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Failure in every way, or the results of the economic policy of Ze-government over the first quarter of 2021

The economic policy being implemented by the second Zelenskyy’s government in the first quarter of the current year has aggravated the already extremely difficult situation in the country. For some macroeconomic parameters, the economic decline is in place for the twentieth month in a row.

First, in the industry in January - February 2021 the decline was 4.2%. Mechanical engineering (-8.1%), coal industry (-5.5%), metallurgy (-3.6%) come off worst. Notably, the fall of industrial production this year occurs amidst the fall in 2020 by 5.2%, and also in 2019 by 0.5%. 

Second, in agriculture the decline in January - February 2021 amounted to 6.1%. And this is despite the fact that in 2020 the fall in the index of agricultural production was recorded at the level of 11.5%. Another marker of the economic collapse is the fall by 12.8% of the construction product index, by 5.0% – of cargo turnover and 48.7% – of passenger traffic of transport enterprises (over 2 months of 2020). These are the specific results of the activities of Zelenskyy’s team, his government and ruling majority.

Third, another result of the intellectual rock bottom of the current government is the high rate of accumulation of debts.  As of February 28, 2021, the country’s public debt increased to record USD 91.4 billion. That is about USD 2200 per Ukrainian (according to official data of the State Statistics Service). To remind, at the end of August 2019 (when the new government came to power and the ruling majority was established) the state and state-guaranteed debt of Ukraine amounted to USD 81.9 billion, which is USD 9.5 billion less than the current indicator.

Fourth, the country is increasingly sinking into the social crisis. The population’s debt for housing and communal services at the end of January increased to record UAH 81.0 billion. The debt on the payment of wages at the beginning of March increased to UAH 3.214 billion.  Overcoming the “epoch of poverty” from Zelenskyy means as follows: when the cost of living in the country amounts to pitiful USD 78.5, and the minimum pension is even less – USD 63.4. The promised creation of new jobs turned into the increase in unemployment from 7.3% (in the third quarter of 2019) to 10.1% (in the fourth quarter of 2020).  Whereas at the beginning of January 2021, the number of employees in the country was 9.9 million people, the number of pensioners was 11.1 million people. Well, the key thing: the State Statistics Service in January this year delivered the verdict to the country’s future: 38 newborns per 100 dead.

As we see, the current government turned out to be unable to overcome the systemic economic crisis in the country.  In almost twenty months of staying in power, the government and the ruling majority significantly aggravated the being of the real sector of the economy, raised tariffs for electricity, water supply, heating, gas prices.  All this is happening amidst strengthening the positions of the largest financial and industrial groups in the country, in the interests of which the authorities raised tariffs and created unequal conditions for competition in the domestic market.

The decline of key macroeconomic parameters is the result of the disastrous economic and social policy, even more undermining the quality of life in Ukraine. That is the true reason for banning independent TV channels, introduction of anti-constitutional sanctions against individuals and legal entities, opposition MPs, extrajudicial reprisals over citizens and businesses, illegal criminal persecution, establishment of dictatorship and usurpation of power. 

Opposition Platform – For Life has suggested its alternative scenario for restoration of the national economy after COVID-19, which provides for an institutional “reset” and structural changes in the national economy. Our economic program will help overcome the negative consequences of COVID-19 and will lead to restoration of the real sector of production, stimulation of the domestic consumer market, growth of exports, increased productivity, demonopolization, increase in employment and real income, overcoming poverty.

Viktor Medvedchuk,

Chair of the Political Council of the “Opposition Platform – For Life” party

Опубликовано: 12 April 2021