Razumkov Centre: Attracting Fair Investment

2023-12-17 | Expert publications, Reconstruction

By Vasyl Yurchyshyn, Director of Economic and Social Programmes, the Razumkov Centre. 

The global environment has become increasingly risky in recent years. The coronavirus crisis, russian aggression, Hamas attacks, migration waves, price shocks in the energy and agricultural markets, trade, fiscal and debt imbalances, and contradictory intentions and actions of major global actors have created complex chains of critical political and economic interdependence between countries, which increasingly hinders joint consolidating efforts and actions capable of ensuring sustainable socio-economic development of countries around the world.

It is undeniable that Ukraine, like any other country, desperately needs investment resources to accelerate its economic recovery. In the previous decades, the country failed to become attractive to investors, and even experienced a leaching of national capital (including human capital), which accelerated with the expansion of russian aggression. Therefore, when it comes to Ukraine’s post-war recovery, one needs to recognise that with no international investment, the task of building a new civilised country will be postponed for the unforeseeable future.

It should be stressed that foreign investment is no longer just an economic factor of development but is increasingly gaining security implications. Moreover, the country’s best defence against encroachments is the arrival of an international investor — the higher the volume of foreign investment, primarily from developed democracies, the more secure the country can feel against an uninvited imperial aggressor. Therefore, the attitude towards attracting foreign investment is increasingly subject to adjustment.

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