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Ukraine has climbed by 9 positions in the global competitiveness of the economy ranking

Ukraine has climbed nine positions and reached 73rd in the Global Competitiveness Index (GCI) among 144 countries, with Kyiv being a leader among the country's regions, while the country is at the bottom of the index in efficiency of state institutions.

The data are stipulated in the report on the competiveness of Ukraine 's regions in 2012 drawn up by the Foundation for Effective Governance (FEG) with support of the World Economic Forum.

"We believe that there are factors of competitiveness that hinder its [development in Ukraine ]. These are primarily its weak [state] institutions," Senior Manager of FEG projects and the co-author of the report, Vitaliy Kovalenko, said during the report's presentation in Kyiv.

He said that Kyiv is on the 27th (last) position in efficiency of state institutions.

Among the factors that positively influence the development of competiveness in the regions and in Ukraine as a whole is the high level of capacity for innovation and introduction of innovation technologies, and Kyiv is first among 27 regions.

According to the FEG, the largest number of industrial enterprises which introduce innovation technologies in the country are located in Kyiv (98) and the smallest number in Sevastopol (9).

"We believe that the introduction and development of the e-government in Ukraine could be a very important factor for the development of competitiveness not only for such pillars as innovation capacity, but for all of them," said Kovalenko.

The FEG said that the poll, which covered over 2,000 company heads in all of the economic sectors, showed that the most problematic factors for doing business in Ukraine is instability in state policy and the inefficiency of government policymaking, as well as corruption. Company heads also said that tax regulation is a burden in the country.

Kovalenko added that the bad assessments of the efficiency of state institutions, which Kyiv has been given for the second year in a row, are given to other economically developed regions in Ukraine .

He said that experts linked the trend with higher requirements of business representatives from state institutions in the regions, as in terms of innovation capacity and market development, the regions are leaders in the regional GCI rating.

"We also think that with the economic growth and the application of innovations by business in Ukraine , requirements from institutions will only toughen and, of course, the problem has to be settled. If the problem is not settled, it will continue pulling down Ukraine 's competitiveness," said Kovalenko.

The FEG said that Kharkiv region was the second in the competitiveness index in Ukraine , Dnipropetrovsk region was the third, Donetsk region was  the fourth and Kyiv region was the fifth. The ones at the bottom include the agricultural regions, like in 2011 - Zhytomyr, Ternopil, Chernihiv, Kirovohrad and Kherson regions.

The FEG said that there is neither a well-defined leader in the country in all pillars of the index nor a well-defined loser.

The experts said that all of the regions have assessments higher than average ones in the world in labor market efficiency, higher and primary education, and healthcare.

Thierry Geiger, Associate Director Economist, Global Competitiveness Network, Global Leadership Fellow World Economic Forum said at the presentation of the report, Ukraine is 73rd in the GCI 2012 report among 144 countries, climbing nine positions up compared to 2011.

Based on for-ua.com report

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