ABSTRACT
Introduction Ukraine is one of the few post-Soviet countries that did not show progress in economic development after becoming independent in 1991, in spite of the fact that Ukraine’s economic potential was very close to or even higher than its neighbors. During that time, income per capita, measured in constant 2005 US dollars, has fallen by 19 percent: from USD 2,641 in 1990 to USD 2,138 in 2013 (World Development Indicators). Åslund argues that, to a large degree, this is the result of poorly executed or incomplete transformational reforms from the early stages of independence (Åslund, 2009). The political choice of gradual reformation rather than shock therapy resulted in a kind of chaotic pluralism (Balcerowicz, 1995), which has had long-lasting implications on the formation of Ukraine’s economy and business environment.
