Following the Orange
Revolution of 2004, citizens of Ukraine anticipated greater and more positive
changes for their nation. Although the Revolution definitely provoked the
country well-along its path to evolve into a democracy, Ukraine’s economic
sector is greatly underdeveloped.
According to a study published by American think-tank, the Heritage
Foundation, together with the Wall Street Journal, Ukraine came 125th
out of 157 countries under the Economic Freedom Index in 2007. The study ranks
countries according to a model measuring “economic freedom”, a technique used
to reflect the amount of barriers businesses and entrepreneurs face. Levels of
business, labour, fiscal freedom, trade and, monetary and financial investment
were all taken into consideration when conducting the study. A score between 50
and 59 per cent yields “mostly unfree” economic status for a country. As a
result, Ukraine’s low score of 53.3 per cent earned it “mostly unfree” economic
status. Countries with higher scores are classified as “free” while lower
scores indicate that a country is “not free” with more barriers in the business
field.
Realistically, Ukraine has not progressed relative to its neighbours
and continues to dominate the group of “mostly unfree” countries, along with
Russia, China and even Poland. The former East Bloc countries such as Georgia,
Hungary and Kazakhstan are found higher in ranking, earning them “moderately
free” economic status. The so-called “mostly free” countries of the former
Soviet Republics are Lithuania, Latvia and Estonia. Finally, the usual members
of the economically “free” world are powerhouses such as the United States and
the Hong Kong zone.
With continuous interference in the marketplace, the Ukrainian
government proceeds to hinder the country’s economic development. Among the
many countries being ranked, Ukraine was considered weaker in freedom from
government intervention, in monetary and investment freedom. Uncontrolled
corruption, insecure property rights and rules put irrelevant burdens on a
growing business community, which is keener than ever to pay its full share of
taxes.
Ukraine’s entry into the European Union could potentially fix the root
of the problem at hand. Membership in the European Union would force Ukrainian
politicians to get involved in different branches of the government.
Cooperation with NATO could provide Ukraine with security against aggressive
outside forces which may have a positive impact on the country’s military powers.
Also, improved relations and stable ties with Ukraine’s neighbours such as
Poland and Russia would also contribute to heal Ukraine’s economic condition.
Ukraine’s political leaders should place politics aside and unite
around a common goal of pushing forward these key changes mentioned above.
Eventually, it will benefit the political leaders once they receive public
support from potential voters, as opposed to corrupting the state with crusader
politicians and useless promises. Ukraine has a chance of rising in the
rankings in future editions of the Economic Freedom Index but parliament needs
to undergo a series of changes now that will benefit the entire nation for
years to come.