• Foreign Investors

  Filed under News
  Oct 30

  The head of state of all its activities demonstrates a huge desire to attract the largest possible number of foreign investors in Ukraine, but because the norms proposed in these bills wreak havoc on the country's investment attractiveness. – In addition to the text of the explanatory memorandum to the bill number 8163 told the following "At the current stage of development of agricultural market a significant portion of the proceeds from the sale of products grown by domestic agricultural producers, intermediaries and assigned to exporting companies (traders), most of which have foreign capital. " That is, in other words for Ukrainian companies with foreign money is bad? That's the whole investment attractiveness. – But first of all, the authors take care of domestic manufacturers, which currently does not have access to the export of their products. – In order to to understand this question let's understand the market model, which is now proposed by the legislators. At the moment there are so many manufacturers are at a considerable distance from each other. Small intermediaries, whose number is also large enough, with little working capital, and traders with significant working capital.

  Small broker collects from manufacturers products, accumulating it in Port elevators, and then sells the trader that exports large quantities of goods on the world market. Such a model exists in the world. The proposed model would look like, a monopoly will gosagent buy directly from the manufacturer of products that will sell on the world market, other traders will be able to export only if the 50% share of the growing season. So eliminated the small broker that, at first glance, not bad, but the trader and gosagent are at a disadvantage, because gosagent no obligation to invest 50% of the products manufacturer. So, the question of the existence trader in this model is also solved. In this state agent can single-handedly regulate prices in the domestic market, putting the producer to choose to sell at the proposed prices or not sell at all, which is also not stimulates the growth of agricultural production and the revival of agriculture.

  First of all, these bills eliminate the concept of competition in the grain market. – What to do and what are the ways of development APC? What standards should be taken to our legislators? – First of all – direct discussions with market participants, calculation of the economic consequences of the introduction of laws, consult with experts and study the rules existing domestic and international laws, for example, the same WTO rules that are to our community member states, the norms of direct action. You can explore the experience of neighbors such as Russia, all efforts which are aimed at the liberalization of the market and the development of logistics infrastructure. As for us in the country as a whole infrastructure is much better, thanks to this small resellers who accumulates the products from manufacturer. And of course, pay attention to the accuracy of the language as vague definition opens up considerable opportunities for speculation and corruption, killing the development of any industry.

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