Transcript Слайд 1 - unimc.it

BUSINESS ENVIRONMENT
CHALLENGES
ON EASTERN EUROPEAN
MARKETS
Alla Starostina,
Head of the International Economics and Marketing Dep.
Natalia Kochkina,
Associate Prof. International Economics and Marketing Dep.
Volodymyr Kravchenko,
Head of the Economic Research Center
Taras Shevchenko National University of Kyiv (Ukraine)
1
Geographical Position
Population
46.8 millions
Russian
Federation
GDP per capita
$3621
2
Source: adopted from http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2012-13.pdf
Specific features of Ukrainian business
environment - 1
• Ukraine faced unique process of transformation from highly
developed socioeconomic society to clan and oligarchic
capitalism, period of initial accumulation of capital, highly
monopolistic economic.
• Transition from power of one communist political party at all
sphere of socioeconomic activity to multiparty system.
Nowadays there are over 200 political parties in Ukraine. 87
political parties participated in the last parliament elections in
2011 and 9 of them are now in parliament.
• Destruction of all cooperation links with former USSR and
consequently loss of some serious branches on national
economy such as textile industry, machine building and other.
3
Specific features of Ukrainian business
environment - 2
•
•
•
•
•
Destruction of highly developed system of social guarantees:
- gratuitous medical care;
- gratuitous apartments;
- free of charge kinder-gardens;
- free of charge vacation facilities: sanatoriums, vacation
houses, ets.
• Various groups of arts, singing, dancing, etc (now this services
cost a lot)
• A huge gap between older, middle and young generations in
terms of mentality, material, and social issues.
4
•
•
•
•
International marketing research is a very
complex part of the marketing activity. The
role of international marketing in decision
making process has tremendously increased
over the recent years.
It is caused by intensification of globalization
processes in various forms:
Development and expansion of international
trade
Transnationalisation of economies
Growing significance of small and medium
business in global economy
Intensification of international financial
activity, capital flows
5
Forms of intensification of
globalization processes
• Intensification of regional integration
processes
• Intensification of migration processes
• Aggravation of the global problems (ecology,
food-stuffing, water, economic resources,
wars.)
• Formation of the global markets
• Increase of instability within international
business environment
• Existence of the specific cultural environment
in every country
6
Globalization
Globalization is a irreversible process of
disappearance of economic borders
between the countries with a purpose to
search more profitable capital
reproduction opportunities on all forms
of capital which results in mutual
penetration, interlace, interdependence
of national economic systems to form
global markets and world economic
system.
7
International marketing research
International marketing research is a
systematic process of data collection, data
analysis, and selection of the objective
marketing information to support marketing
decisions regarding entering and
implementing the business strategy, allocation
of the resources in more than one foreign
country based on comparative analysis of its
attractiveness.
8
Specific characteristics of international
marketing research:
• Decisions are made more than for one country
• International marketing research forms a base
for resource allocations in foreign countries
• Existence of a complex problem in
international research regarding data
comparison for more than one country to
choose the mode of entry and strategy of
activities
9
The steps to analyse the international business
environment
1. Choice of countries to enter and perform business activity
2. Definition of the common factors to analyse the markets of
different countries
3. Preliminary classification of the factors: as threats or
opportunities
4. Expert assessment of the impact of each of the group of
factors
5. Analysis of the factors within each group (political, economic,
demographic, cultural, environmental, technological)
6. Comparative analysis of the factors and their impact in
different countries
7. Conclusions
10
Cultural Factors
11
Source: adopted from
The role of culture factors
• Culture plays a mayor role in influencing
human behavior
• Cultural factors play key role in international
business
• Cultural differences are the most stable
barrier for spreading of globalization process
12
Gteert Hofstede cultural dimensions
theory
Describes influence of the society's culture on
the values of its members, how these values
relate to behavior, international management
13
The theory proposed six dimensions which
cultural values could be analyzed:
•
•
•
•
individualism versus collectivism;
uncertainty avoidance;
power distance (strength of social hierarchy);
masculinity versus femininity (task orientation
versus person-orientation;
• long-term orientation;
• Indulgence versus self-restraint.
14
Power distance
• Power distance is the extent to which
less powerful members of society
accept and expect that power is
distributed unequally.
• Cultures that endorse low power
distance accept and expect power
relations that are more consultative
or democratic.
