Georgia vs. Ukraine

By Walter Derzko

On Wednesday, February, 15 2012, the Wall Street Journal (WSJ) ran a half page, below the fold, advertisement on the back page (A14) of Section One. Its title was: Why Georgia is Different…?

Consider… why and/or how Ukraine is different. What if Ukrainian President Viktor Yanukovych and Vladyslav Kaskiv, head of Ukraine’s State Agency for Investment and Management of National Projects, were to run the same advertisement in the WSJ asking: “Why is Ukraine Different?” What would Kaskiv say? He dolled out over one million Hryvnias given to his three buddies for advertising Ukraine abroad in Western media, which has essentially disappeared into a black hole and into someone’s pockets.

The Georgian government-sponsored advertisement illustrates “Why Georgia is Different…?”

Looks like Georgia and Ukraine are diametrically opposed in each and every category. Georgia scores a plus or positive rating while Ukraine receives all negative or critical score points!

The advertisement reads:

Why Georgia is Different….?

Different….because unlike most countries, our [Georgian] global credit rating was raised by two agencies in 2011… vs. … Ukraine… where Moody’s dropped Ukraine’s credit rating from “Neutral” to “Negative” in November 2011; 2012 forecasts are more challenging, possibly resulting in a default of sovereign debt.

Different because in 2011, we [Georgia] were one of the few countries in the world whose economic growth forecast was increased – twice-up to 7% … vs.… Ukraine? Its economic growth forecast for 2012 gets lowered several times even officially by the government. How many millions of dollars have been stolen from government coffers by corrupt oligarchs and politicians? Government corruption, growth forecasts and off-shore laundered money forecasts have jumped for 2012. Russia has launched gas wars and trade wars with cheese and metallurgy against Ukraine.

Different because we [Georgia] are the World Bank’s number one economic reformer for 5 years… vs. … Ukraine‘s economic reform track record; it’s dismal - in fact it’s none-existent, all rhetoric and no real significant legislative action. Everything is planned for the future and nothing now.

Different because we [Georgia] are the only country in Europe and Central Asia to announce Free Trade Agreement discussions with the USA … vs. … President Yanukovych gets shunned by IMF and World Bank officials in the corridors of Davos; the IMF loan tranche is on hold until after parliamentary free elections are held in the fall; and the US Trade Representative was urged to impose sanctions on the Ukrainian regime for piracy.

Different because we [Georgia] are negotiating a Free Trade Agreement with the EU … vs. … Ukraine’s EU Free Trade Agreement and Association Agreement talks are on an indefinite “hold” due to the arrest and imprisonment of Yulia Tymsohenko, Yuriy Lutsenko and others.

Different because according to Transparency International we [Georgia] are one of the least corrupt countries in the world … vs. … Ukraine which is at the other end of the corruption spectrum, and one of the most corrupt countries in the world on par with Nigeria, Haiti, etc.

Different because we [Georgia] are one of the safest countries in the world … vs. … Ukraine being one of the most dangerous countries on Earth: non-existent rule of law; corrupt judiciary; daily raider attempts to take-over foreign business ventures in Ukraine; regular extortion from tax inspectors, municipal officials and customs officials; uncontrolled crime rates in Ukraine; soaring police brutality; growing xenophobia; the growth of anti-Ukrainian sentiment from Russia’s “5th Column” forces and Ukrainian intelligence (SBU), and ex-ministers and opposition members being arbitrarily persecuted, arrested and prosecuted, even convicted in the case of former Prime Minister Tymoshenko.

Different because we are Georgia… vs. … Different because we are Ukraine!

Can Ukraine follow Georgia’s example and get out of this mess?  Essentially, both countries were equally corrupt back in 2003. But Georgia took the high road and Ukraine the low road, especially during the past two years with the current Party of Regions regime. The latest Global Corruption Barometer survey from Transparency International shows that 78% of Georgians think that corruption has decreased over the last three years, the best result among the 86 countries surveyed. In Ukraine, it’s the exact opposite.

The March 7–8, 2012 international forum and conference “Ukraine at the Crossroads” in Ottawa will discuss issues concerning democracy, human rights, the rule of law, economic freedom and foreign policy in contemporary Ukraine, which is significant but hardly timely. It should have taken place two years ago, when Ukraine was truly at a “crossroads”. The title may be a bit of a misnomer. Today, Viktor Yanukovych and the Party of Regions have clearly made their strategic choice and are sticking to their plan.

A new book from the World Bank praises Georgia on its progress fighting corruption. The World Bank said Georgia can be seen as a model for other countries tackling pervasive corruption in its public sectors. Anti-corruption efforts were also started in Ukraine, especially by Yulia Tymoshenko and Yuriy Lutsenko and that’s why both of them are sitting in jail today.