"Ukrainian capitalism" is a giant "corruption pyramid" - Paskhaver

28 April 2017, 15:58 | Economy
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The socio-economic model that has developed in Ukraine is a network of oligarchic monopolies in which owners receive their monopoly rents under the guise of politicians and bureaucrats. About this in his article for ZN. UA writes economist Alexander Paskhaver.

"Our capitalism" is a network of monopolies in which proprietors, in alliance and under the cover of bureaucracy and politics, receive their monopoly rents, sharing their "roof". 10-15 people at the top are the top of a giant corruption pyramid, consisting of hundreds of thousands of such monopoly entities. This is a social matrix, the fabric of our life, "the author points out..

According to the economist, everyone is involved in this system, including ordinary citizens, who are forced to implement or protect their rights through corruption.

Paskhaver, however, notes that the stability of this system is provided by a number of inherent properties. First, the system reproduces the negative selection of elites, in which honest professionals are eliminated from the bureaucracy and politics. Secondly, the system supports a monopoly structure in all areas of activity in which this is possible, which also constrains the economic development of the country. Thirdly, for this system formal legislation of Ukraine and informal social norms are enforced.

"Corruption of the elite, the monopoly organization of all public activities and the corruption of formal and informal norms create insurmountable problems for reformers. There is a radical hero who wants to cut this knot with one blow, he would have either a shameful defeat or an economic and social collapse of the country, "concludes the expert..



Recall, In the world ranking of perception of corruption in 2016, Ukraine occupies the 131st place, dividing it with Kazakhstan, Russia, Iran and Nepal. Thus, the country dropped to one place, compared with the 2015 rating. At the same time, the number of points that determine the rating has increased from 27 to 29.

Read more about the socio-economic life of Ukrainian society and the prospects of the Ukrainian revolution in Alexander Paskhaver's article "The Choice of Destiny" in the weekly Mirror of the Week. Ukraine".




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