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Why privatization in Ukraine failed again

Author : Oleg Ustenko

Nine theses on the state property and privatization: is there any progress, who is to blame, and what to do
20:15, 14 December 2018

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Theses on the state property and privatization: is there any progress, who is to blame, and what to do:

 

Related: Big privatization failed when we have no time for mistakes

  1. Ukraine’s existing political class (for the most part) has an absolute consensus with the oligarchs.
  2. Privatization is failed not because "someone does not want to buy," but because "someone does not want to sell." And this is about the existing political class.
  3. The political class is actively using the thesis "we will not let them cut the golden goose." At the same time, the question “where do the eggs laid by the golden goose go to” is not raised.
  4. At the very beginning of the formation of any ruling coalition in Ukraine, the struggle for the offices has always touched on issues of control over state property. Is it by chance? Is it a desire to help people? Implement your "talent in this area?" We all know the answer.
  5. Management of state property in highly corrupt countries is quite a profitable business for those who are “a part of the scheme.” And those are definitely not the taxpayers of the country.
  6. Disruption of the auction for Centrenergo (major electric and thermal energy producing companies in central Ukraine and eastern Ukraine, - Ed.) – a surprise?
  7. Decision-makers to postpone the initial plan for "big privatization," which the Prime Minister insisted on almost a year ago? Who are the victims here? Budget? Taxpayers? This is the second significant breakdown. First, Odesa port plant, now Centrenergo. Is it not clear that even in terms of a light version of martial law, none of the foreign investors would enter.
  8. On the other hand, why should the political class “kill its mood” with tedious ideas of increasing the share of the private sector in the economy and increasing its efficiency? Elections are close. Other ideas excite their minds.
  9. It's late. Too late for privatization. Self-respecting investors would unlikely go to such facilities. At least for now. Until the country passes the peak of the political cycle. This means that the accelerated growth of the Ukrainian economy is being postponed again. Our neighbors on the western borders, who do not have enough manpower, will just applaud.

Related: 'Privat' group is building a fuel monopoly

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