Investissement pour le développement

OECD-Ukraine Roundtable on the Ukraine Investment Policy Review

 

Ukraine is a potentially attractive place to invest. The failure to attract foreign investment, the staggering capital flight, the collapse of the formal economy and the relative growth of the "shadow" economy are in sharp contrast to certain strong endowments of Ukraine. The country possesses a large amount of unused or underused physical and human capital (98.6 per cent literacy rate), a large domestic market of about 50 million people (among the largest in Europe), rich natural resources, and a strategic location at the crossroads of Central Europe, Russia, Central Asia and the Middle East, all of which provide a solid base for sustainable economic growth.

At the request of the government of Ukraine, the OECD carried out a major policy review of Ukraine's legal and institutional investment regime. The Review was released and discussed at a roundtable meeting on 23 February 2001, co-organised by the OECD and Ukraine. It identifies the obstacles to investment and private sector development, and puts forth concrete, practical recommendations for an improved business climate. The Review was undertaken not as a desktop study, but in a dynamic framework as a joint exercise involving almost all key players, domestic and international alike, on Ukraine's investment scene.

The concluding statement of the Kiev Roundtable meeting was: "Ukraine has the potential to be transformed from "a miracle in waiting" to "a miracle in the making'". Senior Ukrainian government officials supported the Review's recommendations and pledged strong support to implementing them, which they indicated were in conformity with the government's strategic objectives for 2001 and beyond.

Both during the bilateral meetings with senior Ukrainian government leaders and at the roundtable discussions, the Review was described as the most comprehensive assessment to date of the current situation in Ukraine with regard to the investment climate, business conditions, as well as the legal landscape.

It was strongly recommended to establish an Ukrainian inter-ministerial/departmental team to develop a strategy to begin implementing the recommendations and rectifying the shortcomings identified in the Review. This team would also be the interface of the Ukrainian government with the OECD-Ukraine Forum on Investment and Enterprise Development established at the Roundtable (see "terms of reference" below).

The Forum is expected to develop dialogue and synergies among government officials, the private sector, bilateral and multilateral co-operation programmes, and above all, help identify the fundamentals of a forward-looking investment policy.

Ukraine Investment Policy Review

The Investment Policy Review of Ukraine builds on the earlier "Investment Guide for Ukraine", published in 1993 to provide information to business operators planning activities in Ukraine. This Review, which is prepared in the framework of the OECD's Centre for Co-operation with Non-Members, is intended to advance the policy dialogue and co-operation between the OECD and Ukrainian decision-makers on investment issues. To support Ukraine's reform efforts, the Review assesses the implementation of the legal rules, with an emphasis on their practical enforcement, and identifies gaps in legislation and institutional frameworks, distilling an array of policy recommendations.

This Review was published in May 2001 on the authority of the Secretary General of the OECD. Download the Executive Summary and Recommendations in pdf format

or purchase this publication online via the OECD Bookshop.

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