15
Power distance - facts
• Ukraine-78 (authoritarian mode of decision
making, centralized structure of management,
difficulties with conducting marketing
research)
• Italy-50;
• Russia-85;
• USA-40;
• Average-55.
16
Uncertainty avoidance
• High uncertainty avoidance cultures try to minimize
the occurrence of unknown or unusual
circumstances and to proceed with careful changes
by planning and by implementing rules, laws and
regulation; people are more emotional.
• Low uncertainty avoidance cultures accept and feel
comfortable in unstructured situation or changeable
environments; people are more pragmatic.
17
Uncertainty avoidance - facts
• Ukraine – 93 (low readiness for risk for
medium and old generation).
• Italy – 75;
• USA – 42;
• Russia – 70;
• Average – 64.
18
Long-term Orientation
• Long- term orientation societies attach
more importance to the future; placed a
lot of importance on characteristics like
persistence, saving, respect for status
and position in society sense of shame.
• Short-term societies focus on instant
gratification and pursuit of material
pleasures.
19
Long-term Orientation - facts
•
•
•
•
Ukraine – 40;
Italy – 34;
USA – 28;
Average- 45
20
Masculinity versus Femininity
• The distribution of emotional roles
between the genders.
• Masculinity cultures’ values are
competitiveness, assertiveness,
materialism, ambition and power.
• Feminine culture place more value on
relationships and quality of life.
21
Masculinity versus Femininity - facts
• Ukraine – 54 (high latent women influence on
social life, but low participation in the
government and municipal bodies).
• Italy – 70;
• USA – 62;
• Average for world – 50.
22
Individualism versus collectivism
• The degree to which individuals are
integrated into groups.
• In individualistic societies, the stress
is hut on personal achievement and
individual rights.
• In collectivist societies, individuals
act predominantly as the firm group
or organization.
23
Individualism versus collectivism - facts
• Ukraine – 30 (high level of conformism, little
distinction between private and professional
life)
• Italy – 76;
• USA – 90;
• Russia – 37;
• Average for world - 43.
24
Indulgence versus self-restraint
• The extent to which member in society
try to control their desires and impulses.
• Indulgence society have a tendency to
allow free gratification of basic and
natural human desires related to
enjoying life and having fun.
• Restrained society have a conviction that
such gratification needs to be regulated
by strict norms.
25
Indulgence versus self-restraint facts
• Ukraine • Italy
-
30-35,
?
26
Political Factors
№
Basic factors
1
Political situation Permanent instability
2
Social situation
Multi divided society
3
Democracy
4
Corruption
“All for our guys, law – for
others’
Widespread
5
Integration
vector
Characteristic
Opportunity
(+),
Threat (-)
Not yet definitely decided
27
Political situation
• Political situation in Ukraine has 2
components: observable (formal) and
concealed (real)
• Formal political situation – permanent and
sharp opposition between (and insert) main
political parties and key political figures
28
Parliament parties
•
•
•
•
•
Party of Region (Yanukovich)
Batkivshina (Timoshenko, Yatcenyk)
UDAR (Klichko)
Svoboda (Tyagnibok)
Communist party (Simonenko)
29
Real political situation
Real political situation is defined by the next
characteristics:
A. Real politicians’ values: personal power, not
ideas.
B. Strong tribalism tendency
C. Weak position in a world economy
D. Economic crisis
30
Political situation
•
•
A. Personal power, not ideas.
Ukrainian politics struggle for ideas and
values before election and express much
more tolerance to their opponents after.
Politics in Ukraine are about personal power
and personal ambitions and streaming
assets (financial and institutional) to their
supporters.
31
B. Strong tribalism tendency
“Donetskie” – people are “origin from
Donetsk district” – motherland of President
Yanukovich and Party of Region.
They possessed key positions in all spheres
of Ukrainian politic system and business.
32
Composition of the Cabinet of Ministers of Ukraine as
of 1 October, 2013
Source: adopted from Political Risks and Political Stability
in Ukraine http://www.ucipr.kiev.ua/userfiles/Political_risks10_Oct2013e.pdf
33
Political situation
С. Ukrainian policy extremely depends on its
surroundings, Ukraine is not independent actor.
European Union, Russia, Turkey – main actors in the
nearest future
34
Political situation
D. Economic situation is very tense.
Any political party which сan win future
President and Parliament elections has to
solve the same problems and use the same
instruments.
