en
el campo de la política regulatoria.
Palabras clave: política regulatoria; inuencia regulatoria;
administración pública; buen gobierno; regulación
gubernamental.
458
Irina Kosach, Kostiantyn Shaposhnykov, Anton Chub, Inna Yakushko, Dmytro Kotelevets y
Oleksandr Lozychenko
Regulatory policy in the context of eective public governance: evidence of Eastern European Countries
Introduction
An important role in the economic system of any country belongs to
the state, because among its main functions is the regulation of economic
processes in general and economic activity of business entities in particular.
The nancial, budgetary and monetary security of the state depends on
the correctly chosen state economic policy. At the present stage of world
economic system development, new requirements are formed for the
eciency of public authorities, which involves the transformation of state
administration into modern regulative models of the society development,
the most common of which is public administration. Accordingly, the
formation of an eective regulatory policy is an extremely important step
in the implementation of public administration functions, the importance
of which is growing in the leading countries of the world and, in particular,
the European Community.
This means that the state as a whole and public authorities make
transparent goals and strategies of their reform programs, which contributes
the quality control improvement for both a result of regulatory policy and
the responsibility of the structures involved to citizens, businesses and
government. The regulatory policy eectiveness, in turn, aects the level
of public condence in public institutions. Transformational shifts in the
economy caused by internal and external factors, turbulence of the external
environment necessitate further improvement of regulatory policy.
Its transparency, clarity and adequacy to modern requirements is the key
to the implementation of the eective public administration principles in
the EU and countries that have chosen the priority of European integration.
Such countries include Ukraine, whose economic situation is characterized
by instability, and regulatory policy has not become an eective tool for
accelerating the development of the national economy. Thus, the purpose
of the proposed research is to study the regulatory policy of Eastern Europe
in the context of eective public administration and to identify areas for
ensuring its eectiveness in modern development conditions.
1. Literature Review
The study of theoretical foundations of regulatory policy, promising areas
of its practical implementation, approaches to assessing its eectiveness is
in the focus of many leading scientists since the middle of the twentieth
century. Thus, McConnell and Brew (1993) have considered the importance
of regulatory policy in the context of dening the public authorities’
functions, which are the basis for analyzing their contribution to the state
economic development. Important for the formation of regulatory policy
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principles at one time were the studies of Stiglitz (1998), which were based
on the position that the principles of any economic policy of the government
can not be unied due to dierent experience of governance, economic and
political traditions, and conditions.
Within the framework of this concept, there is a need to shift the
emphasis of economic policy from the private sector to the public, to
pay more attention not to quantitative but to qualitative aspects of state
intervention in market mechanisms.
The institutional approach underlies the consideration of regulatory
policy by Lagodiienko and Yakushko (2021), noting that: “Regulatory
policy - the systematic development and application of national tools and
institutions in order to form methods of state use of its regulatory powers”
(2021: 380).
In a market economy, as noted by some authors, such as Areeva et al.
(2021), Derhaliuk et al. (2021), priority is given to the study of regulatory
policy impact on the quality of public administration and local government
in the economic activity eld. Popelo (2017) has considered regulatory
policy as an eective institutional tool for inuencing socio-economic
development.
Ayres and Braithwaite (1992) have emphasized adaptive regulatory
policy in order to submit with the structure of the industry. Eective
regulation must also meet the diverse goals of regulated rms, and the
government must be tailored to the dierent motives of regulated entities.
On the other hand, researchers believed that regulation should respond to
industries behavior.
Büthe and Mattli (2011) have explored the features of the regulatory
policy system, identifying the leading role of the following powerful global
private regulators: the International Accounting Standards Board, which
develops nancial reporting rules, the International Organization for
Standardization, and the International Electrotechnical Commission,
which account for 85 percent of all international product standards.
The authors conducted a detailed empirical analysis of such regulation,
based on surveys of many countries and industries, proved the crucial
importance of internal institutions for the eective implementation of
regulatory policy. Researchers have also noted that the regulatory role of
the state is undergoing signicant changes in the world economy key areas
under the inuence of globalization processes.
