We still have a chance to save Ukraine and its economy

We still have a chance to save Ukraine and its economy

The stabilization of the economic situation in Ukraine requires, of course, a solution to a number of political issues: the cessation of any military action in the south-east of the country and the resolution of the conflict exclusively by political means. The next stage is a series of economic transformations that need to be implemented quickly and in full. This implies the introduction of a new monetary and financial policy of the state. Namely, the introduction of the concept of “critical import” (the dollar’s rate on critical imports will be tightly fixed at a stable level of 21 hryvnia for 1 dollar), a rigorous definition of the list of goods related to critical imports, in particular, equipment for the oil and gas industry, equipment for the use of alternative energy sources. In the second place, medicines without analogues in Ukrainian pharmacy are necessary for vital functions of the organism (insulin, preparations for hemodialysis, preparations necessary for chemo-therapy of cancer patients, modern and more effective antibiotics, etc.), necessary goods for agricultural production (herbicides, insecticides, fungicides and spare parts for agricultural machinery) (not to import ready-made agricultural machinery, but to contribute to the construction of first in Ukraine initially “open-cast” production, and according to im full plants for manufacturing agricultural machinery).

All other consumer goods that are not critical to the livelihoods of people and the economy (ie consumer goods: automobiles, mobile phones, computers, clothing, food) of imported production should be procured at auctions held by the National Bank, where the dollar is artificially not limited.

1. The Government and the President should introduce direct, policy-oriented state regulation of the monetary and financial market of Ukraine. This will allow for a positive foreign trade balance, reduce inflationary pressure on the hryvnia, and promote the development of domestic production of goods and services, which will be the first impetus to the development of the domestic economy.

2. It is necessary to establish economic relations with all countries of the customs union, including Russia.

3. To promote the development of the most promising branches of the Ukrainian economy to date, it is the agricultural and food industry (for this purpose, it is necessary to establish duties that reduce the import of meat and meat products and the import of milk and dairy products in order to stimulate livestock production in Ukraine , which will contribute to the development of the Ukrainian meat and dairy industry, which will lead to the restoration and the appearance of new plants, will increase the quantity and quality assortment of food products, and for the budget will increase the base of pods taxing, providing new jobs, increasing employment, reducing unemployment). The development of the agro-industrial complex will result in the development of agricultural and food machine-building, which, in turn, will increase the demand for metallurgical, coke-making, mining and concentrating plants.

4. The next priority for the development of the Ukrainian economy is aircraft and rocket building. The President and the Government of Ukraine are now obliged to find sales markets and partners for joint production in the above-mentioned sphere. At the same time, special attention should be paid to restoring ties with the countries of the customs union, including with Russia, which accounted for about 60% of all machine-building products produced in Ukraine, as well as the development of relations with India and China.

5. In the development of relations between Ukraine and the European Union, ask the EU countries to confirm their good intentions with real orders for agro-industrial, aircraft and machine-building products of Ukraine.

6. To prohibit governments from using loans received for the purchase of imported goods (which, in essence, is a re-lending of foreign economic systems and oppression of the economy of their country). Develop government programs, according to which, credit resources are directed towards lending to domestic production.

7. A new program of infrastructure development in Ukraine (ie, investing in road construction, development of railways, sea and river shipping, development of new information and communication systems). The development of infrastructure projects will contribute to the creation of a material basis for the development of Ukraine’s economy, in parallel it will provide solvent demand in these areas. The appearance of additional money from workers employed in all these infrastructure projects will increase the solvent demand for products of the agro-industrial complex, products of light industry and the industry of consumer goods, first of all, domestic production, as prices for consumer goods of imported production will be deliberately and significantly we are inflated through a system of currency auctions. In this way, we will be able to create, in fact, a closed circle in which any money that has fallen into the Ukrainian economy (be it loans, investments, etc.) will remain in the economy of the country when a gradual increase in solvent demand the population will contribute to the growth of the domestic economy, and the export of competitive Ukrainian products will bring the currency into the state treasury.

Public figure, Academician
and Vice-President of the Academy of Economic Sciences of Ukraine

Anatoly Peshko

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