35
Social Situation
Multi divided society
A. Spatial divided society
B. Property divided society
C. Income divided society
D. Person divided society
36
A. Spatial divided society
Party-leaders in multi-member districts by oblast
(Parliamentary election: 2012)
Source: adopted from Political Risks and Political Stability
in Ukraine http://www.ucipr.kiev.ua/userfiles/Political_risks10_Oct2013e.pdf
37
B. Property divided society
• Ukraine: summary assets of the 100 top-rich
Ukrainians = 61% GDP
• Russia: summary assets of the 100 top-rich
Russians = 33% GDP
Source: adopted from
http://www.bbc.co.uk/ukrainian/ukraine_in_russian/2012/02/120210_ru_inequality
38
_usa_uk_ukraine_yg.shtml
C. Income divided society
Formal measure - Gini index
The Gini index is a measure of statistical dispersion intended
to represent the income distribution of a nation's residents
(Corrado Gini, 1912).
A Gini index of zero expresses perfect equality, where all
values are the same (for example, where everyone has an
exactly equal income). A Gini index of 100 expresses maximal
inequality among values (for example where only one person
has all the income).
39
Problem with formal measure of the
social disparity
Level of Gini index in Ukraine – 26.44 (represents
picture which is typical to the social stable society
(neighbors in WB ranking are Finland and Germany).
Moreover – we see downside tendency in Ukraine.
40
GINI INDEX IN UKRAINE
(WB data)
Source: adopted from http://www.tradingeconomics.com/ukraine/gini-index-wb-
data.html
41
Real social disparity
But real social disparity in Ukraine is higher than it
demonstrates by the Gini index.
Reasons:
•
shadow economy –
raise real income
of SME
•
offshore operation –
raise real income of
Big Busines
•
today's economic
recession (2012 – 2013) – reduce
real income
of employers
42
D. Separation of people one from
another
Civil society in Ukraine is immature.
In 2010 the part of the population which considered itself as
•
members of religious organizations and church
communities made up 4% of the population;
•
members of political parties, sports clubs and specialtyrelated associations - 3% per each;
•
student societies and youth organizations - 2%;
•
the part of members of other public formations made up
1% and less
Source: adopted from http://i-
soc.com.ua/institute/smonit_2010.pdf?PHPSESSID=15d6e4f810b62037c0f63d5
abb3fa287
43
Civil society
Participation in the activity of political parties
and public organizations remains among the
least significant purposes and values for
citizens of Ukraine till now (less than 3 points
on the 5-point scale)
However, this indicator has grown from 2,09
points in 1994 to 2,46 points in 2011
Source: adopted from http://i-
soc.com.ua/institute/smonit_2010.pdf?PHPSESSID=15d6e4f810b62037c0f63d5
abb3fa287
44
Democracy
The Democracy Index
Ukraine occupies 80th place in the world for
democracy index.
Source: adopted from
https://www.eiu.com/public/topical_report.aspx?campaignid=DemocracyIndex12
45
The Democracy Index
The Democracy Index is an index compiled by
the Economist Intelligence Unit, that measures the
state of democracy in 167 countries. The index is
based on 60 indicators grouped in five different
categories: electoral process and pluralism, civil
liberties, functioning of government, political
participation, and political culture.
The index categorizes countries as one of four regime
types: full democracies, flawed democracies, hybrid
regimes, and authoritarian regimes.
46
The Democracy Index
Ukraine topped the list of countries with
hybrid regimes and ranked 80th on the list.
47
Corruption
The Corruption Perceptions Index ranks countries
based on the perception of level of corruption of
country’s public sector.
It is a composite index, drawing on corruptionrelated data from expert and business surveys.
• Ukraine – Rank 144 (from 176) Score 26 (from 100)
• Italy Rank 72 (from 176) Score 42 (from 100)
Source: adopted from
http://www.transparency.org/whatwedo/pub/corruption_perceptions_index_2012
48
Economic freedom
Ukraine’s economic freedom score is 46.3, places its
economy at the 161nd place in the 2013 Index.
Its score is 0.2 point higher than last year, with
modest gains in monetary freedom and business
freedom and declines in labor freedom and freedom
from corruption.
Ukraine is ranked last out of 43 countries in the
Europe, and its overall score is lower than the world
average.
Source: adopted from heritage.org/index
49
Integration vector
November 28-29, 2013 – EU summit in
Vilnius, Lithuania.
