Ukraine’s crony capitalism vs. the rule-of-law: What is the best way to break 'systema'?

Despite vocal popular protests against state capture and corruption, Ukraine remains locked in a developmental trap. The country benefits from a highly educated population, abundant natural resources and proximity to European markets, yet its GDP per capita remains almost four times lower than that of Poland.

Its governance suffers from inefficiencies, a lack of transparency, modernization and innovation. Ukraine’s progress towards good governance, the rule of law and competitive economy continues to be hindered by the concentration of economic and political power in the hands of a small number of powerful financial-industrial groups, which wield influence in all branches of the government as well as the media. 

Their clout has increased in the past year, as the total wealth of the top 100 richest Ukrainians reached $44.5 billion (around 30 per cent of Ukraine’s GDP) in 2020.  

This webinar analyzes the key features of the current governance system, and reviews the achievements and setbacks in reducing the influence of vested interests since 2014. The speakers also discuss President Zelenskyy’s recent legislative initiatives and offer possible ways of cutting the Gordian knot of judicial reform and opening Ukraine’s economy to competition.

The event highlights key findings from the new Chatham House paper Ukraine’s system of crony capitalism and Bertelsmann Foundation’s recent publication Why Is Progress Towards the Rule of Law So Challenging: The Cases of Ukraine and Moldova.

The webinar is organized in partnership with the Bertelsmann Foundation.