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No money. How to hold?

29 July  14: 29

Problems with payment of pensions would arise, proceeding from the most skew in structure of the population of Ukraine. About it in the comment “2000” the academician, Vice-President of Academy of economic Sciences of Ukraine Anatolii Peshko told.

“Problems with the payment of pensions were the result of systemic problems in the work of the Pension Fund. There are several reasons for this. The first is the solidary system itself. It works well in a well-functioning economy with decent incomes. In our country, due to the fall in real incomes of citizens, millions of young people who previously paid taxes and social contributions, go to work abroad. And there are many, judging by the fact that a year in Ukraine “zarobitchane” transfer $ 9 billion. (but this is only part of the funds). There is a misalignment between the number of incapacitated and able-bodied population, which would have to ensure the payment of pensions.”

External factors also play a role.

“The second reason is the fall of the real economy as a consequence of the adventurous policy of the authorities. Take, for example, the increase in energy prices, which causes an increase in the cost of production, a drop in income of enterprises. The situation on the foreign market, which was favorable before this year, especially for metallurgists, has now deteriorated-for both farmers and metallurgists. The United States began to actively promote its products in the world markets, as a result — the demand for Ukrainian products fell.

Risky, weather-dependent agricultural production has received blows from the government, which introduced unfavorable taxation schemes for farmers. First of all, because of the outright crime of the authorities, which took away the preferential tax system. A tax has been imposed on products produced by villagers, even on the purchase of consumables and materials for agricultural production (such as fertilizers, herbicides, insecticides), machinery and spare parts. This was the reason for the beginning of the collapse of the agricultural sector. As a result — the fall in yield, foreign exchange earnings from the sale of grain, demand for agricultural machinery, fertilizers and pesticides.”

Monetary errors are superimposed on the nature of the raw material economy.

“The monetary policy of the country’s leadership would have been correct if it had been 4 years ago. An increase in the interest rate restrains inflation, but there is a shortage of money. No one will take loans at 25%. For farmers it is generally unacceptable – in the civilized world interest on credit above 2.5% will not find. Moreover, agriculture is subsidized in developed countries. Thus, one Germany has allocated for its producers about 36 billion euros (in addition to EU subsidies) — why is the leader of agricultural production in Europe, exporting 80% of products. And we are introducing new taxes for farmers. For the budget, this is temporarily good, but strategically leads to a decrease in production efficiency — and a drop in deductions. In industry the same situation. War consumes a significant amount of money, but with a reasonable economic policy such influence would not be.

A huge hole was formed in the budget for the first half of the year. A shortfall of about 8 billion UAH. There was a drop in production: 30% in agriculture, 15-20% in industry. And it is a disaster not only for the Pension Fund — it is a disaster for the country.

In the long term — delays not only with pensions, but also with salaries. Against this background, there is a fall of the national currency.

At the heart of all — the fall of real production and raw material nature of our economy.

Yes, the us measures to strengthen its own currency are reflected throughout the world. But they are particularly acute in countries with a weak, raw material economy.”


Academy of economic Sciences of Ukraine (1993, Donetsk) — a public organization uniting leading scientists, economists, business leaders, practitioners, politicians and others through vocational and academic interests. Publishes “Bulletin of economic science of Ukraine”. Through scientific publications performs the statutory task-to promptly inform the public administration about the economic situation in the state and make recommendations for its improvement.

Editor’s note: This material is presented in the framework of the joint project “Free Press” and the Ukrainian newspaper “2000”. Today, the weekly “2000” remains one of the few objective Ukrainian media.