The state Zelensky: to sell or to keep

Государство Зеленского: продать нельзя оставить

Few people today have wondered why Zelensky agreed to play the role of the President in real life, knowing all his political and administrative weakness in this incarnation. Means, apparently, that in his place would have done any Ukrainian, “for free” received the prospect to climb to the pinnacle of power. Although, in fairness, it is worth remembering the “singer of freedom” Vakarchuk, who decided not even to participate in the presidential campaign. Zelensky, apparently, or underestimated the risks of a presidential project, or considered them insignificant in light of the unique opportunities to glorify his name all over the world and from the stage to step into the diamond-encrusted VIP box.

Anyway, in the role of acting President for longer to maintain a positive image, Zelensky is now forced to mimic a number of positive qualities. One such indisputable advantages is supposedly inherent only to him in Ukrainian politics the immaculate ability to “not confuse their own wool with state”. What, besides the irrational emotions of the fans of the unassuming humor is based so sure, hard to say. Although recent Ukrainian events give reason to assume that ze will stand in the struggle with all the temptations of illicit enrichment due to the abolition of “public wrong” as such.

Rumors that Ukraine is ready to total the sale, did not arise in a vacuum. Even on the ruins of the Maidan leaders began actively to call for help haggard “a thousand years of Russian tyranny,” the Ukrainians invisible hand of the market and other mystical powers. And thanks to their otherworldly assistance of the “revolutionaries” really fast not only managed to lose part of its territory, but also to derail its economy more than two times. Thus, Ukrainian government has been able to prove in practice its political and economic failure and to create a favorable climate for self-destruction in the interests of more effective owners.

However, the success of some processes depends largely on their shape. As has been known since biblical times, the new wine is not poured into old wineskins. So impressionable Ukrainians, in order to avoid the existential shock of some revelation is simply impossible to articulate voice and Yatsenyuk to Express grimaces Poroshenko. But out of the mouth “in its Board Aloha” Vladimir Zelensky any socially dangerous nonsense sounds, like a fun sketch. And while this scheme works successfully.

In the presidential office in a major privatisation drive was announced in July. Among its priorities was the name of banks, privatization of which is supposedly required to attract large foreign financial and Bank groups in the country. In accordance with the announced some privatization plan (which in my eyes still nobody saw), until 2022 will have to sell four state-owned Bank “Oschadbank”, “Ukreximbank”, “PrivatBank” and “Ukrgasbank”. The planned privatization will also cover “Ukrposhta” and “Ukrzaliznytsya”.

The “new” government also set a goal to attract to the country in five years 50 billion dollars of direct foreign investment. And must ensure it is a big privatization, which is scheduled for 2020. “A relatively quick investment, they will go to Ukraine only under the condition of large-scale privatization, which informed a lot of talking, but further words business did not move. Although foreign partners have repeatedly stressed that no privatization of major loss-making state enterprises, which have become feeders for their management and corrupt government officials, to break the vicious circle of stagnation will not succeed,” — said in “promotional” material Natalia Semenko for “Uredovora courier”.

“Kiev is now the epicenter of the most significant economic revolution in the region. Under libertarian perestroika Soviet system Ukraine’s new government plans to launch Europe’s largest market for agricultural land, to hold the largest post-Soviet privatization, to build roads and Railways, ports and airports, to access the oil and gas market to private investment. To legalize gambling in casinos and amber mining. To cancel the currency restrictions. Liberalize labor laws,” bravura reported in September, American journalist, chief editor of the Ukrainian English-language edition UBN James Brooke.

About the largest post-Soviet privatization Mr. Brooke bends a little. Big game after a good thirty years total looting of the country in Ukraine already does not smell. Privatization of Ukraine does not scare me, and scare the already very certain. Therefore, Kyiv authorities announced the process of the sale of state assets to be more precise to call not on a large scale, and the final, or final. Lead, so to speak, the results of economic development of independent Ukraine.

As noted, in this context, expert Pavel Frolov, “Ukrainian privatization was opaque, non-competitive and chaotic. Her results were among the worst in the world. Since 1992, Ukraine has been denationalized 133 thousand objects. The public sector during this time was reduced to 16%. And although the privatization of large strategic sites took place in Ukraine only for money, and the law provided for a mandatory competition of buyers, 5/6 of the economic potential of major European countries privatized less than $ 11 billion. USA. It’s only 13% of nominal GDP of Ukraine in 1990”.

