The Impact of the Global Liquidity Crisis on Ukraine and the Road to Economic Recovery НAt the onset of the global financial crisis, Ukraine had been enjoying strong growth. Indeed, the economy grew by 7.5% on average from 2000 to the third quarter of 2008. Fiscal policy remained reasonably prudent as budget deficits did not surpass 1.5% of GDP (with the exception of 2004, an election year), while foreign public debt was on a downtrend. Strong foreign demand, supported by booming emerging economies, had been generating high exports, which grew by a record high 50% during the first three quarters of 2008. Although surging imports had kept the current account of the balance of payments in deficit since 2006, the current account gap was fully covered by buoyant foreign capital inflows. The international liquidity crisis, which rapidly unfolded across the globe in the fall of 2008, interrupted the growth cycle of Ukraine and many other emerging markets. Ukraine suffered one of the deepest economic downturns and sharpest currency depreciations during the most severe phases of the crisis. In the fall of 2008, the national currency lost more than 50% of its value against the U.S. Dollar, the PFTS stock index retreated by over 70%, while real GDP fell by 8% yoy and 19% yoy in the last quarter of 2008 and the first half of 2009, respectively. Furthermore, exports of goods dropped by 16% yoy during the last two months of 2008 alone and plunged by 49% yoy in January-July 2009. This paper is a brief summary of the key economic challenges facing Ukraine. The disproportionately large impact of the recent international liquidity crisis on Ukraine, compared to other peer economies, calls for a thorough assessment of pre-crisis economic conditions and policies. A good understanding of these issues is necessary to evaluate the effectiveness of adopted anti-crisis measures. More than that, this analysis will help to calibrate current macroeconomic policies in order to achieve a quick and sustainable economic recovery.
	Ukraine's External Financing Gap in 2009 Ukraine’s external financing requirements in 2009 are caused by the following: (i) a gap in the current account of the balance of payments, (ii) external private debt service obligations and (iii) external financing required to cover the 2009 fiscal budget deficit and serve public external debt obligations.
	Ukrainian Financial Crisis: Past, Present and Future Although, Ukraine was not alone in facing economic difficulties in late 2008, the impact of the global liquidity crisis on its economy was even deeper than in most other emerging markets. Why was the Ukrainian economy so vulnerable to the current global economic slowdown? We argue that this vulnerability was partially due to the lack of consistent policies to support long-term sustainable economic growth. The latest period of economic growth was supported by two main factors: first, by cyclically high commodity prices for exports; and second, by high domestic demand fueled by expansionary monetary policies and by banking sector credit financed primarily by foreign capital. However, supply-side policies were neglected. The weaknesses on the supply-side were due to the lack of implementation of structural economic reforms needed to build the basis for sustainable growth, support long-term productivity enhancements and improve the country's international competitiveness. This paper provides a detailed description of the initial conditions of this crisis and explains why the economy was disproportionately exposed to the global financial and economic crisis. It shows that internal structural economic weaknesses, which were not fixed with timely policy actions, bear part of the responsibility for the observed economic difficulties in Ukraine. This means that conventional fiscal and monetary measures may not be sufficient to contain the financial crisis and restore economic growth. The government must urgently implement policies that create strong macroeconomic fundamentals for sustainable and stable long-term economic recovery.
	Ukraine: Currency and Economic Outlook 2009 The forecasts are based on a detailed, product-by-product, projection of exports, imports, other GDP components (consumption, investments, and government expenditures/deficits), money supply, domestic credit, international financing available, etc. Based on this information, we used a consistent and rigorous macroeconomic accounting model to determine how a particular combination of domestic and international economic and financial factors will influence the evolution of the Hryvnia exchange rate. The Base Scenario is the most likely one, with a 5% contraction in GDP (as forecasted by us and most international agencies) and the exchange rate averaging about 9.1 UAH/$. In the Pessimistic Scenario we expect GDP to decline by 7% and the exchange rate to depreciate to about 11.1 UAH/$. In this scenario, the depreciation pressure will emerge principally because of the inability to rollover short debt, despite the fact that under this scenario imports will decline faster. In the Optimistic Scenario the country will still face negative growth (4%). But in this scenario, foreign exchange requirements will be almost balanced (thanks in part to the IMF and World Bank financing), and therefore the exchange rate should not move substantially from current levels.

