RUSSIA AND UKRAINE

Russia and Ukraine

Russia and Ukraine

Differences/Similarities between the Two Countries

In recent years, Ukraine and Russia has steadily developed. In 2007-2008, when the crisis has just started, Ukrainian economic growth was 7%. However, just like other countries, we are experiencing serious difficulties, particularly in the banking sector, which lacks liquidity. However, we do not threaten default. Additional difficulties are caused by collapse of the steel market, our main export item: we no longer have markets for our exports. Because of this there was a significant trade deficit, which, in turn, affected our currency, the hryvnia, has lost 25% of cost over the past days. Therefore, we expect that inflation will rise.

Despite this, our budget remains balanced. Parliament recently adopted anti-crisis measures, which really should allow us to obtain a loan from the IMF. I am convinced that the adoption of such measures and international assistance will allow us to reassure markets and completely dispel fears among the population.

In addition, the government has developed other measures designed to restore confidence in the banking sector, for example, increase the amount of deposit insurance to $ 30 000. We also decided to protect some sectors of our economy, which today is very vulnerable, such as steel or agriculture, through targeted tax cuts. Of course, we have to reduce expenditure and review the budget in this area.

Despite these difficulties, we are determined to continue to pursue our policy of privatization of strategic enterprises, procedures so as to facilitate foreign investment. This applies to the entire economy, but most of all - the energy sector, infrastructure, roads and preparing for Euro 2012 (Alexander 2007, P. 3-6)..

Comparing In Political Economic Terms

Ukraine in terms of overcoming the financial crisis the question of investment is extremely important, since the capacity of any country, as scientific progress is impossible without this component. Equally important is the question of which countries are investing and how to change their share of total foreign investment in Ukraine in 2010, compared to the crisis of 2007, which caused the causes of these changes.

Nominal GDP of Ukraine (as of 01.01.2010) amounted to 914,720 million. While the volume of direct investments at 01.07.2010 amounted to 40 was 402.1 million, Dollars 320 million UAH 388.65. Of course, it is difficult to compare these figures, but given the dependence of the economy of any state of material production (supply of money corresponding commodity), and the last on the number of input, we can see that the value of foreign investments is a significant and very significant. It should be noted that the share of each country's gross foreign direct investment is constantly changing, especially after the global financial crisis.

Economic Theories

In Ukraine, suddenly came a lot of money: in the second half of 2007 the country attracted a half times more foreign direct investment (FDI) than in the first ($ 5.57 billion compared to $ 3.6 billion). For comparison, FDI for all of 2006 totaled $ ...