How Ukraine Became a Market Economy and Democracy

How Ukraine Became a Market Economy and Democracy explores Ukraine's postcommunist transformation from 1991 to 2008, how and why key policy decisions were made, and what Ukraine should do to overcome the ravages of its political and financial crises. The path Ukraine has traveled since 1991, when Ukrainians overwhelmingly voted for their nation's independence, has been turbulent. During this time, it has recorded many achievements, but it has also faltered. Its greatest triumph is that hardly any Ukrainian questions the sovereignty of the state. It has become a democracy, albeit fragile, and is a market economy with predominant private ownership. Despite being one of the last postcommunist countries to opt for serious market economic reforms in the 1990s, it grew at an average of 7.5 percent a year from 2000 to 2007. In this clear, accessible account of Ukraine's political and economic metamorphosis, noted expert on the postcommunist transformation Anders Aslund provides a chronological guide to the evolution of a country known for its diverse regions. Aslund identifies the protagonists and leaders who have formed the country's regimes in this easy-to-read volume and analyzes how constant governmental transitions have affected the country. One of Europe's old nations steeped in history, Ukraine is today an undisputed independent state. It is a democracy and has transformed into a market economy with predominant private ownership. Ukraine's postcommunist transition has been one of the most protracted and socially costly, but it has taken the country to a desirable destination. slund's vivid account of Ukraine's journey begins with a brief background, where he discusses the implications of Ukraine's history, the awakening of society because of Mikhail Gorbachev's reforms, the early democratization, and the impact of the ill-fated Soviet economic reforms. He then turns to the reign of President Leonid Kravchuk from 1991 to 1994, the only salient achievement of which was nation-building, while the economy collapsed in the midst of hyperinflation. The first two years of Leonid Kuchma's presidency, from 1994 to 1996, were characterized by substantial achievements, notably financial stabilization and mass privatization. The period 199699 was a miserable period of policy stagnation, rent seeking, and continued economic decline. In 2000 hope returned to Ukraine. Viktor Yushchenko became prime minister and launched vigorous reforms to cleanse the economy from corruption, and economic growth returned. The ensuing period, 200104, amounted to a competitive oligarchy. It was quite pluralist, although repression increased. Economic growth was high. The year 2004 witnessed the most joyful period in Ukraine, the Orange Revolution, which represented Ukraine's democratic breakthrough, with Yushchenko as its hero. The postrevolution period, however, has been characterized by great domestic political instability; a renewed, explicit Russian threat to Ukraine's sovereignty; and a severe financial crisis. The answers to these challenges lie in how soon the European Union fully recognizes Ukraine's long-expressed identity as a European state, how swiftly Ukraine improves its malfunctioning constitutional order, and how promptly it addresses corruption. One of Europe's old nations steeped in history, Ukraine is today an undisputed independent state. It is a democracy and has transformed into a market economy with predominant private ownership. Ukraine's postcommunist transition has been one of the most protracted and socially costly, but it has taken the country to a desirable destination. The postrevolution period, however, has been characterized by great domestic political instability; a renewed, explicit Russian threat to Ukraine's sovereignty; and a severe financial crisis. The answers to these challenges lie in how soon the European Union fully recognizes Ukraine's long-expressed identity as a European state, how swiftly Ukraine improves its malfunctioning constitutional order, and how promptly it addresses corruption. In this accessible account of Ukraine's political and economic metamorphosis, Anders Åslund provides a chronological guide to Ukraine's recent history and analyzes how constant governmental transitions have affected the country. "Anders Åslund presented the findings of his latest Institute book, How Ukraine Became a Market Economy and Democracy, at a meeting on March 5, 2009. The book focuses on Ukraine's postcommunist political and economic transformation from 1991 to 2008, how and why key policy decisions were made, and what Ukraine should now do to overcome the ravages of its political and financial crises."--pub. desc