New Ukraine gov't plans 'economic revolution'

Ukraine’s libertarian revolution - Atlantic Council - James Brooke:

September 10, 2019 - "Kyiv is ground zero for the most significant economic revolution in the region today. In a libertarian reshaping of Ukraine’s post-Soviet system, the new government plans to approve the largest farm land market in Europe, the biggest post-Soviet privatization fire sale in a generation, and the opening of roads, railroads, ports, airports, oil and gas to private investment. Casino gambling and amber mining are to be legalized. Foreign exchange controls are to be lifted. Labor laws are to be liberalized.

"In a whirlwind of legislative activity reminiscent of Franklin Roosevelt’s First 100 Days, Ukraine’s new government is creating opportunities for billions of dollars of foreign and national investment in the 2020s. In a move bound to unleash years of pent up investment, the central bank promises to cut interest rates in half by the end of next year. Putting small government in practice, Ukraine’s new Prime Minister, Oleksiy Honcharuk last week cut the number of ministries by one third — from 25 to 17....

"Volodymyr Zelenskyy won an open, multiparty presidential race, emerging with ... 73 percent of the final presidential vote in April. Three months later, in parliamentary elections, he won a clear majority — 60 percent of Rada seats. In late August, Zelenskyy’s trust rating was 70 percent, according to a survey by the Ilko Kucheriv Democratic Initiatives Foundation. On the campaign trail, Zelenskyy was short on promises and short on interviews. Voters elected a black box. Last week, he jumped out of that box and proved to be a 41-year-old libertarian.

"Part of the shakeup is a generational turnover. The post-post-Soviet generation now run Ukraine. With the youngest cabinet in Europe, average age 39, Ukraine’s cabinet members order their food online, order their taxis online, order their vacations online, and pay in stores with contactless bank cards. Faster adapters to new technology, Ukrainians bought 56 percent of their railroad tickets online this summer....

"Creating the 'state in the smartphone,' is the task of Mykhailo Fedorov, Ukraine’s new deputy prime minister and minister for digital transformation. At 28, he shares the title of Europe’s youngest minister with Virginius Sinkevicius, Lithuania’s economy minister. Encapsulating Kyiv’s ambitious plans to create Estonia-style e-citizenship, Fedorov tells the Kyiv Post: 'Eventually, people will stop noticing the government. They’ll be using it like they use Uber or Booking.com — only when they need it.'

"Press reactions range from ho hum to skeptical to hostile. 'Vulgar libertarianism,' sniped one Kyiv economist. Traditional political scientists, trained to identify a revolution as a worker-peasant alliance taking over the telegraph office, do not see anything special going on. Many Ukrainian free marketers are sulking in the sidelines because they misread the Zelenskyy movement last spring. But with the government’s goals and deadlines clearly set, the prime minister reports that more and more Maidan-era talent are signing up to help."

Read more: https://www.atlanticcouncil.org/blogs/ukrainealert/ukraines-libertarian-revolution/
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The story behind Estonia's economic miracle

How Estonia—Yes, Estonia—Became One of the Wealthiest Countries in Eastern Europe - Foundation for Economic Education - Working for a free and prosperous world - by Luis Pablo de la Horra:

March 23, 2018 - "The question of why some countries are rich and prosperous whereas others seem to be condemned to the scourge of poverty has been around for centuries. Many factors have been argued to be the determinants of prosperity.... Yet, since at least the publication in 1776 of The Wealth of Nations, we know that ...  Free trade, a reliable legal framework that protects private property and enforces contracts, and sound money are necessary conditions for countries to thrive.... Estonia is a paradigmatic example...

"On Aug. 20, 1991, Estonia gained its independence after 51 years under the yoke of communism. The country was first occupied by the Red Army in June 1940...  One year later, the Nazi Army invaded the Soviet Union, occupying Estonia until 1944, when the Soviets retook the country. The political instability in the Soviet Union during the early 90s precipitated the restoration of democracy in the Baltic country.

"From day one, the new government committed to undertaking market-oriented reforms that ... included monetary reform, the creation of a free-trade zone, a balanced budget, the privatization of state-owned companies, and the introduction of a flat-rate income tax.... Mart Laar, Estonia’s Prime Minister during two periods: 1992-1994 and 1999-2002 ...has claimed that he took inspiration from Milton Friedman’s bestseller'Free to Choose....

"These reforms paved the way for the incredible rise in living standards that Estonia has experienced..... Today, Estonia is considered a high-income country... The purchasing power of Estonians has increased 400 percent over the last two decades.... In addition, life expectancy has moved from 66 years in 1994 to 77 years in 2016.....

"Government finances are healthy ... public debt is only 9.5 percent of GDP. In terms of the labor market, Estonia’s unemployment rate is 5.3 percent, well below the EU average. Finally, its efficient and attractive corporate tax system (undistributed profits aren’t taxed) has placed Estonia as a worldwide center for high-tech companies, boosting foreign investments and economic growth....

"In terms of PPP-adjusted income, Estonia ranks first ahead of countries such as Russia or Latvia and well above the median income. The picture is similar when it comes to other indicators like life expectancy or infant mortality rate, where Estonia shows that economic progress has a real impact on the living standards of people.

"Estonia is the living example that human progress is closely linked to economic freedom.... The only thing we can do is to spread the word so that all countries have the opportunity to improve their living standards like Estonia did in the early 1990s."

Read more: https://fee.org/articles/how-estonia-yes-estonia-became-one-of-the-wealthiest-countries-in-eastern-europe/?utm_medium=push&utm_source=push_notification
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