Balcerowicz: Ukraine needs a program of restructuring and privatisation

Leszek Balcerowicz, the author of Poland's post-communist transition to a market economy, who was appointed advisor to the Ukrainian president last week, has already commented on the economic situation in Ukraine. "Ukraine needs to break apart monopolies and privatise state-owned firms to transform itself into a well-functioning capitalist economy," he said. The Polish advisor said that most Ukrainian state firms are not functioning, only some still are. But as it usually is with state-owned firms, they don't really function well. According to Balcerowicz, Ukraine needs more business-friendly regulation and to safeguard budget stability. "There have been reforms in Ukraine, but they were too slow and too fragmentary. As a result, a system emerged which was not a socialist system, but was not good capitalism," The Polish ex-finance minister commented on the country's path since it gained independence in 1991. "Hence, one needs a program of restructuring and after some time privatisation, so as not to continue this bad state of things. And there are no reservations in this area on the side of Ukrainian authorities," Leszek Balcerowicz concluded.