Two medicines for diseased Ukrainian economy: Foreign investment and digital technologies 

Even few years ago in Ukraine, the very word Internet mesmerized the population with its secret magic and occurred exclusively in the vocabulary of the most advanced hi tech users. But the situation has rapidly changed today, and the usual exchange of business cards will result into an embarrassing situation if the card containing standard contact information does not provide an e-mail address. Thus, it is not surprising that not only Ukrainian State Statistics Committee but also foreign "sharks" of virtual business, which, by the way, yields absolutely real profits, noticed the growing interest of Ukrainians to the World Wide Web. Their close attention is not explained by mere curiosity. Western professionals of multimedia business peer at Ukraine as a potential point of application of their knowledge and capital. Among the pioneers investigating current state of Ukrainian economy and local investment climate in digital environment are Dennis Tomes, investment and banking specialist, and Peggy Miles, president of the leading digital broadcasting consulting company Intervox.Com. They visited Ukraine by the invitation of the president of Ukraine's major investment company SigmaBleyzer Michael Bleyzer.

Ukraine will be saved by strong foreign investment…

Foreign guests did not conceal the purpose of their visit to Ukraine. "I'm here basically to appraise Ukrainian economy and investment climate. I was here 5 years ago. I'm back here to see how it changed, to research the opportunities for Western investment companies to partner with Ukrainian companies," said Dennis Tomes. "In respect to a company like SigmaBleyzer, in 5 years this is certainly one of the most developed companies I've seen. Five years ago you did not have a company this sophisticated. It has walked quite a long way. How many more companies like this are in Ukraine, I don't know."
However, his appraisal of general economic situation in Ukraine is not that optimistic. It sounds more like a distressing diagnosis. "As far as general economic situation, things haven't changed much," says Tomes. "Statistics accounts for this year show that economy has grown, but it has grown from a very low base. While regulatory issues, corruption issues have not been addressed very significantly especially compared to other countries like Poland. I hate to tell you, but I think you cannot compare Ukraine with Poland. I think you can compare it with Bulgaria, maybe Romania, and that's the shame." Nevertheless, according to Tomes the situation has to improve. "I am speaking about the official economy and my guess is the unofficial economy is growing very significantly. Ukraine, which is agriculture powerhouse strategically located, should become a very powerful country." And then, there is an effective medicine to cure diseased Ukrainian economy. "The only way this country will grow is if it has strong foreign investment. The only way you get strong foreign investment is basically if you reform the structure of this government similar to Poland," believes Tomes.

…and digital technologies

Without trying to minimize the importance of investment, Peggy Miles pointed out great perspectives of multimedia projects - integration of radio, TV, and printed media with Internet. "It is a different way of doing business, it is more integrated," believes Miles. "Even the younger kids get used to cellular phones, interactive TV and different new devices that are being connected to the Internet. We see great promises that information technology or information by computer can really influence the economy." Miles admitted that there is a future for digital marketplace in Ukraine. "You have wonderful infrastructure of content, different TV channels and radio programs. And you also have a very, very big growing interesting area of Internet." Peggy Miles noticed the changes for the better not only in the area of digital technologies. In Kharkiv, she and Dennis Tomes visited the concert of a legendary jazzman Billy Kobham. "I was pleasantly astonished that the jazz musicians were performing in a unique venue that has excellent acoustics, beautiful faculties, and other things you would expect from major cultural scenes of the world like London, Tokyo, Washington DC, or New York."
Miles explained that she travels a lot and Ukraine is the first Eastern European country that she was invited to as an expert. "Primarily, I follow the Internet because my business is Internet and broadcasting. So the first countries I go to are the ones usually highly progressive with well-developed Internet infrastructure. This is the first eastern European country that I visited." She believes Ukraine is ready for the introduction of Internet technologies in business.

… but Ukraine has to take these medicines as soon as possible

The foreign guests have no doubts about Ukraine's great potential. However, they are somewhat confused by the existing reality when the country is too slowly going along the path of economic reforms. Tomes believes this scenario is extremely dangerous for the state. "Ukraine will lose the generation of young people who are basically been educated in a new way, who believe there is a promise of a better future. If they don't have the opportunity to participate and to succeed, they will become cynical, they will fall into a current practice of corruption. That would alienate Ukraine more from the rest of its neighbors, the countries where the reforms have been put in, where the income is growing. And then Ukraine will gravitate politically to places like Belarus and the other countries that are very rigid politically as well as economically. And that is politically potentially dangerous, because you have two blocks again. You will have a western block of eastern European countries, former Warsaw pact countries that are tied to the West, integrated and strongly growing. And you will have an eastern block that is not growing economically, that is not restructured, that is stagnant and that has the only way to maintain its independent integrity through political militarily block based on old soviet time manners," says Tomes.