Ukraine is heading for a total economic collapse
‘When Christine Lagarde, managing director of the International Monetary Fund (IMF), announced Ukraine’s new, $17.5 billion bailout package Thursday morning (Feb. 12), she suggested it would be a “turning point for Ukraine,” which stands to receive $40 billion in relief funding from various sources over the next four years. “This new four-year arrangement would support immediate economic stabilization in Ukraine as well as a set of bold policy reforms aimed at restoring robust growth over the medium term and improving living standards for the Ukrainian people,” Lagarde said from Brussels.
But it will take a lot more than IMF billions to dig Ukraine out of economic crisis, and to implement the reforms Lagarde’s IMF team has has demanded. In order to survive, Ukraine will need to fashion a new social contract with its citizens, one that sheds hundreds of social services left over from the Soviet era, which Ukraine’s nomenklatura, its upper-middle class civil servants, still enjoy.’
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