Espreso. Global

Ukraine I dream of

11 February, 2023 Saturday

Of course, all these transformations will not happen in one day, but the long journey begins with the first step

I dream of living in New Ukraine after the war.

A kind of "Ukraine 2.0".

A country where we, Ukrainians, live together, developing our common home - Ukraine!

Where security is a model for others.

The borders and the sky are under control, and our military-industrial complex not only provides the world with the most advanced defense systems, but is an entire ecosystem!

An ecosystem of innovations that combines science, innovation, education, dual-use technologies, modern types of weapons and startups that strive to become unicorns!

Ukraine 2.0 is a new example of statehood built according to the corporate model.

Where every Ukrainian (citizen) directly owns 1/40 millionth of the country's assets (if there are 40 million of us).

Through our Diia program, we see how our common wealth is changing and how it is being effectively managed.

Through Diia, we elect our representatives, the deputies, monitor their fulfillment of pre-election promises and the tasks we set, and deprive them of their mandate.

Our representatives, the deputies, hire the country's management, headed by the prime minister, who himself forms a team.

This team is traditionally formed to implement the long-term Ukrainian strategy and works as a single organism, making Ukrainians more and more prosperous!

According to various estimates, our joint assets today range from $3 to $5 trillion in value.

Or $75-$120 thousand per citizen. But what we had before?

In the future, these assets will be managed not by officials, no, but by professional managers.

Just like in classic investment funds:

- one team is in charge of forestry;

- the second – water resources;

- the third – mineral resources

- the fourth – state assets (critical infrastructure and national security enterprises);

- the fifth – transportation infrastructure;

- the sixth – energy infrastructure.

Just imagine the results of such management? When the task is not to put money in your pocket, but to multiply it for the sake of people!

Assuming a modest yield of at least 1.5% per annum, such a fund can accumulate up to $45-$75 billion in cash flow and asset value growth annually.

This is more than the annual budget of Ukraine.

The state apparatus has been completely transformed and performs exclusively socially important functions:

- security of citizens (in Ukraine and elsewhere)

- regulation

- support and development of entrepreneurship;

- promotion of Ukrainian interests in foreign markets;

- development of basic infrastructure (transport, energy, digital);

- arbitration;

- protection of the needy.

We have forgotten about the millions of state employees who are parasites on our taxes (budget).

The public sector is staffed by professionals with above-market salaries.

But there are many times fewer civil servants.

The entire public service is digitalized and personal contact with an official is excluded.

So are any opportunities for corruption.

Licenses and permits are issued within a few hours online.

Tax reports are also submitted automatically and online, automatically checked, and don't cause any problems.

And the tax system itself is designed so that paying taxes is more profitable than hiding and not paying them.

Everything is automated and takes a minimum of time. Ukraine is ranked 1st in Europe in terms of ease and speed of tax payment.

If we start from the fact that a citizen is the main beneficiary of the state and public services, then he is also the main payer.

As an employee.

As a business owner.

Or as a consumer.

And the Ukrainian tax system is recognized as the most progressive in the world. You already know about it: 10-10-10.

1. 10% – tax on withdrawn capital instead of profit. If you reinvest your profits, you don't pay taxes.

2. 10% – income tax. Either salary, or profit of a private entrepreneur, or dividends (as in the paragraph above).

3. 10% – retail sales tax instead of VAT. No VAT means no schemes, no twists, no diversion of money from business and no corruption. There is only a retail tax. When you buy a product, the tax is automatically collected and transmitted to the treasury.

A simple, clear, non-corrupt system that has made Ukraine a magnet for global capital.

Simple taxes, minimal regulation, zero corruption, an educated nation with a territory in the center of Europe - it's a paradise for industrial investors.)

But that's not all.

Ukraine, ruined by the war, needs hundreds of billions of investments. And we are getting them.

Investors have a guarantee of security not only because of the strong Ukrainian army and military-industrial complex, but also because of the state's care, which manifested itself in the form of

- state insurance of military risks;

- British law, which started working in Ukraine for all investors in the special economic zone Kyiv City;

- an efficient and favorable tax system;

- a capital market that shows the highest growth in Europe.

The creation of the Kyiv City special economic zone helped a lot here. It has special conditions for investors:

- British law (including in disputes with the state);

- international exchanges;

- special regulation.

Kyiv City is located in Kyiv in the old industrial area of Vydubychi, and represents the typical business district of a successful country.

Skyscrapers, parks, many offices of financial institutions and the opportunity to attract capital even for small companies.

The pension reform played an important role in launching the capital market; assets accumulated by Ukrainian private pension funds were looking for investment instruments and found them in Kyiv City.

The former pension system has been abolished.

Citizens have personal accumulative pension accounts that guarantee them a comfortable retirement.

For those who, for whatever reason, were unable to accumulate a private pension, the state provides social guarantees as part of the social contract of citizens.

The source of social guarantees is the profit of the National Welfare Fund.

At the same time, social guarantees take up an insignificant part of the fund's expenditure structure.

The fund's assets are growing steadily and are invested for the benefit of Ukrainian society.

- Modern transport and digital infrastructure is being created.

- Promising scientific and innovative projects are financed.

- Construction of new energy-efficient Ukrainian cities is financed.

- Part of the state order related to national security and the expansion of the Ukrainian economy into foreign markets is financed.

In addition to investments, the government plans to increase the share of government spending financed by the Fund, thereby further reducing taxes for Ukrainians.

It is quite possible to completely abandon taxes if our joint assets work effectively.

A kind of huge investment fund owned by all Ukrainians!

My dream is that Ukraine will become a mecca for entrepreneurs and big international capital.

Our government managers have created dozens of international joint projects with the strongest countries in the world.

Today, Ukraine is not a victim of war, but a reliable, responsible partner that helps:

⁃ as a center of global food security;

⁃ as a center of European security and a manufacturer of the most advanced weapons, drones, robots, aircraft and spacecraft;

⁃ as a European energy hub;

⁃ as a regional logistics and manufacturing hub;

⁃ as a cybersecurity center of the region;

⁃ as a center of Hi-Tech innovations;

- as a center of critical materials and technologies.

A country with the values of freedom, a great climate, no seismic risks, an effective security system, beautiful nature and a clean environment should simply become a mecca for creative people from all over the world! (why should we let others in?).

Of course, all these transformations will not happen in one day, but the long road begins with the first step.

And we can start making it together, dreaming of a post-war Ukraine.


About the author. Anatoliy Amelin, co-founder and director of economic programs at the Ukrainian Institute for the Future

The editorial board does not always share the opinions expressed by the authors of the blogs.

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