Survey Article: Ukraine's Industrial Enterprise: Surviving Hard Times

Abstract

Ukraine's industrial organizational structure, retaining the features of a planned system, has been slow to change. The state plays a greater role in controlling industrial production there than in Russia. Along with privatization, the government encourages different types of associations and conglomerates. Industry's dismal performance could probably be worse without surviving strategies used by enterprise management, such as retaining working collectives, loyalty to suppliers and buyers, avoiding long-term investment, mergers, and diversification. Enterprise managers, whose attitudes toward privatization were predominantly negative, now accept it as a necessity for their working collectives.