Economic Security

The orange level of the National Economic Security, in which Ukraine is currently located, is a natural result of many years of "activity" of the State. What prevents the rapid development of a country with such high potential?

22 October, 2024

Reforms

Economic Freedom

World Indexes & Rankings

Natalia Slyusar

Yaroslav Romanchuk

All talks about economic development have no meaning without discussing the basis on which it will lean in this turbulent world full of military-political threats and foreign antagonistic interests. However, the truth is that there is too much talk instead of concrete proposals. ILI is trying to fill this gap, presenting for the first time in the years of independence to Ukraine a full-fledged Concept of Economic Security, which is based on the analysis of dozens of parameters, independent analysis and a scientific approach, offering a fundamentally different approach. This is the fundamental difference between this Concept and dozens of others, either created on the basis of the needs of the post-Soviet nomenclature or the newest oligarchy, the requirements of foreign credit or grant funds that sponsor budget programs, or the product of scientific and analytical institutions at the service of successive followers of the general interventionist state.

The orange level of Economic Security, in which Ukraine is currently located, is a sad and natural result of many years of active "activity" of the State in the economy. Scarce investments, high inflation, 60% of GDP to support the state, public debt at the level of 70% of GDP (data for 2022), the world's highest indicators of "tax hell", more than 1,000 different regulations and licenses, burdening the economy with an extremely high concentration of large state-owned enterprises and another five dozen items that make up the Economic Security Index testify to one thing.

"The main internal threat to the economy is the Government itself." - the key thesis of the Concept of National Security of Ukraine.
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Yaroslav Romanchuk, the president of the ILI Institute and the author of the Concept, explains this thesis with dozens of tables with macroeconomic indicators of various independent studies, indices and surveys, in which Ukraine appears as a country with considerable potential, which is used exclusively by the bureaucratic top for its own enrichment and deeper economic recovery, which, in turn , and received a logical reflection in the low indicator of the Index.

"Today, the quality of Ukraine's public administration institutions, their functionality and mode of operation does not allow ensuring high, long-term rates of economic growth and development. Legal, economic and financial institutions of Ukraine lose in terms of quality to similar institutions of our competing countries."
“…the main documents of the Government of Ukraine, adopted in 2023-2024, including the "Plan for the Ukraine Facility 2024-2027", are built on the principles of the mission economy/MOIP, according to the models of the state model of general interventionism. International organizations, consulting companies and development agencies, in a whole series of publications, pushed the Ukrainian authorities to make such a choice."

You can download the full version of the Concept under this post, study it yourself and draw your own conclusions.

The author of the Concept also persistently extrapolates it to the outside world, since the system of national economic security should organically fit into the general security system of the country, which takes into account the map of risks and threats of the outside world, but the recommendations of international structures under the influence of our government are either hopelessly outdated, or have lost relevance and connection with Ukrainian realities.

"The phase of Russia's large-scale aggression began on February 24, 2022, creating direct threats to the European and global security system, but this fact, which is obvious to us, is not reflected in the map of risks and threats that we see in the risk map of the Munich Security Conference and the studies and surveys of the World Economic Forum."

Leveling this fact in the third year of the war is too expensive for every Ukrainian, it is not only about the size of the state budget, which consists of our taxes, but also about the irreparable loss of human potential on the front line and forced migration processes. One of the main causes for this is a long-term catastrophic mistake - the central place in the old inefficient economic model of Ukraine is occupied by the State/Government, and the International Freedom Institute proposes to put a HUMAN at the center of the economic security system.

Economic security of Ukraine is created on the foundation of personal and economic freedom, the rule of law and integration into the European and global system of division of labor.
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Concept of Economic Security of Ukraine, 2024

Global economic processes - the fragmentation of global value chains, tensions in the market for energy products, rare earth metals and food, "de-chinesation" of production and investment policies of EU and US business, etc., create historically unique opportunities for the geographically well-positioned and resource-rich Ukraine, which could become a full-fledged partner of multinational corporations. However, the economic policy of the government of Ukraine stands in the way, actually recreating the story of the beggar who sits on a gold mine.

Where to read the Concept? In the pdf file below, or in the section “Research”

How did we define the Index? Full information is on the page “Economic Security Index”

Do you have questions? Do you want more information? We are inviting you to online broadcast of the Concept and Index Presentation.

Topics

Reforms

Economic Freedom

World Indexes & Rankings

Natalia Slyusar

Editor-in-chief of the website of the International Freedom Institute, manager of media projects. She has many years of experience in the media as a manager, journalist and consultant, as well as as a CEO in business projects. She specializes in promoting the ideas and philosophy of AES in the media

Публікації автора

Yaroslav Romanchuk

A well-known Ukrainian and Belarusian economist, popularizer of the Austrian economic school in the post-Soviet space. He specializes in reforms in transitional economies in the post-socialist space.

Публікації автора

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