Ukraine needs a new economic doctrine – Miroshnichenko

In order to attract billions of international investments to Ukraine, it is necessary to introduce a new economic doctrine. This opinion was expressed by MP Ivan Miroshnichenko, member of the Parliamentary Committee on Agrarian Policy and Land Relations during his speech at the 16th international conference Grain & Maritime days in Odessa.
“Ukraine is now in a state of a “perfect storm” in terms of the state of the world and national economy. Practically all the risks that exist in theory are present in reality: military, financial, monetary, political, natural ones, etc. The global crisis continues. The country is in the state of war. Ukraine is not receiving the external investments in the way we would like to, because of these risks. Instead of recovery, the financial and banking sectors have been destroyed, which has caused hundreds of billions of losses to people and businesses. The situation was “improved” by the global crisis and low prices on commodity markets, the loss of external markets – all this led to a significant drop in GDP in 2014-2016. Ukrainians took away their money from banks because of distrust and high devaluation, and so on. Except for the IMF’s macroeconomic assistance, for which we are very grateful of course, we have not received anything more,” Ivan Miroshnichenko describes the current economic state of the country.
According to Ivan Miroshnichenko, the $1.5 billion provided by the IMF for a year and a half to replenish foreign exchange reserves will not let the domestic economy grow by 5-7% per year. To enhance growth, he says, one more important step must be taken.
We need to have a strategy for the support of the domestic economy demand through a balanced internal state policy of the National Bank, state banks and with the support of international financial institutions aimed at the defence industry, development of energy and energy efficiency, roads and infrastructure, and agriculture. We have experienced financial dehydration of the economy. Tough stabilization requirements of the IMF do not let us use our internal state capabilities and tools. This is not fair in relation to Ukraine. This means that Ukraine being exhausted by the war and political instability must prepare to fight for investment. Liquidity of financial institutions is decreasing, borrowed money is still very expensive, investment capital will continue to exit many markets and projects. In order to win the attention and money of investors, right now we need to think about a new economic doctrine and a clear action plan for the government,” MP Ivan Miroshnichenko suggests.
According to the politician, the Cabinet should start negotiations with external donors about a conceptually different philosophy of donor programs.
It is necessary to formulate and coordinate economic directions for expanded financing, to select specific projects and receive support from the IMF, the World Bank, other international organizations and even private financial funds and institutions for them. Several areas can be defined as the priority ones: the defence industry, transport, maritime infrastructure, energy, agriculture. It is necessary to make such an approach the main criterion in obtaining new extended financial assistance to Ukraine,” Miroshnichenko sums up.

Ivan Miroshnichenko
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