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Modern economic POTENTIAL OF UKRAINE |
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Investment portrait of Lvov regionRegulatory environmentSpecific steps to the improvement of Lvov region’s investment environment and the increase of direct foreign investment volumes to the region’s economy are made through a partnership of local authorities and the private sector. The Lvov regional state administration has developed a program for attracting investment called ‘Toward Investors’ together with local authorities, non-governmental organizations, scientific, and educational establishments. It provides new opportunities for integrated work with investors in all stages of the development and carrying out of investment projects. The Program was approved by the board of the regional state administration on November 17, 2005 and submitted for confirmation by the Lvov region Council. It was recommended to develop similar programs for promoting investment activity in the districts and towns of the oblast. An investment portal for Lvov region was created for drawing potential investors. A center for foreign investment promotion and the development of small and medium business at JSC Credit Bank Ukraine operates in the region. A number of catalogues presenting investment opportunities in the region have been published. A database of available land plots, idle production squares, and construction in progress, which are proposed to potential investors for the start of investment projects, has been compiled. Information is regularly updated on the Lvov region Investment Portal. Lvov region actively participates in international and national investment forums, exhibitions, conferences, and workshops. International economic forums are conducted each year upon the initiative of the Lvov regional state administration. The forums are aimed at presenting investment forums and opportunities of cooperation between the regions of Ukraine and foreign partners, to develop and improve the activities of the region’s authority bodies on transboundary cooperation after European Union expansion, to fine-tune cooperation on the implementation of international projects, to develop transportation borders, checkpoints, and transboundary infrastructure, to discuss the concept basics and actual instruments of cooperation in light of the new European Union neighborhood program, as well as to search for new sales markets and to expand export opportunities of Ukraine. The Ukraine – European Union international fair of investments and real estate, plenary meetings, round tables, scientific conferences, workshops, bilateral meetings, business negotiations between Ukrainian and foreign entrepreneurs, as well as the signing of bilateral and multilateral agreements are annually conducted within the Forum. President of Ukraine Mr. Yushchenko, along with government and business delegations, participated in the activities of the Vth International Economic Forum ‘Ukraine – European Union’, which took place in Lvov on October 5-7, 2005. Districts and towns of the region, sector departments of the regional state administration, and representatives of companies and organizations presented investment projects. Investors were introduced to investment proposals on cooperation in many areas of entrepreneurial activities: development of transboundary infrastructure, building of concession highways within international transportation corridors, creation of logistics centers and European industrial parks, proposals on the markets of commercial and dwelling real estate, projects for the development of Lvov region’s agricultural sector, and innovation projects. InfrastructureLvov region is situated in Western Ukraine in a region traditionally called Galichina. Lvov region borders on Ivano-Frankovsk, Ternopol, Volyn, Rivne, and Zakarpatye regions of Ukraine. It has a common border with Poland (and thus with the European Union) in the west stretching for almost 280.0 km. Lvov region possesses a well-developed transportation network. International railways to capitals of many European states as well as three important transportation corridors (No.3 Berlin-Wroclaw-Lvov-Kiev, No.5 Trieste-Ljubljana-Lvov from west to east, and Gdansk-Warsaw-Lvov-Odessa from north to south) cross the territory of the region. Border crossings are numerous, with four road (Krakoviets, Sheginy, Rava-Russka, and Smelnitsa) and three railway (Rava-Russka, Mostyska, and Khirov) points, as well as one air crossing with Lvov’s airport. International airlines unite Lvov with cities of the Middle East, Central and Western Europe, North America, and with countries to the east. Gas mainline and oil trunk pipe lines cut across the oblast, transporting eastern gas and oil to European consumers. Annually Russia and Kazakhstan transport 17-19 mn tons of crude oil to the states of Central and Eastern Europe. In all, the number of passengers and volumes of transportation flows through western border of Ukraine have significantly expanded since 2003. Demographic situation on the labor marketTo begin with, Lvov region is famous for its old and well-established academic traditions. This dates back to the foundation of the school of the Assumption brotherhood and Jesuit Collegium, which further on gave rise to Lvov University. It is the oldest educational establishment in Ukraine and one of the oldest universities in Eastern Europe (1661). Lvov Polytechnic Institute also has its roots in these schools and was the first technical school in Ukraine. At present Lvov is the largest educational center in Western Ukraine and is the heart of fundamental and sectoral sciences there. Lvov hosts the Western Center of the National Academy of Sciences of Ukraine. It coordinates scientific and research activities in scientific and educational establishments in Lvov, Zakarpatye, Chernovtsy, Ivano-Frankovsk, Ternopol, Rivne, and Volyn regions. The process of education standardization and the harmonization of the local education system with European one are on the rise in Lvov region as well as in Ukraine in general. Compulsory secondary education (11 years) is provided for free by the state. 