Globalized Technology and Commerce in Ukraine
Ukraine’s economy has always been kept simple—it produces wheat, gas, and steel for Russia to use in the global capitalism market. The irony is that we have had communists exerting vassalage on Ukraine in order to compete on global markets.
Marx would have been scratching his beard worriedly in the British Library.Over the last brief quarter-century, Ukraine has had to build an independent economy for the first time in eight centuries. It has not been easy. For instance, the Ukrainian gas company (unimaginatively called Ukrtransgaz), is in an uneasy partnership with Russia and Belarus. From Russia’s point of view, Ukraine is in a dangerously strong position. It's hard to drive good deals if somebody else can just turn off a tap, although in fact, Russia itself turned the taps off back in 2006. Wars have been fought over less, and gas has emerged as a factor in the most recent conflict.
The economy of Ukraine has not been booming, although it has shown promise in a few small areas. Agriculture is back on track, with the black soil doing what it has always done—and for the first time, Ukraine has had the luxury of deciding who it sells its wheat to, and at what price. The problem lies in a stagnant industrial and mining sector, still heavily under the influence of conservative management. The strong pro-Russian sentiment of the Donbas region has not motivated energetic devotion to the economic cause of Ukraine.
The broadening of the scope of its industries is vital for the long-term prosperity of Ukraine. However, development is obstructed by poor relations with its powerful northern neighbor. War—and the threat of war—do not build investor confidence. Ukraine not only needs self-determination, it also needs peace.
The tourism sector is the quintessential “new” industry of the globalizing world. Enormous profits are derived from people visiting one another’s countries briefly to enjoy its unique features. Tourism monetizes temporary travel and human curiosity. It also establishes the importance of the unique. Nobody ever wanted to visit a Ukrainian factory—but many tourists want to canoe in Ukrainian rivers and sunbathe on the white beaches of the Black Sea. Tourism is both a symbol of globalization and a vehicle for it.
A quick check on the internet reveals that there are 660,000 Ukrainian beach-side hotels. There is also currently a warning that it is currently unsafe to make bookings for an Odessa holiday. The hotel boom demonstrates the market for sunshine among people living in the chilly north. This is one of the new products and services that could become a driver in an emerging economy.