Global Agenda Council on Ukraine 2013
Issue Overview |
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Ukraine enjoys a strategic geopolitical location between the European Union and Eurasia. Its wealth lies in natural resources, an educated labour force and significant agricultural and industrial potential.
However, after 20 years of independence, Ukraine’s national income remains below its 1989 level. The gross domestic product (GDP) per capita is lower than that of its neighbours, whose economies developed more dynamically in the last 20 years; Ukraine also suffered severely in the recent economic crisis. In 2009, GDP shrank by 14.5%, resulting in one of the biggest contractions globally. In 2011, Ukraine’s trade deficit doubled to US$ 6.7 billion, as the world’s 10th largest steel producer saw global demand weaken for its key exports of metals and machinery.
Recently, the country experienced an impasse in implementing structural reforms, resulting in setbacks to both its democratic transformation and a decline in appeal to foreign investment. Ukraine needs to further reform its public governance and judicial systems, rebuild trust between the government and civil society, modernize its economy and infrastructure, and create favourable conditions for the development of business. Further, it needs to transform its social protection, healthcare and education systems.
- Ukraine is a large emerging market with a population of 45.6 million (2012), and the largest territory in Europe after Russia.
- Ukraine has a highly skilled and well-educated labour force: the literacy rate is 99.7%,1 and 28% of the population has a higher education level.
- Ukraine possesses 28 billion tonnes (17% of the world's supply) of iron ore reserves, and 42.9 million hectares of agricultural land (71.2% of the total land area), representing about 25-30% of the world’s black soil.
“The international climate that Ukraine faces is antagonistic, to say the least. Western institutions are deeply concerned about the political situation in the country. It is a major obstacle for business and for normal international relations. It is critically important that the Ukrainian government deal with the problem as quickly as possible.”
Ambassador William Green Miller, Senior Policy Scholar, Woodrow Wilson International Center for Scholars, USA; Chair, Global Agenda Council on Ukraine
“The perception of the business community of doing business in Ukraine is far from ideal. The key problems seen by the business community in Ukraine are corruption, lack of rule of law and the lack of process to deregulate the business environment.”
Anna Derevyanko, Executive Director, European Business Association (EBA), Ukraine
“Two areas are critical for Ukraine in the energy sphere. One is to normalize its energy relationship with Russia. The second is domestic energy sector reform, which has been ignored by all the preceding governments.”
Edward Chow, Senior Fellow, Energy and National Security Program, Center for Strategic and International Studies (CSIS), USA
Proposals for Ukraine: 2010 - Time For Reforms
Beyond Colours: Assets and Liabilities of 'Post-Orange' Ukraine
Making Ukraine Stronger Post-Crisis
The New Wave of Reform: On Track to Succeed
Ukraine’s Future: A plan for the President
Ukrainian Parliamentary Elections
28 October 2012
EU-Ukraine Summit
Early 2013
Ukraine Chairmanship of the Organization for Security and Co-operation in Europe (OSCE)
2013
The Global Agenda Council on Ukraine aims to develop a set of concrete strategic priorities to facilitate the country's efforts to build upon its advantages and become more competitive.
In the short term, the Council will use the opportunities presented by the October elections in Ukraine to push for reforms. In the long term, the Council will focus on the following priority issues:
- National and regional competitiveness, including foreign direct investment strategies
- EU–Ukraine stalemate on the association and free trade agreements
- Improvement of the international image of Ukraine
- Energy security and energy sector reform
- Improvement of the business environment
- Institutional capability to implement reforms
- Judicial reform and the rule of law
- Civil society, education and skills development
Action steps
- Pressure the government to move forward with the reforms agenda
- Encourage more innovative approaches to development in Ukraine, i.e. promoting entrepreneurship among young people
- Leverage the organizations represented on the Council in a creative way to achieve impact
oksana myshlovska/liana melchenko/ andrew chakhoyan andrew.chakhoyan@weforum.org;
Forum Lead: Anastasia Aubakirova, Director, Head of Russia and CIS, anastasia.aubakirova@weforum.org
