摘要:This country economic memorandum, one of the three reports produced jointly by the Bank, the Ministry of Economy, and the International Center for Policy Studies, defines a shared vision for a strategy that will allow Ukraine to halt its economic decline and move toward a prosperous future. The origins of this economic decline are similar to those in other transition economies: the dual shocks of collapsed trading relations, and sharply higher energy prices, following the breakup of the Soviet Union. But what distinguishes the country from other transition economies, who have successfully moved to market economies, has been the degree to which it tried to protect the loss-making enterprises from closure, to preserve employment, and income levels. The study points out, that to escape the downward economic spiral, radical changes in the Government's role are required to achieve economic growth. Leading industrial enterprises are still government-owned, which further exacerbates the problems caused by agricultural products commercialization at local government levels, and, although subsidies have decreased, indirect costs to support losses, are not sustainable. It is suggested that growth can be restored, and poverty reduced, as long as the Government moves fast to a more market-oriented role. This includes privatization, deregulation, reform policies, and institutional strengthening.