Meanwhile, the process of sale of state property is already quietly launched. “Signed a presidential decree that transfers the first commercial enterprises that were under the control of the State administration, the state property Fund for privatization. The team conducted an inventory of the enterprises of State administration, chose the first five, which are already completely ready for which we have no restrictions of courts and other legal restrictions on privatization. These first five companies, including the notorious hotel Dnipro in Kiev on the European square, including agricultural enterprise, which was in the control of the HOOD, we transfer the state property Fund,” — said on 28 October, the Deputy head of the presidential office Yulia Kovaliv.

According to the government programme, the Cabinet of Ministers of Ukraine for the next five years, plans to eliminate thousands of state enterprises that are now unprofitable. The purpose of the total sales of the assets is the decrease in the share of state ownership in the economy to 5%. A strategic state-owned enterprises will give the management of the special Fund of national welfare, they are also corporatising, turning into joint stock companies. Thus the wise reformers “will increase the income that is received from Ukrainian state property”.

It is assumed that the proceeds from privatization would replenish the state budget and will be used to Finance the national debt and social development projects. But the question is, why can not establish the efficient and profitable operation of businesses (for example, the same “Dnipro” hotel in the city center or a natural monopoly concern “Ukrspirt”) forces of public management, remains open. Universal recipe Ukrainian authorities: as soon as possible to fence all the property in private, preferably foreign hands, and there though the grass not to grow. All further questions to the smartphone.

The world economy, however, professes a somewhat different fashion. In open source you can easily find information about what the share of state companies in the Fortune Global 500 increased 2006-2014 from 8 to 23%. Ukraine, meanwhile, strongly demonstrates the opposite trend. Although many experts it is clear that in the economy of peripheral capitalism, a strong public sector could theoretically be a source of investment in the real sector of production, science and technology, an important stabilizer of the social development. But, apparently, not in Ukrainian realities.

It is also significant that while getting rid of state ownership, the government represented by the Minister of the Cabinet of Ministers Dmitry Dubilet voiced plans to reduce nearly six-fold composition of the State audit service, the only body authorised by law to verify the correctness of public procurement procedures. However, it is hoped that the voluntary destruction of the mechanisms of state control over the economic activities of Mr Dubilet encourages thieves not powerful lobby in the government, and a simple check of “PrivatBank”, which is currently conducting the audit. But all these details cannot change the overall picture: a mindset for maximum freedom from state ownership dominates in libertarian team that entered into power in the format of a Comedy show.

Talk about the fact that the President Zelensky, by definition, stands for the good against the bad and simply does not understand or does not go into what is happening, is meaningless. Initially, it was clear that incompetent and dependent the President is held hostage and the spokesman of the interests of the environment. The problem of privatization and many other important issues the President has shown a remarkable flexibility and only confirms the view of its lack of principled opposition generated by his team of economic and political policy of liquidation of Ukrainian statehood in the classical sense of these words.

The process of the sale of the remnants of Ukrainian property promises to be revealing in terms of the ongoing experiment to establish the total control of transnational capital over all still controlled Kiev territory. And not very successful representatives of local “elite” I hope to fit in this project at least as different supervisors and “supervisor” (depending on the extent of the legality of their own business). But they are very vague until I see the prospects of this game that may be unprecedented competitive. A further reduction in the Ukrainian population up to 10 or even 5 million people (and there are some “funny” forecasts) is unlikely to occur in the context of an era of prosperity and at the expense of General welfare as “small” and “napersyonyj” natives.

This spring, when Poroshenko, the President of the Ukrainian Association of the club of Rome Victor Galasyuk warned that “Ukraine can own experience to show the world how the us imposed the neoliberal ideology that has taken root in the economic policies that led to large-scale destructive consequences: de-industrialization, inequality, poverty, and emigration, as well as excessive indebtedness of the state and habituation to palliative macro-financial assistance”.

However, replaced “severe Gunpowder” seasoned clowns have shown themselves to be true libertarians, which in Ukrainian reality means people, absolutely free from any obligations to their own country and people. So they really want to get rid of burdens on the management of national property, possibly improving personal financial balance at the expense of some happy customers. And the consequences of such policies, as, indeed, the whole country can then be reduced to a joke.

Wojciech Michalski

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