Samilenko H. has used a comprehensive approach in the study of the
regulatory policy principles, which considers the essential characteristics
of regulatory policy from the standpoint of public administration, legal and
economic points of view.
460
Irina Kosach, Kostiantyn Shaposhnykov, Anton Chub, Inna Yakushko, Dmytro Kotelevets y
Oleksandr Lozychenko
Regulatory policy in the context of eective public governance: evidence of Eastern European Countries
Some researchers, such as Abramova et al. (2021) and others, have
considered regulatory policy from the standpoint of dynamic development,
which takes place based on predictability, planning and stability and
interaction of public and private interests. According to the principle of
dynamism, the requirements for regulatory policy today are the ability to
adapt and qualitatively develop its structural components in the context of
macroeconomic and foreign economic challenges.
In the context of dynamic development, regulatory policy has also been
studied by Eisner, Worsham, Evan and Franchesca Nestor (2018), using
primarily an analytical approach and examining the administrative status
and dynamics of policy change.
In a specic, namely nancial aspect, Alexander (2010) has considered
the essence of regulatory policy, examining the eectiveness and suitability
of scal regulation in the context of the impact on the regulatory policy
goals achievement. Other studies of this scholar in the regulatory policy
eld examine the impact on its formation by the globalization of nancial
markets, especially in connection with the growing number of banking and
nancial crises and the current credit crisis, which threatened the global
nancial system stability.
A narrow approach to regulatory policy consideration has also been
found in Gechert, Horn and Paetz (2018) works. In their studies, the
authors also pay attention to nancial measures, especially the long-term
impact of austerity measures on the potential growth of goods and services
production.
Consideration of regulatory policy, according to Holovko (2019), is based
on the system of state regulation and small business management. The
authors note that the main prerequisites for the formation of the system of
small business state regulation on the example of Ukraine as a country with
a transforming economy are: «improving the legal framework to facilitate
the development of small business; providing a system of benets for small
business; development of business environment infrastructure; expansion
of small and large business cooperation; state support for the development
of factoring and leasing activities; providing nancial and credit and also
investment support to the business sector; management and information
support.
Dubyna M. has also studied the state regulatory policy in the narrow sense
of the impact on the business environment formation and development.
The role of regulatory policy in the process of business transformations has
been studied by Gonta and Dubyna (2016). According to his interpretation,
this is a direction of public policy, which involves improving the legal
regulation of relations between business entities, as well as administrative
relations between regulatory authorities and other authorities and also
small businesses.
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Thus, on the basis of research generalization on the phenomenon of
“regulatory policy”, it should be noted that modern science considers this
concept in the following aspects:
• Complex aspect - regulatory policy is considered as a component of
state economic policy.
• Special aspect - regulatory policy is the public authority’s activity
direction in the eld of support, assistance, and regulation of
business development.
• Normative aspect - regulatory policy is a tool for improving economic
and administrative relations in the business sphere.
• Globalization aspect – regulatory policy is seen as an object to
change under the inuence of economic globalization.
Thus, the phenomenon of “regulatory policy” is a specic type of
relationship between public administration system and economic entities,
which functions on the basis of feedback – it is expedient to consider
separately both the state policy to society and the economic entities policy
to the state in the form of the interaction eect.
2. Methodology and Methods
The theoretical and methodological basis of the study was formed by
the scientic works of leading scientists on this topic. Using the method
of analysis and generalization, the essence of regulatory policy and the
analyzed features of its development on the example of individual countries
have been characterized. It has also allowed to identify the main problems
and formulate vectors for the implementation of the studied countries
regulatory policy, taking into account the experience of other developed
countries.
The method of comparative analysis has been used to compare
approaches to determining the regulatory policy nature; statistical analysis
- to study the regulatory policy status of the studied countries and trends
in its development; method of system analysis, method of abstraction and
formalization - for development of regulatory policy conceptual bases;
SWOT-analysis method - to identify regulatory policy weaknesses and
strengths of countries and promising areas for improvement. The usage of
grouping method has allowed to improve the typology of approaches to the
regulatory policy denition.
