Due to insufficient rule of law, Ukraine loses between $14.8 billion and $45.3 billion. In key justice indicators, Ukraine lags over twofold behind EU member states. To address this, the EasyBusiness team developed the Economic Rule of Law Index, along with analytics on its impact on the business climate and economic activity.

Experts created an effective tool to quantitatively assess the rule of law’s influence on doing business in Ukraine. The study included interviews with NGO and civil society experts, as well as a nationwide survey of 400 enterprises.

The result of the project was the Economic Rule of Law Index—a unique tool for measuring the rule of law’s impact on the business environment.

The index comprises two components: a sociological business survey and desk research based on data from official sources (State Statistics Service of Ukraine, National Bank of Ukraine (NBU), and the Supreme Court).

The sociological survey involved 400 businesses in Ukraine: 103 microenterprises, 210 small enterprises, 77 medium enterprises, and 10 large enterprises. This represents the national distribution of MSMEs, with a maximum sampling error of 3.2% at the national level.

The Economic Rule of Law Index is presented on a scale from 0 to 1. A score of 0 indicates the least favorable conditions, while a score of 1 reflects the most favorable conditions or the highest level of adherence to rule of law principles in economic and business contexts.

According to EasyBusiness analysts’ calculations based on business representatives’ surveys, industry expert analysis, and data assessment, the 2023 Economic Rule of Law Index for Ukraine is 0.58. The business survey revealed overall dissatisfaction with the state of the rule of law in Ukraine.

The index received positive feedback from both governmental and non-governmental stakeholders and has the potential to become a key metric for evaluating the development of rule of law in Ukraine and its impact on the business environment and private enterprise activity.