QUESTION OF <I>The Day</I>

Borys SOBOLIEV, Candidate of Science in economics, President, the First Investment Group:

We have the Civil Code enacted back in the 1960s. It includes an Economic Code and it is not difficult to imagine the situation in which it was drawn up. Thus I would like to ask my colleagues, lawyers, to focus on keeping the new Economic Code in conformity with the Constitution, the latter being a law of direct action. This would make it impossible for high bureaucrats and officeholders to come up with subordinate legislative acts. Such an Economic Code as an economic institution is vital for Ukraine.

Volodymyr IHNASHCHENKO, Deputy Minister of Economy of Ukraine:

I am worried by the inadequately regulated relationships between business entities and official executive structures. We must carefully balance and adjust this vector of relationships — and not by running the economy in a hands-on mode such that everything is decided to someone’s individual authorization or ban. This system is absolutely ineffective. The main task facing the lawgivers is the creation of framework and transparent conditions for entrepreneurial activity, making businesspeople feel free to operate, without executive authorities breathing down their necks. I think that enacting a single basic instrument such as the Economic Code would provide favorable conditions for business. The code will also supply business entities with guarantees, because they are dependent on executive authorities to a certain extent. However, I would like to point out that a single element of law cannot solve all the problems; we need consistent administrative reform.

Vasyl KHMELNYTSKY, People’s Deputy, Chairman, People’s Economy Center:

Legislation must be effective, I mean the laws should work in practice. The economic laws must help raise the efficiency of enterprises in market conditions, because nonmarket methods of administration have exhausted themselves. It is only through cooperation between jurists and practicing economists that we can have basic economic instruments allowing for maximum practical experience and the needs of enterprises. This document should establish clearly formulated rules of the businessman-state game. As it is, we have 20 ministries and agencies acting as official business registration authorities, 764 such local authorities, 24 offices of the Licensing Chamber in oblast centers, and 16 laws telling us how to go about this registration, along with 8 Cabinet resolutions, and 14 ministerial regulatory documents. It is likewise important to finally determine the administrative procedures governing business entities and make bankruptcy proceedings civilized.