How Ukraine Became a Market Economy and Democracy

Denied membership to the European Union due in part to its continued struggle for legitimacy in the international community, Ukraine remains a country in transition. In this clear, accessible account of Ukraine's political and economic metamorphosis, noted expert on the postcommunist transformation Anders Aslund provides a chronological guide to the evolution of a country known for its diverse regions. Who propelled its independence, organized successive reforms, and shaped the current structure of the country today? The author identifies the protagonists and leaders who have formed the country's regimes in this fast-paced drama and analyzes how constant governmental transitions have affected the electoral process and achievement of a parliamentary-based system. In response to Ukraine's independence from Russia, a number of measures were enforced to instill economic stability and reverse high levels of inflation. This volume examines the specific facets of political and economic reform, including currency reform, privatization, deregulation, and the gas trade. In addition, Aslund analyzes the level of societal reform, addresses the incidence of crime, and measures the impact of law enforcement. Finally, this volume discusses Ukraine's integration in the international organizational hierarchy, particularly with respect to NATO and the WTO. The author presents an easy-to-read analysis that traces the country's transformation into a market economy and democracy and assesses the ultimate repercussions of this gradual political rebirth on Ukraine's governmental and societal architecture.


Contents:
How Ukraine Became a Market Economy and Democracy (2009)
Front Cover
Table of Contents
Preface
Chapter 01
Ch 1 Ukraine: Nation, History, and Soviet Reforms
A Proud but Tragic National Legacy
Society Wakes Up under Gorbachev
Impact of Soviet Economic Reforms and Crisis
Chapter 02
Ch 2 Leonid Kravchuk: Nation-Building and Hyperinflation, 1991–94
National Independence
Kravchuk as President
Liberation from Russia
Ukraine’s Denuclearization
The Grand Bargain of Ukraine’s New Political Forces
Nationalist Economic Policy with Little Thought
Prime Minister Kuchma: Aborted Reform
Prime Minister Zviahilskiy: Unabashed Rent Seeking
Hyperinflation and Economic Disaster
Rent Seeking: Rationale of Ukraine’s Early Economic Policy
Crimea: Threat of Secession
Kravchuk: Father of the Nation
Chapter 03
Ch 3 Leonid Kuchma’s Reforms, 1994–96
Parliamentary Elections, Spring 1994
Presidential Elections, June–July 1994
Kuchma Proclaims Radical Economic Reforms
Financial Stabilization and Liberalization
Currency Reform, September 1996
Privatization Takes Off
Adoption of the New Constitution, June 1996
Economic Policy Reversal
Limited but Effective International Assistance
Kuchma Saved His Country
Chapter 04
Ch 4 Kuchma’s Stagnation, 1996–99
Lazarenko’s Excesses
Pynzenyk’s Abortive Program for Economic Growth
Pustovoitenko: Passive Loyalist
Kuchma’s Foreign Policy
Intricacies of the Gas Trade
Rise of the Oligarchs
Crime and Law Enforcement
Demise of Media Freedom
Parliamentary Elections, March 1998
Kuchma’s Reelection, October–November 1999
Underreform Trap
Chapter 05
Ch 5 Viktor Yushchenko’s Reforms, 2000
On the Verge of Default
Oligarchs Opt for a Reform Government
Government Reform
Financial Cleansing and the Defeat of Barter
Energy Trade Cleaned Up
Agricultural Land Privatization
Privatization of Large Enterprises
Deregulation of Small Firms and Anticorruption Measures
The Gongadze Murder and “Kuchmagate”
Yushchenko’s Ouster
A Severe Break in the Rent-Seeking Society
Chapter 06
Ch 6 Competitive Oligarchy with High Growth, 2001–04
The Kinakh Government
Organization of a Strong Center-Right Opposition
The March 2002 Parliamentary Elections
The Yanukovych Government
Controversial Privatization of Kryvorizhstal
Economic Boom
Putin’s Policy on Ukraine: Gas Trade, Common Economic Space, and the Tuzla Incident
NATO and the European Union’s European Neighborhood Policy
Chapter 07
Ch 7 The Orange Revolution, 2004
Options of the Old Regime
Mobilization of the Opposition and Civil Society
The Regime: Mobilized but Divided
Russia’s Role
The Election Campaign: Yushchenko versus Yanukovych
The Presidential Elections
The Orange Revolution
The Settlement
Assessment of the Orange Revolution
Chapter 08
Ch 8 Aftermath of the Orange Revolution, 2005–08
Formation of an Orange Coalition
Ukraine Turns to Europe
The Tymoshenko Government: Reprivatization
The Yekhanurov Government: Return to Order
Russia Disrupts Gas Deliveries: Higher Prices
Parliamentary Elections, March 2006
The Second Yanukovych Government: Oligarchy Restored
Dissolution of Parliament and New Parliamentary Elections, September 2007
The Second Tymoshenko Government: Stalemate
WTO Accession, May 2008
NATO Controversies and Russia’s War in Georgia
Renewed Financial Crisis and IMF Agreement
Yushchenko Insists on New Elections
Limited Social Achievements
Chapter 09
Ch 9 Lessons from Ukraine’sTransformation
Constitutional Evolution and Shortcomings
Why Ukraine’s Capitalist Transformation Succeeded
Role of the IMF
Impact of the Oligarchs
Will Ukraine’s Democracy Survive?
European Economic Convergence
Putin’s Alienation: Ukraine Turning to the West