Inaction of Ukraine's current parliament: Cabinet reinforces poverty and underdevelopment

Author : Olexandr Honcharov

Source : 112 Ukraine

Our labor poverty will only continue to increase and remain the main problem not of the government, but of Ukrainian society
21:45, 22 January 2020


The flight of Ukrainians from the country to work abroad is our new reality. Everyone is leaving, including entrepreneurs. Specialists flee from labor poverty, businessmen flee from increasing tax pressure and the arbitrariness of the security forces. And, of course, Prime Minister Goncharuk does not know what to do with the sharp reduction in the current financial operations, which is associated with the deterioration of all three main balance columns: trade, investment income and the balance of services. And when you don’t know how to make money and increase your own capital, then, of course, you get into debt or build a financial pyramid. This is what our Cabinet is doing along with the National Bank.

And one more remark, which many people suspect, but do not dare to openly say: we might wait as long as we can for a successful solution to debt problems, poverty reduction and increasing real incomes of ordinary citizens, but without the replacement of the National Bank management this Cabinet will not succeed.

Therefore, I am afraid that our labor poverty will only continue to increase and remain the main problem not of the government, but of Ukrainian society. Judge for yourself, the average nominal salary in Ukraine in the III quarter of 2019 was 382 euros, while in Latvia this financial and economic indicator is at the level of 1091 euros per month (that is 2.9 times more), in Poland - 1143 euros (3 times more than in Ukraine), in the Czech Republic - 1310 euros (3.4 times more).

At the same time, everyone who worked as prime minister in Ukraine, after being fired, turned out to be billionaires (well, with the rare exception of the stupid or honest ones). And the worst thing is that none of the Ukrainians are surprised, especially indignant. In principle, it seems the Ukrainian standard.

And then the Russian president abruptly embarked on re-building in his own country, saying that the existing military power will ensure reliable security of the Russian Federation "for decades to come." Therefore, now all the forces and economic potential will be devoted to solving the social problems of the population, in order to subsequently offer the world and, above all, Ukraine a particular model. Isn’t it in this connection Petro Poroshenko suddenly came to his senses and said: "This carries direct risks and threats to Ukraine. In these conditions, Ukraine must unite: both the government and the opposition - and adequately respond to the challenges and risks that appeared in 2020."

Related: Ukraine signed memorandum with German railway operator Deutsche Bahn

But how to respond? If in previous years the unprecedented rates of the outflow of Ukrainian capital to offshore were set, and our businessmen are even assimilated in Poland and many other countries. Plus, millions of labor migrants seek a better life abroad, as they can no longer put up with poverty at home.

Moreover, in the 2020, serious changes are coming in the world labor market, which, according to analysts and experts, will provoke an even greater outflow of Ukrainians to work abroad. Indeed, if earlier our compatriots traveled mainly to Poland, Hungary, Italy, the Czech Republic and the Baltic countries, then from this year their geography will be expanded to Germany, France, Belgium and the countries of Scandinavia.

The situation is bad. For example, in order to distract the attention of ordinary people from the huge salaries and bonuses of narrow-minded and sneaky top officials, suddenly all TV channels began to trumpet that the minimum wage in Ukraine now is 4723 UAH (or 198 dollars), which is 2 dollars higher than in Russia - 12 130 rubles (or about 196 dollars).

But they are too weak to compare Ukraine with the countries of the European Union or the United States. Or with the countries of Latin America and Africa, where, incidentally, in Gabon the minimum wage is $ 270, in Equatorial Guinea - $ 224. I also note that the strengthening of the hryvnia in manual mode was carried out by our financial authorities exclusively in the interests of speculative capital - carry trade, which indicated the destruction of Ukrainian manufacturing economy.

And, unfortunately, not a single minister or MP from the Servant of the People party mentioned that Ukraine today ranks last in the purchasing power of citizens among 42 European countries (for example, the average income after taxes per person Europe in 2019 amounted to 14 739 euros; while the average Ukrainian had an amount of 1830 euros, which is 8 times less than the European average).

And for this everyone should be ashamed, and not just the Cabinet of Oleksiy Honcharuk.

Related: Ukraine's PM Honcharuk met with Finnish Prime Minister in Davos





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