State program of economic development of Ukraine: strategy or fantasy


The Minister of Economic Development, Trade and Agriculture of Ukraine Timofey Milovanov presented the government’s strategy for economic growth of the country, saying that its implementation over the next five years should ensure GDP growth of 40%, the creation of many new jobs and other achievements. Well, let’s try to impartially understand how realistic these ambitious plans look.


According to Milovanov and his colleagues from the Cabinet, the main engine of the Ukrainian economy should be investments, external and internal. It is planned to attract an impressive amount of $ 50 billion in the coming years. Question: in what exactly will prospective investors invest such colossal amounts? In the explanations of the minister with specificity sparse. He speaks of investments "in people", "in technology", "in land and capital markets." With land, it is more or less clear: despite the colossal resistance of the absolute majority of fellow citizens, having put forward a legislative justification for making agricultural land an object of sale, the current government expects to make good money.

However, this is somehow not very similar to investment. Rather, it resembles the sale of the last commons left by Ukraine. The program presented by Milovanov has many correct promises like “creating a fair competitive environment” in this market and setting insurmountable barriers “for raiding and corruption schemes”. It sounds attractive, but comes in one package with options such as "deregulation of land management" and "elimination of the State Geocadastre from land management." Such campaigns of complete departure from state control and regulation are fraught with the creation of ideal conditions for all kinds of fraud and abuse.

Privatization. Under it, in 2020, Ukraine is preparing 5 large state-owned enterprises and three hundred small ones. At the same time, the condition for maintaining the production profile of the purchased property is stipulated only for enterprises “included in high-tech chains of surplus value”. An extremely vague wording, which can be interpreted and circumvented both this way and that. Who will decide whether this or that plant or factory is “in the chain” and how “high-tech” is this “chain”? There is no guarantee that the privatized industrial facilities will not turn into new shopping malls or simply not be demolished to free up land for the same residential development.

Additional “bonus” options are also provided for investors - like a five-year “vacation from income tax” in the event of an investment of 10 million dollars or more. As well as a kind of incomprehensible “invest-nanny”, which promises some pleasant but vague prospects in the form of “additional incentives” and “project support”. Most likely, the matter boils down to such prosaic things as facilitating the allocation of land for the project, assistance in communicating with local officials, and the like. In fact, in the entire civilized world, all this is considered completely ordinary moments of the state’s interaction with those who plan to invest money in its territory, all the more considerable money. However, the question is rather not that Kiev is not actively ready to “lure” foreign moneybags, but that they may have very serious doubts as to the appropriateness of investments in Ukraine as such.

According to the results of 2019, the country's industry showed a decline of 1,8%. The unfavorable (and so far all worsening due to the epidemic in China) situation on world markets, the artificial strengthening of the hryvnia, the slowdown in inflation - all this led to a decrease in production volumes in almost all sectors. Ukrainian industry has more than dubious investment attractiveness. An extremely negative factor is the deepening gap in economic ties with Russia. By the way, according to many experts, this is precisely what can cool the ardor of potential investors: to produce products in Ukraine in order to be transported somewhere halfway around the world and not to be sold in a market literally across the border - this is unprofitable and illogical. However, numerous restrictions on Ukrainian exports to our country may simply leave no other choice.

Another point: Mr. Milovanov speaks of the need to more than double the domestic investment in the country. The main investor, of course, should be the state. Local oligarchs, which is characteristic, prefer to invest money just abroad. However, today, for example, the budget of Ukraine is underfulfilled in the amount of almost 15 billion hryvnias. Reasons: the same decline in production, lost funds from taxes and excise taxes. What investments are there? Make ends meet by stretching out mandatory programs and social benefits!

Some things that appear in the colorful presentation that accompanied the presentation of the program are generally contrary to reality. For example, "strengthening the role of state-owned banks" to "stimulate exports." But after all, the Cabinet of Ministers was going to privatize state banks! Or “investment in people”, which should increase the life expectancy of Ukrainians by almost five years by 2024. Is this under the current medical reform, within which all health programs are being phased out? As well as the intentions of “passing concessions” to universities and hospitals. This makes one wonder whether Milovanov generally understands the meaning of the word “concession”, or whether fantasies in the Cabinet prevail over a real strategy.

