I can hardly wait for a certain DC liberventionist to explain this away:
- Ukraine’s Orange Revolution was an exhilarating and joyful event. It was a classical liberal revolution for democracy and freedom and against corruption. Viktor Yushchenko became the democratically elected president, promising freedom from fear and corruption.
Alas, the new Ukrainian government of Prime Minister Yulia Tymoshenko, another revolutionary hero, has surprisingly opted for an economic policy that appears to be socialist and populist in nature. The results have been immediate: Last year Ukraine enjoyed economic growth of 12 percent; in the first four months of this year, the growth rate plunged to 5 percent, while inflation has surged to 15 percent. How could things turn so sour so fast? …
- For months top Ukrainian officials have discussed publicly how many flawed privatization deals should be reversed — the possibilities range from 29 to 3,000 — and how this would be done. The government is trying to recover many enterprises through the courts, and it has drafted a broad law that could undo much of Ukraine’s privatization. …
Sounds a lot like the evil Vladimir Putin, no?
- Meanwhile, the property rights of thousands of enterprises are in limbo. In Kiev, rumors abound that oligarchs connected to the old regime are trying to sell their enterprises to Russian business executives and are preparing to escape the country. Naturally, executives are cutting off investment, and economic growth is screeching to a halt.
To make matters worse, a new socialist minister of privatization has been appointed who opposes privatization in principle. She asked recently: “What is so bad about re-nationalization?” Tymoshenko concurred in a recent newspaper interview: “The biggest enterprises, which can easily be efficiently managed, must not be privatized, and they can give the state as an owner wonderful profits.” This sounds like state capitalism. …
The contrast between the declarations of the Orange Revolution and current government policy could hardly be greater. Curiously, this discrepancy continues. In an editorial on Yushchenko’s first 100 days, the Kiev Post points out that “while Yushchenko is making grand statements abroad, the rest of the government does not seem to follow his lead.” …