Editor's Note: The following is the English-language transcript of President Viktor Yanukovych's annual message to the Verkhovna Rada on domestic and foreign situation of Ukraine.
The text is from the official presidential website here.
After proclaiming the policy of modernization in 2010, Ukrainian State embarked on a radical transformation. Its purpose is the establishment of modern Ukraine as a country of high economic, political and social standards.
The main efforts were aimed at overcoming the economic crisis, the development of basic and perspective sectors of national economy, fighting corruption and restructuring the inefficient system of social protection.
Within a short period of time administrative reform was carried out which was not only to optimize the state administrative structure but also to ensure openness and transparency of decision-making process and government affairs.
Systematic steps to facilitate business environment and optimize judiciary system were also made.
Special attention was paid to the development of the tax system aimed at decreasing of illegal capital circulation as well as facilitating attraction of strategic investments of internal and external origin to the Ukrainian economy.
A number of pilot projects aimed at modernization of health care and educational system as well as regional development programs developed and approved by the direct participation of the local government are being implemented today.
However already in the initial stages Ukrainian transformations faced the obstacles which threaten to inhibit the process of deep renovation of all spheres of social life and lead to the depreciation of the results achieved.
The main obstacles among them are inertia and resistance of corrupt bureaucracy. Contradictions between intentions of state political government and interests of bureaucratic groups formed under regional and branch-corporate principles obtain more and more conflict nature. Such contradictions created a favorable ground for strengthening of ideological positions of political parties and movements opposing the reform course. Destructive activity of these forces is embodied in numerous political speculations.
Given such conditions strengthening the foundations of Ukrainian statehood and democratic mechanisms in the management of community is critically important not only in view of the continuation of reforms, but also for national security.
Currently one of the major directions of new Ukrainian government’s policy is the development and involvement of civil society in the process of developing and implementing state policy because the success of reform is impossible without social consolidation and broad public support. The way to the abovementioned lies through further growth of transparency of public policy and state administration for the direct participation of citizens and citizen groups.
The first step in this direction will be the strengthening of representative component of Ukrainian parliamentarism. Given this, of course, parliamentary elections in 2012 become increasingly important. The elections should become the starting point in returning to the Parliament the status of authority that directly represents the interests of citizens. The Parliament should stop functioning in the mode of “private elite club”.
The second step will be the preparation and implementation of a constitutional reform that not only give detailed answers to questions about the relationship of power between state and local government, the nature and characteristics of the political system of Ukraine moving towards Europe, but also become an efficient basis for ensuring broad civil rights in modern conditions including the direct participation of citizens in making decisions of the state level and solving urgent issues of community development.
In this case everything necessary will be done to ensure the highest level of legitimacy of the constitutional process. In particular, there was approved a principal decision that for the first time in the history of Ukraine the draft of the Basic Law will be elaborated by the broad audience of the Ukrainian community the potential of which will be accumulated and revealed within work of the Constitutional Assembly.
Another area of policy reforms in 2012 should become the change in the work of public authorities at regional level. This includes not only measures to overcome the centralization of the government: the focus should be on the issue of changing the nature of relations between the local government and communities. In the face of Ukrainian communities who will receive effective levers of control over the work of local authorities, state government sees its most valuable ally and partner.
Essential target of 2012 is to fast-track the reformation of national economy and social system. This process should have several basic priorities. First is to ensure stable economic growth in conditions of the global crisis influence of which is still notable for the world economy. Second is to raise social standards, increase real income of the workers and improve the general quality of life for Ukrainians.
In the context of restructuring of social and economic spheres high priority belongs to further structural transformation of the national economy, increasing its competitiveness and resistance to downturns of the world conjuncture. This primarily involves the promotion of entrepreneurship. Creation of free environment for the development of business potential of the society, liberalization and deregulation of entrepreneurship must remain the core of economic reforms.
Improving the business climate will stimulate economic growth, development of the domestic market and creation of new jobs. At the same time removal of administrative barriers and increasing legal guarantees for the institution of property will be a positive factor in attracting domestic and foreign investment. In addition, reducing the administrative and fiscal pressure on business entities will contribute to further reducing the shadow economy and increase state budget revenues.
It is time to elaborate new principles of industrial policy, accelerate the development of real economy. The basic purpose of it is to ensure modernization and technological renewal of this sector. Growth of investment and innovation activity of business, introducing energy saving technologies is the only possible way to improve the quality of economic growth.
Agricultural reforms need acceleration as well. Already this year, before removal of the moratorium on the sale of agricultural land it is necessary to ensure the establishment and full functioning of mechanisms of protection of farmers’ interests and of food security in general.
Today the reform of social welfare and social protection of Ukrainian citizens is urgent. The basic principles of social reform should be the following: guarantees of adequate state aid to those who really need it, rational social payments and high quality of social services provided to citizens by the state.
Adherence to these principles in the social policy of the state while implementing reforms in spheres of social protection and health care will enable Ukraine to move closer to building a model of modern social market economy. Its advantages are high social standards, efficient protection of workers’ rights, and developed system of social protection.
Special attention should be paid to humanitarian sphere. Today, because of the economic crisis many societies suffer apathy and disbelief in their own abilities. Nations lose motivation to develop and citizens face a crisis of perspective. Unfortunately, Ukrainian society shows these trends more and more distinctively.
Therefore, the tasks of the new humanitarian policy should be the spiritual health of the Ukrainian society, the disclosure of its creativity.
In a globalized world the success of internal reforms largely depends on the country’s ability to adequately and efficiently respond to external challenges, changes in the global economy and the system of international relations. Given this, one of the main tasks of Ukrainian foreign policy this year should be an active participation in the development of international security systems, installation of pragmatic political and economic cooperation with new prospective partners and international organizations.
I am confident that Ukraine is confidently moving through the way of deep modernization, becomes developed, civilized European state.
