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Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

Government Economic Block Needs Changing 

17 November, 1998 - 00:00

On November 13, precisely one month passed after the discovery of a new
panacea for all Ukraine's troubles, rotation. As we know, no rotation has
taken place and the topic lost its relevance. Those who wanted to use it
to get political dividends, got them and became quiet, and those whom such
rotation would threaten the loss of their portfolios, forgot about it.
On the other hand, it will not be long before the Verkhovna Rada considers
the 1999 budget and government action program, and then the rotation issue
will come back. A month ago I promulgated our position (for rotation and
against government's dismissal), without naming the Cabinet members whom
I considered candidates for dismissal. Now I am in position to say that
first of all we are for the dismissal of First Deputy Premier Anatoly Holubchenko
and Deputy Premier for the Economy Serhiy Tyhypko. Why?

First and foremost, we want to strengthen the weakest and, at the same
time, the most important government block, the economic one. In its current
shape the government will not be able to achieve any positive changes in
the economy, to say nothing of implementing such radical steps as its "anti-crisis
government measures". While their effectiveness or ineffectiveness can
be discussed quite long, the main problem is different: currently there
are no experts in the government who could implement such measures in a
rapid and effective way. To exemplify this, we can refer to the period
from August to September, when government failed either to predict or correctly
assess the consequences of the Russian crisis.

What is our First Deputy Premier responsible for? Industry. But almost
all industrial enterprises are idle, and for the last year I haven't seen
any solution by Anatoly Holubchenko which would really be lobbying the
interests of industrialists and which would be successfully done.

Second question: why do we fulfill virtually everything the IMF demands?
Is it because we lack our own firm economic policy, for which Serhiy Tyhypko
should be responsible? And can a person, who assuredly declares that the
government plans to receive $3 billion for 30% in Ukrtelekom, be responsible
for state economic policy? Of course, one can agree that compared to other
enterprises Ukrtelekom looks nicer, but according to international standards
it is still not an attractive investment object. Add to this all the risks
a potential investor would have to face in Ukraine, and it becomes clear
that $3 billion is unrealistic. Even Poland, which has a much better investment
climate and economy, values its Telecomunikacji Polskiej SA at half this
price. And besides that, why does Tyhypko value a 1% share in Ukrtelekom
at precisely $100 million (instead of $99 or $101 million)? I understand
that it is easier to calculate this way, but what kind of effectiveness
of government's actions can be discussed if even a Deputy Premier thinks
in conditional figures?

However, rotation at the top alone cannot cure the economy. It should
be followed by rotation at the bottom. This concerns strategic Ukrainian
enterprises which will be privatized or will increase the share of their
privatization in 1999.

When privatizing industrial giants whose yield is measured in percents
of the GDP, we should have at least a 90%, if not 100% certainty that the
managers of those enterprises will be able to secure their development.

But who will risk saying that he/she is sure about the future of, again,
Ukrtelekom, if not long ago its managers voluntarily handed over its most
profitable activities to other companies, namely, UMC and Utel? Such enterprises
as Ukrtelekom should be managed by professionals who know state of the
art management and how under conditions of severe competition to raise
the market value of their stock. Which cannot be said about almost half
such giants. That is why Ukrtelekom General Director Leonid Netudykhata
and Head of the State Joint Stock Company Khlib Ukrainy Board of Directors
Hryhory Omelianenko are on a list of industrialists whose dismissal we
demand.

We can offer a substitute. I do not want to disclose the candidates'
names now (so that they not be exposed to a barrage of criticism), but
I can tell you that they are well-known professionals whose party membership
in this case should not be regarded as a key factor.

The issue of rotation is only a matter of time. This opinion is shared
by virtually all deputies in our faction and by many representatives in
other parliamentary groups. If our position is ignored, we are ready to
address an official statement to the Prime Minister.

COMMENTARY

Thus, after some slackening caused by digesting the idea of possible
government dismissal, the subject of Cabinet changes has become popular
again. It is interesting that the attack was launched by one of the "quietest"
factions, the Greens, which calls for specific sacrifices, while Socialist
Oleksandr Moroz, whose party was most audible in demanding the Cabinet's
fall, said in an interview with Kievskie Vedomosti that "Parliament's
not supporting the government's dismissal is more a positive factor than
not." Incidentally, the collection of signatures to hold a referendum on
impeachment has also slackened somewhat. For the sake of justice, it should
be recognized, that the Greens' attack on the government is a sort of advertising,
because Tyhypko's resignation, on which the party insists, is to all appearances
a dead issue. In his interview with Fakty i kommentarii Tyhypko
said, "nobody will be able to stay in a government in such shape forever.
There are some people who cling to their offices, and I don't want one
of them." And one last thing: during all that business about government
dismissal, most discussions were about Communist participation in a new
government. The other day Deputy Speaker Martyniuk said Symonenko did not
want to become Prime Minister because the post was not offered him by the
President. Petro Mykolaiovych [Symonenko] himself said that first the President
should "change his policy", then the CPU can participate in the government.
Iryna HAVRYLOVA, The Day asked some of the People's Deputies
to comment on this interesting situation.

  Heorhy KRIUCHKOV
(CPU):


"The Communists are ready even today to assume responsibility for the
government, provided they are allowed to propose and implement their program.
Should the President agree to an open dialogue with CPU leaders, we could
come to terms, but so far I have not heard of such negotiations. I do not
have enough information to say that Leonid Kuchma has matured to change
his current course: one can hear the most contradictory things from the
President..."

  Oleksandr YEMETS
(NDP):


"Symonenko is incapable of heading the government and will never choose
to by himself, because he is aware only too well of his incapability. Once
the Communist leader could not even recall who was listed third in his
party list last election, and you're talking about his heading the Cabinet!
Even if such situation arose where the Left became a majority and the Communists
would have the possibility to form a government, then they would, most
likely, offer a seat in it, for instance, to (former Communist leader)
Hurenko."

 

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