Ukraine IT Analysis:
National IT Strengths & Weaknesses


 
 
Strengths
  • Human capital is cheap
  • Much of the human capital is very well trained and committed to Ukraine
  • Younger generation not as influenced by Soviet command economy; less cultural weaknesses
  • Telecom & Internet are growing fast and fueling freedom of thought and can-do spirit
  • Government is (slowly) making progress in its reforms


Weaknesses

  • Questionable legal system
  • Piracy laws inadequate
  • Country’s declining reputation 
  • Communications systems inadequate
  • Low specialization of products
  • Education system in decline
  • English language skills poor 
  • Financial savvy skills (risk vs. reward)
  • Government censorship 
  • Country is in debt; government financial support for IT will be pledged, but difficult to obtain
  • High taxes expensive to foreign investments
  • Culture: 
              Time has no value
              Short-term thinking
              Cash is more important than profitability
              Government is a threat, the enemy
               Instinctive distrust of outsiders
               Fear of computers – mass unemployment
 

Hard Policy Prescriptions

  • Government transparency
  • Firm, consistent legal system
  • Transparent economy
  • Reduce corruption
  • Elect more government leaders that are inspired to make good decisions for their country
  • Speed privatization
  • Reinvest in education


Easy Policy Prescriptions 

  • Tax reform to encourage investment
  • Entrepreneurial assistance (financial grants & support) for IT start-ups
  • Worldwide publicity campaign to promote country strengths
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This web site was created in the Fall of 2001.  Information beyond that time frame may not be included and as such
this site may not provide the most current information

LAST UPDATE:  12-13-01