In the opinion of Igor Goncharenko, Senior Project Manager of the Reforms Delivery Office under the Cabinet of Ministers of Ukraine, a strong focus on the digitalization of economy and promotion of high-tech businesses will help the country become more competitive.
“Ukraine’s reform agenda should include digitalization of economy, ICT expansion, and promotion of high-tech businesses and innovation,” Mr Goncharenko said at the Ukraine4Industry Conference held on 13 June 2019 at the Ukraine Crisis Media Center.
The expert added that this does not mean that inefficient institutions, volatile macroeconomic environment, poorly developed financial sector and lack of competitive edge in some markets could be swept under the rug.
He also added that while over the years Ukraine’s ranking in the Global Competitiveness Index (GCI) has fluctuated between 70th and 80th, last year it fell from 83rd to 81st.
“The Global Competitive Index 2018 is calculated using the new GCI 4.0 methodology, which reflects the Fourth Industrial Revolution. Ukraine ranks 83rd in the GCI 2018", he said.
Mr Goncharenko has noted that the new index emphasizes the role of human capital, innovation, resilience and agility as not only drivers but also defining features of economic growth in the era of the Fourth Industrial Revolution.
“With its components still grouped into 12 pillars, the computation of the Index, however, depends on a group (category) to which a given economy belongs. Ukraine, for example, has experienced a lengthy transition from resource-oriented to resource-efficient economic development. Accordingly, business development and innovation factors did not play a pivotal role as the focus was on such fundamental factors as institutions, infrastructure and macroeconomic stability”, he said.
Mr Goncharenko has also noted that today all components have equal value for all economies. In addition, the components of the Index have to some extent been regrouped, since institutions and ICT adoption are among the most important pillars basically “by default”. A premium has been placed on the human capital factor, which now includes digital skills among population, and innovation ecosystem, which includes business dynamism and innovation capability.