	Banking Crisis in Ukraine - Origins Remedies and Consequences The international liquidity crisis has been the main factor behind the financial crises that have affected many emerging economies, including Ukraine. However, Ukraine has been more vulnerable than most other countries due to a combination of a large current account deficit, significant external short-term debt obligations of Ukraine’s private commercial banks and companies and a weak banking system. The economic and financial stabilization in Ukraine calls for an urgent, comprehensive and integral policy program. This policy program must include four key measures: (i) recapitalize weak banks; (ii) reduce the current account deficit to reduce foreign financing requirements; (iii) implement a comprehensive program of economic reforms to stabilize the economy and improve the investment climate to reestablish growth.; and (iv) implement a program of coordinate and facilitate the renegotiation and rescheduling of short term foreign debt by corporations and banks that may be defaulting. Many uncertainties continue to cloud the 2009 outlook for Ukraine’s economy and financial system. Yet, in 2009 the economy is increasingly likely to go through an unparalleled correction, which, among other developments, will entail a real contraction of the GDP. The seriousness of many risks will depend on how strong is the country’s resilience to the ongoing financial crisis, deepening economic recession and potential social instability. All this makes government response critical to country’s economic outlook. Building investors’ confidence remains the most fundamental factor, which will determine economic and financial developments in 2009 – 2010.
	Impact of the Global Financial Crisis on the Ukrainian Hryvnia During the first half of 2008, the Ukrainian Hryvnia (UAH) appreciated on the inter-bank market by 9.9% from 5.05 UAH/US$ in January 2008 to 4.55 UAH/US$ in June 2008. This appreciation was mainly caused by significant inflows of foreign short term debt to take advantage of high interest rates in Ukraine and the expectation that the Hryvnia would not devalue in the short term. An additional source of concern regarding the exchange rate is the increasing solvency risk of the banking sector. Ukrainian banks may weaken due to a possible growing share of non-performing assets associated with the high credit expansion of recent years. The probabilities of a currency crisis have now increased. But a soft landing, supported by monetary and exchange rate adjustments, is still possible. We present several possible scenarios of the exchange rate dynamics. Their realization depends on the near-term developments on international credit markets and the extent to which foreign investors and creditors incorporate this information into their judgment on Ukraine, given political uncertainties. Still, the recent unprecedented volatility of the global financial markets is leading global investors to a flight to quality and safe assets. This means that any negative news (either global or local) is likely to have considerable weight in the risk assessment of Ukraine in the short term.
	Getting Prepared for a Financial Crisis The current international liquidity crisis is making many countries more vulnerable to financial crises. Some studies show that the most vulnerable countries are those with a high ratio of short term debt to international reserves (e.g., more than 1.0), high current account deficits in the BOP (e.g., exceeding 5% of GDP), and fast expansion of consumer credits (in excess of 15% pa). Ukraine meets all these vulnerability criteria. These vulnerabilities do not mean that a crisis will occur with a 100% certainty; but that the probabilities are now quite substantial. Nobody can predict the timing of a crisis because the crises will depend of noneconomic factors. But anything can trigger a crisis. It could be an overwhelming major increase in gas prices, or it could be the failure of a single bank, or it could be a crisis in a neighboring country, or it could be a major drop in export revenues. The main recommendation that we make is that the country should now take a number of contingency measures to enhance its capacity to deal effectively with a probable financial crises, if one were to emerge in the future. International experience says that when a crisis comes, there is no time to think, no time to go to the Rada, no time to develop plans. There is a need to take immediate actions. This is what is called Prompt Corrective Actions. But to take fast and proper/correct responses, the country needs to have a “road map” which shows what to do if a crisis emerges.
	Ukraine's Financial Risks There are three major financial risks that Ukraine is currently facing: (i) high inflation; (ii) increasing current account deficits; and (iii) large private foreign borrowings, particularly short term, that can jeopardize the banking sector and lead to devaluations. The problems with inflation and the CA deficit may not per se trigger a financial crisis in the next couple of years. However, a reversal of short term foreign capital inflows may do it, principally if the Presidential elections lead to large fiscal deficits and political difficulties.
	How to Reform Public Administration in Ukraine Ukraine consistently faces pronounced developmental challenges in its endeavors to become a competitive nation capable of promoting sustainable economic and social progress. A drastic and prompt reform of the government, which is currently fraught with numerous cumbersome and unproductive procedures of public decision making, is an urgent prerequisite to put Ukraine on a path toward growth and prosperity. The comprehensive, complete and radical revision and refinement of the role, functions and scope of the Ukrainian government is more critical than ever. A failure to improve the Ukrainian government machinery as well as further delays with all embracing and effective public administration reform severely jeopardizes the implementation of all other economic reforms and considerably deteriorates the country's international competitiveness. Moreover, Ukrainian public institutions and administration, burdened with alarmingly weak and archaic governance, confront a mounting risk of losing control of the implementation of their core reform, regulatory and developmental programs.
	Taming Inflation in Ukraine Although supply shocks contributed to inflation developments in Ukraine, domestic loose monetary and fiscal policies were largely at play. On top of that, accelerating inflation is a clear symptom of supply-side rigidities. This means that higher aggregate demand is mostly absorbed by growing prices rather than increasing supply response. Thus, the government must commit itself in a credible manner to a broad anti-inflationary program, which, on the one hand, should pursue responsible and tight fiscal and monetary policies and, on the other hand, should improve the investment climate in order to allow domestic supply to respond to growing demand. Finally, if credibility of anti-inflationary policies is weak, the government will see a widening inflation-growth tradeoff. Furthermore, if implementation of this program is further postponed, social and economic costs of inflation risk becoming prohibitively high, which hardly benefits political and economic stability in Ukraine.
	Inflation in Ukraine Following a surge by 16.6% yoy in 2007, consumer inflation accelerated further during the first three months of the year and reached a seven-and-a-half-year high of 26.2% yoy in March 2008. The Note examines the reasons of the current price rise in the country and reviews ongoing government efforts to maintain price stability.

