Poland and Ukraine, so close and yet so far apart.

Spoilers. In Poland, reforms of the economy were made even during Communist rule. Following the end of Communist rule, ambitions to join the EU and support from the EU and IMF gave further impetus to reform. As one of the earlier reformers, Poland has turned into a growth engine. Not being part of the Soviet Union was a bliss for Poland but being a Soviet republic turned out to be a curse for Ukraine. No reforms were made by its post-Soviet leadership during its first three years of independence.

Opaque liberalisations and privatisations that followed enriched former “Red directors”. During this time the oligarchs emerged. They have since not only dominated large sectors of the Ukrainian economy but also the political arenas. From then on, Ukraine’s people have been robbed and deprived of reasonable standards of living. While the influence from external factors, especially the EU, was beneficial for Poland, Russian influence and armed interventions have prevented Ukraine from growing.

 

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