Igor Mazepa, CEO of Concorde Capital investment company presents his view of the main steps that freshly elected president can do to create comfortable conditions for business and growth in investments
The main thing that the freshly elected president can do to create comfortable conditions for business and growth in investments is not to interfere with business. The government is not supposed to manufacture obstacles to open and conduct business, and for moving capital to and from the country. State enterprises are not supposed to enjoy preferences. State enterprises are not supposed to serve the pockets of officials, but work for the economy’s benefit.
In other words, it’s important for the investment climate and for the country’s markets not to be monopolized, but left open to new players. And for the rules of the game to be the same for all, regardless of the size of the business, the ownership structure or the volume of investment. In our country, not only large investors are supposed to feel comfortable, but also small and medium-sized businesses that should become the main investors and the main driver of economic growth. Only then will we be able to abandon the category of Third World countries.
In my view, the main steps for improving the business climate should become:
- Doing everything possible for preserving macroeconomic, financial and currency stability that was achieved with such difficulty during the last four years. To achieve that, it’s extremely important to preserve the independence of the National Bank in monetary policy, as well as preserve constructive relations with the IMF that, whether we like it or not, will remain the main support for Ukraine on the international capital markets in the next three years. And if we’re able to prove that – regardless of external challenges – Ukraine’s financial condition remains stable and predictable, then we should be observing the arrival of careful and long-term investors that sooner or later will replace risky opportunists and speculators that currently predominate on our market.
- Rebooting the judicial system with the goal of true protection of the rights and freedoms of residents. To achieve that, it’s necessary to continue the process of cleaning the judiciary at the level of judges at the first-tier and appellate levels, as well as put into practice everything possible so that judges are held responsible for illegal decisions that did harm to businesses.
- It also has long been time to liquidate the economic subdivisions in various law enforcement bodies while creating a single body to handle investigations in the economic sphere, which is what the IMF has been requesting from us.
- Intensifying the fight against monopolies in order for large players to not even consider in any way restricting competition on their own or related markets. The anti-monopoly committee should be at the forefront in the struggle for the rights of entrepreneurs and consumers in all spheres of economic activity.
- Strengthening the rights of creditors, protecting our financial system from risks posed by toxic borrowers. The defense of creditor rights is very important for renewing trust in the financial services system, as well as trust in the financial system itself.
- Bringing order to the state enterprise sector. Fulfill a program of privatizing a majority of state assets for attracting investment that is often lacking by state enterprises for modernization and development. For all companies that for whatever reason aren’t subject to privatization, independent supervisory boards need to be created so that professionals administer these assets so that they worked for the benefit of the state as a whole, and not separate officials that by random fate gained state assets under their control.
- Initiating the creation of a farmland market. In doing so, we will not only abandon the embarrassing list of countries that restrict the ownership rights of its citizens, but we will be able to attract large investments in farming and food production, as well as protecting our land from irresponsible use.
Сommented for Liga Business media resource Igor Mazepa , CEO of Concorde Capital
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