462
Irina Kosach, Kostiantyn Shaposhnykov, Anton Chub, Inna Yakushko, Dmytro Kotelevets y
Oleksandr Lozychenko
Regulatory policy in the context of eective public governance: evidence of Eastern European Countries
3. Results
Regulatory policy reforms reect the global trend of public administration
transformational processes in the modern society life, increasing the role
of public administration in the economic activity sphere. The matter of
regulatory policy contains tasks, directions and methods of economic
activity state regulation, state management of these activities, its control
and adjustment. In the post-Soviet countries and most of Eastern Europe,
the process of forming new public authority institutions and regulatory
policy mechanisms is accompanied by profound economic and political
transformations complicated by the COVID-19 pandemic economic
consequences.
According to modern scientic research, eective public administration
is considered in the context of identifying the determinants of social
development due to the partnerships formation between social institutions.
In particular, S. Pollitt and G. Bouckaert (2004) in the study «Public
Management Reform: A Comparative Analysis», emphasize the concept
change from state to public administration and emphasize the importance
of expanding public administration, state power liberalization, establishing
participatory, partnership interaction between government structures at all
levels of government, which will contribute to its eectiveness.
Recent trends in public administration development in EU countries
indicate that the improvement of existing system of public administration
regulatory policy is carried out according to Good Governance concept. The
most common interpretation denes Good Governance as «the process
whereby public institutions conduct public aairs, manage public resources
and guarantee the realization of human rights in a manner essentially free
of abuse and corruption, and with due regard for the rule of law».
According to this concept, citizens participation in the decision-making
process, both directly and through civil society organizations, is a priority,
and the implementation of administrative functions by public authorities
ensures the involvement of all stakeholders. Considering the regulatory
policy in the direction of promoting entrepreneurship, it is appropriate to
conclude that the system of public administration is accountable to society
and focused on the formation of partnerships with business.
In 2017, European Commission developed a document «Better
Regulation Guidelines», according to which» better regulation («Better
Regulation») is understood as actions aimed at developing such EU policies
and laws, which would achieve their goals at minimal cost.
«Better regulation» covers the entire policy cycle – policy development
and preparation, adoption; implementation, application (including
compliance), evaluation and review. At the same time, each stage of the
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policy cycle corresponds to a number of principles, objectives, tools
and procedures related to planning, impact assessment, stakeholder
consultation, implementation and performance evaluation.
To study the regulatory policy specics, we take the countries of Eastern
Europe, such as the Czech Republic, Hungary, Poland, Latvia, Lithuania
and Estonia. What they have in common is post-socialist development, the
beginning of market reforms after the USSR collapse and the simultaneous
accession to the European Community (2004). Despite the dierences in
approaches to regulatory policy, the current regulatory policy system of
these countries looks as follows:
Concept block:
State economic policy
Priorities and goals of entrepreneurship development
Interests of market participants
Regulatory block:
Regulatory framework
Technical regulations
Standards
Institutional block:
Government
Local governments
Public
Relevant ministries and departments
Commissions
Technical committees
Fig.1. Regulatory policy system
Source: compiled by the authors.
Thus, the regulatory policy system is a mechanism of achievement,
which is based on the introduction of a system of socio-economic society
life values, the formation of principles system, priorities, strategic goals and
objectives to meet the needs and interests of all market participants.
The implementation of regulatory policy is closely linked to the
Regulatory Impact Assessment, which developed in the late twentieth
century, but in the early 2000s it became widespread not only in Western
Europe but also in countries on the initial stage of market economy
formation (Bulgaria, Croatia, Serbia, Romania, Estonia, Latvia, Poland), as
well as Ukraine and other post-Soviet countries. Regulatory impact analysis
is a modern tool, a basic component of regulatory policy, used in most
464
Irina Kosach, Kostiantyn Shaposhnykov, Anton Chub, Inna Yakushko, Dmytro Kotelevets y
Oleksandr Lozychenko
Regulatory policy in the context of eective public governance: evidence of Eastern European Countries
developed countries to improve understanding of the economic and social
legislation consequences.
