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KIEV, Ukraine, May 20, 2009 /PRNewswire via COMTEX/ -- The Donetsk Region will begin implementing the economic development strategy, formulated during the first stage of the regional development project pilot created by the Foundation for Effective Governance and Monitor Group in partnership with the local authorities of Donetsk Region. The project calls for a focus on modern industrial production and a more diversified economy, announced Nataliya Izosimova, Managing Director of FEG. The Donetsk economic development project, which is designed to improve the economic competitiveness of the region, has received support from the local authorities of Donetsk Region, heads of state organizations, businesses, academic and professional circles, and media. The plan is focused on establishing two economic clusters: metal production, and agriculture and food production.
"This project is very important to us, as it can raise the global competitiveness of Donetsk and improve the quality of life of the region's citizens," stated Anatoliy Bliznyuk, Chairman of the Donetsk Regional Council. "We will make our utmost effort to ensure successful realization of the developed strategy." "Utilizing the project's strategy, the region will restructure its economy and become a center of modern heavy industry, where skilled employees will produce high value-added products. In addition, Donetsk will need to diversify its economy by actively developing business sectors beyond heavy industry," Izosimova stated at the forum Donbass 2005: Strategy for the Future.
Implementation of all the recommendations made by FEG and Monitor Group will enable the region to expect per capita GDP to increase two to three times by 2025, according to Andrew Swart, Partner of Monitor Group.
"We will work with the government to create an appealing investment climate, adapt the education system to the region's business needs, encourage cooperation among companies participating in the clusters, and improve the regulatory environment," Swart stated. The second stage of the regional economic development project will begin in May and last up to six months. It includes practical implementation of the developed recommendations to create two clusters (metal production, and agriculture and food production), raise investments, and facilitate professional training. The activities will be coordinated by task groups established by the Donetsk Regional Council, with assistance from heads of state organizations, local businesses, and academic and professional circles. About The Regional Development Projects The regional development projects were implemented in Donetsk Oblast and Lvov in October 2008 by the Foundation for Effective Governance, in partnership with international consultancy Monitor Group and in close cooperation with the local governments. The prerequisite for project implementation was the analysis of Ukraine's competitiveness carried out by FEG in tandem with the World Economic Forum (WEF). It included roundtables in regional centers of Ukraine. Following regional discussions and meetings with local governments, FEG and Monitor Group analyzed 27 Ukrainian regions and selected two: Donetsk region for the regional economic development project, and Lvov for the city economic development project.
About The Foundation for Effective Governance: The Foundation for Effective Governance (FEG), an independent public policy institution, was formed in 2007 by Ukrainian businessman Rinat Akhmetov. FEG's main objective is to encourage the development of long-term national economic programs for Ukraine, through the formulation of practical policy solutions to the political, economic and social challenges facing the country. The basic principles governing FEG's activities are independence, a focus on economic development, openness, and a practice-oriented approach. FEG's International Advisory Board includes former Prime Minister of Canada Kim Campbell, Chair; former U.S. Sen. Lincoln Chafee; and Gyorgy Suranyi, former president of the National Bank of Hungary. More information is available at www.feg.org.ua/en.
About Monitor Group International Consulting Company Monitor Group (www.monitor.com) works with the world's leading corporations, governments and social sector organizations to drive growth on the issues that are most important to them. The firm has extensive expertise in regional economic competitiveness and has worked on more than 175 projects in 58 countries over the last 20 years to analyze and develop economic development strategies in regions and countries around the world.
Monitor Group was founded in 1983 by six entrepreneurs, including Harvard Business School Professor Michael Porter. Headquartered in Cambridge, Massachusetts, the firm employs over 1,500 people in 22 countries worldwide.