Monday, July 25, 2005

Auto manufacturing in Ukraine?

I have to wonder why there aren't any auto makers dropping manufacturing plants in Ukraine?

Consider that there is a very educated populace there. Literacy is excellent. The number of people that have university or technical college degrees.

Consider the cost of personnel. Right now, it's a pitance. Even if you quintupled it, your costs would be a fraction of any western nation. Even probably competitive with China or other Asian Tiger.

Consider the very good ports on the Black Sea.

Consider that it would be in the interests of the West to do so. It'd help along Ukraine and integrate it into the world economy.

The problem is that Ukraine is not a member of the WTO. Additionally, it has issues with corruption, but often less than some of the Asian Tigers. It also has a very fubared taxs code. Finally, there are some issues with infrastructure, though less than in some of those same Asian Tigers, to be honest.

So why not?


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