Crisis and Market

To sum up our brief review: it seems the market in Ukraine has serious problems. The uncertainty of property rights and civil rights, along with the near-absence of courts, is the first and most important problem—one that prevents us from fully utilizing the knowledge that exists in society. The second problem is the government’s push toward “transition to market,” meaning its interference in the process. But things here aren’t as bad as they could be. The activities of our governments would have driven any economy into an early grave, yet as it stands, we haven’t managed to finish ours off yet. The reason is the profound distrust of government in general and the determination of “market subjects” (that is, all citizens without exception) to evade official initiatives by any means possible. What they call the “shadow economy” is actually our version of the market—one that allows us to survive. So the slogan of the moment is simple: everything into the shadows and away from the rulers. This helped us in the nineties, and it will help us now.