Wednesday, May 25, 2016

Add Business Leaders & Mix Well

BY  
Ukraine is a third larger than Iraq in both size and population with as many similarities as differences as relates to nation-building. Consider that Ukraine’s independence from Russia functionally only took effect following the events of February, 2014. Debatable as that may be, it seems a far more useful basis for evaluating where Ukraine is now and what it has accomplished in two years.
At least, there is a lot of “grey area” where Ukraine is concerned. We accept that with regards to politicians and the economy, so why not its true degree of independence from Russia (since 1991)? Our definitions impact our expectations and projections.

The DCFTA encourages trade, with free trade inherently driven by competition. Consider the relative difficulty in competing against:

  1. Another Russian or Ukrainian company in Ukraine.
  2. European companies outside of the strictures of the DCFTA.
  3. European companies within the strictures of the DCFTA per ISO standards and other requirements.


It is one thing if your product is the only product of its type on the supermarket shelf, and quite another when there are a dozen other products like it front and center for consumers to choose from.

A considerable amount of money is being provided to help Ukraine in the form of grants and loans by various governments and financial institutions. The EU4Business Programme is also directed to providing training and information whereby Ukrainian companies can begin to apply to DCFTA components.
Is that enough? No. And thankfully, Nikolai addressed many points and asked a lot of questionsto help point the way to what more needs to be done.
Somewhere between 20 – 30% of Ukrainian products already meet, and another 10% or so with simple changes to things like packaging, would meet, EU standards (not to mention ISOs).
Thus EU standards are not only achievable but have already been achieved by certain producers big and small across several market sectors – and yet nobody has produced a consolidated list that publicises what has already been achieved and is easily identifiable to a Ukrainian public that also buys those products.
Why not?
Yes, the EU4Business Programme will cover some of the points Nikolai makes, but not all.
So, what else is needed?

Firstly, Ukraine needs leaders, business leaders of Ukrainian companies who are already actively engaged in trade with the EU **to help point the way** that others may follow. We need to help identify these leaders, encourage them, and support them and those they reach throughout the process of encouraging other Ukrainian companies to take advantage of the DCFTA.
Secondly, we need to identify those on the verge of achievements to help solidify their gains, bolstering and expanding the credibility of the DCFTA’s potential benefit to Ukraine.
Thirdly, the hardest of all, we need more effective involvement and participation at the grassroots level. In this last point, there are three major hindrances. One is the language barrier and Ukrainian/Russian division. The second concerns authority level. The third requires some coordination of assets with centralized protocols for a distributed (networked) effort.
While the civil society side of Ukrainian may welcome and appreciate volunteers, most Ukrainian businesses do not. And besides, most “westerners” willing to contribute are not proficient in Ukrainian and/or Russian – and it hardly seems as if Ukraine needs more Ukrainian or Russian speakers if the objective is to compete in foreign markets.
Senior management of Ukrainian companies *generally* does not appreciate or respect suggestions from their subordinates and are equally dismissive of volunteers. Thus, any information distributed needs to come from someone who is respected or deemed as a higher authority. If you take into account the regard Ukrainians have for official stamps and certifications, this point becomes fairly obvious. If it isn’t official… it has little or no value.
Even with a full court press, the level of involvement and participation will prove quite finite – limited resources trying to support military requirements, civil society, the government, keep businesses running while advancing toward DCFTA goals. There’s more work to be done than there are people to do it. This mandates whatever is done being calibrated to be as effective as possible.
That’s tomorrow’s topic.

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