BUSINESS CLIMATE IN UKRAINE

Date: 2015-10-07; view: 617.

Foreigner: You represent the Independent Centre of Market Research, Mr. Pronin, don't you? What did the recent poll conducted by your centre reveal?

Ukrainian: Yes, I'm head of our industrial research group. The poll you've referred to confirmed that in spite of the ongoing economic reforms the economic situation in Ukraine is still rather difficult.

F: It is not surprising. You are having difficulties owing to the unavoidable problems which arose in the initial stages of transition to a market economy.

U: That's right. The poll showed that the standard of living is worsening, the economic activity is sluggish, the industrial production is still falling and the registered unemployment is rising.

F.: But judging by your official statistics available, you've checked the drop in industrial production, haven't you?

U: Yes, more than that. The tough monetary policy made it possible to curb the inflation, to stabilize the grivna, and to restructure our external debt.

F: The most striking thing is that you restored and increased your hard currency reserves. So your enterprises seem to be adapting to the market conditions.

U: That's true. However, those enterprises that wish to survive can't ignore limited demand owing to the drop in real incomes as a result of the liberalization in prices and the interruption of traditional trade links.

F: I see. Did you include into your questionnaire any questions about export activities of enterprises?

U: Yes, we did. Last year saw an increase in exports. The trend is continuing this year, which has given a boost to whole industries like ferrous and non-ferrous metal industries, and the fuel and energy complex.

F: Has the poll revealed any structural changes in the country?

U: Oh yes. A graphic example would be the service sector, including catering, banking, insurance and transportation businesses, which is developing very fast.

F: The whole world recognizes the significant, I'd say, unprecedented progress Ukraine has made in implementing structural adjustment policies.

U: It's nice to hear that. As the reforms continue, our society is undergoing drastic changes. The large-scale privatization has brought about private ownership which has caused the appearance of private property, the setting up of privately-owned businesses and the development of the non-state sector. Businessmen welcome the changes.

F: Your emerging business needs support, I think. Are there any programmes to support business?

U: Yes, we have quite a number of federal programmes to support small businesses and enterprises of different types of ownership which provide for tax benefits, information support and training of personnel.

F:. It looks like your business is beginning to play the role it plays in a market economy.

U: Let's hope it's so.