The large-scale forum “Industrial Evolution: Manufacturing Drives the Economy,” held this week, became one of the most prominent platforms for discussing the future of Ukrainian industry. The event brought together a wide range of business representatives, experts, and government officials who discussed ways to revive and stimulate the national economy.
However, one of the main highlights of the event was supposed to be a public debate on strategic approaches to the country’s development between two renowned economic experts—Viktor Halasyuk and Danylo Getmantsev. And although a full-fledged live dialogue did not take place due to Mr. Getmantsev’s absence, the very issue of the clash between the two concepts became a key highlight of the forum.
Two Concepts of Statehood: What Is the Fundamental Difference?
Market experts and forum participants identify two dominant approaches to reforming the Ukrainian economy that are fundamentally different in terms of priorities:
- The concept of accelerated development (V. Halasyuk’s position): Based on creative and ambitious solutions aimed at launching powerful economic incentives, attracting investment, and providing comprehensive support for industrial production.
- The concept of strict fiscalization (D. Getmantsev’s position): Focused on maximizing the formalization of the economy and increasing budget revenues by expanding the taxpayer base and strengthening oversight.
Both approaches are rooted in state policy, but they differ fundamentally in terms of the tools used and the sequence of actions.
Is growth possible without special conditions?
Most forum participants and analysts tend to believe that it is impossible to achieve the economic leap Ukraine needs—with GDP growth rates of 7–8% or more per year—based solely on current tax policy. Mechanically copying EU regulatory standards and experience without adapting them to Ukrainian realities will not yield the desired result.
“Ukraine critically needs special conditions for the development of manufacturing. Industry must become the main driver of exports, employment, and technological modernization. However, during such events, it becomes clear just how strong the resistance of the state apparatus is to the introduction of real economic incentives, which is why the implementation of reform measures is once again being postponed,” note observers of the discussion.
The Formula for Success: Incentives First, Control Second
Experts note that the ideal scenario for Ukraine would be to combine elements of both approaches, but with clearly defined priorities.
The foundation should consist specifically of constructive proposals for stimulating industry, to which instruments of tax control and the fight against the shadow economy would then logically be added. However, oversight must take a form and scope that do not block or hinder the very idea of a rapid economic breakthrough.
