overview

Advanced

'..Poland has created remarkable growth and prosperity .. Ukraine’s per capita GDP now is only a third of what it is in neighboring Poland..'

Posted by archive 
'The vast difference that has emerged by now boils down to one straightforward reason: Poland, after 1990, managed to implement fundamental legal and constitutional reforms which created the conditions for a competitive and dynamic market economy.

In contrast, Ukraine’s state was captured by oligarchs’ interests from early on. Under the control of the oligarchs, successive Ukrainian governments failed to institute a reform of the economy as well as of the state at large. Even the latest elections haven’t really brought about comprehensive change.'


<blockquote>'What a difference a few decades can make. Not long ago, Ukraine and Poland weren’t all that different in their economic performance. When the Soviet Union collapsed in 1991, Ukraine was only lagging slightly behind Poland in term of average income.

It had a better industrial base and far less foreign debt than Poland. Ukraine is also much more richly endowed in terms of mineral deposits, climate and soil than its neighbor. Yet, a quarter century later, the gap between both countries has become enormous.

While Poland has created remarkable growth and prosperity in the intervening decades, production in Ukraine has dropped by a third. As a result, Ukraine’s per capita GDP now is only a third of what it is in neighboring Poland..

..

The vast difference that has emerged by now boils down to one straightforward reason: Poland, after 1990, managed to implement fundamental legal and constitutional reforms which created the conditions for a competitive and dynamic market economy.

In contrast, Ukraine’s state was captured by oligarchs’ interests from early on. Under the control of the oligarchs, successive Ukrainian governments failed to institute a reform of the economy as well as of the state at large. Even the latest elections haven’t really brought about comprehensive change.

..

..another crucial area of reform in Ukraine: energy saving. If Ukraine could achieve a level of energy efficiency comparable to the EU average, the country would be self-sufficient in gas .. More energy efficiency would also greatly help the competitiveness of Ukraine’s industry. Right now, every unit of GDP produced in Ukraine requires three times as much energy as it does in the West.

..

Much of Poland’s political and economic success can only be explained through the Polish people’s determination to decide their own future. Today, Ukraine faces a similar situation.

It is the Ukrainians themselves who need to muster the political will to institute the reforms..'

- Wolfgang Schüssel, Polish Lessons for the Ukrainian Economy, May 20, 2015</blockquote>


'Poland’s success after 1989 depended in no small measure on two key elements: first, basic unity among elites — Solidarity veterans as well as the post-communists — about the essential democratic, free-market direction of reform.

And second, a focus on institution building and the rule of law which ensured that the reforms, once launched, would endure. Ukraine has, tragically, lacked these elements since independence and needs them today to succeed.'


<blockquote>'..the ultimate success of the Maidan revolution will be based on whether or not it attacks the endemic corruption that is a cancer on the Ukrainian economy and government.

Key institutions must be reformed: the courts, police, tax authorities. The list goes on. The important thing is to seize the moment and act.

..

Poland’s success after 1989 depended in no small measure on two key elements: first, basic unity among elites — Solidarity veterans as well as the post-communists — about the essential democratic, free-market direction of reform.

And second, a focus on institution building and the rule of law which ensured that the reforms, once launched, would endure. Ukraine has, tragically, lacked these elements since independence and needs them today to succeed.

..Ukraine’s Balcerowicz moment has come.'

- Colin Cleary, Ukraine’s Balcerowicz Moment, June 9, 2014</blockquote>


Context Ukraine's Last Chance

<blockquote>'Russia .. has to withdraw from Ukraine to gain relief from Western sanctions..'

OSCE: Fighters Captured In Ukraine Admit To Serving In Russia Army (May 21, 2015)

'..Poroshenko quietly appropriated more than a hectare of protected land in Kyiv's elite Pechera district..'


'..a comprehensive, long-term strategy designed to reinforce Ukrainian statehood and integrate Ukraine into Europe..'</blockquote>