How to restore the prosperous life of the Ukrainian people?

How to restore the prosperous life of the Ukrainian people?

Restoring the prosperous life of the Ukrainian people directly depends on the revival of the Ukrainian economy. In order to revive our country, at the first stage it is necessary to conduct a number of political reforms (elections are to be held on a pro-rata basis with open party lists: only people who do not have a criminal record, except those convicted for political convictions, less than 40 years with one or more higher educations, only internationalists on convictions, with experience of effective managerial work at state-owned and private enterprises throughout enee the last 10 years). It is necessary to re-elect the Supreme Soviet and the President.

On second stage, I hope honest, qualified and responsible leadership of the country will have to ensure a series of transformations in the country’s economy: firstly, in the financial and banking sector of Ukraine.
– It is necessary to fix the exchange rate of the national currency.
– Increase the share of state banks in the financial market to 50% and at the expense of honest, qualified and authoritative leadership of the country and the National Bank, to create people’s confidence and confidence in the safety of investing their funds in state banks that must ensure 100% safety of both deposits themselves, and the purchasing power of their money, as well as sufficient interest yield on deposits.
– You can introduce new types of funds depositing in the form of purchase of conditional precious metals that allow you to fix the price of your conditional gold, for example, at its market value, and when refunding deposits, get the money in proportion to the market value of the precious metal at the time of the deposit refund, plus obtaining guaranteed interest that should not be subject to any taxes.

It is with the help of the National Bank’s instruments that it is necessary to limit the sale of currency for the purchase of non-critical imports and to ensure a stable exchange rate for the purchase of goods and technologies for critical imports (vital drugs, new technologies, equipment, energy).

At the third stage, direct directive and mediated state regulation of the economy will be implemented, which should stimulate interest in investing both domestic and foreign investors’ resources in the real sector of the Ukrainian economy. This implies the need to reduce taxes on dividends and on the repatriation of capital to 5%, ensuring 100% protection of the invested money from any raider actions by bandits, or any state power structures (DFS, MIF, SBU, prosecutor’s office, etc.) . That is, at the legislative level, all interference with the work of industrial and agrarian enterprises, especially those that conduct expanded reproduction, either through reinvestment of own funds, or through the attraction of domestic and foreign loans (especially long-term ones – 10-15 years), or by attracting foreign investors. It is also extremely important to reduce taxes on workers’ wages, at least to the level of 15% in the first stage. It is also necessary to ensure the return of VAT in the case of the export of Ukrainian goods, moreover, this system should work in an automated mode. In addition, the new Parliament, the Government and the President should develop:
– clearly prescribed and calculated on the basis of an objective financial and economic situation in the country;
– Strategic development plan for the next 5, and then 10, 15, 20 years with the definition of specific macroeconomic indicators for the growth of individual industries, agriculture and other sectors of the economic complex of our country. That is, strategic planning in the main sectors of the economy, such as: energy, heavy industry, agriculture, is an indispensable condition for a non-crisis, non-wave, but straightforward, progressive growth of the economy of any state (look at the example of China).

At the fourth stage, it is necessary to adjust the imbalance between the percentage of producer income and the entire chain of intermediary companies (freight forwarders, trade, etc.). Producers’ income can not be limited, but intermediary companies should have limited mark-ups on goods and services for the population, especially for essential goods, for example, for food products. The mark-up from the producer to the buyer should not exceed more than 15% in general, in the pharmaceutical industry, the mark-up from the manufacturer (or state importer) should not exceed 5% and only in the production of consumer goods (household appliances, computers, telephones, cars, etc.) mark-up can not be limited vatsya, if it is not detrimental to the relevant domestic producers.

At the fifth stage, state regulation of export-import transactions is necessary, through directive and indirect – through the system of currency targeting, – introduction of excise taxes on imports (restrict imports to 15% of GDP), especially one that inhibits production growth key domestic products, etc., allowing only critical imports. It is necessary to stimulate domestic production, mainly to increase domestic consumption, as well as for export growth, but no more than 35% of GDP). For example, in Ukraine the livestock sector has been virtually destroyed. Namely, cattle, both dairy and meat directions. In 1986, the number of heads of cattle was 46 million 800 thousand heads, of which 35 million were dairy cattle. To date, in Ukraine, the total number of cattle, both dairy and meat, is only about 1.5 million. This means that already today we import dairy products from Poland and other countries, and on the shelves of shops Polish oil and cheeses are cheaper than Ukrainian (at the same time, of equal quality).

