Thursday, May 5, 2016

Leszek Balcerowicz and Ivan Mikloš: Our role is not to replace Government or other institutions. We will work with everyone willing to speed up and enhance reforms in Ukraine


In the course of the briefing, Co-Chairs of the Group of Strategic Advisors Leszek Balcerowicz and Ivan Mikloš laid out goals and tasks of the group – to help the Ukrainian authorities speed up the process of profound reforms in Ukraine and make it irreversible.

Advisor to the President, Representative of the President in the Cabinet of Ministers Leszek Balcerowicz highlighted improvements in the implementation of reforms and changes in the Ukrainian economy.
“Independent, democratic, reformed and economically developed Ukraine is extremely important for Europe,” he noted.
“Economic growth has begun and it will be continued if the reforms are continued. And for them to be continued, they should be supported not only in the Government, but also in the Parliament,” he emphasized.
The President’s Representative called four main goals in the implementation of reforms in Ukraine. Reinforcement of stability of finances, budget, banking system and economy, which is a very important precondition for the reinforcement of economic growth. In addition, holding of reforms for the reinforcement of economic growth and legal state, including struggle against corruption, as well as state restructuring and decentralization.
According to him, new procedures of forming the budget are essential “for it not to be changed 50 times a year”. Reduction of privileges for monopolies and oligarchs, creation of favorable environment for small enterprises will also facilitate economic growth in Ukraine. “It is one of the main indicators of changes in Ukraine,” Leszek Balcerowicz said.
The President’s Representative in the Government has underlined the importance of providing conditions for the growth of competition. Cooperation with European community, deregulation, acceleration of anti-corruption activities, reforms of prosecution and courts will create such conditions.
Leszek Balcerowicz emphasized that due to the policy of the Ukrainian authorities, we had managed to avoid budgetary catastrophe. The National Bank of Ukraine has made important steps to stabilize the banking system and monetary policy.
“Ukraine doesn’t depend on the imports of Russian gas anymore. It is the European record. There is no such other country,” he said.
According to him, exports diversification is being accelerated. From now on, the EU is becoming the main partner of Ukraine. Our country also has a “huge progress” in the World Bank's Doing Business Ranking.
In his turn, Ivan Mikloš emphasized that the Group would fully assist the Ukrainian Government in the continuation of reforms. He is confident that in the last two years much more has been done in the implementation of reforms than in the last 20 years. However, we must do even more.
«Our role is not to replace the Government or other institutions. Our role is to help reformers, avoid bad decisions and support good initiatives. Our group will work for everyone – the Cabinet of Ministers, Presidential Administration, Parliament. We will work with NGOs and business associations. We will work with everyone willing to speed up and enhance reforms,” Ivan Mikloš said.
Chairman of the Group of Advisors to the Prime Minister emphasized the importance political support for reforms. “I always say that reforms are rather a political problem than a technical one. Technically we know what to do, but it is crucial to have the leadership of reforms, property of reforms and good communication of reforms. The main threat to the reforms and successful future of Ukraine is populism, for it does not propose any solutions. It is aimed at using hard times for the implementation of personal goals, not goals of the society,” he noted.
According to Ivan Mikloš, the Group will consist of maximum 15 Ukrainian, Polish and Slovak experts.  Pavlo Kukhta will be his Deputy.
Chairman of the Group of Advisors to the Prime Minister called the reduction of financial deficit from 10% in 2014 to 2-2.5% in 2015 an achievement.
Ivan Mikloš noted the necessity of speeding up judicial and prosecution reforms and holding privatization. “There are a lot of anti-corruption methods. Efficient judiciary and prosecution are one of them. At the same time, one of the most efficient methods is reduction of space for corruption, liberalization, deregulation and privatization,” he said.
The Advisor to the Prime Minister also noted that economic growth in Ukraine was possible only in case of radical reforms. He added that profound reforms would ensure the “win-win” strategy – when not only Ukraine, but also neighboring states will have benefits from economic reforms, deregulation, anti-corruption activities, improvement of investment climate, transparent privatization, creation of competitive environment and favorable preconditions for the development of small business.

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