Posted 21 сентября 2022, 11:27

Published 21 сентября 2022, 11:27

Modified 24 декабря 2022, 22:38

Updated 24 декабря 2022, 22:38

Big State instead of Big society. The expert called the causes of poverty in Ukraine

21 сентября 2022, 11:27
According to the economist, Ukraine will never be able to become prosperous, dynamic, favorable for life, production, work, study and aging if it remains a Leviathan state.

It is known that even before the start of the special operation, the Ukrainian economy was in a deplorable state, and its share has never exceeded 0.2% of the world. By the end of 2022, according to experts, this share will decrease further - to 0.14% of the world's GDP. Moreover, such a basic indicator of the standard of living as GDP per capita in Ukraine has never reached at least half of the world average. It was maximum in 2021 - 39.5%. And in 2022, of course, this figure will drop below 30%.

Economist Yaroslav Romanchuk explained in his blog the reasons why the Ukrainian economy is a tiny part of the world's, and told how you can ensure that its share is at least one percent. If you take these five simple steps, then by the end of the 2020s, according to the expert, the Ukrainian economy will reach the level of 1% of world GDP. It seems to be only one percent, but more than five times more than it was before the special operation:

“These simple, understandable figures allow us to draw the following conclusions in order to catch up with at least the average people in the world:

  1. For 31 years of the current stage of independence, Ukraine has tried different models, combinations of the state of general interventionism. As a result, she received oligrachat, schematosis and an extremely unfavorable migration situation. It's time to finally bet on economic freedom.
  2. Ukraine must have stable money. The hryvnia has never been reliable. This means that at the stage of rapid growth and development, you need to use stable, reliable money. Dollarization and euroization will help here.
  3. Ukraine has one of the worst indicators in Europe in terms of attracted foreign direct investment. Today the whole world is ready to restore it. To do this, it is time to stop monetary, commodity protectionism and isolationism. Free trade is a necessary condition for the flow of money, technology, know-how and human capital to Ukraine.
  4. Ukraine should have the best tax and regulatory environment in Europe and even the world. This means investments, finances, production and consumption should be handled by Ukrainian entrepreneurs, Ukrainian consumers, Ukrainian producers, and not the state, i.e., managers and consumers of someone else's.
  5. Ukraine will never be able to be prosperous, dynamic, favorable for life, production, work, study and aging if it remains a Leviathan state. Instead of a Big State - a Big Society. Instead of state syndicates - private enterprise. Instead of a total distrust of the managers of the alien to the producers, there is a voluntary regime of relations between the producer and the consumer.

Neither economic science nor history knows another way to prosperity and progress..."

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