Экономические науки/13.Региональная
экономика.
Nedeva U.S.
Vlasova I.A.
Donetsk state
university of economics and state after Michael Tygan-Baranovsky, Ukraine
Economy
of Ukraine. The interesting
places in Kyiv
In Soviet
times, the economy of Ukraine was the second largest in the Soviet Union, being
an important industrial and agricultural component of the country's planned
economy. With the collapse of the Soviet system, the country moved from a
planned economy to a market economy. The transition process was difficult for
the majority of the population which plunged into poverty. Ukraine's economy
contracted severely following the years after the Soviet collapse. Day to day
life for the average person living in Ukraine was a struggle. A significant
number of citizens in rural Ukraine survived by growing their own food, often working
two or more jobs and buying the basic necessities through the barter economy.
In 1991, the
government liberalized most prices to combat widespread product shortages, and
was successful in overcoming the problem. At the same time, the government continued
to subsidize government-owned industries and agriculture by uncovered monetary
emission. The loose monetary policies of the early 1990s pushed inflation to
hyperinflationary levels. For the year 1993, Ukraine holds the world record for
inflation in one calendar year. Those living on fixed incomes suffered the
most. Prices stabilized only after the introduction of new currency, the
hryvnia, in 1996. The country was also slow in implementing structural reforms.
Following independence, the government formed a legal framework for
privatization. However, widespread resistance to reforms within the government
and from a significant part of the population soon stalled the reform efforts.
A large number of government-owned enterprises were exempt from the privatization
process. In the meantime, by 1999, the output had fallen to less than 40
percent of the 1991 level, but recovered to slightly above the 100 percent mark
by the end of 2006. In the early 2000s, the economy showed strong export-based
growth of 5 to 10 percent, with industrial production growing more than 10
percent per year. The growth was largely attributed to a surge in exports of
metals and chemicals to China.
The World
Bank classifies Ukraine as a middle-income state. Significant issues include
underdeveloped infrastructure and transportation, corruption and bureaucracy.
But the rapidly growing Ukrainian economy has a very interesting emerging
market with a relatively big population, and large profits associated with the
high risks. The Ukrainian stock market grew 10 times between 2000 and 2006,
including 341 percent growth in 2004, 28 percent in 2005, and 24 percent in
2006. According to the CIA, in 2006 the market capitalization of the Ukrainian
stock market was $42.87 billion. Growing sectors of the Ukrainian economy
include the IT Outsourcing market, which was expected to grow over 25 percent
in 2007.
By December
2007 the average nominal salary in Ukraine reached 1,675 hryvnias per month.
Despite remaining lower than in neighboring central European countries, the
annual growth of average salary income in real terms is about 20 percent for
several years (2001-2006) in a row.
Ukraine
produces nearly all types of transportation vehicles and spacecraft. Antonov
airplanes and KrAZ trucks are exported to many countries. The majority of
Ukrainian exports are marketed to the European Union and CIS.
The country
imports most energy supplies, especially oil and natural gas, and to a large
extent depends on Russia as an energy supplier. While 25 percent of the natural
gas in Ukraine comes from internal sources, about 35 percent comes from Russia
and the remaining 40 percent from Central Asia through transit routes that
Russia controls. At the same time, 85 percent of the Russian gas is delivered
to Western Europe through Ukraine.
After 15
years of negotiations, Ukraine was invited to join the World Trade Organization
on February 5, 2008. Ukraine will have to ratify the agreements by July 4,
2008, and will become a WTO member 30 days after the ratification. It will
become the 152nd member of the organization.
It is said
that one can walk from one end of Kiev to the other in the summertime without
leaving the shade of its many trees. Most characteristic are the
horse-chestnuts (Ukrainian: каштани, kashtany).
Kiev is known
as a green city with two botanical gardens and numerous large and small parks.
The green nature of the city is probably most notable by the green hills of the
right bank along the Dnieper river that have been relatively untouched by
development. The World War II Museum is located here, which offers both indoor
and outdoor displays of military history and equipment surrounded by verdant
hills overlooking the Dnieper river.
Among the
numerous islands, Venetsianskyi (or Hidropark) is the most developed. It is
accessible by metro or by car, and includes an amusement park, swimming
beaches, boat rentals, and night clubs. The Victory Park (Park Peremohy)
located near Darnytsia subway station is a popular destination for strollers,
joggers, and cyclists.
A wide
variety of farm produce is available in many of Kiev's farmer markets with the
Besarabsky Market located in the very centre of the city being most famous.
Each residential region has its own market, or rynok. Here one will find table
after table of individuals hawking everything imaginable: vegetables, fresh and
smoked meats, fish, cheese, honey, dairy products such as milk and home-made
sour cream, caviar, cut flowers, house wares, tools and hardware, and clothing.
Each of the markets has its own unique mix of products with some markets
devoted solely to specific wares such as automobiles, car parts, pets,
clothing, flowers, etc.. There is also a popular book market by the Petrivka
metro station. At the city's southern outskirts, near the historic Pyrohiv
village, there is an outdoor museum, officially called the Museum of Folk
Architecture and Life of Ukraine It has an area of 1.5 square kilometres. This
territory houses several "mini-villages" that represent by region the
traditional rural architecture of Ukraine. Kiev also has numerous recreational
attractions like bowling alleys, go-cart tracks, paintball venues, billiard
halls and even shooting ranges. 100-year-old Kiev Zoo is located on 40 hectares
and carries over 2,000 specimens.