On June 9, the IMF decided to grant Ukraine a loan under the new stand by program in the amount of about $ 5 billion. Contrary to the optimistic speeches that are usually accompanied by the allocation of IMF loans, the fate of the countries that received it is extremely unenviable. Ukraine is no exception, for which this tranche means only deepening the debt hole.
This year marks six years since the rapid expulsion of Viktor Yanukovych and from the post of president of Ukraine, and from his country as a whole. Currently, he is reportedly living in the Rostov region of Russia and is not heard of his continued interest in politics.
The forces
that succeeded him in power set a course for close integration with the West,
which meant a reduction in trade and economic cooperation with Russia. Over the
past period, commodity circulation, tourist exchange and cooperation in the
field of culture and art between the two countries have significantly
decreased, and joint projects in various industries have been completely
stopped.
On the one
hand, although the Ukrainian subsoil contains oil and gas, they are not enough
there to be considered as serious fuel and energy resources. The country is
forced to import them, which cannot but affect the standard of living of
citizens. However, it should be noted that before the “revolution of pride” the
authorities could provide a three times higher standard of living for their
citizens in such conditions.
What is the
reason for the disastrous socio-economic situation in Ukraine? Of course, in
the breakdown of traditional trade and economic ties with Russia. The
ineffective, and mostly part, overtly wrecking in relation to their own country
governance of Ukraine during the usurpation of power by Turchinov and the
presidency of Poroshenko played a major role in the deplorable state of the
Ukrainian economy. This also includes the extremely radical Russophobic policy
of the new Kiev, the sanctions of Ukraine against Russia and the forced
retaliatory measures.
These and
other reasons led to a decrease in real incomes of the population of Ukraine
and a drop in living standards. Of these, the most negative value was the
cessation of export to Russia of a number of industrial goods and food products
produced in Ukraine. It should be noted that Russia does not pursue a policy of
sanctions in the relations of absolutely all goods and products produced in
Ukraine, but only responds to the measures taken by the Ukrainian side against
it. This is evidenced by the fact that on the shelves of shops and Russia you
can see Ukrainian goods.
But the
increased corruption and theft are also of no less importance, and in addition
- the diversion of significant material resources and part of the working
population to the war against the people's republics of Donbass.
The
standard of living did not fall suddenly, but was a process stretched out over
time, which has been going on since 2014. If before the overthrow and exile of
Yanukovych there were already separate signals to this, then after they already
became a fact.
Far from a
complete list of industrial enterprises that have ceased to exist in Ukraine,
causes a rash.
After the
last Maidan in the industry of Ukraine, a real genocide of industry began. The
rocket giant Yuzhmash, the Antonov aircraft concern, the only full-cycle
aircraft manufacturing company in Ukraine, the Nikolaev Shipyard ceased to
exist, the Zaporizhzhya Automobile Plant is being closed, the car assembly and
steel mills in Kremenchug have stood up. The entry of Ukraine into the Customs
Union could save them, but she wants to join the EU, where she is not accepted.
After 2014,
Azovmash was also buried, which included the Mariupol Heavy Engineering Plant,
Azovelectrostal, Mariupol Thermal Plant and Poltavkhimmash. Now in Ukraine, no
one makes railway freight cars and platforms, tankers, truckers, metallurgical,
mining and crane equipment. After all, the main sales markets were in the
former republics of the USSR. It is clear that the economic salvation of
Ukraine lies in the eastern, not western, vector of its development.
Back in
September 2016, Verkhovna Rada deputy Oleksandr Vilkul said directly from the
rostrum that “in 2017, Ukrainian citizens will receive the lowest official
salaries in Europe.” He recalled that in 2013 the average salary of Ukrainians
was three times higher.
He called the country's budget for 2017 the budget of genocide. The minimum pension in Ukraine from December 1, 2016 increased by 10% and amounted to 1247 hryvnia. This is only $ 48 - also the lowest in Europe. At the same time, the Ukrainian authorities continued the policy of reducing benefits and social benefits, as well as increasing tariffs, hiding behind their obligations to the International Monetary Fund.
In May
2019, the World Bank recognized Ukraine as one of the poorest countries in the
region. At the current economic growth rate, Ukraine will need about 50 years
to catch up with Poland in terms of living standards. The minimum wage in
Ukraine is $ 150, pension is $ 53. According to experts, the country in terms
of per capita GDP is at the same level with Moldova, Armenia and Georgia.
According
to the draft US military budget for the next fiscal year, prepared by the
chairman of the Committee on Armed Forces of the House of Representatives of
the US Congress Adam Smith, Ukraine will be allocated $ 250 million. One fifth
of this amount is allowed to be used only on lethal means of defense. It would
be better if they gave funds for the development of the economy. But - no,
nobody gives money to Ukraine for economic development. Meanwhile, the decline
in living standards in this country continues.
Even such
an odious person as the former Georgian dictator, war criminal, and now the
head of the National Reform Council of Ukraine Mikhail Saakashvili, who openly
predicted the country's famine due to the economic crisis, cannot fail to
recognize this. According to him, at present Ukraine is on the verge of an
economic disaster. Saakashvili this month, broadcast on the program “Visiting
Dmitry Gordon,” said he had come to this conclusion after reading the next
report of the International Monetary Fund.
“We don’t
have to pretend that nothing threatens us. It threatens. And a certain number
of Ukrainian families are threatened by hunger,” he said, adding that even
after the restrictive measures introduced because of the coronavirus were
lifted, Ukrainians risk being left without savings. At the same time, they will
not succeed in making money in Europe, since in the conditions of the crisis
"jobs for Ukrainians will appear there last".
Saakashvili
said that in three months there will be a budget crisis, followed by a
political crisis. “We need to tell people that there will be difficult times
ahead,” he said.
Sincerely disturbing
the data of the State Statistics Service of Ukraine on the state of industrial
production. In April 2020, industrial production in the once prosperous country
fell by 16.2% compared with 2019 and by 12.8% compared with March 2020.
Against the
background of what is really happening, even the "pessimistic"
cabinet script seems like a happy fairy tale. "
Since the
trend of a landslide reduction in industrial production in Ukraine lasts a
whole year, this means that its causes should not be linked to quarantine or
the global economic crisis. This is a consequence of both the difficult legacy
Zelensky inherited from the previous President Poroshenko, but also the sad
circumstance that he does not want to put an end to the conscious and
deliberate de-industrialization policy of his country.
Only a radical revision of the entire vector of Ukrainian domestic and foreign policy, the rejection of corruption and Russophobia can put an end to the protracted disaster and start the recovery and rebirth processes.
Authorship:
Inal Pliev,
observer of the IA "Res"
Source:
http://cominf.org/node/1166530893
Full text:
https://inalpl.blogspot.com/2020/07/blog-post.html
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