Leasing in Ukraine (Sector review). Well – functioning financial industry ensures efficient mobilization and allocation of resources to domestic investments that further economic growth. In the financial industry leasing is an important sector that enhances growth in the real sector of the economy and support renovation of the productive assets. According to the European Federation of Leasing Company Associations leasing represents one-eighth of the world’s annual equipment financing requirements. Leasing sector in Ukraine is still immature as compared to other countries despite its explosive growth in the past two years. In developing countries with high GDP growth rate, leasing accounts for 10 – 15 % of investments in capital assets while for Ukraine it is only 1.5%. Taking into account that average depreciation of fixed assets in the economy is 50%, it is important to promote the growth in this sector. The leasing sector review targets issues that are important to the leasing sector development in Ukraine

Hostile Takeovers in Ukraine (Public policy paper). Ukraine has experienced a surge of “raidering” attacks or illegal takeovers of corporate assets. Such attacks are detrimental to the image of Ukraine among international investors and deteriorate the investment climate in the country. The sustained foreign direct investment (FDI) inflow requires an effective mechanism for property rights protection. While a hostile takeover is not unusual or illegal in Western business practice, in Ukraine many takeovers have turned into overt illegal seizures of corporate assets with gross violations of the rights of shareholders. In this regard, it is critical to improve the government regulations that would incorporate best practices in protecting the rights of shareholders. The policy paper on hostile takeovers reviews the current takeover practices, government efforts in curbing property rights violations as well as public policy recommendations.

2006

Impact of Gas Price Increase on the Economy of Ukraine in 2007 (November 2006) Since the beginning of 2007, the price for imported gas to Ukraine will increase by 37% to $130 per 1000 m3. Considering that the Ukrainian economy is highly energy-intensive and thus vulnerable to gas price changes, and that this increase will be the second gas price shock in two years, the analysis estimates its impact on GDP growth, foreign trade and the current account, consolidated fiscal budget, inflation and the exchange rate in 2007.

