Ukraine economic reform and rent seekers:
It was assessed by few economists that Ukraine economic reform could include privatization, and stability in the macro economy. These reforms would in a way benefit the rent seekers. One reform, which the authorities were fearing to implement owing to the interest of the rent seekers was Ukraine economic reforms pertaining to rent in the agricultural and energy sector.Obstacles in the implementation of Ukraine economic reform:
One of the main obstacles proved to be the political power exercised by the rent seekers. Mismanaged public expenses and a system, which encourages monopoly in matters of rent highlights this. However, economy of Ukraine has picked up and it was found in the year 2000 that the gross domestic product of the country had increased by 5.3%. This increase was due to Ukraine economic reform as well as political reform.It was observed that in Ukraine economic reform followed several political reforms. The Ukraine economic reform included bettering the budgeting procedure, reduction in the arrears of the government, reducing public expenditures, budget balancing, decreasing taxes imposed on non monetary bills. Ukraine was able to accomplish all of the above without taking assistance of the International Monetary Fund or the IMF. Ukraine economic reform pertaining to the energy sector was also undertaken. Land reform was qualitatively reformed. Although the process was not at all transparent, it increased the incidence of the system of private land ownership.
