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Experts evaluated prospects for Ukraine’s economic development
Mykola Kmit, Head of the Lviv Regional State Administration and organizer of the IX Lviv International Economic Forum, stated “the Forum’s work has confirmed that this type of event is worth evaluating as an opportunity to form a positive face to the current situation and to search for means of its improvement.”
The IX Lviv International Economic Forum became a platform for meetings with experts from Ukraine and around the world. In their discourses they were able to provide expert analysis and evaluation of Ukraine and the country’s further prospects for development.
Professor Ihor Burakovskiy, Head of Administration – Director of the Institute of Economic Studies and Political Consulting, emphasized in his discourse that the presence of a series of serious structural problems within the Ukrainian economy resulted in a “hard landing” after the crisis. He noted the following possibilities as means for emerging from the situation that has arisen: “stimulating the demand for products made by national producers as a means of rejuvenating the real sector of the economy; supporting the unemployed (and according to our prognoses, the percentage of the unemployed will continue to grow until there is a breaking point at the end of 2010)—registration in cities, regions, in order to have the most operative information and database; finally, the government should be prepared to work within a small budget and should designate for itself strict economic priorities, in addition to being ready to make unpopular, but effective decisions.”
Andre Kuusvek, Director of EBRD Ukraine, stated that overall the EBRD continues to finance projects in Ukraine. This year’s total amount of investment is 4.5 billion euros in the financial, agro-industrial, and transport spheres, including projects on the development of road-transport infrastructure in Lviv (almost 78 million euros). Mr. Kuusvek’s opinions on the most prospective sectors of the Ukrainian economy are shared byJorge Zukoski. The President of the American Chamber of Commerce in Ukraine states: “Our priorities for investment are the banking, real estate and agro-industrial sectors.”
During the IX Lviv International Economic Forum, international experts noted Ukraine’s strong areas and those that are worth working on. Margareta D. Hanouz, Director and Senior Economist for the World Economic Forum, Global Competitiveness Network, named the following as strong areas: the market’s scope, the system of higher education, macroeconomic stability, and effectiveness of the job market. However, the following are drawbacks: lack of preparedness for the introduction of new technologies, the financial sector, the instability of government institutions and the country’s policies as a whole, in addition to the ineffectiveness of the commodities market. According to Steve Santangelo, Senior Director of Consulting at FutureBrand, the country’s proper positioning and re-branding on the global market may not only increase its appeal for tourists and demand for exported products, but it may also attract direct foreign investment. In particular, with proper positioning, the inflow of tourism can increase to 66%, while in the long term, proper branding of the country can significantly increase the GDP and the perception of the country as an attractive place for business. Overall, according to Santangelo, Ukraine’s main problem is the weak perception of the country’s brand in the presence of considerable potential.
