Kiev expert: Ukrainian economic model is way to degradation

Deficit of labor force continues growing in Ukraine. However, this does not help increasing its demand and does not result in higher wages, but brings about reducing the number of plants, expert of the Public Security Foundation Yuri Gavrilechko has said at a news conference in Kiev.

“Ukraine that is proud of being an export-oriented country is doomed to be poverty-stricken. The reason is that an export-oriented country with low qualification skills of workers and willingness to have maximum profit export-oriented companies are not interested in raising salaries. Low wages is their competitive advantage in foreign markets. They do not sell their products in the domestic market. So, they do not need hiring more skilled specialists and pay them more. They do not need it,” Gavrilechko is quoted as saying by PolitNavigator.

The expert announced that in 2013 Ukraine had about 395,000 plants and factories, while in 2019 the number decreased to 309,000. In 2013, there were about 49,000 industrial facilities, now they are only 34,000.

“In Ukraine, the number of industrial facilities is decreasing as well as the number of all other companies. The process is synchronized. It cannot be in a state that does not protect private property, that puts double or triple fiscal burden, salaries are growing because there is deficit of labor force. These workers will be looking for their future abroad”, the expert says.