| Issue 38: Monday, 21 November 2011 |
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1: Ukrainian public launches video referendum
Ukrainian public launches video referendumE-democracy is appearing in various forms in Ukraine. One of them is the first political video referendum in history which was launched on the 11th of November. The referendum is organised by the 'Spilna Sprava' civil movement and delegates from 'Narodna Rada', a union of civil organisations, with the main goal of terminating the rule of President Yanukovych and the current government. People of Ukraine have been asked to record video addresses to the President and Verkhovna Rada explaining their frustration with recent policies and present their reasoning as to why the current ruling elite should resign from office. The last words each might as well be "You are fired. Hurry up and go!" It is planned to post all the videos on Youtube(1). As of today over 100 addresses from Ukrainian citizens to the President and Ukrainian Parliament(2) have been already posted on the video streaming website, which has the worlds largest audience. The organisers hope for up to 3 million videos, which will clearly demonstrate to the politicians in power that the people are not satisfied with their work. The authorities have so far been withholding comment on this civil initiative. Some journalists and experts suggest that the referendum might have some legal consequences in addition to the probable social and political ones. According to Article 69 of the Constitution of Ukraine the people of Ukraine have the right to express their will through not only elections and referenda but also forms of direct democracy. Either way, as the video referendum continues it will definitely show whether Ukrainians are able to encourage resistance through social networks. People First Comment: It is excellent to see Ukrainians exercising their right to freedom of speech and using the new media to express their opinions and frustrations to the political elite. The elite may not like it as it was not the ‘done thing’ in the Soviet era but fortunately for the rest of the planet the Soviet era is long gone and so too should those who still hanker after it. In the real world of today politicians simply have to live with the irritation of a well informed, well educated and erudite population using the latest technology to express their displeasure. Any government in such a situation has three options; the first is to switch off the mobile phone networks and the internet but that would only bring thousands if not millions more onto the streets. Secondly they could waste thousands of man hours in tracking down every contributor and charge them with… what? Thirdly they could actually listen to the people’s grievances and do something about them. Whether this campaign attracts 100 people or a million is not the point. It is a clear indication to the political elite that all is not well and sooner or later one spark is going to ignite this nation into a campaign of North African proportions which no amount of wealth or power will be able to extinguish. If the government continues in such blind arrogance then it is only a matter of time. Ukrainians don’t trust the militiaThe rollback of democracy in Ukraine has affected the confidence of Ukrainian citizens in basic state institutions. Militia is clearly one of them. A recent sociological survey shows that 57% of Ukrainians do not approve of the activity of the militia office and only 6% of respondents openly support the militia. Ukrainians have evaluated the performance of the Ukrainian militia in the majority of spheres as unsatisfactory. Performance in the field of the fight against corruption in state institutions has received the worst feedback. Ukrainians do not believe in the militia is law-abiding and prefer to seek help elsewhere. A shocking fact is that a militia officer in the street at night is perceived as danger by 31.2% of respondents and only 20.7% believe it represents safety. In 2006 30.5% of citizens considered militia presence to be a guarantor of safety(3). Sociological research has also demonstrated a decrease in confidence in other state institutions. The Militia received 2.2-2.4 points out of 5, judges - 2.3-2.4, local governments – 2.3-2.5(4). It is probably because of the people's evaluations that, as of this November, the Ukrainian parliament is increasing requirements for those wanting to apply for a job in the militia. From now on every candidate must have senior secondary education, speak Ukrainian, be physically fit and have a record clean of criminal violations. Ukrainians losing confidence in the militia is indicative of the process of isolation of the government from the people. It signals that it is time for the government to review their policies.
People First Comment: According to the latest data Ukraine now has 350,000 Militia officers, that’s 1 for every 128 citizens and almost 2 for every serving soldier. In the United Kingdom the ratio is 1 to 435 and virtually 1 to 1 when comparing the police and the army. In the UK the police are well respected and seen to do a worthwhile job in protecting the public, keeping law and order and solving crime. Whilst in Ukraine, unfortunately, the Militia are derided and known for their incompetence, laziness and corruption. To even become a police officer in the UK you need to hold a university degree and undergo almost a years training whilst in Ukraine until recently almost anybody who didn’t have a job could use the Militia as their last line of employment. Whilst the recent Rada vote to improve the standard of the Militia is a step in the right direction the Militia are universally acclaimed as the most corrupt government department in the country. So why is the government expanding a militia that is clearly dysfunctional and why now when the State is already hard pressed to meet its financial obligations to state employees and pensioners? The answer lies in fear. The people have no fear of the militia but the political elite fear the people and hope that by having lines of police to protect them they will somehow survive the people’s wrath. How wrong can they be? A few weeks ago the militia lines outside the Rada were breached not by fit, strong, stone throwing youths but by Grandfathers and Grandmothers who had simply had enough. Admittedly some of the throng were Afghan war veterans but the incident underlines one very important point that the politicians would do well to note. Men will only fight for a cause in which they believe and for a leader whom they trust and respect. Money buys mercenaries; it cannot buy loyalty even from the Militia. Bureaucratic barriers to currency exchangeStrict requirements for currency exchange have recently been introduced in Ukraine. After September 23rd in order to exchange currency Ukrainians have to present a passport and have their transaction and personal data carefully recorded. The new requirements have made the procedure much more complicated for banks, Ukrainians and foreign citizens. Those legitimate currency exchange boxes that did not have copying and special communication channels facilities had to be shut down. The new requirements have also caused inconvenience to foreign citizens. Many have been complaining about banks refusing to exchange currency for various technical reasons. The negative experience of foreign citizens visiting Ukraine might jeopardise tourism and investment return potential of Euro-2012. The Governor of the National Bank of Ukraine, has informed that the new currency exchange requirements have allowed the Bank to save 3.5 billion USD in gold and foreign exchange reserves(5). At the same time the new rules did not stop Ukrainians from exchanging currency. In October the purchase of currency exceeded the sale by $1.4 billion, which contrasts starkly with the previous monthly differences of between 750 and 859 million USD.