In 1933, Franklin Delano Roosevelt assumed the presidency of the United States as the country faced its greatest economic crisis ever. He immediately outlined a 100-day reform plan, which included such radical measures as closing every one of the country’s banks for several days. His bold steps reinvigorated the U.S. economy and pushed it towards recovery
Ever since, the first 100 days have been used as a litmus test for all U.S. presidents. It’s during that short period that they have to put forth their agenda.
As we sadly know, in 1991 Ukraine failed to take any radical steps to reform its economy and social sphere in the aftermath of the Soviet Union’s collapse. That led to a decade of hyper-inflation and economic stagnation that reversed only in the past few years. In contrast, Poland underwent strong economic shock therapy in 1989, and it led to a year of hardship followed by a decade of economic growth and political stability that culminated in Poland’s joining the European Union last summer.
As Yushchenko assumes office, he needs to choose his political fights wisely to make his first 100 days as memorable as FDR’s.
Lose the visas
Though this may seem like a small step, it’s highly symbolic. Presently, any American or European who wants to come to Kyiv needs to get an official invite from Ukraine, get it registered, go to the embassy, wait on line, pay money and then finally receive the visa. As a result, more Western Europeans travel to, say, Albania, than to here. That’s something that ought to change.
Removing visas for Americans and Europeans would show Ukraine to be an open country in one quick step. It might deprive the embassies of revenue, but it would be compensated for by the increase in spending by foreign visitors.
I fully understand that Ukrainians still face a nightmare to get visas to Europe or America, but making it harder for Americans in retaliation is simply a case of cutting off your nose to spite your face. In comparison, Poland has had visa-free travel for Americans since 1989, and the Baltic states introduced a similar regime in 1992.
Face corruption
As anyone who has tried to do business here knows, Ukraine is a corrupt place. The Ukrainian government is corrupt, ranking below half of Africa’s countries in the annual transparency index of governments. The problem in fighting corruption is not the lack of a legal framework – there are dozens of laws on the books – but the lack of political will.
In order to kick-start the war on corruption, Yushchenko really needs to give the following speech:
“We all know that there was a lot of corruption in Ukraine when Leonid Kuchma was president. That was in the past. Today, if any government employee, from a traffic inspector on Khreshchatyk to a tax inspector in Odessa, and all the way up to my prime minister, takes a bribe, he or she will go to jail.”
Then he must show the political will to enforce it. While it might be more “fair” to start at the top and go after big fish, it’s too difficult. So the war should start at the bottom. If a couple of policemen go to jail for small bribes, the captains will soon change their ways. If some captains go to jail, the generals will learn a lesson.
Simply sell them
The Ukrainian government will most likely hold several high-profile privatizations in the following months, including UkrTelecom. While it’s vital to get these assets to market as quickly as possible, first the tender process should be simplified. As we have seen in the Kryvorizhstal case, any conditions on privatization – proven industry experience, guarantees of future employment, knowledge of Ukraine, limitations of majority ownership and so on – are simply openings for corruption similar to that which marked the Kryvorizhstal sale.
The government’s goal should be to simply sell companies as quickly as possible for the highest price. The way to do that is a simple tender, no conditions, no limitations. Whoever is willing to pay the most – be it a Russian company, an American company or a local company – should be the proud new owner of UkrTelecom or UkrZaliznytsia.
This kind of policy will both reduce the power of the government – which is a good thing – and raise funds so that taxes can be lowered in Ukraine.
Forget the past
While it’s tempting to try and review every privatization of the past decade to see who exactly stole what, it would take years to sort out the details. As each case is reviewed, Ukraine’s investment climate might get worse as challenges to private property begin.
Tycoons Viktor Pinchuk and Rinat Akhmetov have said they’re willing to pay the difference between their bid and the highest bid offered for Kryvorizhstal. Great. Take the money and close the books. Yushchenko’s government should be focused on creating the best investment climate, not on sorting out the past.
The same goes for investigations into election fraud and the like. We all know terrible things happened, but it ended peacefully. Now it’s time for Ukraine to work together for a better future rather than gorging on the past. Anyway, I find it shocking that people could consider punishing folks for things they did wrong during the last decade, when thousands of Communist criminals – KGB agents, party members and the like – are walking the streets unscathed, and the archives are still locked away.
Dismantle Lenin
Yushchenko claims he wants Ukraine to join Europe and follow European ideals. Yet in the center of Kyiv remains a Communist-era statue to Lenin, which glorifies his ideals – mass murder, slave labor camps, mass executions, revocation of civil rights and party control over the government.
After World War II, Germany went through de-Nazification and removed the statues glorifying fascism. So did Italy and Spain as they moved towards democracy. Likewise Poland, Hungary and the Baltics. Simply put, as long as a statue glorifying Lenin stands in the center of Kyiv, Ukraine will never be a free European country.
These steps are all more symbolic than actual. But they all require strong political courage and tough decisions. Step by step, they will reinvent how the Ukrainian government views its role in relation to its citizens – as guarantor of the rule of law and upholder of the rights of its citizens, rather than guarantor of jobs, or a coffer for the lucky to tap into.
Jed Sunden is the Kyiv Post’s publisher.
