Igor Mazepa: Ukraine needs a reputation as a reliable business partner, protecting the rights of investors and creditors


In the history of bitcoin suggests a direct analogy with Ukraine 2005-2008 sample. Then Ukraine was the same cryptocurrency: obscure but very profitable investment. The reputation of the country in which to invest every self-respecting investor, has acquired Ukraine after the Orange revolution of 2004. Many abroad believe then that the revolution can not only bring the country out of political stagnation, but also to create the preconditions for rapid economic growth.

At some point, such expectations are even reinforced by the numbers: real GDP grew by more than 7% per year during 2006-2007. But, as it turned out, explosive growth was a consequence of high world prices for resources, as well as the result of active foreign investment, triggered by the “fashion of Ukraine”. However, the fundamental Foundation to support further growth in the value of Ukrainian assets, was not, and to create it we are unable.

All investments, as it turned out, were of a speculative, short-term character: at the first crisis, foreign capital left Ukraine. Fashion in our country took place, there was only experience financial losses from investments, as well as a better understanding of what is Ukraine. And the existence of such knowledge does not add interest to our country, not too technologically advanced, still corrupt, akreditovanniy, and is simply not really safe for business.

We lost the reputation of the country-cryptocurrency before was generated by the first bitcoin. But it’s not so bad because our country needs a new reputation – the reputation of a reliable partner with which to establish profitable and long term relationship. Maybe we will not provide rapid growth of any Ukrainian indexes, but you have to create the image of the economy, which protected the rights of investors and creditors, where the rules of the game do not Shine “innovation”, but clear and transparent for all.

The transition to this new level is impossible without active continuation of reforms, the reform of the foreign exchange market and the free movement of capital, increase the protection of the rights of creditors. It is not possible without fair judicial system, the lack of which makes even those in power and state structures to enter into economic contracts in foreign legal field. It is not possible without land reform, the lack of which leaves us a reputation as a third world country.

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