Owing to Yatsenyuk’s government Ukraine has “repressive economy”

The Heritage Foundation and The Wall Street Journal compiled the Index of Economic Freedom for 2015 having summed up the results of Arseniy Yatsenyuk’s government’s work last year. According to the Index Ukraine is rated 162^nd out of 178 countries. At that in the period of Arseniy Yatsenyuk’s government Ukraine dropped seven positions lower in the rating. And this is in spite of all loud declarations Yatsenyuk made at Maidan about radical economic reforms and creation of favourable conditions for business providing for economic growth and attraction of foreign investments. Nevertheless, as reality proves, it is easy to promise things in Maidan knowing that nothing will be done. The main wish of every opposition is to become authorities, and for every power structure – to retain power, and the talks of reforms stays in the realm of talks. In the course of the entire year Yatsenyuk had been telling us about his plans of economic reforms, but reality came out to be diffrent.

According to The Heritage Foundation and The Wall Street Journal rating Ukraine is on the same level with Burma and Bolivia. It came out to be the most “repressive” economy among European countries.

According to the rating Ukraine scored meager 20 in terms of property protection, with the average global index of 40. In fact it means that property has no protection in Ukraine. Lawless redistribution of property under Arseniy Yatsenyuk’s government scared The Heritage Foundation and The Wall Street Journal. Before Maidan Ukraine’s property protection index was 30, and, although it was still far from average global index, still it was closer to it than now.

The rating of Ukraine in terms of protection from corruption also dropped according to The Heritage Foundation and The Wall Street Journal. If before Maidam the index was 25, after Maidan it dropped to with the average global index of 42. Many of the people who manifested in Maidan expected reduction of corruption as a result of their victory. Nevertheless Yatsenyuk’s plans did not call for it. Why disrupt such profitable business? Notably, Ukraine had the best result in this respect in 1996; it amounted to 30 and was reached in the absence of any manifestations.

In terms of state expenditures Ukraine’s rating reached 28 this year with the average world index of 61. Corruption grows is closely connected with non-transparent state expenditures. It has already become a tradition to harp on about difficult situation in Ukrainian economy and still hold tenders with the only competitor and constantly introduce new taxes, micromanaging VAT recovery at that.

Tax freedom remains on the same level in Ukraine. According to the rating of The Heritage Foundation and The Wall Street Journal, Ukraine scores 77.4 with the global index of 75. Ukraine occupied the place after it adopted the tax Code before Maidan took place.  Even though this rate cannot be called successful, it is good that it did not drop after Arseniy Yatsenyuk’s government’s tax reforms. Nevertheless the rating will change if the VAT accounts will be enacted, which cannot be considered freedom

Freedom of business. According to the rating of The Heritage Foundation and The Wall Street Journal the evaluation of investment freedom amounts 15 with the global index of 55. Before Maidan this index was already low, amounting to 17. Promises remained empty. Ukraine remains a country of no interest for international investments, as they can clearly see that in spite of talking about fight with corruption, promises of removal of state monopoly, nothing is done in reality. Everything remains the same or even worse.

Aleksandr Okhrimenco, economy expert, Kiev