{"id":11959,"date":"2011-02-18T00:00:07","date_gmt":"2011-02-17T21:00:07","guid":{"rendered":"https:\/\/frishberg.yakimaxim.site\/?p=11959"},"modified":"2026-03-24T08:21:06","modified_gmt":"2026-03-24T08:21:06","slug":"economist-authorities-see-small-businesses-as-a-threat","status":"publish","type":"post","link":"https:\/\/frishberg.com\/uk\/economist-authorities-see-small-businesses-as-a-threat\/","title":{"rendered":"Economist: Authorities see small businesses as a threat"},"content":{"rendered":"
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Also read on kyivpost<\/a><\/div>\n<\/div>\n\n\n

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Leading Ukrainian economist Oleksandr Paskhaver said the authorities would rather have small businessmen work in factories.<\/p>\n

Leading Ukrainian economist Oleksandr Paskhaver said President Viktor Yanukovych\u2019s administration will have a hard time changing the Soviet mentality of top officials, as well as rampant conflicts of interest between the president\u2019s oligarch backers and government.<\/p>\n

Paskhaver, a former adviser to ex-President Leonid Kuchma, said that in order to understand the authorities\u2019 motives, it\u2019s important to remember that they are \u201crepresentatives of Soviet management in an industrial region.\u201d Many top officials come from the industrial Donetsk Oblast, he added.<\/p>\n

\u201cThey genuinely believe that whoever has power has ownership, that administrative pressure is better than economic stimuli, monopoly is more efficient than competition and informal pressure is more effective than the law,\u201d Paskhaver said speaking at a roundtable organized by Frishberg & Partners law firm.<\/p>\n

They genuinely believe that whoever has power has ownership, that administrative pressure is better than economic stimuli, monopoly is more efficient than competition and informal pressure is more effective than the law.\u201d<\/p>\n

\u2013 Oleksandr Paskhaver, leading Ukrainian economist.
He also said the authorities, who adopted legislation last year that increased the tax burden on small businesses while cutting rates for big enterprises, were not inclined to help small businesses. While large protests held late last year by small businesses temporarily rattled Yanukovych\u2019s administration, cornering them into temporary compromises, don\u2019t expect their mentality to change in the future, according to Paskhaver.<\/p>\n

Those in power treat small businesses as \u201can uncontrollable mass, self-sufficient and independent,\u201d Paskhaver said. From the authorities\u2019 point of view, \u201cit would be much better for them to work in factories\u201d that the oligarchs control, he added.<\/p>\n

While the new government is energetic, has launched reforms and has shown itself ready to take unpopular measures, such as raising household gas prices, Paskhaver said it was completely focused on economic rather than social tasks.<\/p>\n

He said the authorities\u2019 greatest shortcoming is they don\u2019t just represent big business, but that they themselves are big business and are using political power to boost personal profits. This, he said, leads to massive conflicts between their personal interests and that of the nation.<\/p>\n

Paskhaver described the country\u2019s ruling Party of Regions as split into two camps: Some want \u201cto fatten the calf and then eat it, while the others say, \u2018Are you mad, they\u2019ll kick us out soon\u2019\u201d and want to take what they can while in power.<\/p>\n

As for Ukraine\u2019s most pressing problem \u2013 corruption \u2013 Paskhaver suggested it couldn\u2019t be stopped at the top of government. He proposed following Georgia\u2019s example and concentrating on eliminating corruption among state officials at the middle and lower levels, as this will ease conditions for 95 percent of investors.<\/p>\n

Kyiv Post staff writer Kateryna Panova can be reached at\u00a0panova@kyivpost.com.<\/p>\n

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Leading Ukrainian economist Oleksandr Paskhaver said the authorities would rather have small businessmen work in factories. Leading Ukrainian economist Oleksandr Paskhaver said President Viktor Yanukovych\u2019s administration will have a hard time changing the Soviet mentality of top officials, as well as rampant conflicts of interest between the president\u2019s oligarch backers and government. Paskhaver, a former…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[116],"tags":[],"class_list":["post-11959","post","type-post","status-publish","format-standard","hentry","category-corporate-and-m-and-a"],"yoast_head":"\nEconomist: Authorities see small businesses as a threat - Frishberg & Partners\u200b<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/frishberg.com\/uk\/economist-authorities-see-small-businesses-as-a-threat\/\" \/>\n<meta property=\"og:locale\" content=\"uk_UA\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Economist: Authorities see small businesses as a threat - Frishberg & Partners\u200b\" \/>\n<meta property=\"og:description\" content=\"Leading Ukrainian economist Oleksandr Paskhaver said the authorities would rather have small businessmen work in factories. 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