Right now the situation in the Ukraine is difficult at best, with the country now dealing with the aftermath of severe sanctions imposed by the United States and the European Union. The complexity of the situation in the Ukraine was addressed recently by billionaire philanthropist George Soros, in articles published in NY Books.
George Soros has a keen interest in what happens in the Ukraine, as he has an interest in the political world at large as well as a family heritage in the Ukraine. He also heads a foundation dedicated to Ukrainian issues.
Soros acknowledges that right now the leaders of the European Union are dealing with multiple crises, from the fate of the euro to the migration crisis to the aftermath of the Brexit vote. In Soros’ view, however, the situation in the Ukraine, with its looming debt crisis, should be at the forefront of the EU’s considerations.
Right now the Ukraine is working to rebuild itself into a new and better nation, with new and radical economic and political reforms ready to be put into place. These reforms are dedicated to building a system is based on honesty in the media and judiciary, and in a restructuring of the state gas monopoly.
All of these reforms are worthwhile but the situation is delicate, and could easily collapse back into the corruption of the old Ukraine.
What can be done to support the country? George Soros suggest a major financial support package from the European Union, to help stabilize the Ukraine. Yes, it will be costly, but a collapse of the Ukraine and the domino effect it could have would be far costlier. Soros’ proposal would include affordable political risk insurance, as well as other incentives for private sector investments. In time, with this support, the Ukraine could be a very attractive place for foreign investors, which would help the country stabilize even further.
Soros warns that standing by and allowing the Ukraine to fail is a dangerous game. In his view, the EU support for Greece during the debt crisis was flawed in that it micromanaged the situation rather than allowing the Greeks to take control of their own system of reforms.
Right now the EU has a chance to do the right thing for the Ukraine. It is Soros’ hope that they will step up and make a difference there in a big way.