- The Ukrainian Government set up an Industrial Development Committee
The UX index was down by 1.1% yesterday, while the PFTS increased by 0.6% (in UAH terms). The WIG-Ukraine index was up by 0.4%. On the interbank exchange market, the USD/UAH was down by 0.1% to UAH 25.80 (mid price), according to Bloomberg. The official exchange rate reported by the NBU was UAH 25.85.
The Ukrainian Government set up an Industrial Development Committee
On October 11, 2016, the Ukrainian government has established a special committee to promote the industrial development of the country, according to the Government press service. "The National Industry Development Committee is designed as a mechanism to address the problems of the domestic industry and create the prerequisites for manufacturing a competitive national product," the statement reads. The concept was worked out jointly with industrialists, entrepreneurs and scientists. The Committee is endowed with the task of developing the manufacturing sector, forming the preconditions for the production of high value-added goods by Ukrainian enterprises, and ensuring the transition from a resource-dependent economy to an innovation-driven model, the Prime Minister Volodymyr Groysman commented on the decision. If those tasks are implemented, Ukraine has a potential to create tens of thousands of new jobs in the industrial sector, Groysman claims. The Committee should become a real tool for diagnosing the problems of the national industry, work out the mechanisms, real and concrete solutions, which should generate competitive, quality national product the Prime Minister emphasizes. In connection with the development, the Government also decided to set up a special Deputy Minister’s Office for economic development, trade, and industry, together with a ministry department dedicated to the support of industrial development.
The decision is an obvious answer to the many criticisms about the lack of clear cut industrial and economic model in the country, which gradually annihilates the industrial sector, while turning Ukraine into a purely agricultural power. Though opportune in its essence, we think that the decision is a little belated, leaving the recent germs of industrial and economic growth without the necessary direction for some more time. In the meantime, any real implementation of the concept will be a convincing argument towards the rehabilitation of the country’s eastern industrial legacy, and especially the Donbas and Dnepr industrial regions.