Ukraine should switch from grain export to spaghetti export. And that’s why

November 14, 2017

Despite the difficulties, the international financial institutions do not refuse to cooperate with Ukraine and continue to fund certain projects, although the effectiveness of these projects is uncertain.
Director of the economic and social programmes at the Razumkov Centre Vasyl Yurchyshyn gave a comment to the Internet edition “News of Ukraine — From-UA”.

Commenting on the arrival of World Bank President Jim Jong Kim to Ukraine, our interlocutor notes the following: “It is good that such contacts are taking place. It is a positive fact itself. It is necessary to maintain cooperation with the international financial institutions. It should be noted that despite the difficulties the international financial institutions do not refuse to cooperate with Ukraine and continue to fund certain projects, although the effectiveness of these projects is uncertain. On a regular basis, we see information that Ukraine does not use all the funds, does not implement certain projects, and so on”.

Regarding the investment climate, Yurchyshyn draws attention to such an indicator as the “inflow of foreign investment”.

“Unfortunately, the investment climate did not receive the incentives and support that was expected. One of the factors of improving the investment climate is privatization. During the last 3-4 years the process of privatization is being postponed. From year to year we provide for 17 billion USD in the budget and reach this aim only by 10%, although every year privatization laws are passed”, — the economist noted.

In addition, Ukraine cannot be proud of a stable tax field.

“Every year significant changes happened — someone gets benefits, another looses them. This, of course, cannot contribute to the improvement of the investment climate in any way. Unfortunately, this list is not complete, but it does indicate that Ukraine needs to make more efforts to do real practical actions, rather than reflect on what high potential we have and what good projects we can have”, — said the interlocutor of the publication.

“The agricultural sector is, unfortunately, one of the few spheres, but it is good that it exists and can really have a good value for Ukraine, including both for general production and for export potential. If we take real economy, which can be of interest to foreign investors and which are important for the development of Ukraine — it is, of course, agricultural sector, information technology and infrastructure. It is interconnected, but with regard to the agriculture sector qualitative changes should be made. The agriculture sector cannot develop under the weak infrastructure, and it remains weak”, — Vasyl Yurchyshyn adds.

According to the expert, Ukraine has the potential and gains.

“Even though the agriculture sector of Ukraine is often perceived skeptically, secondarily, it should be reminded that the food problem in the world will escalate, food products can be getting cheaper, but will tend to rise in price, especially those products, that belong to the so-called organic group. Ukraine should move from export of raw materials and semi-finished goods, or goods of low value added, there is such a thesis — from grain export to switch to spaghetti export. There is a significant potential for producing of relatively high added value products. And all this must be based on investments, on the same infrastructure and of course it is important to attract foreign investment and technology”, — concluded Vasyl Yurchyshyn.


Vasyl Yurchyshyn

Director, Economic Programmes


Born in 1955 in Kamyanets-Podilskyi.

Education:

T. Shevchenko Kyiv State University, Department of Cybernetics (1977).

Institute of Public Administration and Local Government at the Cabinet of Ministers of Ukraine (1994).

Professor in Public Administration. Author of nearly 100 scientific works.

Employment:

In 1977–1993, worked at the Kyiv University as an engineer, research fellow and senior research fellow;

1994–1999 — head economic researcher at the International Centre for Policy Studies, Fund for Banking and Finance Development;

1999–2004 — Assistant Professor, Department of Economic Policy of the Ukrainian (currently, National) Academy of Public Administration, office of the President of Ukraine;

1999–2004 — Research Director at the Agency of Humanitarian Technologies, later — Agency for Social Analysis;

2002–2003 — advisor to the Minister of Economy of Ukraine;

since April, 2004 — Professor, Department of Economic Policy of the National Academy of Public Administration, office of the President of Ukraine;

since June, 2005 — Economic Programmes Director at Razumkov Centre.

(044) 201-11-90

yurchyshyn@razumkov.org.ua