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Economy in Transition: The Ukraine
Seven years into its life as an independent state, Ukraine seems to be lagging behind other post-Soviet countries in economic development. News stories describing living conditions and political infrastructure are indicative of an economy slow to change. Data from the World Bank help identify relationships between economic freedom and economic growth. Read news accounts and fill in the chart below to help identify a course of action for the Ukrainians.
Visit the World Bank web site in the Ukraine and read "Kyiv Public Buildings Lead Ukraine's Push for Energy Conservation ."
- What allowed Ukranians to ignore energy consumption during the Soviet Era.
- What is being done in public buildings to improve energy efficiency?
- How is the central heating system like the economic system of central planning and control?
To learn more about how Ukraine is facing economic reform, go to the Radio Free Europe/Radio Liberty site and read "Ukraine's Lack of Direction Jeopardizes Reform." (www.infoukes.com/rfe-ukraine/1998/1130.html )
- What are the characteristics of the Ukrainian post-Soviet economy?
- How did the Ukrainian government use incentives to enforce tax collection?
- What are the characteristics of the Poland economy?
- How did Poland have to pay for its success?
Click here to learn about Economic Liberalization.
Initially, nations that allowed more economic freedom experienced decline (contraction) when more economically liberal policies were adopted. Those that allowed more economic freedom recovered more quickly than those that allowed less economic freedom. Why was this the case?
- Why might liberalization foster economic growth?
- If you were economic advisor to the Ukrainian government, what would you recommend?