Economic Reforms in Ukraine (August 2006) Without transforming the way government agencies presently work, it is likely that numerous obstacles for investing to Ukraine will be removed very slowly. Implementing a comprehensive public administration reform should be a top priority in agenda of the Ukrainian government. Along with the comprehensive public administration reform, this paper examines a number of other key measures that can substantially improve the investment climate in the country.

Ukraine — Impact of Gas Price Increase (January 2006) Our analysis of the impact of the recent gas price increases on the Ukrainian economy indicates that, though significant, it will not be as damaging as initially projected by different experts. In particular: In 2006, GDP growth is expected to remain at a rate similar to the 2005 rate of 2.5%; this rate is about 23 percentage points less than what was initially forecasted. Year end inflation in 2006 will be at about13–14%, 3–4 percentage points higher than initially forecasted. The foreign trade balance will deteriorate but the current account will show only as light deficit of about 1% of GDP, which will be partly covered by capital inflows. Although pressures on the exchange rate will emerge, it will only slightly depreciate to 5.2 UAH/$. Although the fiscal budget deficit may increase, the government will have enough tools to keep it under 3% of GDP, a threshold considered sustainable by most international experts. Although the gas price shock will result in a decrease of companies' profit, most of them (with the exception of the most marginal enterprises) can absorb this increase. The planned introduction of new energy saving technologies should significantly decrease companies' costs and increase their efficiency. In the medium term, the overall economy will be boosted by increased investments in energy saving technologies and faster adjustment of tariffs to cost-recovery levels.

Ukraine — Economic Evolution Since Independence and Future Prospects (January 2006) From 2000 to 2004, Ukraine achieved excellent macroeconomic performance. Although economic growth and inflation were less satisfactory in 2005, the overall economic performance of Ukraine since 2000 provides a sound basis for further economic and social development. In fact, there is now a unique opportunity for the implementation of structural reforms vital to the country's economic growth. This report is aimed at analyzing the recent economic history of Ukraine and future prospects for the economy in light of the recent political developments. The latter gave reason to expect better transparency and cohesiveness of the political decision making process. It is also anticipated that the new President and its government will maintain wise fiscal and monetary policy and accelerate implementation of needed structural reforms that will pave the way towards creation of effective public administration, a favorable business climate, fair support for socially vulnerable groups and a solid international reputation.

