Now our country has opportunities that should not be missed.
Because of the war between Russia and Ukraine, many businesses have decided to move to Western Ukraine. The region is getting a new industrial breath and the central government must take a number of steps to ensure that the impetus for the region is not wasted, writes Mykhailo Bno-Ayrian in the article “Second breath: how western Ukraine got a chance for industrialization “.
” First . And most importantly. The government must move away from the principle of “importing everything we can from abroad” to the position of “producing everything we need in Ukraine.” In this regard, the “zeroing” of customs and the unimpeded import of absolutely all types of goods with zero VAT and duty causes great damage to Ukrainian producers and can nullify the efforts of domestic enterprises to relocate and build new plants in western Ukraine. Healthy protectionism is needed. At the moment, our Western partners will forgive him, “the author said.
The second . Ukraine needs a completely new industrial policy aimed at stimulating the processing of raw materials into high value-added products.
Our government is already competing with the governments of some EU countries, which are already actively trying to attract our producers. For example, Romania, which has an underdeveloped industry, offers long loans (15-25 years) at a few percent, with a grant component and other benefits for those who agree to stay with them.
If Ukraine does not want to, In order for Ukrainian business to go abroad, the simple absence of hostilities and invitations to move is not enough – real financial incentives are needed, which will be converted into new jobs.
Third . A comprehensive and effective export strategy is needed. The half-dead export credit agency needs to be completely reset, and some ministries have refocused on promoting Ukrainian exports. The ban on the import of products from Russia and Belarus to Europe, the willingness of half the world to help us in any way – these are huge opportunities for Ukrainian exports, and this opportunity should not be missed. We need to start insuring exports, lending to businesses, and, of course, restore the refund of export VAT without it, nothing will happen.
Fourth . A new public procurement policy is needed. All government orders should be directed exclusively to the domestic market. As I have already written, there is money in Ukraine and, most likely, only the state will have it. In the next two or three years, the state budget will be the main source of concentration and redistribution of serious financial resources in the country. Only critical imports can and should be bought abroad with state money. The rest is only in the domestic market.
“Ukrainian business, which has actively worked in the regions most affected by hostilities, or works in regions that are on the line of possible development of hostilities, should pay attention to western Ukraine and calculate the option of business diversification. This must be done immediately, because the risks are significant, “the author writes.
Western Ukraine may be a compensator for the deindustrialization of the East in connection with the war with Russia, as well as a tool for active further economic integration with the EU. The government needs to develop a comprehensive approach to stimulating output growth in western Ukraine and lead this “trend”. Otherwise, the relocation will not become mass and will be only local.
Read in detail in the article by Mykhailo Bno -Airiana “Second Breath: How Western Ukraine Got a Chance for Industrialization” .
