Ups and downs of Ukraine's PM Honcharuk's first 100 days

Author : Oleksiy Kushch

Source : 112 Ukraine

Ukraine marks one hundred days of the government of PM Oleksiy Honcharuk
23:16, 10 December 2019

Much has been done in more than three months: hard copies of employment record books have been “almost” shifted into electronic form, as a result of which the work of the heads of human resources departments in medium and large companies will significantly increase.

At one time, the government of PM Yatsenyuk was proudly called the kamikaze government. The government of Honcharuk was called the team of "new faces," and "technocrats," and even the "great and terrible" libertarians.

Related: PM Honcharuk met with ex-MP oligarch Zhevago, who is on international wanted list

The faces turned out to be not new, but simply unfamiliar to anyone.

Now let us talk about some global things. The state to deprive the monopoly on the production of alcohol. Small officials to be dismissed. High salaries of top officials to be preserved. Land and all state assets, including railways and mail, should be sold. If you don’t buy it, just give it to the “good” hairy hands of the oligarch.

We would buy electricity from the Russians, but apparently, we will have to “forget” about gas transit a couple of years. A sole proprietorship is deprived. The relations with the IMF would be prolonged. Repay loans to the last Ukrainian. The new Labor Code would be worse regarding the rights of employees.

In general, the whole enchilada, which, according to the gurus of the economy, should ensure the rapid and continuous growth of the country in the next five years, when every resident of our country “will have the money.”

Related: Launch of rescue service 112 will begin in Ukraine, starting in January, - Honcharuk

In fact, any government could not turn a pumpkin to carriage for 100 days. In this sense, the main criticism can be directed at those ideas that are proposed for implementation. Of course, you can wait a year until the reforms yield a bountiful harvest, but in our case this is clearly not the situation when you are wondering whether this wheel will reach the nearest city or not.

If the wheel is square and it is also broken in four places, then this is not a forecast, but a statement of fact. Or rather, managerial dementia and ideological "impotence."

In fact, we see a policy of “poker faces” who try to look smart and try to explain to the Ukrainians why they should live worse. But the scale of spendings has increased significantly: if earlier they blamed on the previous Cabinet (supposedly, everything was stolen before us), now they blame all years of independence and all governments together.

Related: Honcharuk discusses Nord Stream 2 with Swedish Prime Minister

The current government did not start its cadence with the most important thing: models of accelerated economic growth and the formation of national industrial policy. That is, with the definition of strategic development vectors and the roadmap for reform, understandable for both society and investors. Someone may object: why do we need these "strategies."

According to UNCTAD, the main U.N. body dealing with trade, more than a hundred countries of the world that generate 90% of world GDP carry out national industrial policy, which is the basis and initial matrix for investment policy.

Investors must understand where the country is heading and which industries are worth investing in. Taking into consideration the lack of a national industrial policy and a coherent economic strategy, Ukraine is still not on the radar of investors: no one wants to invest in it.

Models of economic growth are based on endogenous (internal) factors, Nobel laureate Paul Romer spoke about it at one time. Today, even the IMF writes about this: the state should invest all resources in social capital (medicine, science, education), and businesses and investors, using the basis in the form of effective and competitive social capital, will achieve high rates of economic growth.

Have you ever wondered why almost all US presidents, starting with Reagan, hold office twice? One of the key reasons is a man-centered policy aimed at protecting the interests of an ordinary American. Not a creditor or an oligarch, but an ordinary citizen. Classical human centrism. And why do all our presidents leave office, if not with shame, then with disdain?

Related: Cabinet of Ministers launches pilot project for citizens’ digital ID, - Honcharuk

2020 State Budget puts an emphasis on an external lender. It will be necessary to spend one and a half times more on paying public interest alone than on medicine and almost as much as on education.

The health of the nation and the knowledge of the nation are estimated by the current government cheaper than the lender. Against the background of 12-year price lows in the gas market, no one has “thought up” the “market” way to lower the derivative tariffs for heat and hot water. But the prime minister was so preoccupied with the interests of ordinary Ukrainians that he offered them a “seasonal” price for natural gas, one of the most expensive.

Related: PM Honcharuk: IMF mission noted significant progress in promoting reforms in Ukraine

Yes, the price is so high that it is quite possible to believe the promises of Honcharuk - it would not be able to grow further. Even if the current ministers would try to decrease it.  


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