George Soros is an 86 year old billionaire who has been supporting a new Ukrainian government. As Ukraine struggles in negotiating deals with creditors so as to avoid bankruptcy, George Soros has plaid a huge helping hand in the matter. The recently experienced Russian aggression and the urgency to reclaim Ukraine has taken the Ukrainian economy several steps back. The country has since had difficulty to strike a deal with the International Monetary Fund to get an increased financial support on nybooks.com. To the present day, the Ukraine economy reads at $19 billion in foreign debt. The country has very little hope of paying this amount to other countries.
George Soros has written several articles that advances for a new Ukraine. The new Ukraine is a country that was established to success from the previous Ukraine. Ukraine’s system of governance was a society that was involved in a huge amount of corruption. The new Ukraine was given a chance to open to a new society with a modernized culture and a new alliance to Europe. The current alliance to Europe is likely going to determine Ukraine’s next step to eliminate debt in the country. Foreign investment in Ukraine is highly needed so as to jump start the nation’s falling economy.
In an article George Soros proposes new reforms that should be implemented in Ukraine. The Ukrainian should work diligently to wipe out corruption. He argues that there should be reforms within the judiciary system and that the nation should shift its dependency on natural gas from Russia. The country should improve its economy by modernizing their banking system and improving its agricultural output.
Read more: A New Policy to Rescue Ukraine
In another article from the New York Times, Soros points that even with the establishment of the new Ukraine, the old Ukraine will pose serious challenges. The old system of governance focuses on bureaucracy. It partners with businesses that do not put the citizen’s well-being. George Soros went ahead to indicate that the hostility of Russian president Vladimir V. Putting has not played well for the country’s economy. The president’s desires to destabilize Ukraine should be upset.
George Soros further states his discontent with the EU and how the union has been operating. The EU was first formed in a bid to build closer relationships for a common good in Europe. However, as years have passed by, more countries got into debt particularly because of the Euro crisis. The transformation caused conflicts within the union and many countries showing their dominance as creditors over debtors. With the Ukraine facing such a heavy financial burden, Mr. George Soros argues that it is the work of the EU to come together and aid the country. A default in an attempt to retrieve itself from the debt will be hazardous for the country’s economy.
Soros added a practical solution would be to have a certain form of political risk insurance given to a private investor and government willing to inject their capital into the falling Ukraine. By offering such form of insurance, Soros feels that other investors would come and inject more capital to Ukraine.