One of the main regulatory policy principles in the economic sphere is
the principle of transparency and consideration of public opinion, which
provides openness to individuals and legal entities, their associations,
regulatory bodies actions at all stages of their regulatory activities;
mandatory consideration by regulatory authorities of initiatives, comments
and proposals submitted in accordance with the law order by individuals and
legal entities, their associations; the obligation and timeliness of bringing
the adopted regulatory acts to the notice of physical and legal entities, their
associations; informing the public about the implementation of regulatory
activities. It is proposed to consider the implementation condition of some
Good Governance postulates concerning transparency and openness of
regulatory policy in the studied countries.
Table 1. Transparency throughout the policy cycle
Criterias
State
Czech
Republic
Estonia Latvia Lithuania
Hun-
gary
Poland
Inform the public in advance that:
A public consultation is
planned to take place
never never sometimes sometimes never sometimes
Regulatory impact assess-
ment (RIA)
always never never always never never
Ex post evaluations are
planned to take place
never never sometimes always never never
Consult with stakeholders on:
Draft regulations frequently always always always always always
Evaluations of existing
regulations
sometimes always sometimes sometimes never sometimes
Publish online:
Ongoing consultations never always always always always always
Views of participants in the
consultation process
always always always always never always
RIAs always always always sometimes never always
Evaluations of existing
regulations
sometimes always always never never always
Policy makers use:
Interactive website(s) to
consult with stakeholders
never always never never never always
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CUESTIONES POLÍTICAS
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Website(s) for the public to
make ecommendations on
existing regulations
never always never never never never
Policy makers provide a public response to:
Consultation comment always always always never never always
Recommendations made in
ex post evaluations
sometimes never never never never never
Source: compiled by the authors based on OECD (2021), OECD Regulatory Policy
Outlook 2021.
The Baltic states, namely Estonia, Latvia and Poland, have the best
and most uniform indicators of transparency. For example, in Latvia,
an obligation to conduct a regulatory impact assessment (ODR) was
introduced in 2009. It is predicted that all draft regulations, including
by-laws submitted to the Cabinet of Ministers, are subjects to mandatory
evaluation at the beginning of the policy development process and public
consultation. Latvia has implemented several signicant reforms based on
the existing regulatory policy.
Poland pays active attention to the regulatory and legal component of
the regulatory process. Following the amendment to the Procedure Rules
of the Council of Ministers in 2019, bills can now be returned to ministries
if public consultations have not taken place or if the consultation process
has not met the requirements. Also in the context of strategic directions
of public administration system development in April 2018, the Center
for Strategic Analysis (CAS) was established, which participates in the
legislative process.
Insucient transparency in the implementing process organization
of Lithuanian regulatory policy is due to the lack of unied ocial state
regulation policy, although some of its elements are present in the
development of strategic policy documents. The main part of Lithuanian
government’s eorts is aimed at reducing the administrative burden, mainly
for business, developing requirements for monitoring and post-revision of
existing primary laws.
The lowest level of regulatory policy transparency is observed in Hungary,
although all basic and by-laws must pass RIA. However, the results of RIA
are not made public. General public can express their recommendations for
change or provide feedback on existing regulations by sending an e-mail
to the relevant ministry. While the assessment of ex post regulations in
practice is not carried out.
In Estonia prior regulation of impact assessment applies to all primary
laws and individual by-laws. The Ministry of Justice Legislative Quality
Department checks the quality of RIAs and may return them for review
466
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Oleksandr Lozychenko
Regulatory policy in the context of eective public governance: evidence of Eastern European Countries
in case of non-compliance. Estonia also pays sucient attention to the
accessibility and transparency of regulatory policies using online tools.
The implemented online information system EIS monitors all legislative
changes and conducts analysis available on the central portal. In general,
ex post assessments are carried out 3-5 years after the introduction of
regulation and cover the areas of competition, administrative burden and
overlap.
