Ukraine President Urges Economic Calm Amid War-Tremors
January 31, 2022–With geopolitical tensions at their highest since the Cold War, Russian troops lined up along two sides of its borders, and the United States warning that conflict is quite possible, it might come as a surprise to learn that the Ukraine is encouraging tourists to visit.
After all, U.S. and Canadian diplomats there are sending their families packing and Israel is planning to evacuate up to 75,000 Jews from the country. So it hardly seems like a time for sightseeing in the East European country.
But that’s exactly what the Ukraine government is urging. “Keep calm and visit Ukraine,” the government’s tourism board is suggesting.
“According to the President and the National Security and Defense Council of Ukraine, there is no reason to panic, and the situation on the Ukrainian border remains under control,” the tourism board suggests.
“Ukraine has fantastic nature – mountains, forests, seas and lakes,” the site says. “But the most important thing is that Ukraine is a country open to foreigners from any country in the world. The country is hospitable and welcoming, a country that has something to surprise and fall in love with.”
Tourism And Business Investment
The tourism board’s message is all part of the strategy to calm nerves and continue attracting foreign investment.
The country’s primary industries, according to the Central Intelligence Agency, are in coal, electric power, ferrous and nonferrous metals, machinery and transport equipment, chemicals, food processing.
The services industry provides between 65 and 70 percent of the jobs. Yet tourism accounts for only 1.4 percent of the economy, according to Ukraine Invest, a government agency. That’s roughly 200,000 jobs (1.3 percent of the workforce). But business tourism is a large part of that. It accounted for about a third of the trips to the country in 2021. Meanwhile, other estimates put that share at 5.2 percent (Knoema).
US: Steer Clear of Ukraine
As for the United States, the country’s State Department is sending a message of “unity” with Ukraine at the same time it is urging its citizens to steer clear of the country.
“U.S. citizens in Ukraine should consider departing now using commercial or other privately available transportation options,” the department said on January 23.
On Friday, a State Department spokesman warned U.S. citizens visiting Ukraine the department would not be able to assist with an evacuation in the event of war with Russia.
Investment Losses
Ukraine President Volodymyr Zelensky held an hour-plus-long press conference on Friday, urging the world — and primarily — foreign investors to maintain interest in Ukraine.
“Invest in our country,” Zelensky said. “Please demonstrate that believe that you believe in Ukraine.”
Ukraine’s Economy
Ukraine has a strong industrial sector. But its economy is still small by developed country standards. The size of the economy per person (GDP er capita) reached $3,892 (USD) in 2021. The economy recovered, growing at 3.8 percent. But with consumer prices rising to 8.8 percent the same year, inflation wiped out much of those gains.
Ongoing Proxy War
Now with a foreign army amassed on its borders, the threat of conflict threatens to destabilize the economy.
Zelensky, the president, has learned to navigate the rough waters. Proxy wars, cyber attacks, and military conflict is already a part of the landscape. And Ukrainians have learned to cope with it.
“The threat is imminent. The threat is constant,” Zelensky said. “But we have learned to protect ourselves, to defend ourselves. This is our life.”
Copyright secured by Digiprove © 2022 Patti Mohr