POLICY STUDIES was established by the International Centre for Policy Studies in January 1999 as a monthly edition. POLICY STUDIES provides various research on government policies carried out by ICPS experts, partners, and other research institutions. POLICY STUDIES is financed by the Open Society Institute. Editor of POLICY STUDIES: Hlib Vyshlinsky English version editor: Oksana Popruga Copy editor: Bess Lincourt Our special thanks for assistance and advice go to the Director of the ICPS Vira Nanivska, economists of the QUARTERLY PREDICTIONS project, and other employees of the Centre. Papers published in POLICY STUDIES contain opinions of the authors. Any organizations, including the International Centre for Policy Studies and the Open Society Institute, are not responsible for estimates and judg- ments presented in the publication. Printed in Ukraine by Pekotoff printers Address of the International Centre for Policy Studies: 8/5 Voloska St., 254070 Kyiv, Ukraine Tel. +380 44 463 6337. Fax +380 44 463 5970 E-mail:
[email protected] © 1999 International Centre for Policy Studies All quotations must be supplied with references to POLICY STUDIES. THE INTERNATIONAL CENTRE FOR POLICY STUDIES is an independent, non-profit research organization with the objective of improving the Ukrainian policy development process. This is achieved by increasing the know-how of key government officials for policy choices, formulation, and debate, and the awareness of the public-at-large of the benefits of the pol- icy. ICPS focuses on key programs of importance