The recent emergence of change in the Ukraine government and their issues can be traced back to the wide variety of conflicts that have affected their economy since the early 1990s. Before the 1990’s, the USSR was in complete control of Ukraine policies.During this period of time the Soviet Union collapsed, leaving Ukraine to declare independence and stand on their own. On Jul 16, The Ukraine Parliament approved a declaration of State Sovereignty. A new system was set up for the first time and the first president of Ukraine was elected, Leonid Kravchuk won. Many saw independence as the start of creating a well developed country, but that was not the case. When they finally disassembled from the Soviet Union they made the mistake of not realizing how reliant they were on them for oil and gas, important resources. Two of the top funding resources being unavailable to your country is going to lead to a term of failure. Ukraine began to suffer a huge downward spiral into a recession.
One way cooperation helped Ukraine was the fact that one third of the Soviet Unions nuclear weapons were still on Ukraine land. They reached an agreement with the United States, Russia, and Britain for security assurance in return for the weapons. This can be related to the cooperation theory in class where it is a better outcome for both parties to cooperate then not, specifically when future encounters are very likely.
“Its heavily indebted economy was shrinking fast. Ukraine’s economy shriveled by almost 18% year on year in the first quarter”. Right after becoming independent, they became one of the most unproductive countries and their inflation rate skyrocketed. They had little to no resources and lacked access to financial markets as well. People began to lose savings and there was a lack of fuel available to Ukraine.
“By the time the 1990s were almost over Ukraine had suffered severe economic damage, almost half of their GDP was cut”. Political instability lead to corruption and revolts within their community. During the Yanukovych era, with all the corruption it was impossible to form a correct law and government institution and the economy in turn suffered tremendously. In order for the country to progress its essential that the government eliminate corrupt practices.