Ukraine: Divarication of Transformation

Abstract

Ukraine has the greatest economic potential among transition economies, but economic activities in the country highly depend on external markets, especially on the Russian one. The country has come a long way from the 1990-s, but the process of institutional transformation has been slow and met with conflicts under conditions of deep transitional crisis. There were two main directions of adaptation: competitive survival attempt of eastern industry and economic migration of western agrarian population. Divarication by the level of development and economic interests has impeded the formation of constructive development policy and led to elections rush, gas conflicts and short strategic planning horizons. Current painful economic crisis and coming elections will finalize transition period in Ukraine. The country will define its choice and ambitions: maintaining identity together with industrial and science potential and integration in the global development after the World Recession is over or lasting inner conflicts and integration as a labor force and territory provider.