The first concern of any government is staying in power. In democracies, this is done by appealing to voters. As a result, democratic governments have incentives to pursue short-sighted policies. These policies focus on immediate benefits, even if there are negative future effects. Being a democracy, Ukraine has seen many instances of such policies over its rather short history of independence.
OP-ED
Ilona Sologoub, Tymofiy Mylovanov: Political myopia – causes and treatment
Lower household tariffs appease an important group of the voters. Yet, they create risks for macroeconomic stability. They also undermine the Ukraine’s effort to attain energy independence (from Russia) and launch a proper gas market, in line with the EU Third energy package.