Czech Republic was one of the rst to launch a program to reduce
administrative burdens. Reducing bureaucracy remains a priority for the
government. The Czech Republic has a well-developed regulatory impact
assessment (RIA) process. All bills submitted to the government are
published on the government portal, which is accessible to the public. To
eliminate existing shortcomings, it is advisable to standardize the process
of public consultations, stimulate stakeholders, including general public.
However, for all analyzed countries, the analysis of the current problem
condition gives grounds to pay attention to the need to intensify public
organizations and economic entities associations cooperation with the
executive and local governments in regulatory activities. At the same time,
the main regulatory policy goal for these countries in the context of eective
public administration is to develop such regulatory acts that would ensure
the achievement of goals at minimal cost.
While in these countries work is being done to improve the existing
regulatory policy system, in Ukraine, which has stood on the path of European
integration, the process of forming new institutional foundations in this
area is accompanied by profound economic and political transformations.
In the direction of European integration processes, Ukraine focuses on the
development and implementation of a systemic regulatory framework and
institutional support for regulatory policy.
At present, regulatory policy is fully integrated into the state economic
policy. Regulatory impact analysis is a mandatory component of drafting
Government decisions. Procedures and rules of regulatory policy are
determined by the norms of the Law of Ukraine «About State Regulatory
Policy Principles in the Sphere of Economic Activity» of 11.09.2003 №
1160-IV and a number of by-laws.
In particular, in 2015, in compliance with the requirements of
Association Agreement between Ukraine and the European Union (Article
378), the norms of the European regulatory policy instrument SME-Test,
called M-Test in Ukraine, were adapted and introduced into the Ukrainian
legislative eld. However, one of the problem areas for Ukraine is the
need for a more formalized criteria denition by which regulatory impact
assessment is required. Another imperfection for Ukraine is the lack of
regulatory policy transparency, the lack of a single database with draft
regulatory acts and performance monitoring reports.
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The issue of eective public governance is closely linked to the regulatory
policy impact on the market environment development, the condition of
which can be characterized through the use of business conditions rating
assessments («Doing Business»). The Doing Business rating consists
of annual state regulation data about entrepreneurial activity from the
standpoint of promoting or hindering business and contains quantitative
indicators, that determine regulation norms of entrepreneurs’ rights at the
main stages of the enterprise life cycle:
1) starting a business (complexity of registration and licensing
regulation activity);
2) operation (investment protection, access to credit, employment,
terms of contracts, foreign trade, tax aspects);
3) termination or activity change (diculty of business closing or
restoring solvency).
Thus, each of these components in one way or another characterizes
the national economy regulation. Despite the World Bank decision to stop
publishing the rating in the fall of this year, the results of previous years
provide a balanced assessment of the regulatory policy eectiveness.
High rating values indicate eective regulation of business activities and
ensuring compliance with the entrepreneurs rights. Lets take a look on the
position of above countries, as well as Ukraine, in the ranking of «Doing
Business» for 2020 (Table 2).
According to the table, it can be concluded that the studied countries
pay a lot of attention to improving their own regulatory policies. According
to the general assessment, Lithuania, Estonia and Latvia have the highest
level.
