Ukrainian Economic System

Ukrainian Economic System

By: Natalie Smith

The Ukrainian economy is currently a mixed system. The economy pulls the strongest parts of both capitalism and socialism in order to articulate an economy that works most efficiently for the Ukraine. The mixed economic system of the Ukraine was once a communist economic system. Once the Ukraine gained independence from the Soviet Union, the Ukraine’s economy changed from a communist economic system to a mixed system. A mixed system incorporates both socialist and capitalist concepts. Capitalism is a type of economic system where the government plays little to no role at all. The factors of production are owned by businessmen and investors in a capitalist economy. Socialism is a type of economic system where the government does play a significant role in the economy. In a mixed system the factors of production are owned by individuals, but the government does have some level of involvement. The mixed system economy in the Ukraine consist of a market economy with regulations and social programs. The market economy in the Ukraine allows individuals to own and develop private businesses without the government limiting them. The government however does place healthy regulations on businesses in order to protect consumers. The Ukraine also has many social programs such as social and survivor pension. These programs use the economy to benefit the citizens of the Ukraine and socially aide them. This is a socialistic idea, but it is mixed with the ideas of a capitalist economy. A major ramification of the mixed economic system within the Ukraine is trade. Trade is 108% of the Ukrainian GDP, and it is largely important to the country collectively. Prior to the independence of the Ukraine, the government in the Ukraine owned factories within the country. The communist idea of the government owning factors of production led to the failure of many factories causing the economic system to transform. The goal of the Ukrainian economy today appears to be to allow businesses and the economy to flourish while still protecting individuals socially within the country. The Ukrainian economy has had moments of weakness, but it has so much potential for growth. The landscape of the Ukraine is filled with natural resources and power resources that have the potential to drive the economy forward. The Ukraine has also been taking steps to receive more foreign investors. Foreign investors could potentially benefit the economy as well. The mixed economic system in the Ukraine appears to be a strong balance between capitalism and socialism. The Ukraine has built an economy around its strengths, and the Ukrainian economy in my opinion will continue to grow under a mixed system.

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Works Cited

“Economy of Ukraine.” Ukraine Cities and Oblasts Guide Main Page. N.p., n.d. Web. 16 Mar. 2017.

“Ukraine.” Ukraine Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. N.p., n.d. Web. 16 Mar. 2017.

“Social Security Administration.” Ukraine. N.p., n.d. Web. 16 Mar. 2017.

http://www.ukrainetravel.co/images/TRAVEL/CURRENCY_UKRAINE/ukraine_money_265.jpg

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