The world, it seems increasingly clear, is headed for a recession brought on by a binge of easy credit and lax regulation of the banking and financial sectors. But the downturn ahead can easily turn into a depression if leadership is lacking and politicians continue to make panicky proclamations.
Ukraine’s political elite have not yet learned the art of statesmanship during crises.
While top officials should forewarn citizens of the dangers ahead, they should do everything possible to calm an already jittery population with a plan for how Ukraine will weather the economic storm. Let there be no doubt of the tough times ahead: Ukraine’s hryvnia has been steadily losing value against the dollar and the production of the nation’s main export – steel – has been slashed due to slumping demand.
Instead of seeking ways to avoid panic, the nation’s top politicians show no aptitude for leadership, only an insatiable hunger for more childish fighting. President Victor Yushchenko called a Dec. 7 early election in a feeble attempt to punish his adversary, Prime Minister Yulia Tymoshenko. Poor timing, Mr. President.
For a change, the nation’s politicians and oligarchs should rise above their selfishness and put national interests first. Some of Ukraine’s 170 banks may be in danger of going bust, evidently because of the same cascading wave of bad loans made and the end to easy loans from abroad.
But instead of finding ways to restore confidence, some top officials have been stoking fears.
Petro Poroshenko, supervisory chairman of Ukraine’s central bank, has appeared on TV this month telling Ukrainians that the world is about to be hit with the worst global economic crisis in 80 years. He suggested Ukraine could asbsorb shock, but also made alarmist comments that could fuel panic.
Referring to the gobal economic crisis, he said last week on ICTV television channel that the world has not even “at times of war” seen such falling production levels and after-effects. “The world is suffering from a crisis which it has not seen in maybe 80 years. And it took this country – the United States – almost ten years to climb out of this crisis,” he added.
It may turn out to be true, but as Ukraine heads into an ill-advised early election, its cutthroat politicians should choose their words more carefully. It would be great if a Ukrainian Franklin Delano Roosevelt would emerge. However, seeing no Ukrainian FDR, we’d settle for less alarmist rhetoric and more admirable action.
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