Monday

16th Oct 2017

Opinion

Ukraine’s IT boom could speed up EU integration

  • Ukraine has a literacy rate of 99.7 percent, which is higher than most EU states (Photo: European Parliament)

June 2017 will mark the three-year anniversary of the association agreement between the European Union and Ukraine, and while the Eastern European state has taken major steps towards European integration, its progress has been slow.

With the signing of the EU agreement in 2014, it seemed as if Ukraine’s dream of Western integration would finally become a reality. This feeling materialised in 2015 as Ukraine took significant steps in its fight against corruption.

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

Last year, however, presented new challenges.

The failure to remove various corrupt government officials undermined progress. Furthermore, as anti-corruption efforts stalled, Odesa governor Mikheil Saakashvili, among others, resigned in frustration.

Events within the EU further stymied Ukraine’s progress towards European integration.

In April 2016, the Dutch overwhelmingly rejected closer EU ties with Ukraine. Matters became worse in June when the United Kingdom, one of Ukraine’s staunchest advocates in the EU, voted to leave the bloc.

Implementation of the agreement allowing visa-free travel to the EU has also been delayed. Given these developments, Ukrainian enthusiasm for Europe is slowly waning as many Ukrainians believe the EU may not deliver on its promises.

Critics of Ukraine argue that it is far from ready to join the EU, citing corruption as its major hurdle.

Furthermore, some EU members are concerned that Ukraine’s economy would be a drain on European resources.

This comes at a time when the EU faces the loss of the UK, one of its biggest financial contributors. Some critics argue that it will take at least 20-25 years for Ukraine to be admitted into the organization.

Ukraine continues to face these problems in 2017. It was ranked 131st in the world on the Corruption Perceptions Index, and the war in Donbas has escalated.

New case

While Ukraine’s future may seem bleak, the eastern European state has a new case to present to the EU.

Its educated populace and the IT sector may accelerate the membership process and boost national morale during this difficult period in its history.

Ukraine has a literacy rate of 99.7 percent, which is higher than most EU states. This statistic demonstrates that it can be a vital member of the international community.

The well-educated populace has also led to a booming IT sector, with venture investments in Ukrainian start-ups jumping 237 percent from 2014-2015.

There are currently over 100,000 skilled IT professionals in Ukraine, and the training and knowledge of Ukrainian software developers are on par with those of Silicon Valley. The IT sector accounted for 3 percent of Ukraine’s annual GDP, and has generated billions of dollars in exports.

The work of these Ukrainian developers has not gone unnoticed. Corporations such as Snapchat and Uber have performed well in Ukraine.

Moreover, GitLab co-founder Dmitriy Zaporozhets was listed in Forbes 30 Under 30 as one of the most successful people in the world in the enterprise technology sector.

In addition, international companies are outsourcing to numerous Ukrainian tech start-ups.

Firms such as Ecois.me and Petiole have gained international acclaim and were recognized for their contributions to the Ukrainian market.

Given their expertise, Ukrainian developers would be a valuable asset to the European community as they have demonstrated that they are very motivated, well-trained, and capable.

The recent rise in Ukraine’s tech industry has had a major impact on foreign investment. The tax burden in Ukraine is one of the lowest in Europe, and many investors have capitalised on this opportunity.

Investors

Private sector technology firms from Sweden have invested millions of dollars into the tech industry.

The strong performance of IT companies such as Sigma Software and Beetroot have encouraged others, like Danish company Clio Online, to enter the market.

As the IT sector continues to expand it is likely that private tech companies from other EU members will conduct business in Ukraine. This partnership could strengthen international cooperation between the EU and Ukraine.

The IT sector in Ukraine could also help reduce corruption. During the early 2000s Estonia invested heavily in the tech industry, even choosing to develop electronic services to oversee transactions online between government and citizens.

These programs established greater transparency and facilitated good governance. In the words of former Estonian president Toomas Hendrik Ilves, “you can’t bribe a computer.”

Thanks largely to the effect of technology, the Baltic state is now ranked 23rd in the world on the Corruption Perceptions Index.

Using Estonia as a model, Ukraine’s IT sector could play a critical role in fighting corruption, thereby building confidence in Ukraine and easing the concerns of critics in the EU.

