Whoever Becomes President Of the US, Interest in Ukraine Grow, Steven Pifer Is Convinced
“What are your impressions, not only as a diplomat but also as a person, about the successes and failures you had during your tenure here?”
“I think our relationships, both in political and security terms, have matured during these years. We are now solving the problems we never addressed four or five years ago. I can say I mean the following by strategic partnership: it is the ability to discuss the problems and issues we face. The US-Ukraine dialogue has changed fundamentally for the better over the past five years.
“The greatest disappointment is that our economic relations still remain underdeveloped. I mean both bilateral trade and investments. Although the US still is the largest investor in the Ukrainian economy, this does not correspond to Ukraine’s potential. This reflects the fact that, although Ukraine has already made some headway in reforms, investors are still dubious and want to see more transformations in Ukraine. I can assure you I don’t have a button in my office, by pushing which I could influence investors’ attitudes.”
“How would you assess the background against which your mission is drawing to a close? Or is this not part of your disappointments?”
“If you mean the article published in Fakty, I never expected private correspondence to be leaked to the press. I think that article tried to somewhat sensationalize. Moreover, the facts the article mentions are distorted.
“After all, dialogue among donor countries, international financial institutions, and Ukraine is normal practice. I would not like to overrate the importance of the article. I don’t think it will impair the development of our relations.”
“You say such a dialogue is normal practice. Earlier, you said donor countries and financial institutions have the right to give advice. So what do you think is now the ratio between the amount of advice and of the programs, loans, and aid packages Ukraine has now received?”
“I am not sure I get the point. In general, bilateral programs are supposed to be aimed at creating the institutions of a market economy in Ukraine. For instance, there was a great deal of advice on establishing the securities market. We gave advice about small-business development and helped to set up the corresponding centers. We also rendered assistance, by request of the Ukrainian side, in macroeconomic matters and budget reform. Our advisors work in the Cabinet of Ministers, helping to make agriculture more open and prosperous and also on energy sector reforms. We cooperated with the government and Credit Suisse First Boston to get regional power-supply agencies prepared for privatization and to attract a strategic investor.
“International financial organizations draw up their programs under terms and conditions agreed upon with the Ukrainian side.
“As to the debate between the government and the IMF over EFF resumption, it resembles, in my opinion, the debate over which came first, the chicken or the egg. Ukraine says: ‘Give us the money and programs, and we will carry out reforms.’ The IMF says: ‘First reforms, then money.’ Debates of this kind only keep the programs in check. This issue should be looked into by President Kuchma and Prime Minister Yushchenko. This problem arose because there was a feeling in previous years that Ukraine was not carrying out reforms fast enough and was not fulfilling its commitments. So now the international financial institutions are insisting on more vigorous reform.
“I hope the IMF and Ukraine will find ways for mutual understanding on the minimal conditions to be observed.”
“Can we expect any changes in the US Ukrainian policies after the new administration enters the White House? What did an advisor of candidate George Bush mean when he said Ukraine had not been given due attention before?”
“Whoever becomes president, the relations with Ukraine will develop steadily. For the Americans are interested in a strong market economy and viable democracy taking root in Ukraine. It is this kind of Ukraine that will be able to make a sizable contribution to strengthening European stability and security, as well as security in the Balkans, Transnistria, and the Caucasus.
“In all probability, the example you cited shows that the US will be paying more attention to Ukraine in the future: this will serve US interests and mirrors our expectations.”
“You spoken very much about freedom of the press in Ukraine. Do you think the US Embassy’s grant to Ukrayinska pravda will be enough to improve the situation?”
“The grant alone will not, of course. But our grant aims to signal two things. First, we thus provide our support for the media that were open to discuss the problems avoided by others. Secondly, we thus expressed our concern and hope that Heorhy Gongadze will soon be found and it will be clear what had happened to him.
“The Ukrainian press is in a complicated situation. We can state there are opportunities for expressing a wide range of views. But the media are also under pressure from various forces. Yet, the press situation in Ukraine is not the worst among the countries in this part of the world.
“But Ukraine has undertaken high pledges: it strives to integrate with Europe. Thus, it has to tell the EU it meets the high standards in this field.”
“What are your sensations on the eve of your departure?”
“The sensation of a mission done. I hope I have made some contribution to the development of Ukrainian-American relations. But I will feel very sad, getting on the airplane. I will greatly miss your country and the people I have met here.”
