Kyiv is one of the world’s most expensive cities

Tokyo is the world’s most expensive city, while Kyiv has entered the European top ten in terms of cost of living. These are the results of the Living Standards 2003 survey conducted by Mercer Consulting. The top five most expensive cities of the world also includes Osaka (Japan), the Hong Kong special administrative region, and Beijing, while Asuncion in Paraguay is the least expensive city in the survey. In general, Mercer has calculated the cost of living in 144 cities. The calculations were based on 200 indices including prices for real estate, food, clothes, transportation, and entertainment. The researchers took New York as standard, estimating it at 100 points. Hence, the index for Tokyo is 126.1 and for Asuncion — 36.5 points.

Half of the 20 world’s most expensive cities are in Asia. In the US the list is headed by New York, followed by Los Angeles and Chicago. Moscow occupies the first place in Europe and is followed by Geneva and London. Kyiv with its 84.2 points rates twenty-fourth in the world. Last year we were seventeenth with 86 points. However, even with this result we are still in the top ten of Europe’s most expensive cities. Interestingly, of all cities of the former Soviet Union, only Kyiv, Moscow, St. Petersburg (12th place), and Riga (27th) are among the top 50 expensive cities. Yvonne Treber, head for research projects at Mercer, believes that the dollar-Euro rate drop and high inflation level in many countries influenced the changes in the list. The research also notes that in spite of a rather big difference in the cost of living preserved between the first and last cities in the list, it tends to reduce.

COMMENTARY

Kostiantyn RODYK, editor-in-chief, Knyzhnyk (Bookman) -Review:

“I don’t think we should be proud of this index. For me this rating is like body temperature: the higher it is the more serious are the unhealthy processes going on in the body. Our country’s social scourges — opacity of the tax system plus the capital’s status and perhaps the prestige of doing business in Kyiv — reflect the extent the nation’s capital has been penetrated by shadow capital. If you want to compete [in Kyiv] you should be prepared to pay more than in the provinces.”

Kseniya LIAPINA, project coordinator, Institute for Competitive Society and adviser to the prime minister:

“In my view, this is a classic index: the poorer the country, the higher is differentiation between its capital and the regions. Civilized countries aren’t distinguished by the high cost of living in their capitals; at least living standards of country residents makes it possible for them not to take a certain imbalance in prices with too much pain. Another nuance: business in Kyiv can exist if it’s either very rich (because of the scale of bribes required on all levels) or in somebody’s pocket.”

Leonid BIRIUKOV, executive director of the Nova Formatsiya [New formation] Entrepreneurs’ Alliance:

“From the viewpoint of image, Kyiv’s high prices are a positive thing. However, though the indices of Kyivans’ living standards look more ‘attractive’ than in the country in general, social differentiation here is also large. Everybody whose income is lower than average often find it difficult to purchase even inexpensive things, food, or services. Speaking of the difference with European prices (unlike living standards), it’s quite obvious. There’s big money in the capital which, if correctly invested in the right place, can have a good return. However, the situation in Kyiv is far from unique: recall Moscow where they live according to the same “laws.”