Ukraine-EU association agreement
If Ukraine will sign the pact toward potential
EU membership then integration vector will
be clearly defined.
Otherwise debate within Ukraine about
integration with Russia's controlled Custom
Union will be continued.
50
Economic Factors
№ Basic factors
1
2
Characteristic
Opportunity
(+),
Threat (-)
Macroeconom Unstable with
ic situation
deterioration
tendency
Business
Unstable with
situation
deterioration
tendency
51
Main macroeconomic indicators
Indicator
2007
2008
2009
2010
2011
2012
Nominal GDP, USA
mln
142720
179897
117245
136344
163374
176331
Rate of exchange
UAH/USD (average)
5,05
5,27
7,79
7,94
7,97
7,99
Actual GDP (Index,
year to year)
107,9
102,3
85,2
104,1
105,2
100,2
Inflation, CPI Index
(annual. average)
112,8
125,2
115,9
109,4
108,0
100,6
Export (Index, year
to year)
103,3
105,7
78,0
103,9
104,3
92,3
Import (Index, year
to year)
121,5
117,0
61,1
111,3
117,7
101,9
Foreign-exchange
reserves (USD mln,
end of year)
47880,0
42630,0
26505,0
34576,0
31794,6
24546,2
52
Economic Factors
Modern economic history
Periods:
1. 1991-1999 - deep system economic crisis after
USSR-crash.
2. 2000 – 2008 rapid economic growth.
3. 2009 – economic crisis
4. 2010 – 2011 – post-crisis economic recovery
5. 2012-2013 – economic recession
53
Economic Factors
GDP real growth rate: Ukraine
54
Ukraine in recession (2012 – 2013)
55
Economic Factors
Macroeconomic challenges
Monetary policy has two primary goals:
price stability and economic growth.
Up to now NBU has achieved one goal — low
inflation. Formal Ukraine has stable foreign
exchange rate.
56
Negative consequences of the fixedrate policy:
1) extremely high interest rates (around 20 percent a year )
57
Economic Factors
Negative consequences of the fixedrate policy:
2) Due to high interest rates non-performing
loan ratio also is high (40 percent of all loans)
3) Small and medium-size enterprises in
Ukraine have minimal access to bank financing
(due to high credit interest rate)
58
From the statement by
Prime Minister of Ukraine Mykola Azarov
at a session of the Government on October 23, 2013
“Consumer" model of participation of banks in
the economy supports the short term
demand, but does not create promising jobs
and new revenue, which in turn become a
new resource of the banking system.
No business, except speculative, can not
normally develop when financial resources
are in excess of 20% per year.
Source: adopted from
http://www.kmu.gov.ua/control/en/publish/article?art_id=246787672&cat_id=2448
51734
59
Macroeconomic challenges
Possible IMF credit could
1) play role of supportive spring of financial
resources to the Ukrainian economy
2) give clear positive signal to other
international financial organizations and
private investors.
60
Problems with IMF credit:
IMF demands:
1) liberalization of the consumer gas price,
2) introducing floating FX rate,
3) reducing of the budget deficit
In the loom of the Presidential election (2015)
all of them are unacceptable to Ukrainian
government.
61
Business situation
1. Investment climate.
2. Tax climate.
3. Customs climate.
62
European Business Association
Indices
http://indices.eba.com.ua/
63
Investment climate
64
65
with the support of the
InMind research company
Investment Attractiveness Index
Investment Climate in Ukraine
The Investment
Climate in Ukraine is…
(5 point scale)
13%
18%
49%
51%
8%
5%
37%
3%
18%
8%
7%
5%
5%
20%
15%
22%
0%
11%
24%
22%
1%
1%
13%
25%
2%
6%
8%
0%
2%
7%
1%
1%
10%
5 - definitely favourable
4 - rather favourable
33%
47%
53%
42%
15%
0%
8%
2%
40%
35%
48%
40%
3 - neutral
44%
2- rather unfavourable
4%
12%
35%
1 - definitely unfavourable
20%
22%
43%
48%
Mean
–
III/2008
I/2009
III/2009
I/2010
III/2010
I/2011
III/2011
I/2012
III/2012
I/2013
II/2013
Mean
3,1
2,0
2,2
2,7
3,6
3,7
2,3
1,7
1,8
1,7
1,7
66
Investment Attractiveness Index
with the support of the
InMind research company
Positive Changes in Investment Climate
during the last 3 months
At least declarations from the
Government about European vector
No positive
changes
92%
8%
3
Conducted Investment Forum
2
Stability of the UAH
2
Less pressure by tax authorities
2
Positive
changes
Government seems to recognize the
problem with investment climate in
Ukraine
1
The registration law for expats became
a bit clearer
1
The vast majority of experts believe that positive changes have not occurred.
