Vitaly Portnikov: Ukraine Desperately Needs Economic Reforms

Portnikov explained that the desperately needed changes in Ukraine can only happen if the government starts to fight corruption and creates functioning mechanisms for the implementation of the freedom of speech. The country also needs a strong civil society who would demand real changes from decision-makers.

According to Portnikov, Yushchenko and Yanukovych have much fewer ideological differences than people would like to think. The main difference is that Yanukovych has quickly started consolidating power. Portnikov considered especially dangerous the ongoing politicization of the judicial system and the decreasing importance of the parliament. He emphasized that parliamentary democracy cannot work if the president is concurrently a party leader.

Commenting on Ukraine’s relations with Russia, Portnikov stressed that the political dispute over the Black Sea Fleet contract, which isn’t particularly profitable for neither parties, has successfully covered real problems, such as high public spending, the need to modernize industry, and the enormous share of shadow economy. “Ukrainian politicians are like actors, playing a show to the public and making decisions behind closed curtains,” Portnikov said.

Evhen Tsybulenko, another participant in Monday’s discussion and one of the activists of the Ukrainian community in Estonia, warned that the public disappointment in democratically elected Yushchenko has turned into a disappointment in democracy as such and created a desire for hard-line politics. Portnikov agreed that one of Ukraine’s most pressing problems is the widespread Soviet mentality, allowing a selected group to govern in their own interest while others just don’t care. “Any change in Ukraine requires people to overcome their apathy and want to participate in society,” he said.