Every so often, someone in the Ukrainian government hits on the bright idea of a campaign to polish the country’s image abroad. Talk about putting lipstick on an aardvark. Ukraine has a reality problem, not a perception problem.
It happened with a visit a few months ago by a CNN crew that breathlessly “reported” on the positive aspects of Ukraine, of which there are many. This, however, was merely paid advertising in the guise of news purchased by the client, Ukraine.
The perception-versus-reality question came up during a discussion with an important and very articulate oil and gas industry executive in one of my series of meetings to discuss the Kyiv Post’s coverage. “There is so much doom and gloom in the newspaper,” he said, and then quickly added, “Maybe that is all there is out there.”
If you are an outsider thinking of investing in Ukraine, though, you are going to focus on stories having to do with a more controlling and corrupt government, a country with a dilapidated healthcare structure, and a place where the rule of law is mouthed but rarely etched in reality.
Ukraine’s problems are structural, systematic and nearly endemic. They could have been largely solved by the Orange Revolution of 2004, but that souffle, sadly, went flat. Leaders once again let a long-suffering people down.
The Kyiv Post is often accused of looking at the dark side of most everything. That’s not really true, though there seems a preponderance of news flowing forth that would – on any given day – cause a run on Prozac were it readily available.
However, even this is an overstatement. Take a close look at this Kyiv Post.
I am writing this column a week before the issue is out and have no idea of what stories it will contain at this stage. I am betting, though, that 75 percent of the stories could be considered positive, constructive and entertaining.
If you are an outsider thinking of investing in Ukraine, though, you are going to focus on stories having to do with a more controlling and corrupt government, a country with a dilapidated healthcare structure, and a place where the rule of law is mouthed but rarely etched in reality.
Yes, Ukraine has a reality problem, and no amount of polishing the image will change that. The Euro 2012-related stadium renovations and massive road construction in and around the capital change nothing.
The danger I see is that three weeks’ of football games in Lviv, Donetsk and Kyiv will only serve to highlight the country’s fundamental problems. “Perception is reality” thinking is a fool’s errand. Eventually, reality sinks in, without regard to the amount of spin control applied.
I am in my 17th year in Ukraine. Obviously, I would not be here if I didn’t have a big dose of optimism for the future. Or, perhaps, having survived on diminished expectations, I have tempered my hopes over the long run.
Actually, I hope my lengthy stay is not due to either of those factors. I am here because I like the people, have run several moderately successful businesses, have family ties, and finally, find that each morning I wake up I have a new and exciting challenge awaiting me. Many of my expat colleagues feel the same way.
When I am asked about investing in Ukraine, I encourage it. I’m a one-man chamber of commerce. While not gushing with enthusiasm, I note that a corporation with patience and fortitude can do good business in this risky, but often rewarding, market.
In short, Ukraine has some 46 million people who drink soda pop, clean toilets, wash clothes and put suntan lotion on their bodies. If you have that better mousetrap, and it’s reasonably priced, you’ve got an excellent shot at success.
The fact is that very few corporations actually give up on Ukraine. A few in the oil and gas industry have called it quits in frustration, while others – including a major bank – felt the excruciating pain of the 2008 crisis and packed at least some of their bags.
However, most multinationals in most sectors have actually expanded over the last decade: Companies like Kraft, Philip Morris, Danone, Coca-Cola, and Nestle, to name a few. It might take knee-high combat boots to wade through the political sludge, but it’s doable.
The fact remains that Ukraine doesn’t have a perception problem, it has a reality problem. Reality problems need the type of leadership that the country has never really had. We’re talking about rebuilding load-bearing walls, not hanging wallpaper.
While I might trumpet the virtues of Ukraine, it is not the Kyiv Post’s job to be a cheerleader. The newspaper’s job is to point out the huge gap between perception and reality, and why it remains so 20 years after independence.
Kyiv Post CEO Michael Willard can be reached at [email protected].
