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After the collapse of the Soviet Union, many Eastern European countries embarked on the road to prosperity, but Ukraine not only did not grow, but now it is in the middle of war.
Many people can't help but ask, why is the Ukrainian economy so failed? What is holding back the country? Today we will talk in detail about how Ukraine after the collapse of the Soviet Union came to this situation.
Map of Ukraine
"Poverty" has always been a serious problem for Ukraine, and its economic situation in the whole of Europe is one of the worst.
According to statistics, this large country in Eastern Europe, with a population of 44 million, has a per capita GDP of only $3,095. This compares to a GDP per capita of EU member states of $35,616.
Even his brother-in-law, Poland, has a per capita GDP of $15,420, and Ukraine's unemployment rate has always been at a relatively high level.
It can be said that "Ukraine" is synonymous with poverty in Europe, and many people have to choose between a can of diesel or bread and butter.
Economic data for Ukraine
With regard to Ukraine's economic development, we can divide it into five distinct periods, and the time span can be extended from 1989 to 2013, that is, before the Crimean crisis.
The period from 1991 to 1994 was the beginning of Ukraine's economic transition, a period in which Ukraine did not formulate an effective economic policy due to the collapse of the Soviet Union, which directly led to hyperinflation in the country.
According to the data, the inflation rate in Ukraine reached 10,000% in 1993, and the inflation rate in Russia and Belarus in the same period was about 2500% and 2200% respectively.
It can be seen that at the level of reform and response, Ukraine has clearly not done as well as Russia and Belarus.
Crowds of people who are running
The period from 1995 to 1999 was a period of painful economic struggle in Ukraine, a period in which Ukraine's gross domestic product fell by 61 per cent, and was accompanied by the 1998 economic crisis that swept the world.
In response to the crisis, Ukraine began to finance government spending through the privatization of state-owned enterprises, thereby boosting the country's economic growth. Such measures have directly led to the loss of a large number of state-owned assets and rampant corruption.
2000-2007 was a period of economic growth in Ukraine, with gdp growing by an average of 7.5% per year, and it is worth noting that Russia's economic growth rate during the same period was only 7% per year.
2008-2009 was a precipitous period for the Ukrainian economy, as we all know, the global financial crisis broke out in 2007-2009, ukraine's financial bubble also burst in this crisis, and gdp fell by 15% in 2009.
The period of economic stagnation in Ukraine from 2010 to 2013, during which Ukraine did not carry out economic reforms, and basically in 2012, Ukraine's economy stopped growing.
The 2008 Wall Street economic crisis
From the above five periods, we can clearly see that after the collapse of the Soviet Union, Ukraine achieved almost nothing at the economic level.
You know, if you follow the growth rate of Poland or Romania, then the GDP of Ukraine can now reach at least between $30,000 and $35,000, which is basically a developed country.
So what makes a country with such amazing manufacturing power fall here?
As we all know, many countries in Europe have exports as the main economic pillar, and many countries have been lifted out of poverty as a result.
Poland, Romania and Turkey, for example, have improved people's lives by exporting large quantities of cars, auto parts and some electronic products to rich European countries.
Ukraine, on the other hand, exports very basic, simple, low-value goods, such as food, metals and minerals.
Therefore, from the perspective of the economy, what the country exports and the added value attribute of commodities determine the future development space of this country.
Ukrainian imports of Russei Wine Heart Chocolate ¥39.9 purchase
So the question is, why does Ukraine have such a strong manufacturing sector and not an economic transformation?
Speaking of this, we have to talk about the oligarchic economy in Ukraine, which was in the same situation as Russia after the collapse of the Soviet Union, and many oligarchs became rich by buying state-owned assets at low prices.
The Ukrainian oligarchs who have tasted the sweetness naturally do not want foreign investors to share in their own cake of benefits, so they try to prevent foreign investors from entering Ukraine.
The result is tragic, the oligarchs have little interest in Ukraine's manufacturing transformation, they are just constantly accumulating wealth and making themselves rich.
It can be said that the Ukrainian government has made a huge mistake in its foreign direct investment policy, which has directly led to the loss of Ukraine's attractiveness to Europe.
Ukrainian confectionery king Poroshenko
When it comes to Ukraine's poor performance, another factor that everyone mentions is corruption. It's hard to put it clearly, but everyone who knows Ukraine seems to agree.
"Corruption" has long been cited as the biggest obstacle to Ukraine's economic development and to the benefit of the people. Because the political power of the oligarchy hinders the implementation of industrial policy, the simple reason is that what is good for the people is not necessarily good for the oligarch.
Therefore, in Ukraine under the oligarchy, it is difficult to ensure the interests of the people, and even after Zelenskiy came to power, it is difficult to change the political status quo in Ukraine in a short period of time.
The president's opponents
Many people do not have to ask, what should Ukraine do today to change the situation today?
The answer in the short term may be "Don't do anything, let's see when Russia will truce." ”
In the future, if Ukraine wants to develop, it must first know its role in the political world and not become a victim of the great power game.
Second, after the country has regained stability, it is imperative to continue to control the domestic oligarchy. Making these rich people benefit the people is the cornerstone of national development.
Text/Self-mirror
Graph/Network
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