[Marxism] [Pen-l] Prediction: Ukraine's love affair with the West will be short-lived

William Cockshott William.Cockshott at glasgow.ac.uk
Fri Feb 28 02:49:06 MST 2014


This guy, Arseniy Yatseniuk, was appointed president just today and here is the link to his personally founded 'foundation' and its list of parteners.    Note that they include Nato and The US State Department among others of such ilk.

Paul Cockshott
School of Computer Science
University of Glasgow

-----Original Message-----
From: pen-l-bounces at lists.csuchico.edu [mailto:pen-l-bounces at lists.csuchico.edu] On Behalf Of Louis Proyect
Sent: 25 February 2014 12:34
To: Activists and scholars in Marxist tradition; Progressive Economics
Subject: [Pen-l] Prediction: Ukraine's love affair with the West will be short-lived

Gerry Rice, a spokesman for the International Monetary Fund, which would have to provide the billions of dollars in urgently needed credit, issued a statement on Monday saying only, "We are talking to all interested parties."

The Obama administration said it was prepared to provide financial assistance beyond that from the I.M.F., but it did not say how much.

"This support can complement an I.M.F. program by helping to make reforms easier and by putting Ukraine in a position to invest more in health and education to help develop Ukraine's human capital and strengthen its social safety net," the White House spokesman, Jay Carney, told reporters in Washington.

The I.M.F. has made clear it is unwilling to help Ukraine without a commitment from the country to undertake painful austerity measures and other restructuring. Mr. Yanukovych's resistance to those demands was a principal reason he backed away from a trade deal with Europe and sought help from Russia instead.

Given the animosity of the new Ukrainian government toward Russia, Ivan Tchakarov, an analyst with Citibank, said that Ukraine could turn only to the West for help, and would inevitably face demands for tough reforms and a near-certain recession as a result.

"Assuming that Russia will pass, it will be up to the I.M.F. and E.U. to pick up the tab," Mr. Tchakarov said. "The I.M.F. will impose hard constraints on the economy, and these will most probably mean a recession in 2014."

Still, Mr. Tchakarov noted that there would be long-term benefits to Ukraine's undertaking desperately needed measures, like ending subsidies of gas prices and cutting the thickets of business regulations that weigh down the economy. These actions could potentially allow it to emerge far stronger, like its neighbors Poland and the Baltic countries, he said.

--NY Times, "Amid Political Upheaval, Ukraine Faces Dire Need for Economic Help", Feb. 25 2014

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