ABSTRACT
This chapter looks at the reform experience in Ukraine, pinpointing the key elements of an initially successful reform effort in 1994–95. It focuses upon the nature of the reform reversal from the summer of 1995 until the summer of 1998. When the Ukrainian economic reforms were finally launched, they appeared to be a textbook case of reform. In the fall of 1994, Ukraine had a number of widely differing exchange rates, with large state subsidies going to those least in need, in particular to major importers of energy. The National Bank of Ukraine has generally adhered to its quarterly credit ceilings, although monetary emission has been uneven and real interest rates have generally been prohibitively high. Ukraine’s financing came essentially from four sources: the International Monetary Fund, the World Bank, Russia, and Turkmenistan. Ukraine lacks a sufficient number of staff educated in law, economics, business administration, and various social sciences.
