Ukraine will never be able to provide government services efficiently and effectively until managers are able to lay off unproductive or unneeded public employees more easily.
Ukrzaliznytsia, the state-owned railway monopoly, is a prime example. It has 300,000 employees when, according to everyone familiar with the issue, less than half are needed. The reason the extra employees are kept has more to do with placating political forces than running an efficient and profitable railroad.
Examples abound all over Ukraine’s government, which employs 1 million people, including at 1,800 badly run state enterprises.
The other part of civil service reform, besides giving managers more power to streamline a Soviet-style bureaucracy, is to ensure competitive hiring and pay. Ukraine will never make headway against corruption and vested interests if it does not pay public employees livable wages, starting at Hr 10,000 for entry-level jobs.
Better pay should also extend to Ukraine’s elected officials, including parliament. Although no amount of money will satisfy some elected officials, they and top ministers and administrators should be getting at least Hr 40,000 monthly – with top ministers and key managers making much more.
These are not high salaries, by any measure, but the amounts, with cost of living increases and benefits – should be enshrined in law.
