ISSUE: 218
True knowledge exists in knowing that you know nothing. And in knowing that you know nothing, that makes you the smartest of all.
- Socrates
COMMENTARY

UKRAINE. Which Way to Go?
By Anna Guziy

Do you know the main changes in the names and descriptions of products and services that have occurred during last 10 years in Ukraine, changes that have a certain relation to geography? I'll tell you. Ten years ago the trend was to everything American. Do you remember such names as "American Aspirin", "American cleaning", "American taxi" etc.

Now instead of "American" names we see "European" such as "Euronet", "European Square", "Eurolab", "Eurotaxi" etc. What has changed, that caused these name changes from American to European? I think that the principal reason lies in the European trend of the Ukrainian government.

Ukrainian aspirations for entering the European Union are spurred by two main rationales. First, is the result of the impact of globalization. The second is deliberate choice; and is the result of affairs with Russia.

So, first globalization. One knows that in recent times globalization is the favorite topic of people who don't have much information or knowledge and have to have something to discuss. So let me join them and say some words about globalization and the Ukrainian part in this process.

Many people take globalization as a main evil of our century and are very emotional about the topic. However, as for me as a cool blooded person I'm going to consider only facts and arguments.

There are a lot of people who have there own opinion and scientific definition of globalization. Many of their definitions consist of lines of boring and unintelligible foreign words. I think that the best definition of globalization given to me was by my 17 year old neighbor who said that globalization was reflected in Ramstein's video "Amerika" (We're all living in America). Even the Nobel Prize winner Thomas L. Friedman in his book The Lexus and Olive Tree compared globalization with "Americanization".

The European Union as a main player in the globalization and free trade process was created to be opposed to the USA, to keep balance, to save the European economy and to preserve the EU's impact on world policy. In other words it was created to keep the reins of government consolidated in the nations of Europe.

What is the Ukrainian mission/addition in this story? What can Ukraine obtain or lose? There are a lot of opinions on this issue. Here some of them.

Due to the EU capital flow will be directed to Ukraine and then the Ukrainian people will work for dimes or rubles. Thus such running of capital leads to exploitation of the Ukrainian people.

I can't agree with this position. European companies may well pay Ukrainian workers less for the same job than in Europe, but in any case it will be more than Ukrainian companies pay. So where is the exploitation?

Due to globalization and the EU the transnational companies (TNC) will swallow the Ukrainian market, thereby destroying Ukrainian production and business.

Let's consider this opinion in detail. First TNC came to Ukraine just after the USSR fell. The Ukrainian people hadn't seen goods from Proctor & Gamble, Nestle and McDonalds previously. Ukrainians quickly got used to washing powder from Procter and Gamble and coffee from Nestle. Thus the Ukrainian market wasn't captured, it was just given up. Moreover even if TNC doesn't obtain a profit or even incurs losses it always is offset by getting profit from other regions. In any case, once they come to a market TNC will not likely go out of it. This is because one of their main objectives is the hell-bent presence in each regional market. Besides, the annual income of many TNC is higher than Ukrainian GDP. So Ukrainian market almost works for TNC.

At the same time entering the EU means a lot of problems for Ukraine, because Ukraine is not yet ready to be a member of the EU. It isn't ready to implement EU laws and standards. The Ukrainian life style is significantly different from the European one. To enter the EU the Ukrainian people would have to change not only their laws and economy, but also their life style and their way of thinking.

Now let's consider the possible results of a Ukrainian association with Russia. As we can see from Ukrainian history, union with Russia never has brought good to Ukraine either economically or culturally. Looking at the Russia - Belarus alliance I'm afraid that Ukraine can repeat the Belarus' way. When I think that Ukraine could be in Belarus' place I begin to cross myself despite my atheistic upbringing. Union with Russia will lead Ukraine to the total destruction of Ukrainian independence, politically as well as economically.

As one can see, the EU isn't ideal for Ukraine, but the matter is that Ukraine has to choose the lesser of two evils. And choosing between the EU and Russia European way is more reasonable. In other words Ukraine has little choice.

Read also previous issue' articles:
Danone Nations Cup
Ukraine and Property Rights
Capital’s Minibuses Need Shake-up
Ukrainian Woman in Power
Foggy Forms and Silly Signs: Why Ukraine Needs An 'English Brigade'
Letters From Our "READERS"



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