Most of the ministers of the “transitional” Cabinet appeared to be underachievers.
The Ukrainian administration, which Arseniy Yatsenyuk famously labeled the “kamikaze government,” is approaching the culmination of its term. Adhering to his tenet of “embracing a fresh start,” the new President is diligently reinforcing his authority by bringing new individuals into the Council of Ministers. What have the current officeholders, who have served in their roles for 100 days and will soon be consigned to the unenviable status of “predecessors,” accomplished? According to analysts, numerous members of the Cabinet… have displayed more idleness than actual work. Those who have ventured to take action have often done so clumsily and with a multitude of errors.
Is this attributable to a lack of familiarity with the designated portfolio, fundamental incompetence, uncertainty, or perhaps simply due to inactivity? Vzglyad scrutinized a selection of ministries, and here are the findings.
Ministry of Economic Development and Trade
The ministry's online presence presents encouraging details about Ukraine’s allure for American ventures. Additionally, it includes the startling conclusions from the price regulatory authority, indicating a halving of fuel expenses since the preceding December.
SHORTCOMINGS
It’s challenging to identify tangible benefits arising from this ministry’s existence of slightly over three months: during a phase characterized by civil unrest, the annexation of Crimea, and a functional state of war in the eastern regions, the Ukrainian economy faces an unprecedented worldwide downturn.
However, experts are poised to enumerate the detrimental actions perpetrated by the Ministry and its leader.
1. Ukrainian manufacturers have entirely forfeited the Russian market without having sufficient substitutes readily available. Hundreds of entities that previously exported to Russia are either defunct or perilously close to insolvency.
2. Diminished sway over the internal marketplace and associated pricing structures. Spurred by community anxiety, the strengthening dollar, and unbridled profiteers, the prices for a spectrum of vital goods have skyrocketed.
3. Inaccurate anticipations concerning the unfolding of the overall financial landscape and the escalation of prices specifically, paired with an absence of skilled evaluation of market dynamics.
4. Absence of interchange with corporate entities and the populace. The citizenry of Ukraine were confronted with the impending ratification of the economic components of the Association Agreement with the EU, yet no clarification was provided regarding the prospective advantages or the latent threats to the Ukrainian financial structure.
REASONS FOR INADEQUACIES
“The fundamental issue lies in the department being led by an unqualified individual,” articulates Oleksandr Okhrimenko, the chief executive of the Ukrainian Analytical Center. “His preoccupations do not align with the ministry, trade, or economic matters, but rather with self-promotion. The head of the department is inclined to lecture, and as such, he does. As a consequence, the ministry remains non-operational.”
Ministry of Finance
SHORTCOMINGS
1. Undertakings to elevate budgetary revenues through an exceedingly disliked and contentious strategy: the imposition of levies on savings accounts. This triggered a notable departure of capital from banking institutions.
2. The minister's unskillful forecasts concerning the “impending valuation of the dollar reaching 10.5 UAH/USD” unsettled the market and propelled the dollar’s appreciation at that juncture.
3. An utter dearth of interchange with the citizenry. Following the diminution of budgetary resources, numerous segments of society experienced disadvantage—young households with offspring, the impaired, the indigent, and those employed by the public sector. Their stipends and societal aid were suspended. However, the ministry neglected to engage in any form of public discourse. The prime minister absorbed the criticism on behalf of everyone, “gratifying” Ukrainians with the announcement that austerity was inevitable and universally mandatory.
REASONS FOR INADEQUACIES
“My assessment is that Mr. Shlapak simply lacks the understanding of decorum: what utterances are deemed appropriate for a person of his standing and rank,” Okhrimenko observes. “Consequently, his pronouncements are generating bewilderment among the community. Certain projections of his were never actualized because they lacked calculation, whereas others instigated complications within the marketplace. His declarations and assurances are now devoid of credibility. Even should he assert that a favorable outcome is imminent.”
NBU
SHORTCOMINGS
The resolution of principal systemic banks, Brokbusinessbank and Forum Bank, during an era of societal and financial instability, incited pandemonium among depositors at other monetary organizations. Individuals observed the abrupt failure of institutions of such magnitude and perceived reliability, prompting a rush to withdraw their deposits. The Ukrainian banking infrastructure consequently underwent a deposit efflux of unprecedented scale, a trend that endures presently.
