The Ukraine – the well-armed poorhouse of Europe

Written by Kai Kleinwächter in June 2022

It’s time to take a sober look at Ukraine. It is a poor country with hardly any prospects for development.

Many illusions surround Ukraine. One of the biggest is the idea that, until the start of the war, Ukraine was a developed state whose population lived a good life.

Nothing is further from reality. Ukraine was and is the poorest country in Europe. Their economic power in 2020 was around 3,700 US dollars per inhabitant.  Comparable states with similar economic power are the famine state Sri Lanka, the civil war country Libya and the drug economy El Salvador.

A striking comparison: Ukraine’s gross domestic product of around 155 billion US dollars corresponds to that of Berlin. However, the city has less than a tenth of the inhabitants.

The Federal Republic surpassed the Ukrainian level of productivity half a century ago – in the early 1970s. In terms of Germany’s economic power, Ukraine is a „third world country“. The distance to Germany is so gigantic that today’s German standard of living will only remain an unattainable dream for most Ukrainians – unless they emigrate.

Economic stagnation

The cause of the economic underdevelopment is a complete failure of the national economic transformation after the collapse of the Soviet Union. Since the late 1990s, Ukraine’s major neighbors have experienced comparatively dynamic economic development. Up to the present they have multiplied their economic power per inhabitant. 

Ukraine, on the other hand, was already lagging behind in the 1990s. In the second half of the 2000s, even slowing progress ground to a halt. The economy has been stagnating at a low level for around 15 years. The high growth rates in good years just about compensated for the repeated massive economic slumps.

The permanent stagnation is also reflected in the wage development . Depending on the economic situation, the average gross wage has fluctuated between 200 and 350 euros per month since 2009. For the majority of Ukrainians there is hardly any social or economic progress.

Lack of civilizational development

Other indicators, such as the Human Development Index or the Peace Index, also document a comprehensive lack of development in Ukrainian society. 

With the exception of the Republic of Moldova, all neighboring countries created significantly better living conditions for their population. This manifests itself above all in a significantly higher life expectancy. Since the mid-1970s, this has stagnated in Ukraine between 72 and 67 years . Only Russia is currently at the same level.

The very negative rating for social peace (peace index) is not only the result of the permanent civil war in Donbass and Luhansk – the main excuse for all the abuses.

In other areas, too, such as the proliferation of weapons among the population, political extremism and terrorism, as well as violent crime and murder, Ukraine „achieves“ negative peak values. In Europe, only the Russian population is similar.

Expenditure on research and development is steadily declining. While they were still over one percent of GDP in the 1990s, Ukraine only managed 0.5 percent in 2018. During this period, Germany increased its spending from around two percent to over three percent.

The declining importance of research shows that the Ukrainian economy and with it society are gradually losing touch with modern high technologies. It is no coincidence that Ukraine’s main exports are unprocessed agricultural products, iron, steel, coal and other raw materials – key commodities of the 19th century (Finish Kai Kleinwächter).

Ukraine crime statistics

Title-Image by Artur Voznenko on Unsplash from Lviv (Ukraine).

We all know the saying „He who wants to save Calcutta becomes Calcutta himself“. There is some truth to it.

We in Germany experience this reality every day. Among the millions of refugees who have managed to enter our country with the help of the German state, the Protestant Church and aid organizations, are provided with all amenities, which leads to the fact that the original Germans are increasingly, and with a dramatic upward trend, impoverished. Right now, when basic foodstuffs have become so expensive that 14 million Germans can no longer feed themselves properly, millions of „help-seekers“ are being provided with everything they need to live. Germans are now lining up at the „Tafeln,“ begging for expired food, and Merkel’s guests are sitting in sidewalk cafés looking for potential victims.

In other words, Germany is on its way to becoming a second Calcutta.

The media reports that Germany is a rich country, but this is not true. The money is in the pockets of a few super-rich people who are getting richer even in these difficult times. The majority of Germans own nothing, they live for rent and ride their bikes. The expenses of the state, are all financed by debt. In total, the debt amounts to 6 trillion euros.

Please don’t get me wrong, helping others is a given, but what’s too much is too much, especially if we sink further into poverty and lose our livelihoods in the process. None of this makes any sense unless you know what the goals of the „Great Reset“ that has been decided upon are.

Prof. Dr. Klaus Schwab, co-founder of WWF and one of the originators of the „Great Reset“ put it in a nutshell, he said:

„You will no longer own anything and everything you need to survive you will get from us.“

Im Kontrast zu Lviv in der Ukraine (Title-Image), sieht deutsche Armut so aus. Alles so schön bunt hier.

Thank You. Photo by Julia Taubitz on Unsplash

Economic linkages

Kyiv has a booming tech industry – according to FastCompany, well-known companies such as Grammarly, Readdle and MacPaw are all based in the capital. Companies such as Google, Ring, Oracle and Snap have significant workforces in Ukraine, and Wix, Lyft and Uber also maintain staff there.

The main customers of Ukrainian providers remain the United States and Western Europe, including the United Kingdom and European Union countries. While different sources provide different statistics, it is clear that the U.S. remains Ukraine’s largest R&D partner (45% of research companies).

The EU is the second largest market with the UK, Germany, the Netherlands and Sweden as the main consumers.

Veröffentlicht von Karlheinz W. Gernholz

Dipl. Ing. Architect (Germany) Structural Engineering/ Construction management/ International experience mainly in Arabic countries, especially Tunisia

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