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A lesson in political correctness

How to make Ukraine a good place for investments
10 June, 00:00

For the first time in Ukraine’s history US Secretary of Commerce Carlos Gutierrez, a key member of President George Bush’s economic team and business spokesperson in the US government, paid a visit to Ukraine. In appointing him commerce secretary, the American president said, "He understands the world of business from top to bottom. He knows exactly what has to be done in order to help American businesses develop and create new jobs."

Gutierrez is the embodiment of the American dream, according to US Ambassador to Ukraine William Taylor, because he went from being an immigrant and greenhorn in business to the president of a big company. In Kyiv he met with members of the Ukrainian business community and journalists.

What brought this highly respected American to Ukraine at the end of President Bush’s term of office, but not when we were joining the WTO? Judging from Gutierrez’s passionate speech at the Ukrainian Home, the reason for his visit was mainly the world food crisis and the role of Ukraine and its fertile land and skilled personnel in fighting this crisis. He believes in our country’s potential to occupy a worthy place in the world food market and even calls Ukrainian agricultural production a "resource-motor that will kick-start the whole economy." In Gutierrez’s opinion, this resource consists of over 30 million hectares of fertile land that will allow our country to export 200 million tons of grain to relieve the world food crisis.

The American commerce secretary showed that he is very familiar with the situation in Ukraine. He welcomed our accession to the WTO and expressed his confidence that the last disputes will be eliminated and Ukraine will approve five more essential laws. He noted that the development of Ukrainian agriculture will be successful only if the government abolishes the moratorium on the sale of land and does not ban or limit exports. Ukraine’s latest actions and international experience may ultimately lead not only to financial losses but also to production deficits in our country, Gutierrez opined.

The US Secretary of Commerce also emphasized the need to create a favorable business environment and investment image for Ukraine. He masterly interwove this subject with the issue of Ukraine’s energy dependence. During his speech Gutierrez frequently mentioned respect for contracts signed by Ukraine, noting that the way they are carried out and the way property rights are honored will show whether our country is a good place for investment. He advised our government to issue a statement on honoring contracts and respecting property rights.

It is clear to all Ukraine-watchers why Gutierrez paid a visit to Ukraine at this time. According to the materials prepared by the US Chamber of Commerce in Ukraine, "the opening of world markets for American companies in order to encourage expansion and competitiveness is Secretary Gutierrez’s top priority." The US Secretary of Commerce, however, refrained from naming any American company. This was an object lesson in political correctness to the leaders of our country, who always publicize all existing conflicts.

During the question period, Gutierrez responded sincerely and frankly. He noted that the US is ready to satisfy the demand of countries that are concerned about the world food crisis to put an end to its agricultural subsidies, which experts say offer competitive advantages. But he added that the US will only take this step if other countries agree to do this.

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