100 days since the Orange Revolution officially ended, sweeping Viktor Yushchenko into his rightful office as Ukraine’s president.
Since then, Yushchenko has been feted across Europe and America as a hero and, rightfully, opened a new chapter in Ukrainian foreign affairs. The phrase “Orange Revolution” is now synonymous in the Western imagination with democracy. But in terms of domestic politics, it seems things are much the same as ever.
President Yushchenko joined the ranks of esteemed statesmen like Winston Churchill, Lech Walesa and Nelson Mandela when he addressed a joint session of the U.S. Congress. But did anyone actually listen to Yushchenko’s speech?
In addition to praising both Ukrainian and American democracy and the Ukrainians who struggled to ensure that free elections be held in Ukraine, he said the following:
“Free and fair elections have brought to state office a new generation of politicians not encumbered with the mentality of the Soviet past. These are honest and professional patriots. We are working as one team in pursuit of one goal: to lead our nation to success in the shortest time possible.”
But while Yushchenko is making grand statements abroad, the rest of the government does not seem to following his lead.
In his speech to Congress, Yushchenko calmly stated that “Ukraine has agreed to waive the visa regime for United States citizens.”
That’s a simple goal that should not only stimulate Ukraine’s moribund tourist industry, but also make the country seem a bit more open to investors. But as any American arriving at Borispol airport knows, a visa is still required. A call to the Ukrainian Embassy in Washington confirms that they have no instructions concerning getting rid of visa requirements for U.S. citizens wanting to come to Ukraine.
By way of comparison, the Czech Republic went from Communist rule and the Soviet yoke to visa-free travel for Americans in under 6 months.
Further on in the speech, President Yushchenko stated that “the new Ukrainian government has, on an unprecedented scale, opened the Ukrainian market, dramatically reducing customs restrictions,” and that “non-recognition of market-based economy status for Ukraine is an anachronism.”
While we are all hoping that Ukraine will attain market-economy status, we hope that the Ukrainian government will actually allow the market to function in Ukraine.
In late March, Yushchenko signed into law a bill passed by the parliament earlier that month that envisages a reduction of import duties on clothes, footwear, and food products that are not being manufactured or are manufactured in limited quantity in Ukraine. While this is a step in the right direction, Ukraine still needs to reduce customs restrictions on hundreds of products to enter the WTO as it plans. In the meantime, anyone who is planning to buy a foreign car this year will continue to pay hefty customs duties, making foreign cars cost about 30 percent more than the same cars do in Poland.
But while Yushchenko is making statements in Washington about aiming to join the WTO fast and ensuring that Ukraine attains market economy status, his ministers seem to be talking a different game.
Economy Minister Serhiy Teryokhin said on Feb. 17, “Keeping Kryvorizhstal in state hands is more sensible than privatizing it again.” And the newly-appointed head of the State Property Fund (Valentyn Semenyuk, of the Socialist Party) innocently asked Korrespondent magazine in its last issue, “What’s so bad about re-nationalization?”
Meanwhile, investors from around the world are waiting for both Yushchenko and Tymoshenko to decide precisely how many companies which were privatized will be reexamined. Twenty? Thirty? A hundred? Three thousand? When and how? It’s still unclear.
Back home, instead of making tough decisions to reform the economy, it seems the new government is intent on raising pensions and public sector salaries – exactly what they berated Yanukovych for in the run-up to the elections. At a Cabinet meeting on March 9, Tymoshenko stated that average pensions will be increased by 23.1 percent and public sector salaries by 56.8 percent. Not exactly an example of economic austerity.
An investor report on Ukraine distributed by Renaissance Capital sums it up best in this way: “We find it surprising and somewhat disappointing that the government is using the period when its popularity is at its highest not to launch reforms of the public sector, but to boost social spending. In addition, the increase in pensions will undoubtedly cause inflationary pressure, and such a spending commitment is particularly difficult to reverse in the medium term.” Strong words from the normally sedate investment bank.
Furthermore, tax breaks for private entrepreneurs have been revoked, making it harder for everyone to do business. Last week, President Yushchenko vetoed administrative reform, which might have made government more accountable.
Which raises the question: Just what really is being done “to lead our nation to success in the shortest time possible”?
100-day test
May 3 marks the hundredth day since Yushchenko’s inauguration, which ended the Orange Revolution. It seems that the administration is still discussing when to begin reform. I am not sure if this is what brought a million people into Independence Square.
Look what happened in Poland in its first 100 days after its revolution. On Sept. 12, 1989, after the Round Table talks and free elections, Solidarity became the dominant party in the Polish parliament. A month later, they declared they would phase out the Soviet-style economy and adopt capitalism as soon as possible. On Jan. 1, 1990, the new program was implemented and price controls on all products were lifted.
Or take Franklin Delano Roosevelt after his election to the U.S presidency in the midst of the Great Depression. Roosevelt got Congress to pass 15 major bills, massively reforming the American economy.
I, like most Ukrainians, still believe in President Yushchenko and his ability to lead Ukraine to a better future. But we stood in the streets for a revolution in Ukraine and a radical change in how Ukraine is governed. This requires strong leadership and radical actions from President Yushchenko, not only abroad, but at home.
I am pretty sure that millions of people did not stream into Independence Square just to ensure that new pavement was laid on Kreshchatyk before the Eurovision Song Contest.
Jed Sunden is the publisher of the Kyiv Post.
