Everybody with the possible exception of lazy bones has already mentioned that the investment attractiveness of Ukraine depends on legislation, the court system, and the fight against corruption. However, the awareness of this does not make the changes closer. They take place somewhere, however, it is too far away to be felt by society in general and every single citizen in particular. Global changes are not the only things that can affect the situation.
Dmytro Ovsii, Managing Director, Attorney at law at GORO legal explained Mind why it is worse believing in possibilities of own country, what way can the citizens help its development as well as how to make the recovery from coronavirus crisis easier.
How does the fate of investment depend on each of us?
It is obvious that the consequences of coronavirus crises have hit the Ukrainian economy hard. However, it has affected every country of the world. And the saving and business activity optimization approach has become as actual in our country as in Poland, the Czech Republic or Germany.
Against the background of internal and global recession to cut expenditures for the resources, in particular human resources, today we can often the world not only outsourcing and natural resources. Location of production in less cost-intensive jurisdictions (in particular, in Ukraine) may be much-in-demand.
Nevertheless, it is necessary to keep in mind that the whole world will also compete with us for investments and brains. Every one of us can make more or less contribution to the improvement of the investment climate.
Why do we need to tell the world about Ukraine?
Ordinary Turkish people «sell» their country and it has been working for decades now. I remember when I was a senior student of Law Department there were two students from Turkey in the same year as me. It was interesting to learn from them about life in Turkey. I still remember their long-term storis about «the most beautiful», «the best» hotels in the world. On the level of the everyday talk, they were “selling” their country.
Probably, nobody wants to make friends with somebody who is constantly complaining about life. At the same time, it is always great to meet a friend who is bright, in good mood, and not in the doldrums. Everybody has friends or relatives who live abroad. The tone of the everyday conversation depends on us: we can complain about something bad, however, it is possible to admire good things. There is always something good, something positive. All you need is to open your eyes and have a look at it.
I often see the advertisements containing information about the advantages of investing in Ukraine when I travel by «Intercity», in Ukraine. For 2 years in a row, I have been attending the International Investment Exhibition in Munich (Germany). It is one of the biggest exhibitions in the EU. The whole regions, countries, cities, companies, and government agencies are presented there.
The representatives of different countries and big corporations are present there. For some reasons, Ukraine has never been presented there. It is impossible to buy goods which are not on offer. In this particular case, a classical economic axiom that the demand gives birth to supply comes into action.
It is also impossible to attract foreign investor if, for example, the advertisement containing information about the investment projects is shown only in Boryspil airport or trains inside the country. I do not mean that such an advertisement inside the country is useless. However, today we need an effective strategy to promote the country within external markets.
The loyalty of one investor may be multiplied for the benefits of Ukraine
I had the good fortune of participating in the agreement when the famous Japanese investment fund was investing money in real estate property in Ukraine. I was proud to hear that the investments in Kyiv happened to be better than the investments in Moscow. In the process of withdrawing from the investments the investor raised the question of the division of expenses. It was not an exorbitant amount, however, in Japan, it is important to observe a treaty.
Of course, it was possible to refer to definitions and analyze what each of the parties had in mind when interpreting the term of expenditures while concluding the agreement. However, in the course of constructive sound negotiations, there was reached compromise, the investor was comfortable with and the Ukrainian party agreed to do. The compromise always depends on both Parties.
Such sound decisions form the loyalty of foreign entrepreneurs. In a while, one loyal investor in Ukraine may be followed by some other. This is the thing the Ukrainian economy indispensable needs at present to recover from the crevice and switch to new economic reality under the conditions of pandemic and recession. Every investment case is important and it is worth struggling for.
On one or another level, in this particular case, each of us can make a contribution for the benefits of the country. You needn’t do anything extraordinary, the success formula is easy, however, efficient and effective:
- Sell the investments in Ukraine in your everyday conversation;
- Export primarily the optimistic news;
- Fight for the loyalty of foreign investors;
- Sell investments in Ukraine more abroad than inside the country.
I am sure that these steps will definitely come into action and will provide substantial aid to improve the investment attractiveness of Ukraine and the number of those investing in Ukraine will be constantly growing.