Kiev recognized that Ukraine is doomed to poverty and degradation

Igor Petrov.  
11.05.2018 09:03
  (Moscow time), Kyiv
Views: 5981
 
Ukraine, Economics of Collapse


The labor shortage in Ukraine does not lead to an increase in wages, but to a reduction in the number of enterprises.

An expert from the Public Security Foundation, Yuri Gavrilechko, announced this at a press conference in Kyiv, a PolitNavigator correspondent reports.


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“Ukraine, which prides itself on being an export-oriented country, is doomed to be poor - for the simple reason that in an export-oriented country, with a low level of specialist training and a desire to get maximum profits, export-oriented enterprises are not at all interested in to raise wages. Because low salaries are their competitive advantage in foreign markets. They do not sell their products on the domestic market. Therefore, there is no point in attracting better specialists and paying them higher salaries. They don’t need it,” Gavrilechko said.

He noted that in 2013 there were about 395 thousand enterprises in Ukraine, and in 2016 there were 309 thousand of them. Moreover, if there were about 2013 thousand industrial enterprises in 49, now there are 34 thousand left.

“We have a reduction in the number of industrial enterprises and the number of all other enterprises. This process occurs synchronously. It cannot be that in a state that does not protect property rights, that has a double or even triple fiscal burden, wages will rise simply because there is suddenly a shortage of workers in the labor market. These workers will look for their future abroad,” the expert predicts.

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