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The key topic of the Kyiv International Economic Forum (KIEF), that took place in Kyiv on October 2, 2014, were the economic reforms Ukraine needs, and ways of their implementation. The discussion keynote was the idea of Eric Reynart's book "How rich countries became rich and why poor countries remain poor". The author tells that the secret of success lies in the combination of government intervention, protectionism, and strategic investment.
The recent events at the international arena show that most likely there will not be a full "Marshall Plan" for Ukraine. We will have to fight for the investments, jobs and export earnings using a rigid national economic policy, which should be based on the priority areas and "growth points" of the new economy. We should not anticipate and go with the flow, but consciously design and build the future of the country. There are knowledge and skills that will create a strong Ukrainian nation and the economy, almost independently from the future changes. When talking about education, it is important to rely on the study abilities, English, emotional intelligence, synthetic thinking, information technology and national identity.
Ukrainians need to adopt the experience of other countries which overcame poverty and became the world's economic leaders. That is why KIEF invited successful foreign reformers, business leaders and economic experts who discussed the global issues in separate panel discussions.
Within the "Ukraine in the hi-tech race" debate there was a discussion of the need to implement IT with understandable and predictable outcomes measured in saved energy, natural resources, labor market development and a clear ROI calculation. For example, there is an undeniable relationship between the development of broadband access and GDP: countries that invest in the deployment of broadband networks show a few more percent of GDP increase in several years. And, most importantly, the implementation and use of ICT at primary school level leads to the development of the new workforce that has advanced skills for our competitive world. Development of innovative products is a chance for the country to take its rightful place in the global knowledge economy.
Another panel discussion was devoted to the agriculture that plays an important role in the economy of Ukraine. It produces more than 8% of the GDP and provides 5.5% of all the workplaces. Despite this, agriculture is developed significantly below its potential, which is clearly confirmed by international comparisons of productivity. Ukraine has everything needed for the success: talented people, advantageous geographic position, favorable climate and soils. But for a long time the country lacked a pragmatic pro-Ukrainian policy. However, to develop a strategy that will increasingly satisfy all of the stakeholders we need to make concessions and compromises, because the goals of the players at this market are very different.
Engineering is the key to development of any country. In Ukraine, this sector is represented by companies that are working with the technologies of the early 1990s, and the movement towards the de-industrialization is the reality of today. However, in accordance to the international practice, engineering is one of the bases of the post-industrial economy and the knowledge economy. During the "Engineering: burden or wings" panel discussion the experts were trying to find answers to such difficult questions, as 'Can the old enterprises upgrade and become a major player at the global market?' 'Car manufacturing in Ukraine — myth or reality?' 'Does Ukrainian economy need heavy machinery?' 'How productive is the idea for Ukraine to become a "factory" of Europe?'
In the "Education Revolution for the country and business" panel discussion business experts together with educators and government officials were looking for the possible ways of combining education, science and business into one innovative system. In particular, a lively discussion led to the question of how to persuade the public that concentration of the resources and efforts on education and science is inevitably necessary, because a result of the first changes will be materialized in the form of business income and GDP growth in 3-10 years.
Good business climate is needed to attracts foreign and domestic investments. This topic was discussed during the "Financing of development projects" panel. There can't be a boom of foreign investments without an active and adequate state investments, and domestic investors. The favorable investment climate indicators are defined with the ease of doing business, level of corruption, competitiveness, tax burden, property protection. However, this is only one of the basic conditions to begin the development. Experts and businessmen believe that we need a different approach to the state investments, which should be a catalyst for the foreign and domestic private investments. Funds should be especially directed to the industries ignored by private investors, and the development of breakthrough priority sectors.
Members of the Kyiv International Economic Forum agreed that Ukraine needs drastic changes for the economic breakthrough. First of all, in psychology, because people with the old mentality are still dictating the agenda. But this does not mean we should just wait for changes. The state is able to accelerate the transformation of the nation. Also a radical reform of government is needed — fighting corruption, minimize bureaucracy, reducing the state apparatus while increasing wages and responsibility of civil servants. Then, the state and the business will have a win-win relationship at last.
Kyiv International Economic Forum (KIEF) is an ongoing discussion platform designed to form a strategy for economic development of Ukraine. It is aimed at establishing a dialogue between experts, business representatives and authorities, adoption of the best world practices, creation of a development road-map and its implementation.
Organizers:
National University of “Kyiv-Mohyla Academy” is one of three oldest education establishments of Ukraine, a successor of Kyiv-Mohyla Academy (1659—1817); it includes 6 departments, 28 scientific centers and laboratories, well-known Kyiv-Mohyla Business School, 9 divisions of the Scientific Library, more than 9,000 graduates; more than 800 lecturers and instructors annually teach 3,469 students.
Kyiv School of Economics (KSE) is a world-class education establishment. Its activity contributes to the development of economy, business and economic policy in Ukraine and neighboring countries.
KOLO Discussion Club is a group of mid-size business representatives, government officials, scientists, experts, public figures and journalists who are working on the realization of social and economic initiatives in Ukraine.
Ukrainian Association for InnovationDevelopment (UAID) unites leading international and national companies in high-tech, education and science, information technologies, engineering, microelectronics, energy efficiency. The mission of Association is to create conditions for high technology businesses in Ukraine.
www.uaid.com.ua
