First Deputy Managing Director of the International Monetary Fund (IMF) David Lipton believes that in order to accelerate Ukraine’s economic growth over 5-6% per year the country needs to adopt reforms.
He stated this during a conference in Toronto, as reported by “Interfax-Ukraine”.
“If you want to grow faster than 5-6%, here’s what you should do. Ukraine needs a new business model with better institutions and the competitive private sector ready to compete on the European and global market. If there is a desire to fulfill these points, you doubtlessly have enough human resources. What you do not have are capitals and technologies. Lastly, Ukraine needs to assume an exact responsibility for providing these changes,” Lipton said.
“With a series of reforms, it is totally possible for Ukraine to accelerate the growth of correlation with the standard of living in Western Europe,” he added.
Comparing Ukraine’s situation to the one in Poland in 2000s, Lipton noted that it was hard for Poland to attract investors as well.
“However, a few precise steps helped change the situation. Particularly, it’s building the infrastructure such as roads, highways and ports, and establishing the law where “contract is contract”,” he stressed.
As “Apostrophe” reported earlier, if Ukraine’s economic growth remains at the 2019 level, it would take 50 years for the country to achieve Poland’s today living standards.