Only a few respondents have specified their answers (Chart shows not percent but the number of
responses)
67
1
.
Tax climate
68
with the support of the
InMind research company
Tax Index
Project Methodology
The presented results of EBA Tax Index are based on the results of the 3 rd wave of the
expert survey, conducted among EBA members.
Methodology: EBA Tax Index means the evaluation of 4 factors of tax conditions for doing
business:
• Evaluation of quality of the tax legislation
• Evaluation of complication/ease of the tax administration
• Evaluation of the fiscal pressure level
• Evaluation of quality of the tax service
To define the level of each of the 4 factors a 5-point scale was used, where 1 and 5
are the extreme opposite evaluations of the factor.
When calculating the integral tax index, means of each factor and its weight were
used.
Factors’ weights are defined by expert evaluations of EBA Tax Committee members:
tax legislation– 15%; tax administration – 40%; fiscal pressure – 30%; quality of tax
service – 15%.
69
1
with the support of the
InMind research company
Tax Index
Report notice
The results are presented by each of 4 factors, in particular:
•
Mean of each factor
•
Numeric value, which divides the upper half of the sample from the lower part
(median)
The results are also segmented by company size in accordance to Commercial Code
of Ukraine:
– Small enterprises: 50 or less employees, gross income – less than UAH 70 million during
the financial year 2012
– Medium enterprises: 50 to 250 employees, gross income – UAH 70 to 100 million during
the financial year 2012
– Large enterprises: more than 250 employees, gross income – більше UAH 100 million
during the financial year 2012
Participants: 100 representatives of EBA member companies
Timeframes: the data is collected in April-May 2013 and reflects the situation in 4 quarter
2012 – 1 quarter 2013
Research Conduction: The research is conducted by the EBA, analytic support provided by InMind
research company
70
3
Tax Index
with the support of the
InMind research company
Customs climate
Overall results
Minimum Index value – 1, maximum – 5.
1 wave,
2011
2 wave,
ІІ-ІІІ quarter 2012
3 wave,
IV/2012 – І/2013
TAX INDEX
(integral rate)
1,90
2,42
2,32
Tax legislation
1,76
2,32
2,25
Easiness of tax
administration
1,62
2,32
2,17
Fiscal pressure
2,11
2,56
2,39
Quality of tax service
2,36
2,53
2,64
71
4
Customs climate
72
with the support of the
InMind research company
Customs Index
Project Design
The represented results of EBA Customs Index are based on data of expert survey conducted among EBA members.
EBA Customs Index
It represents evaluation of 5 factors characterizing customs procedures, being undergone by companies while
interacting with customs. Calculation of the customs index is based on weighted means of each factor.
Factors and weight coefficients
•
Evaluation of procedures of customs clearance of one supply (25%)
duration of customs clearance of one supply(12,5%)
share of goods chosen for physical inspection (10%)
share of goods, classification code of which has been changed by customs authorities (2,5%)
•
•
•
•
Evaluation of customs value identification procedure (25%)
Amount of paperwork (25%)
Number (5%) and duration (5%) of inspections
Professional level of customs authorities (15%)
Additional information
In addition to expert evaluation of factors, survey includes measures of each factor indexes de-facto.
As additional information for customs procedures the survey also regarded:
•
•
•
Usage of electronic declaration practice
Evaluation of change in corruption level of customs authorities
Evaluation of usage practice of the new Tax Code
73
2
with the support of the
InMind research company
Customs Index
Report Comment
The results are based on data of the 7th wave of expert survey regarding real experience of
companies. The expert evaluations of factors characterizing customs procedures and calculation of the
integral index are conducted for the first time.
