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The Statement by
The Anti-Crisis Council of NGOs
To address the President of Ukraine and Parliament Members forming the Parliamentary Coalition
April 3, 2015, the city of Kyiv
The economic situation in the country has been aggravating. There is a further decline in industry, construction and even agriculture. In 2014, industrial output fell by 10.7% from 2013. In January-February 2015 alone, the decline was 21.7%.
Tensions have been growing in society. Inflation in January-December 2014 increased by 24.9% and it grew by 20.3% in January-March 2015 alone. The devaluation of the hryvnia, the growth of utility tariffs – all these have greatly exacerbated the social and economic situation in the country.
The government has focused on cooperation with international financial institutions, which Ukraine greatly needs. However, tranches from the IMF mean nothing but debt to be paid by descendants if the real economy does not start working. The authorities are expected to implement systematic and effective steps to end the crisis as soon as possible and conduct reforms that will let the country adapt to the European Union; further economic transition to sustainable development. Instead, certain chaotic events have been observed, whose social and economic effects do not cover even the short-term outlook. The country's economic, industrial and export policies have not been properly worked out. It is unacceptable that personnel policy to renew senior officials is implemented without a systematic approach, without transparency, with the use of party quotas, neglecting the professionalism and experience of public servants.
The Anti-Crisis Council of NGOs, which consists of over a hundred national associations, has prepared an anti-crisis program of joint actions by the authorities and business, which has been handed over to the government. However, the government has virtually departed from cooperation with the industrial and business community. The dialogue between the authorities and businesses has in fact become fake.
Industrialists and entrepreneurs are concerned that as of today Ukraine has no anti-crisis action program, and most importantly, there is no strategy for development. The government has no long-term vision of goals regarding the ongoing reforms. It has not formed a business model of Ukraine yet, there are no clearly defined priorities for further economic development.
The excessive attention of government officials and the public is focused on the implementation of deregulation of economic activity, but deregulation alone cannot boost the competitiveness of producers without the fight against corruption and a modern industrial policy.
The lack of a clearly defined and systematic approach to brining the economy out of the crisis, and delays and incompetence in economic reform and public administration make experts and business circles question the ability of respective ministers to carry out their duties.
The Anti-Crisis Council of NGOs insists on beefing up the government with professionals and technocrats who are not connected with any political force. They should be professionals whose capabilities include strategic thinking, a readiness to bring the economy out of the crisis, and retain feedback and advice from civil society.
The participants of the Anti-Crisis Council of NGOs advocate peace and stability in the country, they are supporters of social and economic changes in society achieved by consensus and social dialogue. Everything must be done to prevent the collapse of the parliamentary coalition and destabilization of the work of the Verkhovna Rada of Ukraine.
The war in the east of Ukraine is not over and it requires significant resources and will put enormous tension on all the Ukrainian people. The country needs executives who will cope with the set tasks – effective anti-crisis measures, and preparation and implementation of strategic reforms. There is no time to think. We must act immediately.