With presidential elections about two months away, irresponsibility is spreading among Ukraine’s sickly political elite at warp speed.
President Victor Yushchenko was dead wrong in his decision on Oct. 30 in approving a law that calls for a raise in wages and pensions that the government simply cannot afford. This political sabotage was aimed at rival candidate, Prime Minister Yulia Tymoshenko. It could derail cooperation with the International Monetary Fund, which also warned that the excessive social expenditures could fuel inflationary pressures.
That said, Yushchenko is right in opposing price caps on medications during the recession. These restrictions were voted in by lawmakers on Oct. 20, including allies of Tymoshenko. He has suggested he will veto the law, which experts say could trigger a shortage of medication in the country. He should.
Across-the-board price caps backfire. The pharmaceutical industry needs to be kept in check, but only through surgically-targeted regulatory measures.
Why would any pharmaceutical company import medications into Ukraine, when the prices are capped at 2008 levels – when the hryvnia was stronger – that would force them to sell their healing pills at a loss? With a flu epidemic hitting the country hard, you would think politicians would do everything possible to help keep medications affordable for those who needs them – especially in this season when colds and other seasonal diseases spread fast.
The unfortunate reality is that Ukraine’s politicians only take the responsible position when it furthers their ambitions, political or financial. Ukraine’s hospitals are already dilapidated and backwards. The country’s health care system will get more dangerous with populist politicians acting as doctors.
