Ukraine's poverty can be measured in figures

Author : Olexandr Honcharov

Source :

With our economic decline, the GDP growth of Ukraine by 2.2% in 2016, called a separate macroeconomic stabilization by individual politicians and large officials, is in fact a preservation of the crisis, devastation and backwardness
15:01, 25 April 2017

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I dare say that in Ukraine, there is still no comprehensive economic program of our government. On the contrary, there are continuous disputes and mutual accusations. Therefore, most likely, the Volodymyr Groysman's Cabinet would be the one to blame, and a resignation awaits this politician. Let's make it out without unnecessary emotions. Only unbiased figures and concrete facts.

Judge for yourself: if it is not possible to sharply raise labor productivity at our enterprises, employers will only have to reduce the salaries to their employees, or even cut jobs altogether. It’s difficult to admit it, however, the standard of living of Ukrainians decreases so fast that authorities should seriously beware of the riots of unemployed. And thinking about Europe, we are still far away from that place, where low costs, high quality and global brands are the main components of their success in economic life. Therefore, today the task of our authorities is to ensure that Ukrainians’ living standards and incomes are not significantly lower than at least the level of African countries, not mentioning the EU level.

In this connection, for example, Tetiana Unkovska, Doctor of Economic Sciences, notes that according to the HDI (Human Development Index), calculated by the United Nations based on the country's GDP per capita and living standards, Ukraine took only 81th place in the world! In particular, by the end of 2016, Ukraine's GDP amounted to just over $ 90 billion, while in 2013 it was $ 183 billion, while GNI (Gross National Income per capital) is $ 2,600, which is in fact equal to the level of Honduras GNI - 2300 dollars.

So, with such an economic decline, the GDP growth of Ukraine by 2.2% in 2016, called separate macroeconomic stabilization by individual politicians and large officials, is in fact a preservation of the crisis, devastation and backwardness. Tetiana Unkovska also cites striking figures for comparison and stresses: "In Poland, with a population of 38 million people, GDP was 477 billion dollars (5 times more than in Ukraine), and GNI - 13,000 dollars, in Canada (36 million people) GDP is - 1.55 trillion dollars, and GNI - 47500 dollars (18 times more.) In Israel (a continually warring country) with a population of 8 million people, GDP is equal to 300 billion dollars, and GNI – 35800. In the Czech Republic (with a population of 10.6 million people), GDP amounted to 185.2 billion dollars, GNI - 18,000 dollars, Estonian  GNI is - 18,400 dollars, Croatian - 12,700 dollars, in Kazakhstan - 11,400 dollars; Belarusian - 6,600 dollars." I think, it is unnecessary comment on here.

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For generals of the Ukrainian financial and economic authorities, it is worth recalling the fact that the Economic Development and Trade Ministry of Ukraine worsened the previous forecast of GDP growth in Ukraine for 2017 from 2.9% to 2.4%, the IMF - up to 2%, and the NBU – to 1.9%. The forecast of inflation by the end of this year was worsened from 9% to 11%. In a word, the hunt for the dollar is conducted only in Kyiv, and in the Ukrainian villages despair reigns - people do not know how to buy food on their money. Accordingly, ATMs in cities are increasingly becoming useless monuments of the old fat life. Not to mention the fact that in recent days, prices in Kyiv markets, especially on meat, as people say, simply knock them down.

True, that the people who do not laugh, it's our pensioners. So, in 2013, the pension for the majority of pensioners in recalculation for US dollars was $ 190, and now - $ 65. Yes, pensions fell sharply, but the burden on the state budget has risen to a record. And what will the Cabinet do next? I admit that it will choose the simplest option and suggest to raise the retirement age for men to 65 years. I'm not surprised at all. And what do you expect?

And this despite the fact that the population of Ukraine continues to grow old and die, the proportion of elderly people is constantly increasing, which has already put the stability of the pension system under a big question. However, our Cabinet of Ministers has not yet introduced the II funded level and does not create non-state pension provision for employees of budgetary institutions through the organization of a specialized NPF.

Wherever you look - everywhere you see breakdowns and omissions of the executive and legislative authorities. And the main task of our "grantees" is to emotionally ignite people who are very tired of injustice, otherwise - money will be wasted in vain. That's how we live. Although many Ukrainians who have brilliant brains and economic thinking, are selling potatoes in the markets. Is that why the main task of the Cabinet of Ministers and the Verkhovna Rada is now to get more money from small and medium-sized businesses?

And yet, why our society is living so awful? I think, it’s because we do not have an educated class. Many people, unfortunately, perceive life and elections of representative power not with their heads, but with their stomach. Although it should be admitted that almost every voter finally began to lose confidence in the Verkhovna Rada and the Cabinet. But despite the continuing aggravation of the most difficult in all respects socio-economic situation, until mid-May all the coalitioners and young reformers and old politicians, democrats, went on vacation ... There is no difference in them. No one believes them. And accusing the president of the country, the voters, unfortunately, were late to realize that it was these people's deputies who in most cases filed laws that increased the burden on the state budget, but at the same time reducing social expenses.

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Now they are thinking on the dilemma: do Ukrainians exist for the economy of the country or still the economy of Ukraine exists for its citizens? Is it the time for our government to cease direction only at one vector of credits and requirements of the International Monetary Fund? After all, strangely enough, but the personal capital of a considerable number of big officials and politicians is multiplying at the moment when the next tranche of the IMF loan comes. At the same time, one must understand that the loan money of the fund does not go to Ukraine for no reason and condition, therefore, as we already know, the pension age will be raised and anti-corruption courts will be established.

But the main thing is that the government is already doomed to lifting the moratorium on the sale of agricultural land. Or are our best soils already sold out? I note, according to various experts' estimates, we have somewhere around 37 million hectares of black soils (of which about 11 million are state-owned). All the rest is in shares, that is, in the shared ownership of our citizens. According to a number of leading experts, it is these 11 million hectares that seem to be about to sell, since they are still in state ownership. Their market value, according to appraisers, is about $ 1 trillion, but this land can be sold only at a discount, approximately for 250-300 billion dollars.

Thus, while analyzing the situation in the Ukrainian economy objectively and comparing it to other emerging markets, leading analysts and experts insist that the period of Volodymyr Groysman as a prime minister ends and the era of the new politician from the presidential reserve bench will begin. And, maybe, at last, ministers will finish begging for money in the West, without knowing who and how will give the funds back. Yes, and, perhaps, they will cease to look down on those people whose hands helped them to sought power on the Maidan.

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