IMF makes Ukraine an agricultural nation

06.07.2017

Kiev has again serious reasons for concern. The International Monetary Fund (IMF) will postpone giving Ukraine access to a 1.9 billion dollars tranche.

They explained this by saying that the Verkhovna Rada will not have time to pass a draft law on land reform before the summer parliamentary holidays. This is one of the conditions that should be implemented in order to be paid 17.5 billion dollars to Ukraine within four years.

Ukrainians are against reforms, but no one is listening to them

It should be noted that the conditions are truly bondage. The moratorium on the sale of agricultural land will have expired by the end of 2017 in Ukraine. Therefore, the implementation of the land reform,which was promised to be done, means a free sale of both public and private lands.

It is important to note that a recent poll, which was held by the Rating group, showed that the citizens of the country are absolutely against to cooperate with IMF. 63% of citizens think that this will directly lead to a decrease in living standards and an increase in prices. At the same time, 53% of respondents are againstthe land reform. They are sure that land should not be a commodity.

Moreover, other anti-social reforms were previously implemented. For example, they increased the minimum work experience required forretirement from 15 to 25 years, which, in fact, deprives Ukrainians of a deserved pension.

IMF is a tool that rebuilds a country's economy on liberal basis. It makes the country getinvolved intoexorbitant debts and then gives it away to transnational corporations. Now, they are experimenting with Ukraine, which is already a full-fledged bankrupt. Let's not forget about 3 billion dollars that Kiev owes to Moscow, as well as the country's aggregate public debt which is 74.68 billion dollars.

It will take a month and a half for Kiev to fulfill the terms of IMF

Thecooperation with IMF means an algorithm of interaction between the client state and the International Monetary Fund.

IMF puts forward its conditions, until this state does not implement these conditions, no tranches will be sent there. Now there is a kind of bargaining, because it is clear that while the authorities have  very low ratings, unpopular reforms (in particular, the land reform, which is mentioned, and the next increase in tariffs) negatively affect the central situation in Ukraine, the general relations with the authorities.

Thus, the authorities are not interested in this, but the IMF partners insist on reforms. We know from the history of the IMF-Ukraine relations that a month and a half will pass, and the current government will fulfill all the conditions of IMF and thus it will receive another handout, but it will do it at the expense of citizens’ interests, at the expense of Ukraine’s interests.

How to make an agrarian nation

Moreover, remembering the history of relations with IMF, the next anti-state reform would not be something surprising. Taking into account the fact that IMF let water arteries be privatized in some countries, so people could not even get water, this is not the worst thing that IMF is currently proposing.

However, it  was only one of the steps.  After these concessions, new recommendations will follow, which may turn out to be more painful.

But acting in this way, the West demonstrates what it wants to get from Ukraine: An agrarian state which will be completely under control of IMF and other Western countries, and will fulfill the tasks.