Table 2. Doing Business 2020 countries
Areas Of
Business
Regulation
State
Czech
Republic
Estonia Latvia Lithuania Hungary Poland Ukraine
Starting A
Business
134
14
(+0,1)
26
34
(+0,1)
87
(+0,3)
128
(+0,1)
61
Dealing With
Construction
Permits
157
19
(+0,1)
56 10
108
(+0,1)
39
(+0,1)
20
(+3,9)
Getting
Electricity
11
(+0,2)
53
61
(+0,1)
15
(+4,5)
125
60
(+0,9)
128
(+3,3)
Registering
Property
32 6 25 4 29
92
(-6,6)
61
(+1,3)
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Irina Kosach, Kostiantyn Shaposhnykov, Anton Chub, Inna Yakushko, Dmytro Kotelevets y
Oleksandr Lozychenko
Regulatory policy in the context of eective public governance: evidence of Eastern European Countries
Getting Credit 48 48 15 48 37 37 37
Protecting
Minority
Investors
61 79 45
37
(+2)
97 51 45(+2)
Paying Taxes 53
12
(+0,3)
16
(-0,7)
18
(+0,1)
56
(+1,4)
77
(-0,1)
65
(-1,3)
Trading Across
Borders
1 17 28 19 1 1
74
(+2,5)
Enforcing
Contracts
103
8
(+0,3)
15 7 25 55 63
Resolving
Insolvency
16
(+0,1)
54
(-2,4)
55
(+0,2)
89
(-0,2)
66 25
146
(-0,3)
DB Rank 41 18 19 11 52 40 64
DB Score 76,3 80,6 80,3 81,6 73,4 76,4 70,2
Change in Score
no
changes
-0,2
no
changes
+0,6 +0,2 -0,5 +1,1
Source: compiled by the authors based on https://www.doingbusiness.org/en/
doingbusiness.
If we trace correlation between the analysis of regulatory policy
transparency and rating indicators, it is possible to conclude that higher
transparency level, enjoyed by the Baltic States, corresponds to the higher
rating of Doing Business. Hungary and Ukraine, which improved their
positions compared to the previous year, also have positive dynamics. The
largest number of reforms were carried out by the countries of the region in
the international trade eld, taxation, contracts enforcement and obtaining
building permits. Thus, the analysis of this rating provides an idea of public
administration ability to form and implement sound regulatory policies
that promote business development.
To substantiate promising areas for further regulatory policy
development, we propose the usage of strategic tools for regulatory impact
analysis. Such method is SWOT-analysis, which should be integrated into
the general tools of eective public governance. This system is designed not
only to support more eective and ecient implementation of economic
and social policies, but also contributes to the achievement of such «Good
Government» goals as accountability, transparency and policy coherence.
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Table 3. SWOT - analysis of the regulatory policy
implementation
Strengths point
Weighting
factor
Weak sides point
Weighting
factor
1. Informing public
about the development,
implementation and
evaluation of the
regulatory policy
implementation
9 0,37
1. Low level of public
participation in regulatory
activities
7 0,4
2. Legislative authorities
involvement in the
implementation of
regulatory policy
8 0,23
2. Imperfection of the
mechanism for bringing
the executive to justice
for the regulatory policy
outcome
8 0,24
3. Existence of a common
goal and commonality
of selected inuence
measures
8 0,24
3. Lack of clearly dened
principles of regulatory
quality
9 0,28
4. The trend to improve
personal freedoms
8 0,16
4. Imperfection of
the regulatory policy
monitoring mechanism
7 0,08
∑
= 0,37*9+0,23*8+0,24*8+0,16*8 = 8,37
∑
= 0,4*7+0,24*8+ 0,28*9+0,08*7=7,8
Opportunities point
Weighting
factor
Threats point
Weighting
factor
1. Combining regulatory
policy instruments,
institutions and
mechanisms to make the
best use of their potential
7 0,4
1. Impossibility to
overcome the bureaucratic
model of public
administration system
functioning
7 0,25
2. Improving the
eciency and
transparency of
regulatory policy,
improving ex-post
evaluation
7 0,28
2. The diculty of
determining optimal
relationship between the
results of regulatory policy
and costs
7 0,31
3. Harmonization of
technical regulation
system for business
development
8 0,45
3. Possibility of obstacles
related to the deepening
crisis caused by the
pandemic
7 0,33
4. Improving regulatory
institutions quality in
the budget and banking
sectors.
9 0,14
4. The complexity of
ensuring the balance of
public authorities and
business entities interests
in regulatory activities
9 0,11
∑
=0,4*7 + 0,28*7+0,45*8+0,14*9 = 7,84
∑
= 0,25*7+ 0,31*7+0,33*7+0,11*9 = 7,22
Source: compiled by the authors.
