Foreign economic policy
The main goal of foreign economic policyThere is preservation and deepening of the course toward developing foreign trade on the principles of openness, which will comply with existing international norms.An important factor for the development of the city's economy should be the concentration of efforts on improving the efficiency of using internal investment resources and increasing the inflow of investments from foreign investors.
Over the past three years, positive trends have developed in Ukrainian exports, which should be preserved in 2004 as well. At the same time, there are significant differences in the operating conditions of each region. The city's share in the total regional foreign trade turnover is the largest and amounts to 81.2% compared with 66.9% last year. At the same time, the share in exports is 68.4%, and in imports 87% (last year, 56 and 72.1 percent, respectively)2.8%).
Foreign trade operations of the city’s enterprises were conducted with partners from 65 countries of the world, including 118 enterprises exporting products to 47 countries, and 161 receiving imports from 51 states (in 2002, respectively 136 to 49 countries and 173 from 46 states).
Export volume increased by 68.4%, or by $53.5 million, mainly due to an increase in supplies of measuring instruments (by $14.4 million, or 79.7 times), machinery and equipment (by $14.3 million, or 78%), casein (by $9.8 million, or 3.2 times), food industry products (by $5.1 million, or 9.3 times), metals and articles thereof (by $3.6 million, or 2.5 times), and livestock products (by $3 million, or by 41 percent).
Imports of goods increased by 78.1%, or by USD 162.8 million, largely as a result of an increase in supplies of fuel and petroleum products (by USD 115 million, or 71.7%), which were received in the amount of USD 275.7 million.
The city's enterprises received imported tolling raw materials worth USD 9.6 million (2.6% of total imports), of which 38.5% was sugar, 24.1% polymer raw materials, 17.9% textiles, and 11.3% ferrous metals.
In 2004, it is planned to increase foreign trade turnover in goods and services by 8.8% compared with 2003, including export volumes growing by 8.2% and imports by 5.1%.
Main problematic issues to be resolved in 2004:
- the imperfect structure of Ukrainian exports, in which goods with a low degree of processing predominate;
- development of measures aimed at supporting the creation of promising competitive domestic industries;
- Information and analytical support for subjects of foreign economic activity
- promoting the attraction of foreign investors to long-term investment projects, creating a favorable investment climate, and stimulating the inflow of capital investments into the city’s economy;
- assistance in the development and implementation of investment projects at enterprises aimed at raising the technical level of production and developing uncompetitive products;
- intensifying efforts to engage business entities interested in obtaining investments in participating in investment forums and conferences for direct discussion of investment projects with investors;
- Stimulation of development processes in the production sector.
In order to promote the city, materials were collected, fundraising was organized, and a booklet about the city, “Lutsk Investment,” was published, which included the most significant events and developments that took place in the city over recent years.
Today, the city can offer a potential investor:
- advantageous border location;
- availability of a sufficient educational base for training specialists in any field;
- availability of institutions supporting the operation of enterprises (banking institutions and credit unions, audit and consulting firms);
- developed telecommunications and transport networks.
The priority areas for investment in the city are the creation of new and the reconstruction of existing capacities of the machine-building, food and processing industries.
However, there are a number of factors, in particular the low solvency of the population and enterprises, which restrain the expansion of foreign investors' activities in the city. As a result, the role of foreign capital in reforming the city's economy remains limited.