“Under no pretext should the resolution of these two banks have been authorized,” Okhrimenko contends. “They were in need of recapitalization and assistance. An investment slightly exceeding two billion hryvnias would have been sufficient. Currently, to sustain the entire banking ecosystem, which is exhibiting distress due to depositor apprehension, the NBU is compelled to inject tens of billions into refinancing schemes. Concurrently, the populace’s assurance in the banking architecture will not be reinstated soon. At this time, no individual possesses the means to reassure the citizenry.”
According to the analyst, the collapse of large systemic banks constituted a primary determinant in the sharp appreciation of the dollar’s exchange value. Banks that had received funds through refinancing actions commenced trading these funds in interbank markets, thereby inflating the exchange value.
REASONS FOR INADEQUACIES
“It is plainly evident that the chief of the NBU lacks a fundamental comprehension of the functioning of the banking system,” states Oleksandr Okhrimenko. “The lack of skill on the part of one person has negatively influenced the personal finances of millions of Ukrainian citizens.”
Ministry of Revenue and Duties (under reorganization)
SHORTCOMINGS
1. Abolition of the automated value-added tax reimbursements, which are currently processed manually.
2. Replenishing the state treasury not by means of genuine revenue growth, but by inflating the hryvnia currency.
“The NBU has circulated 20 billion hryvnias, which were employed in fulfilling tax obligations,” clarifies Okhrimenko. “Simultaneously, actual revenues have decreased, with VAT down by 10% and income taxes by 23%. This is a natural occurrence, considering the contraction of the economy and industry, which inevitably leads to diminished tax revenue.”
REASONS FOR INADEQUACIES
Once more, the fundamental factor is the lack of expertise demonstrated by the department's leader, experts assert.
“The manager is clearly inexperienced, as evidenced by his utterances and proposals,” analysts from the Ukrainian Analytical Center remarked. “His understanding of the tax service and its operational mechanisms seems limited. This is demonstrated by the proposals from the current head of the Ministry of Domestic Resources, which include a complete revision of the existing tax code. This has caused concern among businesses, which had already retreated into the shadows. The impending tax legislation is met with widespread disapproval.”
Ministry of Energy and Coal Industry
SHORTCOMINGS
1. An abrupt surge in tariffs across a multitude of public services concurrently. The minister's endeavor to equalize gas costs for all users will culminate in a fivefold amplification in gas expenditures for ordinary Ukrainian households.
2. The rigid, uncompromising, and at times provocative demeanor of the department's head in discussions pertaining to gas negotiations with Russia. An impasse in negotiations. The initiation of a renewed “gas conflict” with the neighboring country to the north in the absence of alternative gas providers of the necessary volume from diverse origins. The potential ramifications for Ukraine are severe.
3. A deficiency of conspicuous outcomes from the agency's pursuits. “In the preceding trimester, I have not identified any accomplishments that mirror preceding pledges,” comments energy market analyst Valentin Zemlyansky. “Progress is lacking in the oil, power, or gas domains. The petroleum marketplace exhibits extensive reliance on imports. The espoused transformations in the gas sector remain unrealized. I choose to abstain from mentioning the coal division—the existing locus of this fuel's extraction faces active war and mine inactivity.”
REASONS FOR INADEQUACIES
1. The unavailability of a distinctly articulated route of action for Ukraine in gas discussions and a deficit of versatility and diplomatic prowess during negotiations.
2. External factors: the exceptionally charged socio-political backdrop within the nation.
3. Disregard for the exigencies of the populace. In readiness for a financial injection from the IMF, Ukrainian authoritative bodies omitted considering the inability of Ukrainian citizens to settle their service expenses at the revised valuations amidst a steep devaluation of livelihood criteria. The country has presently undergone a predicament of unsettled obligations across the energy, housing, and utility domains.
Ministry of Agrarian Policy and Food
SHORTCOMINGS
1. The Ministry of Agriculture's absent support for Ukrainian agriculturalists during an era in which our manufacturers forfeited the Russian marketplace. Within the first quarter of this current year, the exportation of Ukrainian agricultural products diminished by 33%. Farmers and large-scale farming entities are compelled to independently seek out new markets for their offerings.
