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Wednesday, 1 May
business

We are at risk of turning into an oligarchic “under”-democracy: banker Igor Mazepa stated about the need for reforms

In recent years, the share of the state in the Ukrainian GDP has been steadily growing and has now approached 50%.

This makes the economy of Ukraine one of the most state-controlled in the world, the founder of the investment company Concorde Capital Igor Mazepa writes in his article for Economic Truth.

"Perhaps, during a full-scale war, it is not so bad, but after our victory, such a concentration of the state in the economy will become a big obstacle for our development," he notes.

According to Igor Mazepa, an example of the negative consequences of such a concentration of economic potential in state hands is the aggressor country russia, where it increased the usurpation of power in the country. In Russia, the heads of state-owned companies have become oligarchs and behave like the owners of these enterprises.

"Investments of such enterprises will be made not to increase or improve production facilities and creating new jobs, but with the aim of "appropriating" funds for the personal enrichment of all involved. Such temptations will be increasingly difficult to refuse, so the risks of corruption will grow exponentially," Mazepa writes.

To prevent such a scenario in Ukraine, Igor Mazepa recommends preparing a plan for future privatization. However, it will be successful only in case of attracting foreign investors.

Ukraine should fix the unsatisfactory investment environment, and for this, Mazepa writes, it is necessary to "create transparent rules of the game in all segments of the economy, ensure the government's non-interference in business processes, and most importantly, work to ensure the rule of law according to Western standards."

"If we do not offer anything to potential investors immediately after the security situation improves and if we keep the majority of the economy in public hands, we will lose our chance. We can no longer wait for another chance. Then we will simply turn into another oligarchic “under”-democracy... A state without a future, " Mazepa believes.

Earlier, Igor Mazepa announced unprecedented pressure on business since the time of Yanukovych and noted the appearance of new oligarchs in Ukraine, who will eventually manifest themselves.