Ukraine Moves to a Market Economy

• Pages: 76

Page 76

Ukraine's economy has undergone a massive restructuring as a result of a major macroeconomic stabilization program implemented over the past two years. Inflation, which had reached more than 10,000 percent in 1993, has fallen sharply and a new currency has been introduced. The economy continues to contract, however, despite the huge potential of the country's agricultural and industrial sectors. The Ukrainian leadership now faces the challenge of reviving output so that the reform program can be pursued and the population convinced of the long-term benefits of its current sacrifices.

In response to this challenge, the IMF and the World Bank held a joint seminar in July 1996, bringing together government officials, academics, and staff members of international organizations to discuss a medium-term strategy for Ukraine (see IMF Survey, August 12, 1996, page 267). The aim of...