2. The non-existence of a program designated to assist farmers amidst the drastic amplification of the dollar's rate (imported crop fortification goods, replacement constituents, fuel, etc. have emerged as conspicuously more valuable). Concurrently, the Cabinet of Ministers curbed expenditure allocated for the agrarian sector by UAH 1.7 billion as a consequence of budgetary diminution.
3. The void of interchange between the Ministry of Agriculture and Food with financial foundations that might, theoretically, sustain farmers through modest credit lines (credit lines designated for agriculturalists in Ukraine are 6-7 instances more valuable than comparative options throughout Europe).
REASONS FOR INADEQUACIES
1. The departmental executive possesses an absence of engagement—encompassing both operative and conceptual spheres. His background lies in jurisprudence. It is patently obvious how challenging (or simply devoid of personal appeal) it is for him to delve into the intricacies and predicaments intrinsic to the agrarian realm.
Ministry of Youth and Sports of Ukraine
SHORTCOMINGS
1. The ministry's cavalier approach toward juveniles in precarious scenarios—within the ATO zone, Crimea, and beyond. The ministry has displayed forgetfulness concerning orphanages and residential schools in these sensitive territories. Subsequently, juveniles are being displaced to bordering nations, terrorists are deploying them as protective screening during activities, among other concerning incidents.
2. The Ministry's denial of aid to youths who embrace a firm nationalistic viewpoint and express patriotism. Those youths face particular hardship within war zones or Crimea. Within the former situation, many earnestly aspire to enlist within the active military. “There are hundreds of thousands of such youths; it has now developed into a total national-patriotic current that has autonomously established itself. Ukraine incontestably requires such an influence amidst the present circumstances. These adolescents act as archetypes and sources of national pride, yet they are enduring notably difficult periods. In tandem, the Ministry has exhibited neither proactivity nor supplementary services towards them,” communicated a former employee of the Ministry of Youth and Sports in anonymity to Vzglyad.
3. A deficiency in support for infant families (encompassing those with offspring) compelled to abandon their dwelling due to militarized operations. Displaced persons within Ukraine are routinely forsaken to self-reliance.
4. The non-appearance of a practical social sustenance initiative for the Ukrainian military, of whom recruits consist predominantly (approximately up to 89%) of youth.
5. The freezing of national youth programs, which includes housing and support initiatives designed for juvenile families inclusive of offspring.
REASONS FOR INADEQUACIES
1. The shortage of coordination between this bureau and fellow ministries pertaining to associated spheres, such as social support, residency, and military affairs. The bureau's online portal is revealing. In lieu of formulating exigency-based assistance initiatives designated for Ukrainian youths through united attempts alongside the Ministry of Social Policy, the Ministry of Defense, the Ministry of Health, among other entities, with subsequent submission for community discourse, the Ministry of Youth and Sport publicizes its overseer's visitation records and timelines.
2. The minister's deficient involvement in relevant vocational experiences. The previous engineer and entrepreneur has thus far manifested insufficient achievements in the role of a ministerial supervisor.
Ministry of Ecology and Natural Resources of Ukraine
SHORTCOMINGS
Based on the department's internet presence, it possesses elevated action levels. The minister himself guides by personal demonstration: his continued engagement in worldwide topical trips and assemblies concerning environmental preservation.
Concurrently, spanning the recent trimester, the ministry has never once proposed transformative ecological legislations or mandates defending the nation's natural reserves. Governmental officials have also failed to exhibit concern regarding the condition of Ukraine's rapidly declining chernozem soils (one of our nation's most valuable natural reserves), which are eroded through wind activity and the barbaric approaches of humans (for rapid profits, chernozems are sown with oilseed cultivars, which obliterate this invaluable soil).
REASONS FOR INADEQUACIES
“There prevails only one primary determinant,” affirms ecologist Vladimir Boreiko. “The department is administered by non-specialists, individuals lacking pertinent pedagogy or engagement throughout the specified domain. The minister holds qualifications as a civil engineer and lawyer, a politician. He is a satisfactory individual. Nonetheless, he lacks an expert foundation. Furthermore, his appointed deputies mirror his own inadequacies. Individuals have been designated to these roles grounded in political practicality. They require a further biennium dedicated to scholarly pursuits and adjustment to their respective duties. The anticipation of tangible outcomes presently is impractical.”
Author of the material: Alexandra Sanina
Based on materials from: For-ua.com