To correct the situation, it is urgent to introduce excises on all dairy products, cattle meat, pork, at such a level that import prices are at least 20% higher than the cost of similar Ukrainian products. This will save the industry, and when returning to agricultural producers those minimum benefits that they had on the return of VAT, which is used for production. This will stimulate the growth of domestic livestock, both cattle and pigs, as well as further development of food processing industries for processing meat and dairy products. This will lead to the receipt of goods with high added value, which will increase the incomes of domestic producers, give new jobs, provide decent wages to the Ukrainian people and stimulate internally solvent consumption. Such transformations ultimately stimulate the restoration of Ukrainian agricultural machinery, food machine building, the restoration of the work of chemical enterprises for the production of mineral fertilizers, the creation of domestic producers of plant protection products, the development of domestic seed production and breeding livestock!

That’s how stimulating the development of the most important industry in today’s Ukraine – the agrarian one – can affect the revival of the entire Ukrainian economy. But, in order to implement all these plans, it is necessary to prohibit the sale of land for the next 10 years at least (!) At the legislative level. Otherwise, we will lose the main wealth of our people, and 25% of the world’s chernozem reserves, through a system of virtuoso legal fraud, and European Masons who rob the whole world through sale, printed by themselves dollars and euros. If this happens, it will not only be the loss of Ukrainian agricultural production, it will be the loss of Ukrainian statehood as a whole!

At the sixth place, it is necessary to carry out real reforms that create legislative and objective material conditions that eliminate the ground for corruption in the system of state customs bodies and DFS, corruption in the system of former state, and now half of the private largest monopolies, namely, it is necessary to win corruption in the system of rail transport, seaports and sea transport, air and trucking freight and passenger traffic. Also it is necessary to achieve effective work of ant monopoly committee to stop corruption by foreign agroeksporterov, domestic and foreign mobile operators and stationary communication, Ukravtodor system.

Seventh: We need to carefully approach the tax reform for the return of benefits, first of all, to small and medium-sized entrepreneurs, especially in the processing of agro-industrial products. This will help increase the number of enterprises-producers, increase employment, increase incomes of citizens, increase purchasing power and, again, stimulate domestic production.

Eighth: it is necessary to completely abandon cooperation with the IMF and other international financial institutions that require Ukraine to sell off its main natural resources for nothing: forests, land and other minerals. Cooperation with any financial institutions is possible only on terms of profitability for Ukraine. Basically, the financing can be obtained on the domestic market in amounts exceeding the Marshal’s plan if the international financial institutions do not want to provide us with financial assistance, not by a drip method, but by real global financing for reforming and re-equipping the obsolete material and technical base of Ukrainian industrial enterprises.

Ninth: the most important question underlying the economic and social existence of Ukraine is the energy issue, where it is also necessary to think about the creation of economic tax and legal norms that would destroy the ground for corruption and give impetus to development of the energy industry of Ukraine. First of all, it is necessary to stop the lawlessness in the system of Naftogaz of Ukraine, in the Ukrtransgaz system, in the Ukrhazdobycha system, and also in the half state company Ukrnafta. In addition to the reorganization and controlled management of the oil and gas production system, Ukraine urgently needs to address the issues of ensuring the safe operation of nuclear power generating enterprises (NPPs), stopping attempts to “grab” in this sector, and restoring closed-cycle nuclear fuel production for our nuclear power plants at state-owned enterprises. In order to diversify energy resources, it is necessary to develop more actively alternative energy sources (wind generators, solar batteries, it is possible to use underground and aboveground coal combustion to produce natural gas, it is possible to develop energy production by using some microorganisms, for example algae such as Daniela in lakes, such as Sivash and etc.). Perhaps, the increase in the efficiency of thermal power plants due to the use of the technology of plasma combustion of water-coal mixture with the use of both anthracite and brown coal, whose reserves in Ukraine are very large. In this combustion, it is possible to burn the water itself, which in the state of plasma is divided into hydrogen and oxygen.

Tenth: It is extremely important for Ukraine to restore friendly trade and economic relations with the CIS countries, first of all, with Russia, Belarus, Kazakhstan, Azerbaijan and others. This is due to the fact that many Ukrainian enterprises are tightly integrated into the former Soviet economy and the destruction of old ties causes huge losses to Ukrainian enterprises, the inadequate receipt of more than two-thirds of the proceeds from the former Ukrainian export, which is about 60-80 billion dollars. You can not lose traditional sales markets, the more so having such a huge capacity.

In parallel, we are not prevented from developing economic relations with Europe, Asia, the Middle East and other countries, but there the markets are much more severe and competitively heavy. For a more successful solution of economic issues, the state must take care of social protection of the population. To do this, the new leadership of the country is obliged to implement sound reforms in the system of medical services to the population, in the system of secondary and higher education, in the pension system for the elderly, disabled people and other socially vulnerable groups of the population.

It is necessary to comply with the requirements of the Constitution of Ukraine, under which the state budget must provide all the people of Ukraine with guaranteed, free qualified medical care, the same education and the same free and full-fledged protection of all socially unprotected people living in Ukraine. Only with this condition will people believe in the new state leadership and will take an active part in the economic and social transformation of our country.

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

Anatoly Peshko

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