The level of the freedom of economy in Ukraine has abruptly deteriorated in 2000
12.12.2001
The journal ’The Wall Street’ has published the results of the study organized by the foundation ’Heritage’ (USA). In the annual rating of the economic freedom Ukraine appeared on 133rd place, having lowered by 17 points compared to the last year. According to Ariel Cohen, an expert of the foundation, the fiscal pressure and the interference of the government in the economic control increased, the government uses obscure standards on giving licenses on import, the policy of trade also worsened.
The results of the study confirm that there exists a direct relation between the level of economic freedom and the level of income per capita. According to the data of the world bank, the income per capita in ’unfree’ and ’repressed’ economies in 1998 made about $2800, whereas in ’prevalently free’ economies it was four times larger, $11054, and in free economies it was two more times larger, $21200.
The experts also remarked that the indexes deteriorated just during the period of post-election ’window of opportunities’ and the activity of the allegedly most liberal government. But the image of a reformer and the actual processes in economy are different things, as the Ukrainian experience witnesses.
Our informant
The results of the study confirm that there exists a direct relation between the level of economic freedom and the level of income per capita. According to the data of the world bank, the income per capita in ’unfree’ and ’repressed’ economies in 1998 made about $2800, whereas in ’prevalently free’ economies it was four times larger, $11054, and in free economies it was two more times larger, $21200.
The experts also remarked that the indexes deteriorated just during the period of post-election ’window of opportunities’ and the activity of the allegedly most liberal government. But the image of a reformer and the actual processes in economy are different things, as the Ukrainian experience witnesses.
Our informant