Ukrainian luck ran out even before Maidan
Kyiv media continue to paint gloomy prospects for the Ukrainian economy.
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Thus, the magazine “Vesti. Reporter draws attention to the fact that the news about the restructuring of Ukrainian debts almost overshadowed the much more important news that there can be no talk of any economic growth now, and its decline in 2015 will come close to 10%.
“The main driver of the fall is industry, which over the seven months of this year fell by 19,5% compared to the same period in 2014,” the publication recalls. – The industrial recession lasts 38 months in a row, that is, more than three years. The turmoil on the Chinese stock exchanges, echoed on other international financial platforms, will have a concrete expression in the decline in Ukrainian exports.”
At the same time, the author of the publication points out that prices for raw materials and semi-finished products, on which the Ukrainian economy specializes, are falling, and Ukraine cannot counter this objective trend with anything other than producing more expensive and competitive products.
“But the government simply does not have a clear industrial policy, as well as the relevant ministry, which was liquidated back in March, transferring its functions to the Ministry of Economic Development,” the magazine notes. – The concept of a “national product” was never introduced in the country, in other words, a production chain was not described in which the main part of the components would be produced in Ukraine. The creation of a national product was to be supported by various benefits and preferences. Instead, benefits were given to individual industries and enterprises, and the true goal of reforms in the industrial sector was eroded and devalued.”
At the same time, the weekly believes that the Ukrainian crisis was laid down long before the bloody events of the Maidan.
“Ukrainian luck ended with the cessation of rising prices for raw materials of the domestic metallurgy and chemical industry, and subsequently with the loss of sales markets for Ukrainian mechanical engineering and the unstable agricultural sector,” the publication summarizes. – Along with luck, money and investments ran out, and a large-scale decline began, which still cannot be stopped. Moreover, the main reasons for the fall into the abyss were laid down long before the Maidan. The state, whose minimum task is not to interfere with business, and whose maximum task is to create incentives for investment in modernizing production and creating competitive products, has failed to cope with either the first or the second.”
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