State of the world economy: 4 conclusions for Ukraine

In the last post, we reviewed the key findings from the report on the state of the economy in the world from the Center for the New Economy and Society (Center for the New Economy and Society) of the World Economic Forum.

What conclusions can Ukraine draw from this study?
 

• Governments and international businesses are becoming much more cautious in evaluating investment opportunities due to high inflation and recessionary expectations. Banks, financial organizations and corporations will pay more attention to bringing order to themselves. Therefore, if Ukraine wants to attract foreign investments, we have serious work ahead of us to create conditions that will be more competitive than in Vietnam, Poland, Turkey, Romania, Slovakia and China.
• G7 countries and the EU have an increasing number of internal economic problems. Therefore, in order to attract Western resources, Ukraine should not reproduce today’s European / American tax, regulatory, and financial conditions, but instead should create better conditions – from the point of view of costs and risk neutralization.
• Threats of global protectionism and manual management of the economy have sharply increased in the world. This means that the world is entering an era of acute regulatory, institutional conflicts and disputes. Ukraine urgently needs powerful partners (Poland, Britain, the USA, Sweden, South Korea, Japan, for example) to jointly ensure the optimization of financial, production and regulatory costs in the conditions of deglobalization and fragmentation of the world economy.
• Whatever regulatory, financial, banking challenges arise in the world, the winner will always be the country that guarantees a high level of economic freedom, protection of property rights and the regime of a small state.

This is what Ukraine should do without waiting for the end of the war, because the solution of these tasks depends exclusively on internal factors.