I admittedly do not know that much about Ukranian politics so I am trying to inform myself. There are still some things I don't get. Why do you think they are better off under the Russian controlled group than under the Oranges? From a geopolitical standpoint I would think the U.S. would be better off with the Oranges in control - I still do not trust Putin.
Also, from what I have read the growth rate has slowed but it was expected. The 12.7% was a one time peak and was not something that the prior regime was able to sustain. Also, from what I have read the higher inflation rate is driven by rapidly rising wages - not minimally rising wages. I am confused by your 90% statistic - does this mean you think wages actually dropped by 10%?
Not trying to bust your chops just trying to stay informed - thanks
Second time now- your figure of 17% is an early figure which also included portion of Yanukovich's year. You should look at YEAR TO DATE and this figure is 11-12%. Another thing that I might have asked for your input some time ago- how was it possible that in December 2004 GDP growth was 12.1% and a month later, Jan. 2005, growth was 6.5%? 5.6% drop in one month is a huge drop which screws the whole thing up.
and an over all tax rise of 20%.
Only if that was as significant as you meant it to be. Before you take out an economics book and begin your lecture, Mr. prof, consider the specificity of the Ukrainian economy- as much as half of all business do not pay taxes. One of the achievements by the Orange has been the reduction of this "shadow economy" vis-a-vis fighting corruption. (actually I wonder if anyone has been making a case, linking this with the reduced GDP growth.) Sure, I agree taxes should be low, but one step at a time- make everyone pay, then you can afford to reduce taxes.