Wednesday, February 6, 2008

Despite my Skeptism - Tymoshenko reported be off to good start

From the Kyiv post

http://www.kyivpost.com/opinion/oped/28334/
Highlights: The new coalition government headed by Yulia Tymoshenko, however, has started ambitiously and auspiciously.
The Ukrainian economy is in good shape with a growth rate of 7.3 percent last year. The stock market surged by no less than 120 percent last year, and it has barely fallen during the January turmoil.
The new government’s biggest achievement is to make Ukraine ready to join the World Trade Organization (WTO) at a February 5 meeting of the WTO General Council. One month after the parliament ratifies the accession, Ukraine will become a full-fledged member of the WTO. This could boost the country’s growth by one percentage point a year.
Ukraine’s WTO accession is a joint accomplishment of the four last governments. The very last obstacle was a European Union complaint about the country’s export tariffs, primarily on steel scrap. It has been relegated to the negotiations about a free-trade agreement with the EU, which are likely to be concluded before the end of 2008.
As elsewhere in the region, the greatest economic concern is the high and rising inflation, as consumer prices rose by 16.6 percent last year. As a consequence, experienced Finance Minister Viktor Pynzenyk immediately tightened the budget by balancing it. Fortunately, no price controls or export controls are being discussed. Tymoshenko says that she has learned not to do so from her tenure in 2005.
Tymoshenko’s most worrisome campaign promise was to compensate Ukrainians who lost their bank savings in the early 1990s because of hyperinflation and to do so in the course of two years. Fortunately, the government has capped this compensation program at $1.2 billion, which is less than one percent of gross domestic product, and it has distributed the money swiftly and equally.

No comments:

A Return to the Blog

This blog first started after we arrived in Ukraine and set up house on the 14th storey of an apartment on the outskirts of Kiev. Since then...