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Opinion

Moral of the market

10 May 2006, 23:14
The recent decision of Kyiv's eccentric new mayor, Leonid Chernovetsky, to open government-supported, low-cost food stores throughout the city sounds more like neo-Communist populism than informed economic policy and is surprising given that he controls one of Ukraine's largest banks

rly voters with free bundles of food during the election campaign, concern for the vulnerable elements of society is also nice for a change.

Chernovetsky is not shy about promoting his assistance to the poor, attributing his goods deeds to Christian fervor. As a leading member of an evangelical church, the new mayor bucks the status quo. Even as a member of the outgoing parliament, Chernovetsky developed a reputation for eccentricity.

But like many of his fellow lawmakers, Chernovetsky is also a serious businessman, controlling a major Ukrainian bank.

That’s why it seems more than just odd that a man of such practical experience would initiate the creation of a network of government-supported, low-cost food stores in the capital of a country just starting to get on its feet economically.

Speaking on Kyiv television station late last week, Chernovetsky announced: “We will start introducing a system of government shops in which products will be [sold] at prices that are significantly lower.”

Not only does the new mayor want to provide the needier elements of his electorate with cheap eatables, he also wants these subsidized products to be near to residential dwellings.

“It will probably be necessary to buy some first-floor apartments and convert them into bread shops,” he said.

We smiled when Chernovetsky suggested lie detector tests for city employees and smirked when he ordered that alcoholic beverages be banned from municipal cafeterias, but this latest measure takes city policy from conservative public morality to neo-Communist populism.

It’s one thing for the authorities to regulate commerce, even in a moralistic way for the common good, but quite another when state bodies, democratically elected or not, turn into market players. Wasn’t it bad enough when Prime Minister Yulia Tymoshenko tried to regulate prices for petroleum products last year – for the good of her countrymen?

The best price is that set by the market, whose players must not hold state offices. Populism is dangerous in politics, but it can be disastrous in economics.
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