Such dubious places in the program are enough to make its intended execution raise serious doubts.
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Photos used:
Cabinet of Ukraine website
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  1. Andrei Nikolaevich 18 February 2020 06: 48 New
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    The most objective strategy for the current Outskirts is to live a couple more years ... You don’t need to make any further plans. All the same, A. I. Denikin was right when speaking of ,, Ukrainian independence ”
    1. Uncle lee 18 February 2020 06: 52 New
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      strategy or fantasy
      Duc: Zrada, or overpowered .....
    2. Finches 18 February 2020 06: 54 New
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      Independent Ukraine is generally the wet dreams of the Washington Regional Committee and the spooky clowns from the Zapadenshchina (the latter forgot to say that Austria-Hungary no longer exists!) laughing
      1. 210ox 18 February 2020 07: 41 New
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        About wet "dreams" I do not agree. The defenders to the peak of Russia will throw some money in vna. It is extremely important for them to have a dynamically developing state next to us. With the subsequent reaction in our country. Let's see how they do it.
        1. Adam Khomich 18 February 2020 08: 03 New
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          Six children of the dynamic development of an independent - minus TWENTY million of the population, minus Crimea, minus Donbass! The whole southeast is next in turn, it is only necessary to strangle the Bandera Nazis.
          1. bessmertniy 18 February 2020 09: 55 New
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            One thing can be said for sure about the Ukrainian economy: it floats well in search of the bottom. lol
        2. Den717 18 February 2020 09: 51 New
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          Quote: 210ox
          The defenders to the peak of Russia will throw some money in vna.

          And what disturbed them before? I think the United States aims to just bring the 404 country to such a state that economic interaction with it would be an unbearable burden for the Russian economy. Then integration after resolving the situation in the Donbass will become uninteresting for both them and us.
    3. TermNachTer 18 February 2020 21: 08 New
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      Rzhu nimagu. The title of the note itself sounds like a stupid joke. Economy Banderland "lies down" with terrible force. Here we must speak, at least about slowing down the fall, and not about growth. The budget revenue plan for January 2020 is not implemented by 25%.
  2. kepmor 18 February 2020 07: 10 New
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    for putriots even one day "without the edge" and he lived in vain ...
    By the way, how is it in the native land with the development of the economy ??? ... and where is the strategy ??? ... or again some fantasies ??? ...
    1. Adam Khomich 18 February 2020 07: 52 New
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      First, we are a mordor!
      Secondly - we are under sanctions!
      Thirdly - all the worlds!
  3. Egoza 18 February 2020 07: 23 New
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    Well, Ukraine is not fantasy, but fantasy! Do you feel the difference?
    1. Arlen 18 February 2020 07: 44 New
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      In Ukraine, a madhouse. Puppeteers of the Kiev authorities from behind the hill adopt one law, on the looting of Ukraine (what is left), after another. The Kiev rulers in relation to the country and people behave like a colonial administration of the United States.
      1. DRM
        DRM 18 February 2020 15: 54 New
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        Quote: Arlen
        In Ukraine, a madhouse. Puppeteers of the Kiev authorities from behind the hill adopt one law, on the looting of Ukraine (what is left), after another. The Kiev rulers in relation to the country and people behave like a colonial administration of the United States.

