Many success of the country’s economy and its growth.

Many academics and commentators emphasize or believe that
the geographical area and the cultures are also the reasons for the countries
poverty, it’s true. But a country like Ukraine is in poverty due to bad
governance of the political parties and the corrupted society. The power struggles led to political and economic
instability.  According to Anna Babinets,
one of the founders of YanukovychLeaks, says that “Weak institutions, low
morale, and an underdeveloped sense of public service have made everyone from
judges to traffic police liable to corruption over Ukraine’s entire post-Soviet
history”. Unemployment, poverty, and social injustice provoke protests in the
society and are utilized by external and internal forces for socio-economic and
political destabilization in Ukraine. The political power of Ukraine has been
narrowly concentrated. The funds that are supposed to be invested on public
sector are used to fulfill luxury life of the governor of the country. The
political and the economic institutions play a vast role on the success of the
country’s economy and its growth. 

 

Corruption is perceived as Ukraine’s biggest social and
economic problem. It harms economic growth, undermines society’s trust in
public institutions and public services and, therefore, undermines the very
foundations of the Ukrainian state and political system. In year 2014 the
Ukraine’s corruption was inevitable with burdensome tax rules, low salaries for
state employees, complicated and expensive customs regulations, a non-transparent
system of rent payment and etc… Initially the political parties and a
parliament must be reformed. The young and well educated Ukrainians must be
elected to the parliament to stop the corrupting in the country and rebuild the
Ukraine again. There should be new public administrations, Judiciary and law
enforcement. A formation of traffic police and new tax enforcement should be
taken place. A simplified tax should be implemented to improve the business and
investment climate and reduce sources of corruption. A trade reorientation
should be done. The trade agreement should be signed to increase the imports
and exports of Ukraine. In parallel with the balance-of-payments and currency
crises, Ukraine has suffered from a systemic banking crisis. With the help of
IMF and the World Bank the banking sector must be restructured.

 

Acemoglu and Robinson has given example of many countries
that have turn around their economies from poverty to prosperity. The economic
growth and prosperity are associated with inclusive and political institutions.
Without any doubt the process of reforming the Ukrainian economy is possible
with new political government and other above stated changes in effect.