Land market in Ukraine won’t be transparent and fair, Oleksandr Paskhaver says
03:37 03/03/11

There is no doubt that the land market in Ukraine will be opaque and corrupt. We are corrupt, so the land privatization will be the same, a noted Ukrainian economist, Oleksandr Paskhaver, told ZIK March 2.

The 20-year past experience shows that Ukraine has never prepared for any serious reform. Reforms typically started off handedly, with the needed infrastructure, laws and other prerequisites hastily prepared, Paskhaver said.

“We have heard talk over the past 10 years that new laws and organizational projects must be implemented before coming to the sale of land. No law has been passed over the 10 years, and no law will be – before the reform gets under way. - Will the reform be fair and effective? – No, because it has never happened in Ukraine’s history that a reform was painstakingly prepared,” Paskhaver said.

Two things will happen when the land goes on the market, the expert said. First, the sale will trigger off high crime rate, something that accompanies all reforms in Ukraine. Second, in the economic sense, the sale of land will boost agricultural production.

Today, Verkhovna Rada failed to extend a moratorium on the sale of arable land running out this year.

Speaking about the social consequences of the land market, Paskhaver said much will depend on which version of the land sale law is passed. He cited Europe where land owners must live on their land. If this version is adopted in Ukraine it will promote the growth of farming.

If the land market gets under way, the expert continued, more food will be produced in Ukraine – unless the state begins to regulate food prices using its usual coarse methods.

Food will always be in short supply if the regime continues to regulate production and sales.

The best way to do away with the deficit of goods is to make express buys of goods abroad to conduct interventions of goods in Ukraine, the expert said.

However, such policy is pointless when trade intermediaries are engaged in corrupt links with officials, like it’s happening in Ukraine. “It is hypocritical to blame the trade intermediaries. If bribes are exported [by Ukrainian officials] from traders, they become monopolists. If traders do not pay bribes, they have to compete with other traders, with the food prices going down,” Paskhaver said.

Hence, the declarations by Ukraine top officials putting the blame for food shortages on traders is a cover-up for corrupt officials who extort bribes from traders and create monopolies. Then, the regulatory policies begin which lead to the shortages of food.

Source: ZIK

See also
01/25/12 Do not need to Ukraine once again to view the concept of construction of wholesale markets?
05/23/11 As usual, Russia plays hardball with Ukraine over gas
04/03/11 RosUkrEnergo to give back 12.1 billion cu. m of its gas to Ukraine
03/20/11 Foreign air companies knocking on Ukraine's door
03/20/11 Norwegian businessman to invest UAH132 mln to update pig farm in Ternopil oblast
© 2010-2012 Krayina.NET