As is common with such revolutions, the democratic free-market Orange revolution in Ukraine continues to show signs of having turned sour before it began. Anders Aslund writes, “Last year Ukraine enjoyed economic growth of 12 percent; in the first four months of this year, the growth rate plunged to 5 percent, while inflation has surged to 15 percent….”
Furthermore, “the property rights of thousands of enterprises are in limbo. In Kiev, rumors abound that oligarchs connected to the old regime are trying to sell their enterprises to Russian business executives and are preparing to escape the country. Naturally, executives are cutting off investment, and economic growth is screeching to a halt. To make matters worse, a new socialist minister of privatization has been appointed who opposes privatization in principle. She asked recently: ‘What is so bad about re-nationalization?’ Tymoshenko concurred in a recent newspaper interview: ‘The biggest enterprises, which can easily be efficiently managed, must not be privatized, and they can give the state as an owner wonderful profits.’ This sounds like state capitalism.”
State capitalism. Hmmm. Well what should we have expected? As Justin Raimondo said more than three months ago:
“The Ukrainians believe they can balance their budget by revisiting suspicious privatizations, seizing assets, and re-selling them to the highest bidder. Yushchenko was sold to Western journalists as well as his own electorate as a ‘free-market reformer,’ but this is hardly a ‘free market’ approach. Aside from destroying the sort of stability that business requires, it assumes the good will of government regulators – not a wise course, in any country – and encourages yet more corruption by making political pull, rather than entrepreneurial skill, the coin of the realm. Who will be ‘re-privatized,’ and who will be spared? It’s all up to the gang currently in power.” Continue reading “Orange Revolution Comes Full Circle”