        It will be more accurate to say: Kiev rulers in relation to the country and people behave in the same way as Moscow rulers in relation to their people. Capitalism and nothing personal.
  4. Oleg Skvortsov 18 February 2020 07: 42 New
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    Is anyone interested in the strategy of Ukraine? is it full of Ukrainophiles? maybe better about the "reactor, about your favorite moon tractor?"
    1. WHAT IS 18 February 2020 21: 26 New
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      Yes, let's get better about the tractor!
  5. Lamata 18 February 2020 07: 48 New
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    It doesn’t seem like an anap program, such a modern, democratic idle talk about anything.
  6. Adam Khomich 18 February 2020 07: 59 New
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    Zelensky needs to do everything according to the script of the film Servant of the people, then maybe it will work out. And so .... a continuous routine: - Daithe penniless to the shield of Europe, otherwise Putin is attacked, and we are hungry, barefooted and full of weight.
  7. Basarev 18 February 2020 08: 01 New
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    Khlamina has only one real opportunity - peaceful self-dissolution modeled on Czechoslovakia. Zapadenschina should not live in the same state as the labor Southeast.
    1. Andrei Nikolaevich 18 February 2020 23: 47 New
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      As for me, let the forelocks sell land, railways, ports and all that remains. Economics and industry are not for their brains in embroidered shirts. As practice and history have shown, pig-breeding is the limit of their possibilities. Pig superpower!)
  8. bistrov. 18 February 2020 08: 16 New
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    The situation with finances in the “independent” one would be even worse if many entrepreneurs were not forced to pay taxes in advance for 2020 in November-December 2019. They say that the amount of “prepayments” is approaching 20 billion hryvnias.
  9. GRIGORIY76 18 February 2020 08: 18 New
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    I do not know. I would instead of investing hundreds of lard in the place of the West, I would begin to invest regularly in the former Soviet countries, and not in "supporting democracy" but in the economy. The goal is to create a showcase of a progressive, developing post-Soviet state. It would be interesting to see, especially if Russia continued to stagnate.
  10. Professor Preobrazhensky 18 February 2020 09: 06 New
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    I read it in the morning, how bad it is in Ukraine and how it became so good right away!
    1. Professor Preobrazhensky 18 February 2020 09: 22 New
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      And if something else about Lukashenko appears now at VO, then today it is possible to declare a public holiday around the country, to hold public celebrations with concerts.
  11. Ros 56 18 February 2020 09: 26 New
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    Dear visitors, I’m just playing pranks on these people, well, what kind of economy is in the madhouse? They call themselves de bi lami and ignoramuses, and is that power?
  12. ibn.shamai 18 February 2020 09: 29 New
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    Quote: 210ox
    About wet "dreams" I do not agree. The defenders to the peak of Russia will throw some money in vna. It is extremely important for them to have a dynamically developing state next to us. With the subsequent reaction in our country. Let's see how they do it.

    Oh, I beg you! Who are the defenders? America, Europe? They will certainly toss so that the pants do not fall lol and then a loan!
  13. major147 18 February 2020 09: 32 New
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    Nothing new! Remember (and who does not remember, ask those who remember) which projects were drawn during the "Yeltsin period", and unfortunate Russia continued to "dive". So here, they are lacking in a deep peak, and the projects are grandiose!
  14. gridasov 18 February 2020 10: 02 New
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    people representing power in this country are potentially not able to solve complex problems not only against the background of internal problems and tasks, but also external ones. And even more so quickly variable complex processes. Therefore, it is not difficult to model the decisions that they will make. About progress towards positive development, first of all, the well-being of the people, and these are the main criteria for success in economics and politics.
  15. Evdokim 18 February 2020 10: 04 New
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    Still, a brave man is a minister, to carry such crap with a deep-witted look, one must have courage. Especially when the horse understands that investments can not be seen as his own ears.
    It touches me:
    The Minister of Economic Development, Trade and Agriculture of Ukraine Timofey Milovanov presented the government’s strategy for economic growth of the country, saying that its implementation over the next five years should ensure GDP growth of 40%, the creation of many new jobs and other achievements.

    So that I wish him that the doupe from the strain does not burst. hi
  16. vit670 18 February 2020 10: 28 New
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    A foggy article and no specifics. But, if the Ukrainians succeed then oh and it will be difficult for the Russian authorities! This will be a positive example! And then, after all, only taxes are raised with Putin's national projects and money collected cheaply is stolen from people ... 24 years in power, but it still doesn’t work out - oligarchs and friends get richer and people get poorer ...
    1. Lamata 18 February 2020 10: 39 New
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      Well, nothing, the Olympics were held, the World Cup, Crimea was squeezed out, the bridge was built, medicine was sequestered, the pension age was increased, the average salary was 44, the iPhone was removed, Lepot.
  17. Paul Siebert 18 February 2020 12: 48 New
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    Quarter 95 at work!
    In the near future we will hear more pearls.
    If under Poroshenko, Natsik-corrupt officials were in power, now, under the clown Zelensky-Natsik-underdeveloped.
    How's Robert Burns?
    "How pathetic a jester is on the throne of the king,
    How stupid are the people who allowed it ... "