Ukraine  

The unemployment rate in Ukraine ranks around the global average at 7%, but Ukrainian workers have a high level of physical capital per worker. Inflation rates, at 13%, are among the 10 worst, worldwide. Ukraine has an average domestic savings rate at 21% of GDP, and household expenditure in the country is also near the global average. Ukraine is hindered by a weak banking sector, indicated by the high default rate of 13%, and, large interest margin spread of 5.5 percentage points. Ukraine relies on a relatively low concentration of raw material exports, and its exports as a capacity to import ranks above the global average. In recent years, investors have found Ukraine to be an attractive target for investment, providing foreign direct investment levels equivalent to 7% of Ukraine’s GDP.

There are 10 formal start up procedures required to register a new business in Ukraine, which ranks the country around the global average, and over 33,000 new businesses were registered in 2007. Ukraine’s service sector is rather competitive, producing value added equivalent to 57% of its GDP. However, Ukraine’s internet bandwidth is poor, especially compared to other European countries, and its number of secure internet servers is also limited to two servers per one million people. Lack of access to personal computers, with only five personal computers per 100 people, is another limitation reducing the country’s capacity for high-tech innovation. ICT and high-tech exports are also very low. However, R&D expenditure is relatively high, ranking Ukraine in the top 30, worldwide. Royalty receipts in the country rank around the global average.

Ukrainians have high levels of political rights and civil liberties. Although categorised as a democracy, Ukraine is not as democratic as many of its European neighbours. There are very few constraints on the power of the country’s executive, allowing those in power to make policy decisions arbitrarily. There is, however, a high level of political competition for the executive branch of government, and the electoral process is subject to high levels of regulatory enforcement. There is also a good level of political competition for the legislative branch, and the Ukrainian judiciary is independent of other branches of government.

Primary enrolment rates in Ukraine rank below the global average; however, there is a high proportion of teachers at primary level, with a ratio of one teacher for every 16 students, ranking the country in the top 30 worldwide. Additionally, there are 99 girls enrolled for every 100 boys in primary and secondary education in Ukraine, suggesting high levels of gender equity in schooling. By international standards, secondary and tertiary enrolment rates are high. Ukrainian workers have high levels of education, with an average of 5.6 years of secondary schooling and 4.6 years of tertiary schooling, ranking the country in the top 35 on both variables.

With three medical professionals for every 1,000 people Ukraine ranks in the top 25 on this variable. The country also boasts the fourth highest proportion of hospital beds per capita, worldwide, and just 3% of Ukrainians are undernourished. Despite this, at 59 years, health-adjusted life expectancy is low in Ukraine, and infant mortality rates ranks below the global average. Although 93% of the population has access to improved sanitation facilities, only 27% are satisfied with the quality of their water, the lowest proportion, worldwide.* Ukraine performs poorly in other subjective measurements: only half of the population are satisfied with the level of their personal health and 38% consider themselves to have serious health problems.* Additionally, just over half feel well rested, while more than a quarter of those surveyed were in pain the previous day, ranking the country one of the lowest, internationally, on these variables.*

Ukraine has security challenges related to refugees, groups with a history of discrimination or other social grievance, human flight, and government-sponsored violence such as political imprisonment or torture of its own citizens. The homicide rate in the Ukraine is high, with 10 deaths per 100,000 people per year, ranking the country in the bottom third worldwide. Only 36% of citizens feel safe walking alone at night, the fourth lowest proportion, globally.* Still, just 14% of the population reported having property stolen in 2008, and only 4% reported being mugged or assaulted in the same timeframe.*

The rule of law is not well enforced in the Ukraine. Quality of commercial regulation in the Ukraine is also very low, as is the efficiency of the government in implementing laws passed down by the executive. Just 53% of Ukrainians have confidence in their country’s military, ranking the country in the bottom quintile on this variable. Further, while citizens have the right to self determination through the electoral process, this is limited to some degree and only 17% of citizens have confidence in the honesty of electoral processes, the third lowest proportion, worldwide. Additionally, only 19% approve of the judicial system.* Approximately nine out of 10 people consider local government and businesses to be corrupt.*

Ukrainians have high levels of freedom of speech, movement, and religion. Tolerance for both ethnic minorities and immigrants is moderately high, with over two-thirds recommending their area as a good place to settle.* However, only just over half of all Ukrainians are satisfied with their levels of choice to do what they want with their lives, ranking the country 97th on this variable.*

Over a quarter of Ukrainian citizens feel they can trust others, ranking the country in the top 30 on this variable. This is despite the fact that group memberships appear very low: 17% are members of religious institutions, ranking the country in the bottom third worldwide, and membership rates in sports and arts groups are among the lowest quintile.* Ukrainians rate the importance of friends near the global average.* Nearly a quarter of Ukrainian citizens surveyed volunteered in the previous month, a proportion above the global average; however, only 27% helped a stranger and just one in 20 donated money, both rates ranking in the bottom five, internationally.*

* Data taken from the Gallup World Poll

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