2005

	Ukraine — Current Economic Situation and Proposed Measures to Revive Investments and Growth (September 2005)   Ukraine needs to increase the level of investments, both domestic and foreign, not only to revive economic growth, but also to diversify its production and exports and reduce energy intensity of domestic products, which is currently one of the highest in the world. In order to build sufficient private sector confidence to revive investments, the government will need to give stronger signals that it is addressing the main concerns of the private sector: that is, the concern that the Ukrainian Government still retains many of the characteristics of Soviet public institutions overloading the private sector with heavy and unpredictable demands and requirements, including heavy interventions in the workings of the market. The reform of public administration is the key reform that is needed to facilitate liberalization and deregulation of business activities in a free and competitive market. This reform is also needed to make possible the implementation of all other economic reforms. In fact, the lack of capacity of public institutions to actually implement economic reforms is one of the main reasons why progress in reforms has been slow. We realize, however, that comprehensive public administration reform can not be carried out in the short term. But some initial actions in this area are possible and are important to send a clear message to business that the public administration will be improved. These measures plus a short set of other quick measures would help in reversing the current negative perception about the government.
	Ukraine: Short and Medium Term Economic Reforms (May 2005)   Ukraine must implement expeditiously urgent economic reforms to accelerate economic growth and improve the quality of life of its population. For this purpose, Ukraine needs to increase the level of investments, both domestic and foreign. Increasing the level of foreign direct investments is also important for Ukraine not only to revive economic growth, but because it may be a key financing source for possible fiscal deficits in the near future. We propose the economic reforms needed to accelerate investments, both domestic and foreign. These measures are divided into short term (with quick payout) and long term (needed to ensure sustainable investment inflow and economic growth in the future). All of the measures listed in the Report are grouped in the order of the current priorities facing Ukraine.
	Privatization Effects on Social Welfare in Ukraine: the SigmaBleyzer Experience (June 2005)   Privatization has played a key role in improving the welfare of Ukrainian people. Wages have increased, debts have been reduced, communities now receive more money from successful companies, and more small and medium sized companies have sprung up to support larger privatized companies. Overall, privatized companies have enjoyed growing support from most regional or city leaders as taxable income has increased and more people have become employed. The first two stages of privatization were not carried out transparently enough, and too much wealth was concentrated in too few owners. We believe these events limited the full positive effect that privatization could have brought. However, the most recent phase of privatization has been better at providing a more transparent form of transaction. Such a trend must continue.
	Ukraine: Modernization of its Public Administration (May 2005)   The reform of public administration is the key reform that is needed to facilitate and make possible the implementation of all other economic and social reforms needed in the country. If well done, this reform will put the country on a different path, on an accelerated course to faster development and growth. Without it, implementation of economic reforms will continue to suffer. The objective of public administration reform should be to redefine the role of the government to support the private sector, secure the provision of sound and efficient government services without corruption, and effectively implement economic measures and reforms to deal with emerging economic problems.
	Ukraine: Investment Promotion Activities (May 2005)   It is proposed that a smaller taskforce be established under the umbrella of the Investment Council: it would be called the International Private Capital Task Force (IPCTF). This new IPCTF would be formed principally by the heads of the local representative offices of those foreign companies and international agencies that are quite active in Ukraine. It would also include presidents of companies residing abroad if they can make the commitment to visit Kiev at least on a quarterly basis as needed. It is proposed that the IPCTF also acts as the Advisory Board for the Investment Promotion Agency (IPA) that the government intends to establish. This IPA would have adequate staffing to implement the recommendations of the IPCTF. IPA would coordinate whatever work needs to be carried out by other government agencies. In other words, IPA would act as the executing agency and secretariat of the Investment Council and the IPCTF.
	Fiscal Policy 2005: Possible Risks and Consequences (June 2005)   The Ukraine's 2005-fiscal budget deficits are a concern to foreign and domestic investors working in the country. Based on the depth in analysis this paper concludes that the deficit for 2005 is likely to be around 3.5%-4% of GDP, significantly exceeding the 1.6% of GDP envisaged by the government.
	Proposed Reform Agenda for Ukraine; The First Twelve Months (January 2005)   This paper presents the views of SigmaBleyzer. The Bleyzer Foundation on the key structural reforms needed in Ukraine to build private sector confidence, improve Ukraine's business climate and sustain economic growth.
	Ukraine - Improving the Efficiency and Management of State Enterprises (February 2005)   This note addresses the question of how best to improve the management of these "residual" state enterprises that are unlikely to be privatized in the near future, or that might find their way back into the state portfolio for at least some time.

