Interaction with Ukrainian government bodies

Date: 2015-10-07; view: 385.

The different kind of relationship between government and business in Ukraine is one of the biggest obstacles to greater western investment in the country. Of course, bureaucracy is bureaucracy in any country, but in Ukraine (as well as Russia and certain other countries) government and business play games with each other. Different government bodies often have overlapping spheres of responsibility and have conflicting instructions and policies. Controlling and regulating bodies often act unpredictably, based on rules that no one else is aware of.

We often hear the word "non-transparent" with regards to Ukrainian governmental processes. What exactly does this mean? It means that the rules and principles government bodies adhere by in fulfilling their duties are poorly formulated and not available to the general public. This lack of official, set-in-stone information is maddening to many Ukrainian businessmen as well as foreigners. Even if the rules appear to be written down, "details" (or "nuances," as they like to say in Ukraine) such as bureaus' choice of office hours, the availability of necessary forms, and longer -than-expected lines can easily throw everything out of kilter. It seems that nothing is done to make the system work more smoothly and efficiently. Western businesspeople often know exactly what changes need to be made in the system to make everyone's lives easier, but they are never made. What is the reason?

The immediate reason seems to be that all these inconsistencies, redundancies, and inconveniences allow government bodies to keep businesses and citizens in a state of uncertainty and submissiveness which they can exploit for their own gain if necessary. Historically, bribery of various types has flourished in Ukraine, and businesses are forced to seek out personal relationships with government officers for their own security and for access to information. In most western countries it is usually not crucial to the success of one's business to have good contacts in government bodies. In Ukraine it is. This state of affairs often seems threatening and risky to westerners, and it is hard indeed to adjust to. To effectively run a large business in Ukraine, you will have to adapt to the existing communication style to some degree, even if you feel like you are "compromising your principles." Remember — those principles come from your upbringing and may not be as absolute as you are used to thinking.