99.8% of school-age children study in Lvov region (the first place in Ukraine after the city of Kiev). Lvov region is a leader by number of secondary schools among regions of Ukraine (1,479 schools or 6.7% of the total Ukrainian schools). Higher education (5-6 years) is provided in state (for free as well as on a commercial basis) and private education establishments. They keep high standards of state education and offer a broad choice of modern disciplines. Currently 19 higher educational establishments (institutes, academies, universities, and conservatoires), 39 technical schools, training schools, and colleges, as well as 56 vocational schools operate in the region. The number of students grows from year to year and reaches almost 150 ths. people. A number of educational establishments and programs directed at re-training and the further education of managers and specialists operate in the region. Foreign language courses, general and specialized computer studies, and business training are popular among the people of the oblast. There is significant scientific and research potential in the region. More than 90 institutions, including 17 establishments of Ukraine’s National Academy of Sciences, accomplish scientific research. Lvov region ranks fifth in Ukraine by quantity results of scientific and research activities. Approximately 11 ths. people are involved in scientific and research activities, including 600 doctors and 3,300 PhDs, more than 50 academicians of the National Academy of Sciences, and 18 corresponding members of the Academy of Sciences. There are 1,450 schools in the region including 1,235 schools with English language studies. There are 4 higher educational establishments for engineers in the region, in particular:
There were 2,550 graduates in the area of engineering in 2005. The total number of graduates from these institution’s technical departments amounted to 3,500 people per year, including:
Also, Franko Lvov National University prepares specialists in radiophysics and electronics, mechanics, physics, applied mathematics, as well as operations analysis and management. There are 2,578.3 ths. people residing in Lvov region as of December 1, 2005. There were 23,837 children born in the region over January-November 2005. The rate of infant mortality dropped from 10.1 to 8.5 per 1,000 born babies (death rate diminished by 36 infants versus January-November 2004). There were 17,355 marriages and 6,371 divorces registered over January-November 2005 compared with the same period of 2004, the number of marriages and divorces increased by correspondingly 1,578 and 200. Of each person 100 presently unemployed, 43 were workers previously, 29 occupied positions of clerks, and the rest were people without a specific profession or occupied positions without special training. The level of registered unemployment as of December 1, 2005 constituted 3.2%. This index varies in different districts and towns from 7.9% in the town of Novyi Razdel to 0.9% in the city of Lvov. 51.3 ths. unemployed people were registered in the State employment service as of December 1, 2005. 96.3% of these have official status as unemployed and 73% receive official assistance. The number of registered unemployed increased by 2.3% over November and amounted to 49.4 ths. people. The total number of employed amounted to 28.6% of the registered unemployed over January-November 2005. The highest level of this index was fixed in the town of Chervonohrad (42.6%), Lvov (40.2%), Truskavets (34.2%), and Sokalskiy district (41.3%), the lowest index – in Starosamborskiy district (16.8%). There were 10 unemployed per vacant place. The state employment service assisted in the employment of 3.2 ths. people in November 2005, which is 9% more than in the same month in 2004. Women amounted to 50.3% of those employed in November, people aged under 35 years – 49.5%, and people demanding special social protection – 13.6%. It should be noted that 4.4 ths. people were deleted from the registers of unemployed due to different reasons, and 212 people of pre-pension age were issued pensions ahead of schedule. The number and examples of companies with foreign investmentsInvestments were drawn to 1,138 companies of the region. The following are the most important investing partners of the region:
The largest volumes of investments were put to:
The following companies are the most active in investments in the region:
Specifics of the regionLvov region occupies the area of 21.8 ths. sq. km, or 3.6% of the total Ukraine’s territory. The population of the region is 2.7 mn people (5.4% of the total Ukraine’s population). The region boasts a high population density (125 people per 1 sq. km). Administratively, Lvov region is divided into 20 districts, 43 towns, and 1,859 rural settlements. The urban population comprises about 61% of the total. The city of Lvov is the center of the region. It is an important administrative, industrial, and cultural center for Ukraine, and is included into the UNESCO list of world heritage cities. Lvov is one of the largest educational centers, as well as the center of fundamental and sectoral science in Western Ukraine. More than 50 higher education establishments and the Western Scientific Center of the Academy of Sciences of Ukraine operate in the region. The region is rich in mineral resources – coal, natural gas, oil, sulphur, peat, ozokerite, chloride and potassium salt, raw stock for cement production, limestone, shales, marl, construction and fire clay, etc. A large reserve of curative mineral waters is a special resource in Galichina. Resorts such as Truskavets, Morshin, and Skhidnitsa are famous throughout Europe and operate on the basis of these reserves. Positive changes have occurred in the oblast over the last several years with the strengthening of economic growth tendencies, and the improvement of economic competitiveness. The region’s share of industry in Ukraine’s volume of production constitutes almost 3%. Lvov region ranks ninth in Ukraine in this regard. The region ranks third in Ukraine by rate of industrial output rise. The food industry, processing of agricultural produce, machine building, as well as the production and distribution (transportation) of energy carriers account for more than half of the region’s industrial production. Lvov region has been one of the most famous and popular tourist destinations of Central Europe from the earliest times. The region is characterized with a variety of natural conditions and a richness of recreational resources. The unique combination of historical and cultural heritage as well as natural and recreational resources attract tourists. In particular, the castle fortifications of Lvov region, and namely Olesskiy, Zolochevskiy, Podhoretskiy, and Svirskiy castles are united into the most popular tourist route, called the Golden Shoe of Lvov region, and are very popular among the tourists. Lvov is called a Pearl of Europe and an open-air museum. The central part of the city is declared a historical and architectural monument and was included into UNESCO World Cultural Heritage List on December 4, 1998. The oblast is rich in unique reserves of mineral waters (more than 200 springs) and curative mud. At present there are 133 resorts and sanatoriums of different ownership forms in the oblast. Lvov region is a place of enormous investment potential in the area of tourism and resorts. There are two special economic zones in Lvov region, Yavoriv and Kurortopolis Truscavets, the latter being the only special economic zone for tourist and recreational nature in Ukraine. |