With demonstrated strength in the growing IT sector, Ukraine is showing that it can compete with the tech industries of any Western state, and data processing solutions can contribute to greater efficiency and investments across both the private and public sectors.

This suggests that Ukraine is not as far behind as critics suggest, and that skeptics in the EU should not be so hasty in dismissing a potential engine of growth on the continent.

Mark Temnycky is a Ukrainian-American pursuing a masters in public administration and international relations at the Maxwell School of Citizenship and Public Affairs in Syracuse University, New York, in the US

Little to celebrate at EU-Ukraine summit

EU leaders have pledged to uphold sanctions on Russia in the run-up to a summit this week, but the declaration comes amid multiplying uncertainties on future ties.

Batteries set to 'charge' our economy

By 2025, the European battery sector will be worth €250 billion annually - the decisions we take now will decide where the jobs to serve it are created, says EU commissioner Maros Sefcovic.

Left flirting with antisemitism in EU parliament

It is outrageous that Leila Khaled, a member of a group listed by the EU as a terrorist organisation, was given a platform in the EU parliament, a body representing democracy and peaceful cooperation.

Stakeholders' Highlights

  1. International Partnership for Human RightsEU Should Seek Concrete Commitments From Azerbaijan at Human Rights Dialogue
  2. European Jewish CongressEJC Calls for New Austrian Government to Exclude Extremist Freedom Party
  3. CES - Silicones EuropeIn Healthcare, Silicones Are the Frontrunner. And That's a Good Thing!
  4. EU2017EEEuropean Space Week 2017 in Tallinn from November 3-9. Register Now!
  5. European Entrepreneurs CEA-PMEMobiliseSME Exchange Programme Open Doors for 400 Companies Across Europe
  6. CECEE-Privacy Regulation – Hands off M2M Communication!
  7. ILGA-EuropeHealth4LGBTI: Reducing Health Inequalities Experienced by LGBTI People
  8. EU2017EEEHealth: A Tool for More Equal Health
  9. Mission of China to the EUChina-EU Tourism a Key Driver for Job Creation and Enhanced Competitiveness
  10. CECENon-Harmonised Homologation of Mobile Machinery Costs € 90 Million per Year
  11. ILGA-EuropeMass Detention of Azeri LGBTI People - the LGBTI Community Urgently Needs Your Support
  12. European Free AllianceCatalans Have Won the Right to Have an Independent State

Latest News

  1. Malta shocked after car bomb kills crusading journalist
  2. Spanish and Catalan leaders continue stand-off
  3. May pleads for more as EU makes Brexit gesture
  4. EU united in backing Iran deal, after Trump criticisms
  5. 'Think of the patients!' cry warring EMA-host cities
  6. In Iceland: Europe woos Arctic allies
  7. Austrian voters reject liberal pro-EU status quo
  8. Turkey urges EU not to break off ties

Stakeholders' Highlights

  1. ECR GroupBrexit: Delaying the Start of Negotiations Is Not a Solution
  2. EU2017EEPM Ratas in Poland: "We Enjoy the Fruits of European Cooperation Thanks to Solidarity"
  3. Mission of China to the EUChina and UK Discuss Deepening of Global Comprehensive Strategic Partnership
  4. European Healthy Lifestyle AllianceEHLA Joins Commissioners Navracsics, Andriukaitis and Hogan at EU Week of Sport
  5. Nordic Council of MinistersNordic Council Representative Office Opens in Brussels to Foster Better Cooperation
  6. UNICEFSocial Protection in the Contexts of Fragility & Forced Displacement
  7. CESIJoin CESI@Noon on October 18 and Debate On: 'European Defence Union: What Next?'
  8. Nordic Council of MinistersNordic Innovation House Opens in New York to Support Start-Ups
  9. ILGA EuropeInternational Attention Must Focus on LGBTI People in Azerbaijan After Police Raids
  10. European Jewish CongressStrong Results of Far Right AfD Party a Great Concern for Germans and European Jews
  11. EU2017EEEU Finance Ministers Agreed to Develop New Digital Taxation Rules
  12. Mission of China to the EUGermany Stands Ready to Deepen Cooperation With China