The status of regulatory policy system development aects the strategic
vision and priorities of the state’s economic policy. To substantiate
conceptual solutions to improve approaches to implementation, we use
470
Irina Kosach, Kostiantyn Shaposhnykov, Anton Chub, Inna Yakushko, Dmytro Kotelevets y
Oleksandr Lozychenko
Regulatory policy in the context of eective public governance: evidence of Eastern European Countries
modied methodological approach SWOT-analysis, based on the group
identication of threats and weaknesses, strengths and opportunities for
regulatory policy in the analyzed countries of Eastern Europe. Assessment
of opportunities and threats, strengths and weaknesses was carried out by
the expert method on a scale in the range of 0-1 on the «degree of inuence»
criterion, which varied in the range: 0-0.3 – «low»; 0.31–0.6 «average»;
0.61–1.0 – «high».
Thus, dangerous weaknesses were identied as the lack of clearly
dened regulatory quality principles and the imperfection of mechanism
for bringing the executive to justice for the results of regulatory policy. The
most dangerous threat is the diculty of ensuring balance between the
interests of public authorities and economic entities in regulatory activities.
The maximum «strengths and opportunities» eld values conrm the
ability to counter weaknesses, to prevent threats to the regulatory policy
implementation and to indicate the ability to overcome threats through the
strengths use and an eective system of public administration. Therefore,
the specication of SWOT-analysis results allows to form target priorities
of the regulatory policy implementation concept for the countries selected
for the study (Fig. 2).
BLOCK 2
IMPROVING THE INTERNAL
BUSINESS ENVIRONMENT
Simplification of solvency recovery procedures
Reducing the tax burden
Further development of business infrastructure
Development and improvement of the partnership
system between business and civil society
BLOCK 3
HARMONIZATION OF THE
REGULATORY SYSTEM
Transparency of regulatory policy
Improving legal regulation
Harmonization of standardization and certification
system
Monitoring of regulatory policy with the
participation of public members
BLOCK 4
STIMULATING PARTNERSHIP
AND COOPERATION IN THE
FIELD OF REGULATORY POLICY
International integration of science, public
administration and education
Information and advisory cooperation between
countries
Solving the economic problems caused by the
pandemic
Ecological orientation of production
The results of regulatory policy meet the needs for
the best use of resources
BLOCK 1
ECONOMICAL DEVELOPMENT
Fig. 2. Conceptual thesis for improving the process of
implementing the Eastern European regulatory policy
Source: compiled by the authors.
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The implementation of conceptual framework involves grouping the
main areas of regulatory policy implementation process improvement in
the following areas: economic development, improvement of the internal
business environment, harmonization of the regulatory system, promotion
of partnership and cooperation in regulatory policy.
Conclusion
Formation and development of the regulatory policy principles as a
mechanism for inuencing economic activity in the studied countries of
Eastern Europe are dierent, but the chosen strategic directions in certain
positions coincide, indicating a common development goal and eorts to
achieve it. The regulatory policy of Eastern European countries is supported
in the form of an expanded dialogue with all participants in the public
administration process, primarily through the use of public hearings and
tools.
The regulatory bodies tools are also expanding, as more and more
attention is being paid to alternatives to traditional command-and-control
models of regulation. Administrative simplication and elimination
of bureaucracy are priority for the regulatory policy formation and
implementation in the studied countries. First of all, it implies a reduction
in the number of administrative requirements without compromising
regulatory benets of improving the regulation availability in the eld of
regulatory policy.
As follows from the study results, in Ukraine it is necessary to change
the conceptual framework for the state regulatory policy implementation in
order to focus on the principles of public administration. Public regulatory
policy should be implemented in such way, as to focus not only on reducing
the costs of regulatory acts, in particular for the business sector, but also
on supporting the long-term public administration goals and the eective
implementation of its functions. At the same time, the leading direction is
to increase the regulatory activities eciency and transparency of public
administration structures with increasing their responsibility for ineective
management decisions.
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Esta revista fue editada en formato digital y publicada
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Universidad del Zulia. Maracaibo-Venezuela
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