2004

	New European Union Frontier Countries: Economic Situation and Investment Climate (September 2004)    The new European Union frontier countries (NEF countries) comprise a region that is truly emerging into a market economy quickly. It includes Bulgaria, Romania, Croatia, Ukraine, Albania, Macedonia, Moldova, Serbia and Montenegro, Bosnia and Herzegovina. These countries should be of particular interests to financial institutions and investors in Europe for the following reasons: sustainable economic growth and macroeconomic stability; an improving business environment and investment climate; a high skilled and well educated labor force of significant size; a low cost region at a strategic crossroads; good access to the major markets of the European Union; a large domestic market. In attempt to define the relationship between the flows of foreign direct investments (FDI) to a country and the attractiveness of a country’s investment climate, SigmaBleyzer and The Bleyzer Foundation has embarked on a comprehensive research effort. It identified the most important measures that a government can take to improve the business environment of a country and attract foreign direct investments. The report presents analysis and conclusions regarding the attractiveness of NEF countries’ investment climate based on the nine key investment drivers.
	Private Sector Role in Accelerating Foreign Direct Investment Flows to Developing Countries (June 2004)   The SigmaBleyzer Group believes that international private capital could play a more important role in the world if it were to not just go into countries with sound policies, but actually lead less advanced countries to carry out necessary economic reforms to improve their business environments. This hybrid approach for the private sector – taking greater advantage of investment opportunities in a larger group of developing countries and inducing economic reforms to improve business environments – will be not only more beneficial to the developing world, but it would also benefit the international community at large. A more active engagement by the private sector under this hybrid strategy would have the dual purpose of accelerating economic growth in emerging market countries and providing superior returns to private equity investments in these countries. This paper discusses the rationale for a more active engagement of the private sector on inducing economic reforms to improve business environments of countries with emerging markets, and suggests an approach to achieve this objective.
	The Key Determinants of Ireland's Economic Success (June 2004)   In late 1980s–early 1990s, Ireland experienced exceptionally high rates of economic growth, greatly surpassing those in other European countries. Starting in 1990, the Irish economy grew by an average of 6% annually for ten years. Over the last few years, Ireland has become one of the most attractive countries for foreign investment. Ireland's economic success was determined by a number of factors, from sound government policies to independent favorable preconditions for growth. The present Briefing Note purports to determine the key factors of the Irish "economic miracle". The first section of the Note presents an analysis of macroeconomic and structural transformations in Ireland prior to and after 1987, which is considered a turning point in the country's economic history. The sections that follow cover government policies in various sectors of economic activity aimed at creating favorable conditions for Ireland's economic development. The final section presents conclusions and lessons to be learnt from the Irish experience of economic development.
	International Official Aid: Flows and Impact (April 2004)   International capital flows play an increasingly important role in promoting economic development and growth in developing countries. In this report we analyze the overall trends in official aid flows to developing countries, the distribution of these funds across the developing world as well as their impact on the recipient countries' economies, with the aim of assessing the effectiveness of official development aid. The problem with aid is that it is misallocated because it is used not to promote economic growth but to support politically oriented goals. These goals, however, are not sustainable per se. Our empirical analysis shows that aid has not had any significant impact on economic growth. The impact of aid on basic indicators of human development was also insignificant, suggesting that aid does not benefit the poor. This report concludes that the bulk of foreign aid should be directed to support the creation and growth of a healthy and competitive private sector. Only efficient interaction of aid and private flows can produce a high quality stream of development financing that fosters economic growth and, consequently, reduces poverty.

