Results of Bureaucracy Index Ukraine

63

Redundant
bureaucratic duties

500 pages
of documents

469

Wasted
hours

3 working months
of one employee

1,171

Wasted

20% of profit
of small enterprise

What is bureaucracy Index?

Bureaucracy Index is a simple and transparent instrument that allows to quantitatively measure a negative impact of bureaucracy on enterprise activity during one year by calculation of time and money, wasted in order to complete all of the bureaucratic procedures.

The mission of the project is to increase public awareness of bureaucratic burden which impedes business activities in Ukraine through establishing a comprehensive list of “red tape” duties as well as estimating their costs.

The duty is bureaucratic if:

It is established by the law
It is not necessary for functioning of the firm


Methodology

Bureaucracy Index is calculated by examining a modeling company, which:

Produces metal products
Employs 4 people
Has €100 000 of annual turnover
Is a VAT payer
Has its own vehicle


Examples of bureaucratic duties
Fuel consumption and inventory report
Capital investment, retirement and amortization of assets report
Documents confirming the provision of employees with uniform, soap, milk, soda water


Doing Business vs Bureaucracy Index
DB
BI
Examines the ease of doing business in a country
Concentrates on small-sized enterprises
Includes both direct and indirect costs
Whether bureaucratic procedures are taken into account


Comparison with other countries
Average
value
Result
of Ukraine
Comparison

60
63
↑ 4%
236
469
↑ 99%
1973
1171
↓ 41%


Opportunity costs of bureaucracy
Hiring a sales representative or sales manager
Investments in the improvement of business-processes, that will allow to save even more money
Development of the company’s website in order to communicate with customers via Internet
Download brochure Download list of procedures Download presentation
Author of research in Ukraine
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