Экономические науки / 4.Инвестиционная деятельность и фондовые рынки

Genyk S.Y.

Tryhub I.P.

National University of Food Technologies

ANALYSIS OF THE CURRENT INVESTMENT CLIMATE IN UKRAINE

 

In today's dynamic world of investment has played an important role. They can take the role of core economy, the driving force of national production. However, internal resources for Ukraine finance the national economy in the proper amount is not enough. In this situation, the question arises attract investment from other sources, including from abroad. Ukraine's economy has significant resource potential, in which many investors may want to invest. Instability, inconsistency and lack of transparency legislation does not allow full use of available investment potential. Together with a significant level of depreciation of fixed assets (up 76.7%), the problem of attracting foreign funds becomes more acute [1].

Today Ukraine has the established  legal framework for investment activities. Specifically, the scope of activities regulated by several laws of Ukraine ("On investment activity", "On foreign investments", "On Protection of Foreign Investments in Ukraine"), and more than 10 Decrees of the President, as well as decisions and orders of the Cabinet.

According to these normative acts in Ukraine provides for equal rights and guarantees investment protection for all business investment.

The flow of current political processes and lack of practical implementation of the set objectives and priorities for improving the investment climate in Ukraine mainly negatively affect on the investment climate and, in particular, international investment attractiveness of Ukraine. So we have got  the increasing risk for investors, thus causing a loss in the competition for global investment resources.

Therefore, Ukraine needs new mechanisms for attracting foreign direct investment and a significant improvement of the investment climate. In a society as well as among the economic elite, has matured understanding that without radical changes of practice implementation and mechanisms for implementation in national legislation declared standards for the investment climate of Ukraine. The key of the investment climate improvement are:

1.     Lack of sustainable strategies in Ukraine and the national action plan that is acceptable and inherited all political "Team" and oriented on software all subjects economic relations equal economic Human and responsibilities in implementation f inansovo economic activity;

2.     Significant tax burden;

3.     Congestion of regulations and the complexity of the tax system;

4.     Strengthening of negative financial factors;

5.     In capacity of market mechanisms to ensure the rights and freedoms of investors and high level of investor protection;

6.     The negative international image of Ukraine, which was formed as a result of lack of mass "successful" investment stories that could serve as a means of advertising the national investment climate.

Based on the above, the necessary tasks of public policy is a revision of the existing quality system development and maintenance of the investment climate in Ukraine, a strategic analysis of the priorities of the national economy as well as the identification of factors that lead to inefficiency of legal acts taken in order to maintain a favorable investment climate in Ukraine.

Given these circumstances and view of the importance of improving the investment climate in Ukraine, the main short term objective is to prepare the necessary legal and organizational framework for increasing capacity mechanisms for the investment climate and the formation of foundations to preserve and increase the competitiveness of the domestic economy. You must take a number of priority actions consistent with depoliticization of the economy, the formation of common strategic objectives and sequencing of economic reforms constant for the coming to power of any political teams to ensure constancy and security of protection of the rights and freedoms of market investor.

In particular:

1.     Prepare an action plan to ensure a favorable investment climate within the declared priorities of social and economic development;

2.     Develop regional plans to increase the investment attractiveness of regions of Ukraine as a separate document or in the framework of the regional development strategies, taking into account the characteristics of their current ratings of investment attractiveness, to ensure public monitoring of the implementation of these plans as one of the criteria for the success of   administrations;

3.     Develop a program of comprehensive measures to counter inflationary trends in Ukraine;

4.     Prepare a list of measures to enhance the accountability of representatives of executive authorities and local self-government for corruption;

5.     Broaden the practice of making transparent agreements between investors and authorities on mutual commitments on competition and competitive business conduct policy in certain markets for a defined medium and long-term period time.

 

References:

1.     Tsisyk  N. B. Problem involvement foreign investment in economy Ukraine [Text] / Tsisyk H. B. C., - 2006. – 10p.

2.     National Institute for Strategic Studies under the President of Ukraine, the access mode - http://www.niss.gov.ua/economic_strategy.html