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Despite all the economic turmoil, Kharkiv region, as well as the entire Ukraine, still holds high enough positions in international competitiveness rankings in terms of the ability to innovate, the quality of research and development institutions. Only focused, systematic actions by the government and businesses are needed to overcome the crisis, implement our enormous economic potential. This was discussed at an enlarged meeting of the Anti-Crisis Council of NGOs and the board of the Ukrainian League of Industrialists and Entrepreneurs (ULIE), which was held in Kharkiv last week.
The national social and economic crisis has affected and hurt Kharkiv region, given that its competitiveness has declined due to the loss of traditional markets and proximity to the territory of the Anti-Terrorist Operation zone whose companies cooperated with the region. In January-July 2015 industrial production index was 82.8%, ranking 22nd in Ukraine. Investment in the region's economy is also on decline.
"Paying tribute to many areas of Kharkiv's industry, we'd like to mention the machine-building complex, because they – Malyshev plant, Turboatom, Hartron, Electrotyazhmash, Kharkiv Aviation Enterprise, and others – are the leaders in the domestic industry. Unfortunately, Kharkiv region's machine-building saw a 27% decline in production in January-July this year. The main cause behind it is the lack of targeted state programs for the revival and further development of Ukrainian industry and all its sectors – defense, aerospace, transport, and power engineering," ULIE President Anatoliy Kinakh said.
In his view, the development of the regional economy is restrained by the absence of a strategy to reduce dependence of Ukraine's high-tech industries on imports from Russia. It is impossible for businesses to borrow funds at affordable rates. The "draconian" rules on export-import operations that have made "a significant contribution" to a serious decline in exports this year are still in effect. Entrepreneurs are not enough ready to start work after a free trade area between Ukraine and EU is launched as of January 1, 2016.
"The Anti-Crisis Council of NGOs and the ULIE will insist on a significant improvement of the business climate in the state, streamlining of tax, regulatory, credit policy, and maintaining of special support of export-oriented enterprises. Furthermore, one must listen an initiative offered by residents of Kharkiv and give the green light to the creation of powerful sectoral, integrated scientific and industrial structures integrated into a common market, and innovative regional clusters," Kinakh said.
Participants in the enlarged meeting decided to support a project for establishing an innovative regional aerospace cluster "Mechatronics" (initiated by a number of leading Kharkiv enterprises and scientific institutions – JSC FED, Kharkiv State Aviation Production Enterprise, JSC Hartron, Zhukovsky National Aerospace University, Kharkiv Aviation Institute, etc.). The project should secure producers' access to innovation and new technological solutions, lead to the creation of new jobs for highly skilled personnel in industries; improvement in external economic integration, simplification of cluster members' access to financial resources.
The requirements to strengthen state support of Ukraine's machine-building complex and its Kharkiv-based facilities were included into the anti-crisis program of joint actions by the government and businesses.