Dnepropetrovsk. June the 9th. Dnepropetrovsk Oblast is ranked 2nd just behind Kyiv in the rating of competitiveness of 12 regions of Ukraine and 54th in the Global Rating of Competitiveness. Its rating is much better than the rating of Russia, Turkey and Argentina. Such research data were made public during the round table with CEOs of Donetsk Oblast, local business elite and expert community by the Director of the Foundation for Effective Governance Natalia Izosimova.

The project on Ukraine’s competitiveness at the national and regional level was carried out by the Foundation for Effective Governance in cooperation with the World Economic Forum (WEF). The result of the project was the final Ukraine’s Competitiveness Report. Before that, starting from 1997, WEF had analyzed Ukraine’s competitiveness within the framework of its annual reports on global competitiveness. This year, thanks to support of the Foundation, along with the global rating among 131 countries Ukraine received the rating of competitiveness of its 12 regions: Dnepropetrovsk, Zakarpatye, Lvov, Sumy, Khmelnitsk, Donetsk, Poltava, Vinnitsa, Kherson, Cherkassy, Kyiv and the Republic of Crimea. The Oblasts were selected considering different geographical parts of the country and different structures of economy and cultural characteristics.

In the words of the Foundation’s Director, Natalia Izosimova, the in-depth analysis of 12 regions is the first research of this kind in Ukraine, which allows us to understand the underlying strengths and weaknesses of each region’s competitiveness. “Such approach can help develop the regional state policy as well as help each region define the priority areas of their development”, stated the Director of the Foundation for Effective Governance, Natalia Izosimova. –“It can help understand what can be done at the regional level now to improve the life in the region”.

Along with the statistical data 50 business leaders were interviewed in each of the regions. The questions were the same as those asked for assessment of the country as a whole, in particular, regarding healthcare and education, efficiency of market for goods and services, labor market efficiency, financial market sophistication, capacity for technological innovations, business competitiveness, etc. This made it possible to compare every separate region with the Ukraine’s indicators as well as with other countries covered by the Global Competitiveness Rating.

Competitiveness of Dnepropetrovsk Oblast can be compared to Croatia’s. Due to heavy industry clusters and transportation located in the Oblast it is ranked 36th in development of infrastructure in the global rating of 134 countries and regions being ahead of the Czech Republic, Ireland and Italy.

Dnepropetrovsk Oblast ranks 1st on the quality of roads (49th in the global rating, which is at level of Qatar), railway roads (13th, Taiwan level) as well as on infrastructure of air transport (54th) and energy supply quality (48th, Lithuania level).

The region is on the second place behind Kyiv on the quality of fixed lines and ranks the high 42nd place in the global rating.

As for educational system it ranks 22nd being at the level of New Zealand, while Ukraine is ranked 50th in the global rating.

Dnepropetrovsk Oblast has the highest quality of education in mathematics and science and very low quality of management education (133rd place, level of Mauritania).
The region is strong in local competitiveness (2nd place in the national rating just behind Zakarpatye, at the level of Tunis) and purchasing power capacity sophistication (2nd place in the national rating just behind Zakarpatye, at the level of Slovenia). However, there are lots of obstacles for trading (10th place in the country and 127th – on the international level, at the level of Mongolia).

The labor market of Dnepropetrovsk Oblast is less efficient compared to other regions of the country. As for cooperation in labor-employer relations the Oblast is ranked 2nd in the national rating and 50th internationally; as for wage flexibility – the 5th and 46th accordingly. One more strength of the region is strict correlation between productivity and pay (5th place in the national rating and 35th in the international rating).

According to the Report Ukraine is ranked 73rd out of 131 countries in the Global Competitiveness Index Ratings. The country is in its transition stage of economic development that is between the stage at which economic growth depends on primary factors of production (non qualified working force and natural resources) and the stage at which the economic growth improves with better productivity (development of market for goods and capacity for technological innovation).

For more detailed information on the Foundation’s comprehensive competitiveness research of the 12 Ukrainian regions, please, visit our official website: www.feg.org.ua.

Profile of FEG

The Foundation for Effective Governance (FEG) www.feg.org.ua was established in 2007 by Ukrainian businessman, Rinat Akhmetov with a mission to develop and implement long-term projects and programs which encourage the long-term economic development of Ukraine. FEG is committed to help reach public and political consensus on the key areas of the economic transformation programs.

To reach the objective the Foundation attracts leading Ukrainian and international experts with impeccable reputation. A Board of Trustees, which includes famous public and political figures from different countries, ensures the Foundation’s independence. Among its board members are former Canadian Prime Minister, Kim Campbell, former U.S. Senator Lincoln Chafee, former president of the National Bank of Hungary, György Surányi and General Director of the Financial Policy Institute Igor Mityukov. The Board of Trustees takes an active part in building the Foundation’s strategy, selecting the priority projects and representing FEG both inside and outside Ukraine.

Dear colleagues, for any additional information please, contact: Inna Gordienko, PR-Director of the Foundation for Effective Governance
Tel.: (+38 044) 501-41-07
mobile telephone. (+38 095) 290-59-60
E-mail: igordienko@feg.org.ua