TRANSFORMATION OF UKRAINE’S COMMERCIAL DIPLOMACY: RESHAPING THE MODEL

Abstract

The article examines past and present changes in the system of commercial diplomacy of Ukraine in the context of external and internal, old and new challenges. The aim of the study is to propose recommendations for the improvement of existing model and to identify lessons learned from Ukrainian experience that could be useful for developing countries. The relevancy of the study is conditioned by the need to enhance the effectiveness of Ukraine’s commercial diplomacy in the face of existing challenges. The applied methodology is a combination of methods used for theoretical and empirical research (observation, comparison, analysis and synthesis, system and structural analysis). We found that present distorted organizational set-up of Ukraine’s commercial diplomacy is the result of the uncompleted process of integration of management of international economic relations to the Ministry of Foreign Affairs. We argue that the introduction of a unified model is untimely but can be considered as promising in a more distant future. Ukraine’s experience shows that without necessary prerequisites (a certain level of economic development and role in international relations, which require clear strategic vision and effective coordination of traditional and commercial diplomacies) and proper implementation, the introduction of the unified model is unlikely to lead to the desired outcome. Results of the analysis also indicate that the promotion of export and investment needs further impetus. Suggested recommendations address both organizational and practical aspects of Ukraine’s commercial diplomacy. Their implementation would have a positive impact on the style and effectiveness of Ukraine’s commercial diplomacy and, therefore, competitiveness of the national business.