The report is structured by information regarding each factor and contains the following data:
•
Measures of central tendencies of expert evaluations of each factor (mean and median)
•
Distribution of expert evaluations of each factor by 5-point scale
•
Mean values of indexes characterizing each factor (in dynamics)
The results are also segmented by company size: small/medium and big business
Participants: 67 representatives of EBA companies-members and participants of the Customs
Committee
Timeframes: data collected in July-August 2013 and reflect the situation of the 1st half 2013
Conducted:
The research is conducted by EBA,
analytical support: InMind research company
74
3
Customs Index
with the support of the
InMind research company
Overall results: customs index
Scale from 1 to 5, where: 1 – minimum/negative index value
3 – average/neutral index value
5 – maximum/positive index value
1st half
2012
2nd half
2012
1st half
2013
2,84
3,06
2,81
3,15
3,28
3,04
- duration of customs clearance
3,16
3,02
3,03
- share of goods chosen for physical inspections
3,30
3,74
3,22
- share of goods, classification code of which was
changed
2,50
2,74
2,37
3,13
2,11
3,44
3,44
2,27
3,46
2,75
2,28
3,33
- number of inspections
4,91
4,92
4,82
- duration of inspections
1,98
2,00
1,83
2,63
3,12
3,07
CUSTOMS INDEX
(integral index)
Customs clearance of one supply:
Customs value
Amount of paperwork
Inspections
Professional level
4
75
with the support of the
InMind research company
Customs Index
Overall results: experience of companies
1st half
2010
2nd half
2010
1st half
2011
2nd half
2011
1st half
2012
2nd half
2012
1st half
2013
Average number of days spent on
custom clearance procedures for one
supply
2,4
2,0
2,5
2,8
2,5
2,7
2,8
Share of goods chosen for physical
inspections (%)
55%
52%
26%
41%
22%
14%
18%
Customs classification (%)
N/A
6%
8%
9%
9%
8%
10%
Customs value: overall number of
customs authority refusals (%)
34%
38%
27%
33%
27%
24%
25%
Average number of documents
demanded for customs clearance of
one supply
10,8
10,9
9,8
10,6
8,0
10,2
7,3
Average share of companies, which
experienced inspections after customs
clearance
N/A
22%
40%
23%
3%
4%
11%
76
5
Demographic Factors
№ Basic factors
Characteristic
1
Population
Decreasing
2
Education
Increasing
3
Labor migration High level
4
Religion
Tolerance
5
Ethnic
Tolerance
6
Health care
Decreasing
Opportunity
(+),
Threat (-)
77
Population
78
79
Main demographic characteristics
Population
Birth rate
Death rate
Life expectancy
• male
• female
45,547,800 (1 January 2013)
11.4 births/1,000 population (2012)
14.5 deaths/1,000 population (2012)
71.15 years (2012)
66.11 years
76.02 years
80
Ukraine, age structure (2012)
0-14 years
15-24 years
25-54 years
55-64 years
65 years and over
81
Education
Literacy
99,7 %
Students per 10 000 popul.
578 (2012) 310 (1990)
Total institutions and
universities
334 (2012)
Total students, thsd
1824,9
82
Labor migration
1.2 million, or 3.4% of the Ukrainian
population aged 15-70 were identified as
labour migrants (2012)
Almost half of these (48.5%) are short-term
labour migrants.
The rural population’s rate of participation in
labour migrations is 2.9 times higher than the
urban population’s: 6.3% of rural residents
aged 15-70 are involved in labour migrations,
whereas the figure for urban residents is 2.2%.
83
The largest recipient countries for the
Ukrainian labour force
•
•
•
•
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Russian Federation (43.2%),
Poland (14.3%),
Italy (13.2%),
Czech Republic (12.9%)
Spain (4.5%),
Germany (2.4%),
Hungary (1.9%),
Portugal and Belarus (1.8% each).
84
Religion
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Ukrainian Orthodox - Kyiv Patriarchate 50.4%
Ukrainian Orthodox - Moscow Patriarchate 26.1%
Ukrainian Greek Catholic 8%
Ukrainian Autocephalous Orthodox 7.2%
Roman Catholic 2.2%
Protestant 2.2%
Jewish 0.6%
other 3.2%
85
•
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Ethnic groups
Ukrainian 77.8 %
Russian 17.3%
Belarusian 0.6%
Moldovan 0.5%
Crimean Tatar 0.5%
Bulgarian 0.4%
Hungarian 0.3%
Romanian 0.3%
Polish 0.3%
Jewish 0.2%
other 1.8% (2001 census)
86
Health care
Total expenditure on health per capita (Intl 528
$, 2011)
Total expenditure on health as % of GDP
(2011)
7.2
87