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Essay on Ukraine

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Sample Essay on Ukraine

Ukraine is a relatively young independent country that had to build up its own sovereignty, its social, political and economical life under a strong influence of communist totalitarian system of the former USSR. Nowadays, Ukraine is in a very difficult situation, particularly in the context of recent presidential elections. Ukrainian economy is really in a big trouble because what we have observed since 1991 when this country got its independence may be characterized by one word – stagnation, though more radical people would call it agony because the rate of real unemployment is very high, foreign investments are insignificant particularly in comparison with its neighbors such as Poland, Czech Republic, or Hungary, bank system is just starting to develop and is far from international standards, industry and agriculture develops but do not achieve even the level of 1990, the same may be said about GNP, finally, the country is regionally unequally divided into industrial East and Center and mainly agricultural West and North.

On analyzing the situation I strongly recommend to the Ukrainian government to start changes and the earlier it is done the better for Ukraine. Firstly, I want to underline that to overcome all the obstacles to prosperity of Ukraine we have to know what are causes of economical problems. I think that the principle cause is the lack of radicalism of Ukrainian reforms and not only economical but administrative and political as well. Practically, all reforms that have been started are obviously insufficient and I would characterize them as indecisive measures. What then can be suggested for improvement of the situation in Ukraine?

One of the most important steps is the reformation of its international economic policy. It is well known that one of the main causes of economic crisis in Ukraine was the fact that Ukraine lost old connections with other former Soviet republic that were basic markets for Ukrainian products, on the other hand no other alternative were not found, because European market, for instance, had already been shared between more powerful countries. As a result Ukraine remained in a kind of economical isolation. To solve this problem it is vitally important for Ukraine to become a member of International Trade Organization that would permit to unify local and world tariffs and it would help stop numerous antidumping processes against Ukrainian companies (mainly exporting metallurgical products and raw materials). Furthermore, Ukrainian exporters would get stable quotas that, in its turn, would make their policy more predictable and transparent. The ITO membership could also stimulate the growth of foreign investments in Ukraine but the membership itself is not enough it must be accompanied by tax reform that would make foreign investments in Ukraine more profitable.

Also the government should overcome an eternal Ukrainian problem such as permanent legislative changes. Ukrainian legislative system, in economic sphere in particular, should be stable and transparent. But foreign investments won’t prevent Ukraine from stagnation if local business is not developed and again we must return to legislative changes and administrative reform. It is extremely important to make business in Ukraine more transparent and easy to start because now it is really a great problem to start your own business because of complexity of laws and existing corruption.

One more significant factor is monetary stability, a bit undermined by presidential elections threatening to political stability in the country and vague prospects for the future. That is why the government should present an effective economical program, including guarantees of monetary stability and favorable policy for the development of banking system that should not be so strictly regulated by the government and accounts of clients should be secured and protected from the arbitrary rule of the Government Tax Administration.

Finally, a lot of attention should be paid to industry and agriculture but the government should refuse from a permanent support of agriculture by direct donations from the budget in favor of improvement of bank-farmer relations and decreasing the costs of credits for farmers. The same may be said about some branches of industry. For instance, coal mining industry is absolutely unprofitable and demanding more and more investments from the part of the state. I suggest to reform this branch of industry, gradually close mines and reoriented people working there on other activities. The emphasis should be on hi-tech industries such as air-space industry that is well developed in Ukraine that closely cooperate in this field with other countries.

Thus, I believe that the implementation of my recommendations could lead Ukraine to a prosperous and stable future.

1.“Enhanced Reform Can Give Momentum to Ukrainian Economy.” IMF Survey/International Monetary Fund, Aug. 12, 1996.
2.Kasianov, Heorhii. “Ukraine Before the Elections.” The Ukrainian Review, vol. XL, no. 4, 2003.

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