The history of Ukraine as a separate state begins on August 24, 1991 - the day the Supreme Council of the Ukrainian SSR adopted the act of independence. A referendum held on 1 December 1991 overwhelmingly approved this decision. What success has the young state achieved in 30 years?
Inheritance of the USSR
Until the collapse of the Soviet Union, Ukraine remained the most developed republic in its composition. The industry of Ukraine consisted of more than 300 branches. She achieved the greatest success in metallurgy, electric power industry, mechanical engineering, mining and chemical industries, and agriculture.
Here are just some indicators of the republic within the USSR:
- 50% iron ore production;
- 36% of steel production;
- 62% of sugar production;
- 32% vegetable oil;
- 71% animal products.
In addition, the military-industrial complex was developed. The famous ballistic missiles "Satan" were assembled in Dnepropetrovsk Yuzhmash.
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GDPUkraine in 1991 amounted to 81.5 billion dollars. The rupture of economic ties and economic recession in all the republics of the former USSR caused a protracted crisis in Ukraine. The most difficult year was 1999, when Ukraine's GDP dropped to 40.8 billion.
As a result of the crisis, many high-tech industries perished. Agriculture, metallurgy and chemical industry remained the main export items of Ukraine. Political instability in the country did not contribute to the growth of Ukraine's GDP either. The population of Ukraine was divided approximately equally into 2 parts. One can be conditionally called pro-Western, the other pro-Russian.
As a result, Ukraine all this time could not decide on a development strategy. The change of president was accompanied by a change of course - towards the West or Russia. During one of these political exacerbations, a gas conflict with the Russian Federation occurred, as a result of which the price of imported gas rose sharply. This was another blow to the Ukrainian industry.
The dramatic events of 2014 put an end to cooperation between the two countries. The crisis collapsed the automotive industry. Production of new cars has practically ceased. Ukraine, whose GDP per capita was already low, has slipped to 111th place in the world in this indicator.
The weakness of the central government is also a hallmark of Ukraine. Privatization in Russia and Ukraine proceeded in a similar way. As a result, the most profitable industries ended up in the hands of a narrow stratum. Any president of Ukrainemust inevitably reckon with the interests of the oligarchic clans, which have gained considerable independence, participate in political life, control the media and wage undercover struggles among themselves, echoes of which appear in newspapers and on television.
Another problem is the conflict between the president and parliament. The parties pulled power over themselves, as a result, Ukraine has been a presidential and parliamentary republic in its short history. Such conditions do not contribute in any way to either the inflow of investments or the development of high technologies. The structure of the economy was constantly simplified, the main export item was rolled metal and agricultural products.
Comparison of living standards in Russia and Ukraine
Despite the fact that all macro indicators in Russia are higher than in Ukraine, the standard of living in these countries was comparable until recently. The difference in wages was offset by significantly lower prices, primarily for food. On average, in Ukraine they cost 30-50% cheaper. Housing and communal services were also much more expensive in Russia until 2014.
In 2014-2015, Ukraine was forced under pressure from the IMF to raise tariffs for electricity, gas and heat for the population. These measures were intended to equalize the balance of payments, but they caused a sharp impoverishment of the population. Ukraine today is reminiscent of Russia in the early 90s with the same problems - unrest in the regions, low living standards, huge public debt and dependence on external creditors.
Industry of Ukraine by regions
If you look at the statistics of Ukraine's GDP by regions, it turns out that the main contribution to its formation is made by Donetsk, Luhansk, Dnepropetrovsk and Odessa regions. Luhansk and Donetsk regions form a single industrial complex - Donbass.
Their contribution to the country's economy is 17% of GDP. Almost the entire coal mining industry and many metallurgical enterprises are concentrated here. Animal husbandry and agriculture are well developed. The share of arable land in these areas reaches 80%.
Dnepropetrovsk region has the richest deposits of iron ores and non-ferrous metals. Along with metal smelting, it became famous for mechanical engineering and production in the space and rocket industries.
The leader in terms of GDP contribution is Kyiv with 18.9%. It is the financial and scientific center of Ukraine. But here it is worth considering that many of the largest enterprises are registered in the capital, while their activities are carried out in other areas.
Western regions are poorly developed economically. This region lives mainly on agriculture and trade. The only exception is the city of Lviv, where there is industrial production. The chemical industry is well developed in the north-east of Ukraine.
Dynamics of changes in Ukraine's GDP by years
During its independence, Ukraine has experienced several ups and downs. According to the graph of changes in GDP, several points can be distinguished. From 1992 to 1999 there was a fall in GDP. Then, for 8 years, GDP growth was observed, but the global crisis of 2008 also hitUkraine, which coincided with the gas conflict with Russia and disagreements between President V. Yushchenko and Prime Minister Yu. Tymoshenko.
By 2012, the economy was stabilized, but not for long. Until 2014, a slight drop in production continued. The resignation of President Yanukovych and the ensuing secession of Crimea and the war in Donbass led to a new crisis.
Prospects and forecasts
In light of the ongoing conflict in eastern Ukraine, no stability is out of the question. The fall of the hryvnia exchange rate by 3 times exacerbated the problem of external debt. Now it has already exceeded the mark of 100% of GDP. Many experts expect a default on Ukraine's external obligations this year. Against this background, a 9% fall in Ukraine's GDP seems to be an extremely optimistic forecast. The stabilization of the economy, first of all, depends on the cessation of military confrontation.