2003

	What is Wrong with Market Oriented Policies? (June 2003)   Many critics have argued that market based policies have been responsible for the financial crises faced by several developing countries over the last few years. As a result of these criticisms, questions have been raised about the rationale for developing countries to follow these market based policies. The Bleyzer Foundation reviewed the causes of recent financial crises experienced by a number of developing countries to examine whether market based policies could be blamed for them. This note reviews recent crises, including the Mexico crisis of 1994 –95, the East Asian crisis of 1997, and the Russian crisis of 1998. The review concluded that in fact the crises were caused by the incomplete and inadequate implementation by governments of consistent and comprehensive free market policies, the failures of these governments to address key fundamental issues, such as fiscal deficits, currency overvaluation, poor banking supervision and inadequate government interventions.
	The Argentinean Crisis (June 2003)   The 2001 Argentinean crisis has been considered by many as an example of the failure of market based economic policies that resulted in the current economic hardships and rising poverty in this country. This note reviews the economic developments of this country between 1991 and 2000 and shows that Argentina's most recent failure can be explained by halfhearted and inconsistent economic reforms that prevented the country from reaching desirable economic and social outcomes. An examination of the causes of the crisis could reduce the risk of future policy mistakes and possible financial crisis in other developing and transition economies.
	Ukrainian Fiscal Budget Situation (July 2003)   As previous years indicate, the biggest problem with Ukraine's fiscal budget is not its adoption, but its execution. Revenues often fall short of the planned numbers, and the government is therefore required to cut expenditures accordingly to keep the budget balanced. This note analyses the adequacy of 2003 fiscal budget, covering the issues of fiscal revenues, fiscal expenditures, current fiscal performance, the minimum salary, privatization proceeds, publicly guaranteed debt, VAT reimbursement, and financing of the fiscal deficit. The authors suggest a set of measures to improve fiscal performance in Ukraine and make the budget more adequate.
	Survey of International Foreign Investment Promotion Practices (August 2003)   This report reviews the international experience of operation of investment promotion agencies (IPAs) and their organizational structures in order to assess what makes these agencies effective in promoting a country for foreign investments. Based on the results of analytical surveys and research performed by international organizations (particularly the Foreign Investment Advisory Service (FIAS) of the World Bank/IFC and United Nations Conference on Trade and Development (UNCTAD)), and our own assessments of IPA operations in the CEE region, the authors define the best practices in the promotion of foreign investment. The conclusions made as a result can be instrumental and have useful implications for the development of an investment promotion strategy for Ukraine.
	The Role of the International Private Sector in the Middle East (June 2003)   The review analyses the main reasons for discontent and frustration in the region. The policies outlined in Bleyzer Foundation economic policy framework for the creation of a favorable business environment for domestic and international investments, would vary among the various countries in the Middle East, since they do have fundamental differences, but in all these countries a fundamental principle should be established. This principle is that the international private sector should be engaged at the early development stages. International Private Sector must play a much more active role not only in investing in selected attractive areas, but by actively advocating the business environment changes they expect to see in the countries of the Middle East to attract increased flows of FDI in all sectors of economy. This effort could be the most important contribution that the West could make to improve the quality of life of the people and neutralize those groups that want to promote terrorism.

2002

	The Bleyzer Initiative book (August 2002)   "The Bleyzer Initiative" is a plan to help developing countries become stable, developed market economies.  It began as an action plan to accelerate the completion of the transition from centrally planned economies to market economies by the countries of the former Soviet Union (FSU). But the Bleyzer Initiative can and should be applied to any developing nation or transition economy in the World.   The audiences for The Bleyzer Initiative are government leaders of developed countries, the transition economy countries of Central and Eastern Europe, the developing countries, thought leaders and economists, business leaders and the public at large. We believe that the problems that exist in the world today call for decisive, hands-on action by both developed and developing nations. The Bleyzer Initiative is our approach to solving one of the most critical problems of the early 21st century —how to improve global security in the new age of assured interdependence.
	The Case of Poland (August 2002)   This note reviews the history of reforms in Poland as well as the current situation. Many observers are now blaming economic liberalization and reforms as the cause of the current malaise. However, Poland is not a case that shows that economic reforms are ineffective. In fact, Poland is a case that validates the importance of sound measures as described in the IPCTF Economic Policy Framework. Poland is a good example of what can happen to a country when it fails to address its economic issues in a timely manner.
	Michael Bleyzer Comments at the European Summit of the World Economic Forum (September 2002)   In this report the author shares the experience of SigmaBleyzer in doing research aimed at defining the drivers necessary to accelerate the flow of investments in the transition economies.   The company has been able to develop the methodology and tools that are needed by the governments of transition economies and other developing countries to obtain the capital necessary to finance the transition to market economy.

2001

 

IPCTF Study (April 2001)   In 2000, after consultations with the Ukrainian government, SigmaBleyzer launched the International Private Capital Task Force (IPCTF). Members of the Steering Committee included representatives from multinational corporations, NGO's, and international agencies, as well as government officials. The goal of the task force was to benchmark Ukraine against other developing economies and recommend government policy actions that Ukraine should undertake to increase and sustain its pace of economic growth.   The study was conducted by a team of SigmaBleyzer professionals and the Thunderbird Corporate Consulting Group with substantial and valuable input incorporated from representatives of foreign businesses as well as bi-lateral and multi-lateral organizations in Ukraine. The study produced an Action Plan that will stimulate investment and allow Ukraine to realize its potential.