What economic strategy does Ukraine need and where to find finance: experts seek solutions
The second Kyiv International Economic Forum will define what is needed for Ukraine's rapid economic growth. The goal of the second Kyiv International Economic Forum (KIEF) that will take place in the capital of Ukraine on October 8, 2015 is to determine which structural changes are needed for Ukraine's rapid economic growth. Experts agree that the primary task for Ukraine is to establish a common development strategy and decide on the sources of financing. Various aspects of these issues will be discussed during the four panel discussions on KIEF-2015. A separate discussion will focus on Ukraine's Economic Doctrine and Industrial Policy. It will involve leading economic experts such as Erik Reinert, an influential Norwegian economist; James K. Galbraith, University of Texas professor; Jerzy Kwiecinski, Vice-president of the European Center for Enterprise; Arturo Bris, professor of Finance at the International Institute for Management Development, and the others. They will discuss issues such as the correlation of regulation and deregulation, and review international examples of industrial policy that are worth Ukrainian government's attention. When it comes to strategic plans, it is essential to agree on a common position of government, business and society. Ukraine has had numerous development programs produced by the Cabinet of Ministers, Presidential Administration, political parties and experts. But the progress is weak, as GDP has not yet reached the 1990 level. The extremely important question of a common reform strategy will be discussed during the panel called Battle of Economic Policies or a Common Strategy? Obviously, the strategy alone is not enough for economic growth — adequate funding is required as well. Money from international financial organizations can accelerate the development of Ukraine's economy. The use of credit money, the effect of the requirements of the international financial institutions on the macroeconomic and microeconomic situation in Ukraine, and other related issues will be discussed during the International Financial Aid to Ukraine: Will It Restart the Economy? panel. The discussion will involve, among others, Jerome Vacher, IMF Resident Representative in Ukraine, and Francis Malige, Managing Director for Eastern Europe and the Caucasus for the EBRD. To finance development projects the banking system should be working. In the late 1990s, after the difficult years of hyper-inflation, a very efficient banking system was formed in Ukraine. It made it possible to introduce a large amount of credit resources to the corporate sector and to extend consumer loans. Along with favorable export environment, Ukraine's economy was growing. This situation caused degradation of risk management and low quality of advances portfolio. During the 2008 global financial crisis short-term speculative money was quickly withdrawn from the Ukrainian financial market. Local CIS crisis that began in 2014 aggravated the problem even more. Ukrainian banking system practically ceased to perform its function and entered a permanent crisis, dragging down the overall economy. Possible ways of reviving the banking system are to be found at the Sources for Financing: How to Revive the Banking System discussion. Feasibility of establishing a bank of bad loans and a development bank will be discussed as well. The latter issue provoked lively discussion during a public debate at one of pre-Forum events. In general, the program of the second Kyiv International Economic Forum will consist of eleven panel discussions. The Forum will bring together several dozen influential foreign and Ukrainian speakers: leading economists and reformers, representatives of major international companies, businessmen, public figures and government officials. Registration for the second Kyiv International Economic Forum is now open. Follow the news on the Forum's website http://forumkyiv.org/en/ and on the official Facebook page https://www.facebook.com/kyiveconomicforum. Kyiv International Economic Forum (KIEF) is a permanently operating venue for the formation of Ukrainian economic development strategy. It is aimed to organize a dialogue between experts, businesses and government, borrowing the best international practices, creating a road map for the development and promotion of the conversion of ideas into the real action. The first KIEF was held on October 2, 2014 with the participation of more than 50 experts, 120 representatives of international and national media and 550 guests. forumkyiv.org/en Interfax-Ukraine – mediapartner of Kiev international economic forum