(6). In addition, the strict governmental control over exchange transactions has resulted in the rapid growth of a shadow foreign exchange market. According to many experts unofficial currency exchange points have been set up in many cities all over Ukraine. Al well as further "shadowing" the Ukrainian economy, these actions damage the confidence of the people in the governing authorities and the national currency, contributing to the destabilisation of the social and political situation in Ukraine. People First Comment: When the Hryvna was first launched one of the problems the National Bank of Ukraine faced was the number of illegal currency traders who invariably stood on street corners and offered a better rate than the banks. This began to undermine the banking system. To combat this, the NBU came up with the bright idea of licensing Obmin Valuty (Currency exchanges) so that the process could at least be managed and the banking system protected. The problem is that they have issued too many licences to the point where the unregulated trade in currency is once again undermining the whole financial system. Undeclared foreign currency is the fuel of the grey and black economies, therefore by reducing the number of licensed Obim Valuty and forcing traders to work with the banks the NBU have effectively recapitalised the banks to the tune of $3.5 billion. Well done we might think but for three small faults in the system. Firstly whilst currency traders now need to show their passport to effect a transaction there is no direct link between the passport and the paper trail, therefore the traders cannot easily be traced back to the transaction. Secondly black market money traders have reappeared on the streets offering a better rate than the banks thereby undermining the whole system just as it did before. Thirdly the system the NBU have implemented involves 5 sheets of paper, seven signatures and can take up to 20 minutes. Finally nobody seems to have thought through how this new system will impact the forthcoming Euro 2012 when the government anticipates some 750,000 tourists. If only 10% want to change $100 then the transactions under this new system assuming 20 minutes per transaction and an 8 hour working day will take approximately 3,126 man days to process and waste 8.5 tonnes of paper… and all for $100 each. Bureaucratic barriers to currency exchangeStrict requirements for currency exchange have recently been introduced in Ukraine. After September 23rd in order to exchange currency Ukrainians have to present a passport and have their transaction and personal data carefully recorded. The new requirements have made the procedure much more complicated for banks, Ukrainians and foreign citizens. Those legitimate currency exchange boxes that did not have copying and special communication channels facilities had to be shut down. The new requirements have also caused inconvenience to foreign citizens. Many have been complaining about banks refusing to exchange currency for various technical reasons. The negative experience of foreign citizens visiting Ukraine might jeopardise tourism and investment return potential of Euro-2012. The Governor of the National Bank of Ukraine, has informed that the new currency exchange requirements have allowed the Bank to save 3.5 billion USD in gold and foreign exchange reserves(5). At the same time the new rules did not stop Ukrainians from exchanging currency. In October the purchase of currency exceeded the sale by $1.4 billion, which contrasts starkly with the previous monthly differences of between 750 and 859 million USD.(6). In addition, the strict governmental control over exchange transactions has resulted in the rapid growth of a shadow foreign exchange market. According to many experts unofficial currency exchange points have been set up in many cities all over Ukraine. Al well as further "shadowing" the Ukrainian economy, these actions damage the confidence of the people in the governing authorities and the national currency, contributing to the destabilisation of the social and political situation in Ukraine. People First Comment: When the Hryvna was first launched one of the problems the National Bank of Ukraine faced was the number of illegal currency traders who invariably stood on street corners and offered a better rate than the banks. This began to undermine the banking system. To combat this, the NBU came up with the bright idea of licensing Obmin Valuty (Currency exchanges) so that the process could at least be managed and the banking system protected. The problem is that they have issued too many licences to the point where the unregulated trade in currency is once again undermining the whole financial system. Undeclared foreign currency is the fuel of the grey and black economies, therefore by reducing the number of licensed Obim Valuty and forcing traders to work with the banks the NBU have effectively recapitalised the banks to the tune of $3.5 billion. Well done we might think but for three small faults in the system. Firstly whilst currency traders now need to show their passport to effect a transaction there is no direct link between the passport and the paper trail, therefore the traders cannot easily be traced back to the transaction. Secondly black market money traders have reappeared on the streets offering a better rate than the banks thereby undermining the whole system just as it did before. Thirdly the system the NBU have implemented involves 5 sheets of paper, seven signatures and can take up to 20 minutes. Finally nobody seems to have thought through how this new system will impact the forthcoming Euro 2012 when the government anticipates some 750,000 tourists. If only 10% want to change $100 then the transactions under this new system assuming 20 minutes per transaction and an 8 hour working day will take approximately 3,126 man days to process and waste 8.5 tonnes of paper… and all for $100 each. Quote of the week.Xanana GusmãoFreedom means to build a democratic system enshrined with the respect for fundamental rights of Man, of the human being, of the individuals. Xanana Gusmão |
