Recent history of independent Ukraine is a good example of how institutions affect the development of the state and society. Central and local government institutions were inherited from the Ukrainian Soviet Socialist Republic, just changing their name, and therefore the new Ukrainian government began to suffer. In the first decade of independence Ukraine lost 65 percent of its GDP, which declined by $59 billion to a level of $31.3 billion. By the year 2013, Ukraine’s population declined by about six million, and a similar number of Ukrainians are currently working around the world, often illegally. In 2014, Ukraine lost control over areas of its territory: Crimea was annexed, and war began in Donetsk and Luhansk regions. These processes were accompanied by the unique requests from the people for European integration and reforms.

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