President Vladimir Zelensky urged investors to invest in Ukrainian citizens, who are the main capital of the country, personally guaranteeing the protection of each investor. He stated at the Kiev international economic forum, his words leads to “Interfax”.
Zelensky said that his predecessors “28 years imitated important reforms, built a shadow of an opaque system”, which Ukraine has become a kind of economic outsider. “But the new Ukrainian government is too ambitious to put up with this very unattractive status. And when I say that our chances are low, when we underestimate all of this adds to our adrenaline, determination, strength for a powerful economic jump,” said Zelensky.
In his opinion, the main capital of Ukraine are the people, and it gives the country a competitive advantage. “After all, the modern global economy is actually the economy of talent. World economic growth is mainly due to the innovation, and the Ukrainians are ready to become pioneers, Ukrainians are able to look to the future and to understand the needs of tomorrow. Ukrainians are very talented, hard-working, courageous, ambitious, creative, and that’s exactly what you want your investments”, the President said, referring to investors.
Zelensky said that Ukraine understands that the country needs a level playing field for all, the purification of the judicial system, fighting corruption, digitalization processes, the reform of education in accordance with challenges of the XXI century, as well as the vital economic laws. He urged investors to invest in Ukrainian, Ukrainian, youth, Ukrainian startups, small and medium business in Ukraine.
“Remember: today, Ukraine is a diamond requiring cutting of internal reforms and outside investment to become a real diamond not only in Central Europe but throughout the world. And I, as President, I guarantee that he is ready to protect your every investment, every penny that you invest in each of our Ukrainian”, – he assured.
We will remind, in may the world Bank has called Ukraine one of the poorest countries in Europe. “The pace of economic growth in Ukraine remain too low to reduce poverty and achieve the income level of the neighbouring European countries”, – was stated in the expert report. And according to recent estimates, Ukraine was in last place in the ranking of countries according to purchasing power among 42 European countries.
Ukraine’s GDP per capita at purchasing power parity is about three times lower than in Poland, despite similar income levels in 1990. Thus, at the current pace of economic growth in Ukraine will take over 50 years to reach the income level of present-day Poland.
According to experts, the development of the Ukrainian economy prevent “incomplete reform”, low productivity, excessive dependence on exports of commodities, weak institutions, lack of foreign direct investment and integration into the global economy. One of the key barriers to attracting investment is the violation of the principles of free competition. Dependence on raw materials exports hampers the restructuring of the economy and to increase exports of goods with high added value.
Experts believe that Ukraine needs to increase productivity and investment, which the authorities should reduce the role of government in the economy, promote foreign direct investment and to pursue stable macroeconomic policies. In particular, Kiev should cancel the moratorium on selling agricultural land, to continue the steps for the separation of “Naftogaz” and the gas sector, and to take measures to fight corruption and to accelerate judicial reform.