Ex-economy Minister Sheremet about the bill, «Buy Ukrainian»: We encourage populism and paternalism, which hurts the Ukrainian economy

Instead of thinking how to win the world competition in Ukraine think how to allocate the state budget, said former economy Minister Pavlo Sheremeta to «Gromadsky», commenting on the adoption by the Verkhovna Rada in the first reading the bill «Buy Ukrainian, pay Ukrainians».

He signed an open letter to the honourable President of the Kyiv school of Economics, Professor of the University of Pittsburgh Timothy Milovanova against this legislative initiative.

Sheremeta stressed that the bill we are talking about the introduction of certain types of preferences.

«Instead of thinking how to win the global competition, we think of how best to allocate our national budget, which in the world economy has very little value. We think, as razdelyvanie the state budget, roughly. Benefits of Ukrainian companies is not that slim. There will be losses because we thus encourage populism and paternalism, which hurts the Ukrainian economy, although, again, this is all served up under the guise of aid to the Ukrainian business», – he said.

Sheremeta added that the European Union, which Ukraine has opened its market, strongly against it.

«They say: «Friends, you are changing the rules of the game, we did not agree». And losing for us, now the European market is very dangerous and harmful. As you know, Eastern market is closed to us, and if we lose even European, where to sell it? Our market is too small for the majority of Ukrainian enterprises», – he said.

The bill provides that the Ukrainian companies can raise the price by 43% in comparison with world analogues, said the economist.

«We actually spend more money on some products, and we won’t have money for many other products. And attractive slogan – apparently intelligent people came up with the slogan, like other intelligent people have come up with (the slogan. – «GORDON»), «Factories to workers, land – to peasants». It is necessary to watch that the slogans,» he said.

Sheremeta added that the bill will not lead to an increase in investments in the Ukrainian economy.

The Verkhovna Rada on 7 December adopted in first reading bill No. 7206 «Buy Ukrainian, pay Ukrainians». They make changes to the law «On public procurement». For some goods, works or services in the public procurement system ProZorro evaluation criterion is proposed to establish the price – the price specified by the participant in the tender offer and automatically listed in the e-procurement system with obligatory consideration of local content in the procurement subject, as well as other non-price criteria.

ProZorro works since the beginning of 2015. 17 February 2016 the President of Ukraine Petro Poroshenko has signed the law «On public procurement», which involves the introduction of an electronic system for all public procurement of goods and services, the cost of which equals or exceeds 200 thousand UAH, and for works – is equal or exceeds UAH 1.5 million.




Ex-economy Minister Sheremet about the bill, «Buy Ukrainian»: We encourage populism and paternalism, which hurts the Ukrainian economy 08.12.2017

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Декабрь 8th, 2017 by
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