Large parts of the country's capital stock have not been maintained or replaced during the last decade, and there has been little new investment. In an introductory statement to the review, Mr. Viktor Lisitsky, State Secretary of the Ukrainian Cabinet of Ministers, recognizes the importance of removing obstacles to private sector growth and welcomes the recommendations in favor of a more attractive environment for investment. More than half of the Ukraine's economy currently operates in the informal sector.
Investors complain of complex and often ambiguous legislation.
Administrative reforms have been slow. Legislative and regulatory changes, rather than helping to establish explicit and transparent rules, have often contributed to unpredictable administration and discretionary interpretation. There are, however, some encouraging signs. First achievements of a comprehensive reform programme launched in the first half of 2000 are now becoming visible. Pending reforms, if implemented, will enhance the investment climate.