Cover: Encouraging Trade and Foreign Direct Investment in Ukraine

Encouraging Trade and Foreign Direct Investment in Ukraine

Published Aug 22, 2007

by Keith Crane, F. Stephen Larrabee

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Despite the fact that two ostensible economic policy priorities in Ukraine are to liberalize trade and improve the climate for foreign direct investment (FDI), successive Ukrainian governments have found it singularly difficult to pass legislation and implement policies to address these priorities. The study’s primary objective was to analyze Ukraine’s current environment for foreign trade and FDI and to develop policy proposals that will foster Ukraine’s foreign trade and attract more FDI, especially with respect to the United States. The report describes existing barriers to trade and FDI, chief among which is corruption, and recommends a two-pronged strategy for removing the worst of these barriers: one prong focused on a few highly visible policy changes that would bring results within 100 days; the other focused on setting in motion changes in Ukrainian institutions that would reduce corruption and other impediments over a longer period.

The research described in this report was sponsored by the Institute of European and International Studies in Kyiv. It was conducted in the International Security and Defense Policy Center of the RAND National Security Research Division (NSRD). NSRD conducts research and analysis for the Office of the Secretary of Defense, the Joint Staff, the Unified Combatant Commands, the defense agencies, the Department of the Navy, the Marine Corps, the U.S. Coast Guard, the U.S. Intelligence Community, allied foreign governments, and U.S. and foreign foundations.

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