Ukrainian-Austrian Association took the initiative and organized,
together with the International Council of Business Associations (ICBAC),
the international conference Foreign Direct Investment.
Prerequisites, Strategies, Measures at the Diplomatic Academy,
Kyiv on May 29, 2018.
Well known experts, top-managers and elder statesmen from international politics and business were discussing about their practical experience and were advising on steps to stimulate foreign investment into Ukraine.
More than 150 participants, officials, and representatives from government and institutions, as well as from international and local business were welcomed. A series of contributions from the audience and the following discussions made it clear that we had hit some very relevant issues in presenting and proposing strategies and measures in order to encourage foreign direct investment (FDI).
Some highlights from the many practically oriented issues discussed in the course of the conference: Undoubtedly Ukraine has been achieving impressive progress indeed under difficult circumstances in the past years.
Obviously, however, by far not enough has been done; therefore some vital reforms and steps have to be taken to improve the business climate and political-economic framework in order to raise FDI substantially as a precondition for real growth and increased prosperity; this conference, different from the many others in this field, was focusing on practical steps such as;
- Ukraine and Ukrainian companies have to inspire trust to the potential investors and financial institutions and will have to step up efforts to fight in a competitive environment;
- Targeted labor market policy will be decisive to avoid a bottleneck of labor in a growing economy: institutionalizing vocational training and better focusing of university education to the needs of the markets, preventing substantial rise of unit labor cost as a consequence of rising wages and salaries through improving productivity & efficiency will be mandatory in order not to lose competitive advantage; the way of doing business has to approach international standard;
- Government will have to improve communication with business, better accommodating their needs;
- Investor protection is of paramount importance: no continuous legislative changes anymore; create stability and predictability; demonopolize industries; decrease the political country risk, e.g. by introducing a risk insurance fund with Ukrainian government paying (part of) the premiums;
- Conclude Free Trade Agreements with important trade partners.
UAA and ICBAC are happy to learn that the conference was a sweeping success, inducing us to continue this initiative.