Table of Contents
Preface
Chapter 1 :From Paralysis to Progress
Chapter 2 :Labour Market Developments in Ukraine
Chapter 3 : Creating Labour Market Policies
Chapter 4 : Reforming Wage Policy in a Hyper-Inflationary Context
Chapter 5 : Emergence of Industrial Relations
Chapter 6 : Trade Unions and Employers Searching for New Roles
Chapter 7 : The Challenge of Social Protection
Chapter 8 : Social and Labour Policy Priorities
List of Sources
Preface
Ukraine is a major eastern European country that only acquired independence in late 1991. It became independent in the most difficult of circumstances. Between 1991 and 1994, its economy went into what we will call a state of hyper-stagflation - a combination of massive economic decline and an inflation rate that rose to above 10,0009% in 1993. Its political and social infrastructure had to emerge against the background of rapidly shrinking living standards and concern about the sustainability of the country itself. Remarkably, Ukraine in 1994 seemed to have established the necessary political basis for a sustained transformation of its social and economic policies. This was epitomised by the democratic elections and by the endorsement of the Group of Seven and the International Monetary Fund, both of which committed large sums of financial assistance to facilitate the reform process.
In the coming period, it will be essential for the Government, for those agencies providing financial assistance, for the emerging employer and trade union organisations and for others involved in that process to give very high priority to the substantial reform of labour market and social policy. The importance of these spheres of policy cannot be over-emphasised. Open unemployment will mount in 1995, poverty is already widespread and severe, life expectancy has fallen from what was an already low level, the aftermath of the Chernobyl nuclear accident is still having profound social effects and will continue to do so for many years, and very much in the foreground is the need to address the social and labour market consequences of restructuring the economy away from its overemphasis on production for military purposes.
The following is an attempt to assess the trends in social and labour market policy in Ukraine. Although there are exceptions, relatively little analytical work has been done on those issues in the country. The initial intention of our analysis was to provide a picture of the issues and priorities in labour market, industrial relations and social policies, so as to guide the ILO in its technical work with the Ministry of Labour, the Ministry of Social Protection, the Ministry of Statistics and the trade unions and the employer organisations in Ukraine. However, encouraged by our partners in this exercise, the United Nations Development Programme office in Kiev, we have hoped that it would prove useful for other international agencies, such as the European Union (notably its TAClS programme), the IMF and the World Bank, as well as what are usually called "bilateral donors", that is, government agencies in ILO member countries wishing to provide assistance to the emerging Ukrainian authorities.
We hope that the report is of use for those
in Ukraine having to deal with novel and extremely complex policy challenges.
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