ABSTRACT
This chapter discusses that Ukraine has made its best progress in liberalizing the various sectors of its economy, though as argued, more needs to be done. Since taking office, President Kuchma has pursued a course of 'shock therapy' modeled loosely on the Polish, Czech, and Russian versions. Like those countries' reforms, Ukraine's program consists of three main pillars: macroeconomic stabilization, privatization, and liberalization. Although privatization and structural reform are usually treated separately in transitioning economies, the policies are intimately intertwined and are usefully thought of as two parts of the same problem. Ukraine has made most progress in liberalizing both its domestic and foreign economic activities, but more needs to be done. Perhaps the key indicator that Ukraine is serious about reform will be the emergence of a serious social safety net. Until such a support system is put into place, real reform is unlikely due simply to political realities.
