The Ukrainian economy is among those that most of all suffered from crisis in the world, according to a global financier and philanthropist, George Soros.
“Ukraine was close to default… In this hard situation the fact
that [the country] was successful in avoiding a terrible catastrophe is
a large achievement,” he said during the teleconference bridge at the
sixth YES (Yalta European Strategy) summit.
He said that Ukraine’s closeness to default was partially linked to
the political situation, when the president controls the central bank,
and the government does not control it and it was difficult to do
something.
Soros said that it is important to draw up a strategy for Ukraine’s
development, for example, to select “right” industrial sectors, which
should be developed, as today’s country dependency on the heavy
industry makes it vulnerable.
Commenting on the financial system, Soros said that a big question is what would be with Ukraine after crisis.
“Would we insist on a globalized financial system or on national
systems,” the financier said. He said that globalization before crisis
was based on an erroneous opinion that the market does not need
regulation, but it needs deregulation.
He said that the U.S. dollar lost its dominating position in the world as the most desirable currency.
“However, there is no alternative to it,” he said.
Soros said that the problem of inflation in the world is urgent, as
many countries added large sums of money to the monetary aggregates,
which was a normal thing in the conditions of narrow crediting.
