Anders Aslund: Why invest in Ukraine?
Those who have invested in Ukraine so far have not been very happy with their return.
At present, Ukraine’s gross domestic product is about $85 billion, approximately one-eighth of Poland’s GDP. The return on investment has been in proportion to that. Will things change? You can never be sure, but like before, Ukraine holds great promise. After all, this country is located right in the middle of Europe. It has a well-educated and underemployed labor force. And whatever else you call the Ukrainian economy, it’s still a market economy.
While that sounds good, what incentive is there for foreign or Ukrainian investors to pour money into the country at this time? What has changed?
A man plows his garden in Sumy Oblast on April 26. (UNIAN)