Экономические науки/13.Региональная экономика.

Nedeva U.S.

Vlasova I.A.

Donetsk state university of economics and state after Michael Tygan-Baranovsky, Ukraine

Economy of Ukraine. The interesting places in Kyiv

In Soviet times, the economy of Ukraine was the second largest in the Soviet Union, being an important industrial and agricultural component of the country's planned economy. With the collapse of the Soviet system, the country moved from a planned economy to a market economy. The transition process was difficult for the majority of the population which plunged into poverty. Ukraine's economy contracted severely following the years after the Soviet collapse. Day to day life for the average person living in Ukraine was a struggle. A significant number of citizens in rural Ukraine survived by growing their own food, often working two or more jobs and buying the basic necessities through the barter economy.

In 1991, the government liberalized most prices to combat widespread product shortages, and was successful in overcoming the problem. At the same time, the government continued to subsidize government-owned industries and agriculture by uncovered monetary emission. The loose monetary policies of the early 1990s pushed inflation to hyperinflationary levels. For the year 1993, Ukraine holds the world record for inflation in one calendar year. Those living on fixed incomes suffered the most. Prices stabilized only after the introduction of new currency, the hryvnia, in 1996. The country was also slow in implementing structural reforms. Following independence, the government formed a legal framework for privatization. However, widespread resistance to reforms within the government and from a significant part of the population soon stalled the reform efforts. A large number of government-owned enterprises were exempt from the privatization process. In the meantime, by 1999, the output had fallen to less than 40 percent of the 1991 level, but recovered to slightly above the 100 percent mark by the end of 2006. In the early 2000s, the economy showed strong export-based growth of 5 to 10 percent, with industrial production growing more than 10 percent per year. The growth was largely attributed to a surge in exports of metals and chemicals to China.

The World Bank classifies Ukraine as a middle-income state. Significant issues include underdeveloped infrastructure and transportation, corruption and bureaucracy. But the rapidly growing Ukrainian economy has a very interesting emerging market with a relatively big population, and large profits associated with the high risks. The Ukrainian stock market grew 10 times between 2000 and 2006, including 341 percent growth in 2004, 28 percent in 2005, and 24 percent in 2006. According to the CIA, in 2006 the market capitalization of the Ukrainian stock market was $42.87 billion. Growing sectors of the Ukrainian economy include the IT Outsourcing market, which was expected to grow over 25 percent in 2007.

By December 2007 the average nominal salary in Ukraine reached 1,675 hryvnias per month. Despite remaining lower than in neighboring central European countries, the annual growth of average salary income in real terms is about 20 percent for several years (2001-2006) in a row.

Ukraine produces nearly all types of transportation vehicles and spacecraft. Antonov airplanes and KrAZ trucks are exported to many countries. The majority of Ukrainian exports are marketed to the European Union and CIS.

The country imports most energy supplies, especially oil and natural gas, and to a large extent depends on Russia as an energy supplier. While 25 percent of the natural gas in Ukraine comes from internal sources, about 35 percent comes from Russia and the remaining 40 percent from Central Asia through transit routes that Russia controls. At the same time, 85 percent of the Russian gas is delivered to Western Europe through Ukraine.

After 15 years of negotiations, Ukraine was invited to join the World Trade Organization on February 5, 2008. Ukraine will have to ratify the agreements by July 4, 2008, and will become a WTO member 30 days after the ratification. It will become the 152nd member of the organization.

It is said that one can walk from one end of Kiev to the other in the summertime without leaving the shade of its many trees. Most characteristic are the horse-chestnuts (Ukrainian: каштани, kashtany).

Kiev is known as a green city with two botanical gardens and numerous large and small parks. The green nature of the city is probably most notable by the green hills of the right bank along the Dnieper river that have been relatively untouched by development. The World War II Museum is located here, which offers both indoor and outdoor displays of military history and equipment surrounded by verdant hills overlooking the Dnieper river.

Among the numerous islands, Venetsianskyi (or Hidropark) is the most developed. It is accessible by metro or by car, and includes an amusement park, swimming beaches, boat rentals, and night clubs. The Victory Park (Park Peremohy) located near Darnytsia subway station is a popular destination for strollers, joggers, and cyclists.

A wide variety of farm produce is available in many of Kiev's farmer markets with the Besarabsky Market located in the very centre of the city being most famous. Each residential region has its own market, or rynok. Here one will find table after table of individuals hawking everything imaginable: vegetables, fresh and smoked meats, fish, cheese, honey, dairy products such as milk and home-made sour cream, caviar, cut flowers, house wares, tools and hardware, and clothing. Each of the markets has its own unique mix of products with some markets devoted solely to specific wares such as automobiles, car parts, pets, clothing, flowers, etc.. There is also a popular book market by the Petrivka metro station. At the city's southern outskirts, near the historic Pyrohiv village, there is an outdoor museum, officially called the Museum of Folk Architecture and Life of Ukraine It has an area of 1.5 square kilometres. This territory houses several "mini-villages" that represent by region the traditional rural architecture of Ukraine. Kiev also has numerous recreational attractions like bowling alleys, go-cart tracks, paintball venues, billiard halls and even shooting ranges. 100-year-old Kiev Zoo is located on 40 hectares and carries over 2,000 specimens.