Elite still doesn’t understand need for big internal changes
OP-ED: by Myron Wasylyk, Kyiv Post, Kyiv, Ukraine, Fri, July 24, 2009

KYIV GOT MESSAGE IT NEEDED TO HEAR FROM VP BIDEN  
Elite still doesn’t understand need for big internal changes

OP-ED: by Myron Wasylyk, Kyiv Post, Kyiv, Ukraine, Fri, July 24, 2009

U.S. Vice President Joe Biden’s visit to Ukraine this week accomplished three very important objectives not only for the U.S.-Ukrainian bilateral relationship, but also for communicating Washington’s security policy views to Central and East Europeans.

[1] First, Biden affirmed for official Kyiv the continuity of U.S.-Ukrainian relations and their strategic importance to both sides on a wide range of issues. This ended speculation in both capitals about the status and nature of the bilateral relationship and affirmed that an independent, democratic and prosperous Ukraine remains a strategic priority for America. 

During meetings with Ukraine’s political and business leaders, Biden specifically affirmed Washington’s support for the 1994 Budapest Memorandum, which gave Kyiv security assurances from the United States, United Kingdom and Russia in exchange for Ukraine’s getting rid of its nuclear weapons arsenal, one of the world’s largest at the time. The term of the memorandum expires this year and the Ukrainians were keen to receive a signal of support from Washington. 

In another important step for Kyiv, the Charter on Strategic Partnership signed by Presidents George Bush and Victor Yushchenko was renewed. Biden announced a bilateral commission would be established to focus on economics, trade, energy, security and rule of law with an inaugural meeting of the commission scheduled for this autumn in Washington, D.C.  Biden also affirmed U.S. support for Ukraine’s Euro-Atlantic integration without mentioning NATO by name.

Official Kyiv also received confirmation of plans for a visit of U.S. Secretary of State Hillary Clinton and a possible meeting between Presidents Barack Obama and Yushchenko this fall.

While the Ukrainians received almost all the items on their bilateral “wish list,” how Ukraine ranks with regard to America’s other global priorities remains to be seen.  Debates among Washington bureaucrats and policy wonks continue regarding Ukraine’s importance and relevance to the U.S.-Russia relationship.  Nonetheless, Biden’s high-level assurances in Kyiv this week about Ukraine’s importance to the U.S. have left a positive impression here.

[2] Secondly, Biden offered Ukrainians and other Eastern Europeans a wider view of the Obama Administration’s thinking and rhetoric with regard to U.S. foreign policy and international relations in the region. His remarks at the Munich Security Conference earlier this spring and Obama’s “reset theme” in U.S.-Russian relations has caused trepidation and misunderstanding throughout East European capitals. 

Last week, 22 intellectuals and former leaders from Central and East European countries signed a letter to Obama stating their fear that spheres of influence are being re-established in the region with a “revisionist Russia.” They fear the U.S. will trade off its support of Central and East European democracies in exchange for securing Russia’s support for America’s nuclear disarmament agenda, particularly in Iran.

The intellectuals stated: “We know from our historical experience the difference between when the United States stood up for democratic values and when it did not.  Our region suffered when the United States succumbed to “realism” at Yalta. And it benefited when the United States used its power to fight for principle during the Soviet era.

Biden explained that a reset in U.S.-Russian relations is not a threat to Kyiv or any other capital in the region. He said the United States is not seeking to build spheres of influence or domination in the region, countering that “zero-sum thinking” is a 19th century idea with no relevance in the 21st century, where “America recognizes state sovereignty as the cornerstone of the existing international order.”

Biden echoed earlier remarks made by Secretary of State Clinton, who said the U.S. wants to create a multi-partner world, as opposed to a multi-polar one, where partnerships are not aimed against anyone. He assured Ukrainians that the U.S. is looking for strong partners and called upon them to help meet common challenges.     

[3] Thirdly, Biden delivered to Ukrainians a bitter pill on their economic policies and an indication of what Washington expects from Kyiv in the coming weeks and months.  If Ukraine’s government wants to receive assistance from international financial organizations and U.S. support on a number of policy fronts, ranging from economics and energy sector reforms to international security cooperation, Biden said unpopular moves are required. 

So far, Ukraine’s government has been reluctant to take austere and unpopular economic decisions due to a January 2010 presidential election.
Instead, government subsidies continue on a wide range of social programs that have widened Ukraine’s budget deficit to historic levels. It’s currently predicted to reach 6 percent of gross domestic product this year.

On the other hand, opposition calls for populist measures such as raising the minimum wage as Ukraine’s unemployment soars and private sector contracts; and has blocked the work of parliament for the past several weeks. These two facts alone have turned away international investors from Ukraine this year and possibly next year too.

Biden said the International Monetary Fund program was “an opportunity for Ukraine,” if the government cuts the budget deficit, enacts tax reforms, revives the banking sector and removes energy subsidies. “Energy efficiency alone,” he said, “would be a boon to Ukraine’s economy.”
In summary, Biden’s visit to Kyiv helped soothe the nervous mood in Eastern European capitals with affirmation of U.S. commitments to regional security issues that have been on the back burner since the transition from one American administration to another.

However, with regard to Biden’s message to Ukraine on domestic economic policies, this author believes a bare minimum will be done by government officials in the run-up to the 2010 elections.

Unfortunately, Ukraine’s political elite still does not understand that economic prosperity and global competitiveness are just as important a factor to Ukraine’s national security as the security promises made by world leaders through treaties, memorandums and various charters.

NOTE: Myron Wasylyk is senior vice president of PBN Company, a leading international public relations firm. In 2004, he was a speechwriter for Victor Yushchenko’s presidential campaign and wrote on behalf of several officials, including Prime Minister Yulia Tymoshenko.

LINK: http://www.kyivpost.com/opinion/op_ed/4579