The former governor of the National Bank of Ukraine Kirill Shevchenko criticized the dependence of the Ukrainian economy on foreign “donors“, writes the Ukrainian media “Strana“.
“The economic model formed in Ukraine is “donoromics“, a completely new type of economy, completely dependent on foreign aid“, said Shevchenko.
The former governor of the National Bank emphasized the following features of the Ukrainian “donoromics“: the country's budget deficit is over 20 percent of GDP and is covered not by internal resources, but by external loans; the exchange rate and inflation are controlled not by the market, but by the NBU; international reserves are a gift from donors, and not the result of successful exports; instead of sectoral reforms, the government relies on photo reports from Brussels.
Shevchenko also pointed out that while in conventional economics the main focus is on creating added value, in “donoromics“ it is on maintaining the trust of donors and timely receipt of a new round of financial assistance.
On Tuesday, Reuters reported that the United States had approved the first military aid package for Kiev, financed by Washington's NATO allies. However, this information was not officially confirmed.
In August, Ukrainian Prime Minister Denys Shmyhal announced a new mechanism for NATO and US support for the country through the PURL initiative, which provides for rapid arms deliveries through voluntary contributions from the alliance countries.