BUSINESS IN UKRAINE. OBSTACLES AND PERSPECTIVES

The PERU group (Project on Economic Reform in Ukraine) from Harvard University has carried out a questionnaire in Ukraine. Fifty-three foreign businessmen took part in it. Over 73 per cent of the respondents singled out constantly changing laws and regulations, and 59, 6 per cent named imperfect banking system as the main obstacle.

The following problems were also pointed out as important: unclear investment legislation, difficulties in locating places for advantageous invest methods, poor communication services and problems with mutual payments.

The following problems, pointed out as potential, occupy the lower part of the fable: insufficient delivery of materials, corruption in government, problems in dealings with the Ukrainian partner, unfavourable tax legislation, language barriers, etc.

Whether economic reforms will be realized according to legislation, ratified by the Parliament or as a result of government edicts is a matter of politics not economics. Any course that would lead Ukraine to a stable economy should be adopted.

Problems, as we see, are in law and policy that is they depend on the “higher ups” rather on than the “masses”. If the government takes quick and decisive actions to reorganize the policy of Ukraine, then Ukrainians themselves will ensure all that is necessary for the economic rebirth of their state.

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