Business news from Ukraine

Business news from Ukraine

BUSINESS COMMUNITY AND AUTHORITIES DEVELOP BAILOUT PLAN FOR UKRAINIAN ECONOMY

13 November , 2015  

Organizations of industrialists, entrepreneurs, employers of Ukraine, scientific institutions, civil society activists, who have formed the Anti-Crisis Council of NGOs, are ready to introduce their fundamental document ‒ the anti-crisis program of joint actions of the government and businesses ‒ to the European community. It will be presented to participants in an international conference entitled “The European Parliament is the Civil Society of Ukraine” in Brussels in early December.

A year ago, business organizations and associations, having realized the depth of the social crisis in the country, decided to combine their efforts to implement effective anti-crisis measures for industrial development and create a favorable business and investment climate. The said program covers all areas of social and economic development in the country, its cooperation with international partners, demands of society, existing resources and competitive advantages. The program is a public document and is being constantly updated simultaneously with developments of the situation and in line with new proposals that come from the business community.

The entrepreneurial community is convinced that the most important task today is to pursue a modern industrial policy. Nowadays Ukraine has seen signs of de-industrialization, when large factories and even entire industries, such as the titan of the aerospace industry, Pivdenmash, and transport engineering enterprises, are on the verge of closure. For example, the State Rail Transport Administration, also known as Ukrzaliznytsia, is facing the following problem: 92% of its locomotives and 83% of its passenger cars are old. At the same time, the domestic transport engineering sector has posted a decline in production at about 80%. Isn’t that time to launch large-scale state-supported programs for the modernization of railway rolling stock, support unique, skilled personnel, strengthen the positions of the domestic market and to gradually enter new markets?

The anti-crisis program of joint actions of the government and businesses features the creation of favorable conditions for small- and medium-sized businesses, which are key to economic stability. Industrialists demand resumption of issuing loans to the real economy at affordable rates, reduction in the administrative and fiscal burden on businesses, and the quick adoption of high-quality tax reform. They also insist on the rapid search for new markets to sell Ukrainian products and lifting of restrictions on imports and exports.

Separate sections are devoted to preparation for successful entry to the EU market as of January 1, 2016, which requires the development and launch of programs for adaptation of technical regulations and standards of Ukraine to EU requirements.

The anti-crisis program stresses that every effort must be made to combat corruption. Every corrupt official should be made liable ‒ regardless of status, position, political affiliation, as all are equal before the law. At the same time, the public and the business community should facilitate the rejection of corruption.

The anti-crisis program of joint actions of the government and businesses calls on the authorities to a productive partnership with the business community. Only by joining hands it is possible to overcome the crisis and achieve sustainable economic development, the industrialists and entrepreneurs emphasize.