Do Ukraine’s economic conditions encourage the development of the domestic market?

Similar problems were discussed in late March at the international conference, Prospects of Development of the Domestic Industrial Goods Market in Ukraine, hosted by the Kyiv Shevchenko University. Below are responses to The Day’s question from some of the conference participants.

Yury YEKHANUROV, chairman of the parliamentary committee on industrial policy and entrepreneurship:

“Both global and domestic market conditions no doubt suggest that Ukraine’s market will grow and expand. At the same time, I’m concerned about the problem of investment goods — everything relating to construction and new equipment. I’m afraid that this year market growth in this sector will be restrained for subjective reasons connected with the elections. There is uncertainty in politics. Thus, business people will also mark time. In general, I predict a successful development of our market.”

Prof. Jozef SZABLOWSKI, rector of the Bialystok Higher School of Finance and Management, Poland:

“The key factor of the development of entrepreneurship in Poland has been the change of the economic management system: in two years GDP rose by 45% even though labor productivity grew by a mere 2%. Sales of goods have also increased, which is directly linked with quality. Today, a major factor of the development of the Polish market is competition between domestic and imported goods. Companies with foreign capital channel innovations, investment, and high technologies into our economy. I want to stress that the development of trade on the Polish market depends not only on state management but also on the companies themselves. The best policy is no policy. Most companies in Poland are independent of the system of power. Under such conditions, the main advantage of our entrepreneurs shows itself — their natural penchant for business and their initiative. It is important for us to first have companies manufacturing goods for the domestic market and then companies working for export. Now Poland must meet competition from the European countries and withstand it. If Ukraine and Poland want to manufacture quality and competitive goods, we must create joint Polish-Ukrainian ventures.”

Viktor BAZYLEVYCH, chairman of the Economics Department at the Kyiv Shevchenko University:

“Our nation’s economic theory has no fundamental studies of the market. It is very difficult to make a comprehensive analysis of Ukraine’s economy, since its greater part remains in the shadow. At the same time, the concept of accelerated development is gaining increasing popularity in economic theory. All the nations known as economic tigers have developed along a similar path. By following the traditional path of gradual growth we will never cover the distance that separates us from the developed countries. Only high technologies, with biological and space technologies the most promising for Ukraine, will enable our economy to develop. We simply have no other options. Leaping development of the market and industry is our future.”