Economist Oleksiy Kushch stated that for Ukraine to join the EU, it must still find its place in the global value chains that are being formed in Europe, Politeka reports.
He shared these insights on Ruslan Bortnyk’s channel.
"The point is that a raw-material-based agrarian economic model doesn’t fit into the European Union. The EU is a club of completely different types of economies. The only exception might be the Baltic states, but they are too small and therefore can’t be considered a representative example," Kushch noted.
According to the expert, every country that joined the EU found its own niche. For instance, Slovakia became an auto assembly hub, while Poland and Hungary turned into production platforms. In other words, he emphasized, the European Union is a club of complex economies, and there’s no point in integrating a raw-material economy into it.
"You can look at Norway, for example. Historically, it had strong grounds for joining the EU. I believe if the Norwegians wanted to, they could easily become part of the European Union, especially since they are a NATO member. But Norway has a raw-material economy—more than 50% of its budget revenue comes from oil and gas extraction. As a result, Norway is not a member of the EU, because this type of economy makes no sense to integrate with Europe’s economic model—it's like trying to fit a square peg into a round hole," Kushch explained.
Therefore, he concluded, Ukraine’s task is to change its type of economy, to reboot its economic model, and to find its economic place in Europe. According to the expert, "finding oneself in Europe" means becoming part of the global value chains formed in the EU—such as in the battery or semiconductor coalitions.
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