Oligarchs have captured the Ukrainian state. However, they are more a symptom than the cause of the country’s crisis. That is why successful de-oligarchisation would not bring real progress, but only give rise to a new generation of oligarchs. What is needed instead is a political culture of transparency and accountability.
The oligarchic system, which inseparably involves informal ties and corruption between the the top tiers of government and oligarchs, did not disappear after the Revolution of Dignity. It merely evolved slightly to adapt to the new political situation. A closer look at the relationships between the government and big business shows that all post-Maidan statements of Ukraine’s top officials about ‘deoligarchisation’ are pure wishful thinking. The long-established main oligarchic groups started more or less close co-operation with the government elite, which needed their support and was at the same time too weak or lacked the political will to really undermine the oligarchs’ positions.
іМоRе # 51. An ambiguous start to the year: anti-reforms prevented the manifestation of a decent result
The index for monitoring of reforms (iMoRe) remains low. Assessment of reforms progress for December 19, 2016 – January 8, 2017 is only +0.8 points out of a possible +5.0 points. Progress was observed in public administration reform, public finances and the business environment. Even though these areas have benefitted from a number of progressive legislative actions, the index value is low due to several anti-reforms.
The first and foremost priority of the National Bank of Ukraine (NBU) is to keep inflation low. This is stated in the law, and in the principles of the monetary policy for 2017-2020 proposed by the NBU Board, and recently approved by the NBU Council. The goal for 2017 is set at 8+-2%. Will the public accept this goal?
The market share of state-owned banks has been constantly growing since 2014 when a so-called banking sector cleanup started. After PrivatBank was nationalised, the government’s share exceeded 50%. How should we view this, what will it result in, and what can the state actually do about PrivatBank? Mykhaylo Demkiv, a financial analyst at the ICU, sums up the situation.
Ukrainian Catastrophe: No Large Group of People Has Seen Its Income Grow Compared to 1989. Sergey Guriev’s Lecture
The European Bank of Reconstruction and Development (EBRD) has produced a large-scale “Transition Report 2016-2017”, which considers in detail how the transition to a market economy has affected the welfare, life satisfaction and even the height of the population of transition countries.
In Ukraine, the report was presented by Sergey Guriev, the EBRD’s Chief Economist. VoxUkraine has recorded his lecture that took place on November 23, 2016, at Kyiv School of Economics.
Progress in reforming the banking sector and road infrastructure has positively influenced iMoRe – the index for monitoring of reforms. For December 5 – December 18 iMoRe reached a score of +1.0 out of a possible +5 points. Experts noted the progress in the reforms of the monetary sphere, public administration, public finance and energy sector.
Corruption and lack of clear-cut rules of the game turned the Ukrainian politics into a tool for monetization and protection of business interests. Will the Law on the Public Funding of Political Parties be able to mend the situation? Can Ukraine afford such an instrument?
On Monday, 20th of December, 2016, the nationalization of PrivatBank was announced. The representatives of the government and the central bank explained the decision with the bad quality of the credit portfolio, large number of loans to affiliated companies and undercapitalization of the bank. The bank’s former management presented their view of the events, pointing to the unjust actions by the NBU that were selectively aimed at the largest Ukrainian bank. Full text is available in Ukrainian.
What was that year about? Have there been any real economic breakthroughs? Has anything important happened that will define the country’s development? We have sought answers by looking at more than 220 analytical articles that were published at VoxUkraine in 2016. The findings suffice to construct an alphabet. Here are the most important events of 2016 that illustrate the changes that have (or have not) happened in Ukraine. Full text is available in Ukrainian.
How much will those who are paid the minimum wage actually earn? What will the influence of the tariff grade be? This VoxCheck is dedicated to the myths about the minimum wage in Ukraine. Full text is available in Ukrainian and Russian.