Another area of rapid high-technology development is the personal and integrated computer industry, which has grown by leaps and bounds since the 1980s. The domestic market is still small, but Evheniy Utkin, president and chairman of the board of Kvazar Micro, which assembles and distributes them, expects sales to grow to 600.000 in 2003, compared with 200.000 in 2001.
"In my opinion, Ukrainian users are more sophisticated than those in Europe or eastern Europe because Ukraine has always been a technologically developed country, particularly in electronics," he says.
Telecommunications Boom
There is certainly great potential for the development of telecommunications in Ukraine, where the density of telephones is only 18 per 100 inhabitants, well below that of west European countries. Foreign investment was accepted in 1992, when two joint ventured were established: Utel and UMC.
Huns Wagenaar, chairman of Utel's Supervisory Board, says: " Ukraine needs to attract billions of dollars to improve and expand its networks. We are sure that the market will grow. But there is great uncertainty over the pace."
An important debate is under way in Ukraine over the future of Ukrtelecom, the state-owned telecommunications operator. The government wants to privatise the company, in the belief that in this way it can attract the investment needed for its development, but there is opposition in the parliament and the proposal was rejected there in December 1998. The government's aim is to sell 25 percent plus one share of Ukrtelecom to a strategic investor, while retaining a 51 percent share itself. But it cannot do this under existing legislation, because Ukrtelecom is on a list of 'strategic' companies which may not be sold off.
Industrial Strength
There is also considerable potential in heavy industry. Some of the world's best metallurgists, engineers and scientists are on tap, as well as skilled labour force. It is estimated there are enough coal reserves to last 300 years and, while old coal-burning power stations which pollute the atmosphere will be slowly phased out, the way ahead points to the construction of modern clean-burn power plants which produce little or no gas emissions.
The government, via the State Property Fund, is now planning to sell 26 percent of Nikopolskiy ferrous alloys plant, in which the government will retain a 50 percent stake until 2001.
One leading company which has successfully restructured and found new markets is Dneprospetsstal, which is a joint stock company 68 percent-owned by financial investors and 32 percent-owned by government. Having modernised its facilities, the company now exports 100.000 tonnes of rolled steel to Europe. "Although the European quota is 45.000 tonnes annually, we are bypassing the quota because it is high quality steel", says Hennadiy Kikyo, Dneprospetsstal chairman. " That is why European manufacturers are developing methods to fight us. They cannot declare antidumping because we sell it at European prices."
From Stability to Progress
On 24 August Ukraine celebrated the anniversary of its independence. Ukraine continues to progress toward market economy status. However, the time is fast approaching when it is no longer sufficient to speak of great potential alone. The coming year is arguably one of the most important in Ukraine's new history and recent stability suggests that it is up to the challenge.
QUESTIONS
1. Why does Ukraine try to entry different international organizations?
2. Can you say that Ukrainian economy is developing?
3. What are the results of reforms in Ukrainian potential development?
4. Is our country still a “space pioneer”? What do you know about successes of space industry of Ukraine?
5. If you were a computer company manager, what difficulties would you see in this area in Ukraine?
6. What kind of telephone do you have? What would you advise Ukrainian government to improve the situations with telecommunications?
7. Do you see a huge potential of Ukrainian heavy industry? Give examples from our town economy.
8. How can privatisation influence the Ukrainian economic potential?
9. Give the definition of damping prices. Do Ukrainian plants use them? In what spheres?
10. Do you consider the 24-th of August a great holiday? What about your parents and grandparents?
List of the Topics
1. What is marketing?
2. Marketing concept
3. Marketing strategy
4. The foreign exchange and capital markets
5. Budgeting in business
6. Problems of European union
7. Britain and the euro
8. Accounting
9. English and American banks
10. The commercial banks
11. Financial statements
12. Economic potential of Ukraine