KIEV — The state of poverty in Ukraine, as well as the Ukrainian economy, has been an issue of concern for many years now — not just for the Baltic nation itself but for surrounding trade partners as well. Last year, EurAsia Daily reported that nearly sixty percent of the Ukrainian population lived below the poverty line. This was shocking for western nations and left many to speculate as to how things could have gotten this bad for Ukraine.
Of course, it has been well documented that Ukraine is a place of political unrest, and this status is influenced by powers both domestic and foreign. Political corruption is such a deep-rooted scandal in Ukraine that on CGTN America, Joshua Cohen said the country’s corruption is actually deterring major foreign investors from investing in the nation’s economy.
That fact, coupled with the way recent conflicts between Ukraine and Russia have impacted Ukraine’s international trade, create a recipe of negative impacts for the Ukrainian GDP.
These losses are ultimately what led to the rise of poverty in Ukraine, but there is hope for change. Mr. Cohen continues to explain in his segment that despite Ukraine’s recent spiral, the country has an outstanding educational program and the nation is both an agricultural and IT powerhouse. Ukraine is not weak — it is a strong nation picking itself up from a fall.
While Ukraine is recovering slowly on its own, foreign investors may want to look at the Ukrainian economy like a cheap stock on the rise. IT companies that invest in the Ukrainian workforce will likely see a return, and the more business brought to Ukraine then the faster that return will come. The only thing now threatening to return Ukraine to a state of poverty is the threat of more conflict with Russia.
Moving forward, the goal has to be stable relations between Russia and the Baltic states, or else nations like Ukraine will consistently be in a state of need.
– Tim Sherwood