Ukraine at the Crossroads

Axel Siedenberg, Lutz Hoffmann 1 The specificity of transformation in Ukraine When the Soviet empire collapsed in the very early 1990s, the new era that dawned was commonly given the name 'transformation', implying the systemic change from socialism towards some form of market economy. "There is no alternative to reforming the Ukranian economy. The benefit of this research is that it makes it possible to view the situation in Ukraine from the outside and to correct reforms in time." Serhiy Tihipko, Vice-Prime Minister of Ukraine "This book, compiled by the German Advisory Group with the Ukranian Government, is testimony to close German-Ukranian cooperation. In supporting this advisory project within the framework of its TRANSFORM programme, the German Federal Government is making an important contribution to the transformation to a social market economy in Ukraine." Walter Kittel, Former State Secretary, Commissioner of the Federal Government of Germany for Technical Cooperation with Central and Eastern Europe "Transition to most economists means Russian collapse or success in Poland or Hungary. Ukraine is by and large ignored even though the country's experience is dramatic. This excellent book documents the tough reform battle. "This country is different" has always been the first step to bad analysis. This book rightly insists on viewing Ukraine's experience in an international perspective. It is not only the only serious source, it is an outstanding one." Rudi Dornbusch, Ford Professor of Economics and International Management, MIT "The analysis and solutions presented in these papers show an immense depth of understanding and originality." Charles Clover, Financial Times The book reviews economic reforms in Ukraine since the collapse of the Soviet Union and the beginnings of transformation in 1991, and compares them with the experience of other transformation countries. It provides a full-fledged discussion of the transformation process, organised in five independent parts: (i) macroeconomic stabilisation and growth; (ii) institutional conditions for systemic change; (iii) reforms of the financial sector and the banking system; (iv) reform of the agriculture and food processing sectors; (v) energy sector reform. The approach of the authors is empirical, providing insiders' understanding and evaluation of the reform process. A diversity of authors is represented, ranging form policymakers to policy analysts, and from industrialists to researchers. While addressing specific questions from specialists in the field, all texts are easily readable in non-technical format.