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Ukraine must consider the following risks if it decides to carry out economic reforms during the crisis
Ukraine needs complex far-reaching reforms which will help improve investment climate and increase competitiveness of the most important branches of the national economy. Otherwise, the country will not overcome the crisis for a long time. This is the belief of Natalya Isosimova, Director of the Foundation for Effective Governance (FEG), expressed during the public debate "The economic crisis is the best time to introduce major economic reforms", which was held by the FEG in partnership with the Intelligence Squared, London. "However, while making decisions on radical economic changes during the crisis, such as reforms of taxation and regulatory systems or introduction of an agricultural land market, the authorities have to calculate the existing risks and study thoroughly the value of the issue", added Ms. Isosimova.
Natalya Korolevska, Chairman of the Verkhovna Rada Committee on Issues of Industrial and Regulatory Policy and Entrepreneurship, announced during the debate that only structural economic reforms can save Ukraine. "Ukraine is in dire need of complex surgery, not some minor treatment of numerous drawbacks in the existing system. After the crisis, the state has to play the role of an efficient regulator and business – which has to bear responsibility before the state – should be freed from administrative pressure. This is the reality, the basis of which must be laid today", she said.
At the same time, representatives of business structures are cautious about the necessity of reforms because, in their opinion, reforms may either simplify or complicate the situation. "If the state sets as its task to put a spoke in business wheel, we do not need reforms. If this is not the case, then it has to simplify all regulations – first of all, tax procedures", said the debate speaker Olexander Kardakov, Chair of the Advisory Board of Octava Capital.
His opponent, the Canadian former Prime Minister Kim Campbell in her speech made an accent on the fact that the economic crisis in Ukraine is triggered primarily by problems in state management rather than market relations. "Lack of governing skills during the reforms may discourage Ukrainians and make them feel suspicious about serious economic changes during the crisis", she explained. In Ms. Campbell's opinion, this situation will further put off the introduction of necessary economic reforms.
About the debates
The debate “The economic crisis is the best time to introduce major economic reforms” which was held on April 15 in Kyiv, is the second public debate in Ukraine carried out in the Oxford Union style.
The first debate on the motion "Ukraine needs an agricultural land market now" took place in Kyiv on February 5.
The events were organized by the Foundation for Effective Governance together with the Intelligence Squared, London.
In 2009, the Foundation plans to hold a series of debates (http://debaty.org) on such important topics as shadow economy, administrative reform, taxation, etc.
“The goal of debates is to arrange an informative and efficient conversation on those issues of Ukraine’s economy development on which we don’t have a clear and simple answer. At the same time the debates are important both for the present and the future of Ukraine”, stated the
Director of the FEG, Natalia Izosimova. –“However, for us the process of discussion is as important as the content. We are trying to ensure that arguments in favor of opposing opinions can be expressed in a constructive manner, and that the opposing opinions can be heard."
A partner of the Intelligence Squared Nick Pisani is confident that such debates can attract attention of the public to culture of political discussions. “The debate helps present and, most importantly, future generations of decision-makers think and act in a different way," said Nick Pisani.
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.
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