Euro 2012 – Ukraine and Poland

November 15, 2007

WB: new gov’t must pass reforms

Filed under: Ukraine — Ivan @ 3:40 am

by Maria Petrova, KyivPost

The World Bank last month issued a list of recommended policies for Ukraine’s new, yet still unformed, government to follow.

The bank, a major lender to Ukraine and other developing countries, urged Ukraine to concentrate on speedily concluding a free trade agreement with the European Union, which would attract international investment in the lead-up to the Euro 2012 Soccer Championship, and to take advantage of its emerging market status by attracting fresh investment capital, improving corporate governance and strengthening regulation.

The bank called upon Ukraine’s leaders to reduce the tax burden, restart pension reforms, move forward in energy and utility price system reforms, establish a transparent land market, and carry out judicial and administrative reforms.

“What we have tried to do is suggest to a new [Ukrainian] government an implicit sequence [of policy recommendations],” World Bank Economic Adviser Martin Raiser said.

Raiser said Ukraine’s new government will be able to boast positive results if in six months it could say that it was an active government, which pushed through a procurement law, a new joint stock company law, improved the investment climate and achieved macroeconomic improvement, satisfying the social aspirations of the people and providing sufficient room for the future investment financing that the country needs.

“All of our recommendations, we believe, are well-founded, though they are not revolutionary at all. But I think, for Ukraine and for a new government it would be great if in six months they could face the public and say: ‘Well, look! You know, this government was an active government,” Raiser said.

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