We can't live like this any more: How to change Ukrainian economy

Author : Olexandr Honcharov

Source :

I'm far from the idea that our political and financial elite will start working on changing the economy without pressure from international sponsors and transnational corporations
22:43, 29 August 2017

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The market school of economic practice of Volodymyr Groysman, Andriy Reva and a number of other ministers shows that there is no alternative to a minimally regulated economy where oligarchs and high-ranking officials dominate. In their opinion, if Ukrainians try to create something different, then it will immediately collapse and there will be no development with accompanying reforms. Dear ministers, could it be that this system will not fall apart? After all, there is an alternative! There will be a development! Moreover, already now there is an alternative to your reforms in housing and communal services, in pensions and other spheres of social and economic life of Ukraine.

Finally, we remember our previous experience; there is a world experience that proves this. True, the alternative development of the Ukrainian economy does not meet the interests of those who today have economic and political power. And this is in a country where a good mood is rare, and complaints about life are normal. In a country where a specialist and an employee hates their job, and from about 30 already begin to dream of a pension, but when they retire, they become unhappy with their pensions and with their whole lives. In a country where illiteracy and rudeness are also habitual, like dirty porches and advertising of women's pads.

Well, what else to add? Is it noteworthy that all the previous and current authorities could not or did not want to understand that it is not money that gives freedom to their citizens? Inner freedom cannot be bought. And now I look at the young generation of Ukrainian entrepreneurs, and I understand that these young businessmen have passed two powerful waves of devaluation of the hryvnia in recent years. I understand that even they, our children, have somehow calmed down for these hard years, but this does not mean that they begun to live better. Simply, all Ukrainians somehow got used to the situation and adapted, but whether they are happy with today's life? - I am convinced that the answer is no.

And their parents do not have confidence in the future. The beautiful Ukrainian fairy tale says that children should take care of their parents in a rapidly falling economy. Although in this economy, it is very difficult to determine who should take care of whom. But who would say at last,what decisions will lead to the economic recovery ?! If only authorities did not focus on the poverty of the country's population. At the same time, the evolution of the demands of high-ranking officials is developing much faster than the income of the business and faster than what we assume.

Accordingly, uncertainties increase, and uncertainties mean the following. There are two things that cannot be predicted in Ukraine (no expert will be ready to predict them). The first is the price of energy resources in our country and, consequently, the tariffs of housing and communal services. The second is the price of international financial capital, which we could attract to our economy. I think that this is exactly the situation which means that crisis represents an intellectual challenge for entrepreneurs and economists of Ukraine. In this regard today, for example, it is also unlikely that any of the professionals will talk about pension reform (including the launch of the 2nd funded level of our three-level pension system) in the conditions of the actually killed stock market of the country and the half-ruined Ukrainian banking sector.

Well, who will ensure if not investment income, then at least the safety of pension savings on bank deposits or in securities of Ukrainian issuers? And most importantly - where are these reliable financial instruments? After all, according to the head of the National Commission for Securities and Stock Market Timur Khromayev, our system of the securities market state regulation firmly stuck in the 90s, its underdevelopment, including legal, allows the final beneficiaries a number of crimes to evade responsibility. By the way, international partners have long been paying attention to this of our authorities.

I think I will not be mistaken if I notice that now many entrepreneurs have a certain economic apathy. But did the financial and economic block of the Volodymyr Groysman’s Cabinet realize that it cannot go on like this - the top class cannot, the lower class do not want to? When will the reform of the real sector of economy and the banking system begin? True, I'm generally far from the idea that our political and financial elite will start working properly without pressure from international sponsors and transnational corporations. The problems we have are very serious and large-scale, because we have a very large external public debt and a very weak hryvnia. And if the government wants to finance its budget expenditures now, it is unlikely that it will be able to enter the international debt market to attract missing funds.

In short, this fall we expect a huge shake-up in the economy. Finally, I would like to quote the words of a familiar entrepreneur who recently read the sensational post of the Mirror of the Week chief editor, Yulia Mostova, who in a conversation with me bitterly remarked: "Today all those who actively supported Maidan are either in power or work in Poland and in Russia. And who will now build his business here? "

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