Promoting Economic Diversity in Ukraine: The role of the business enabling environment, skills policies and export promotion

This report examines to which extent the concentration of Ukraine’s production and export structure has contributed to turning Ukraine into one of the countries hardest hit by the global economic and financial crisis. It then discusses the role increased diversification can play in reducing the country’s vulnerability to future shocks and bringing the country back onto a strong and sustainable growth path. It proceeds to analyze obstacles to enhanced diversification and sustainable growth in terms of the business environment, the availability of skills, and the situation of global markets for Ukrainian exports. While an analysis at the aggregate level can give useful guidance as to possible policy directions for enhancing economic diversification, an in-depth analysis of individual sectors is useful – if not necessary - in order to design concrete policy proposals. It is for this reason that two sectors will be analyzed in more detail in this report: the basic metal and metal processing industry and the tourism industry with a particular focus on the hotel sector.