SBU: WILL UKRAINE'S THE NEW LICENSING PROCEDURE FOR WHO CONTROLS SECURITY SERVICE EVER IMPORTED MEDICINES WILL HELP OFFICIALS ILLEGAL COAL MINING BECOME UKRAINIAN? MONOPOLIZE THE MARKET IN THE DONBAS № 5 (47) MARCH 2013 PUTIN AND THE CHILDREN Plummeting popularity and growing pressure from abroad push Yanukovych to seize power using the Belarus scenario WWW.UKRAINIANWEEK.COM Featuring selected content from The Economist FOR FREE DISTRIBUTION In the three years of his presidency, Viktor Yanukovych|CONTENTS has failed Three Years of BRIEFINGPromises FOCUSto meet his election promises. Instead, he has offered Ukraine A Failing Strategy: Putin anda slew the Children: of large-scale pseudo reformsBeware and the Referendum virtual national Is the Vlasenko Yanukovychprojects could try to in the Hands of a case a mechanism usurp power using the Tyrant: Andreas Gross Education of pressure against Belarus scenario to offset on whatPension Ukrainian reform “I guarantee that the share of governmentdisloyal scholarships MPs or an at ate universities his plummeting popularity In December 2010, Yanukovych democratsated that pension can learn reform will be set at 75% by law” element of geopolitical and growingis nec pressureessary to reduce the Pension Fund’s annual deficitfrom of the “nearly world UAH 60bn” Despite Yanukovych’s guarantee, Art. 23.4provocation? of the Law “On Higher Education” requires ate and 4 from abroadAs a result, the retirement age for women was increased6 tohistory 60, and theof referendayears of contribu- 9 municipal universities to enroll at lea 51% of the total number of udents under the govern- tory service increased to 30 for women and 35 for men. However, this did not help the ment scholarship scheme. On July 18, 2POLITICS011, MPs Andriy Pavlovsky and Oleksandr Sochka Pension Fund, as the government simultaneously raisedSECURIT pensions, primarilyY for the regiered an amendment to replace 51% Followingwith 75%. The in Pa Lukashenka’srty of Regions voted it down on targetThree pool Years of the of P artyPromises: of Regions’ As potential voters, before the 2012 parliamentaryWill Ukraine’s Security December 6, 2011. eleion. Thus, budget transfers to the Pension Fund hit UAH 64.5bn in 2012 and UAH Footsteps: Economic initiatives by 83.2bnYanukovych in 2013. The enters trend is likelythe tofourth intensify significantly in 2014, in view of the 2015Service Ever Become “Reduion in the minimum mandatory number of udents in secondarythe schools, team whichof “young will save reformers” year of his presidency, most presidential eleion.Ukrainian? An insight 2,000 village schools” have a Soviet command style and of the election promises and into the past and In fa, the number remained at “at lea five” udents in a secondary school gradesuit, while the the Family’s number of interestsschools continued to fall: nationalExpanded projects he powersproudly for local governmentspresent of the SBU by 300 in 2010/2011, 400 in 2011/2012 and 200 in 2012/2013. This was not direly related to the worsening demographic advertised“Local self-governanc in 2010 aree should still become a reliable and solid foundation situation: the number of udents in 2012 was only 7,000 less than in the previous year, but 400 schools were closed. 10 onlyof popularon paper rule. I support decentralization12 and the reform of budget 16 diribution in favour of local governments” Healthcare SOCIETY The pa three years have not seen a single law to expand the powers of local “I will ensure a gradual increase in government funding Like Father, Like Son: governments. On the contrary, Yanukovych signed the LaPillsw “On for the the Capital Greedy: of Officials push for healthcare to the European level of 10% of GDP” Ukraine” which essentially took power away from the eleed Mayor and handed it Why the Ukrainian press to the Head of the Kyiv City State Adminiration, whothrough is appointed a potentiallyby the corrupt Health care funding was 3.6% in 2010, 3.4% is closer to its genetic president. Budget diribution in favour of local self-governmentscheme also failed. that 95% will help them to in 2011 and 3.7% in 2012. predecessors – Soviet party of local budgets ill survive on donations from themonopolize central budget. theThe pharmaceutical “I guarantee good quality free emergency medical assiance” agitation and propaganda “reform” only had an effe in Kyiv where themarket Party of Regions and After Yanukovych signed the Law “On Emergency Medical Assiance”, the – rather than its modern Yanukovych took away 50% of individual income tax, i.e. nearly UAH 8bn reform of emergency medical assiance began on January 1, 2013. One of counterparts in the world 20 annually, essentially turning it into another budget-supported region. 24 the results of this “reform” is that it can now take up to an hour for an ambulance to get to patients suffering from Military reform high blood pressure. ECONOMICS “I guarantee the transfer to a volunteer military from 2011” “I will increase government control of the quality of medical services andCoal medicines. Wars: As miners strike for Digging for Billions: I will prote people from price fluuations on the pharmaceutical market” So far, Ukraine has neither a volunteer military, nor a clear rategy or their rights, the crucial question deadlineWho for runs creating the one illegal. Ex-Minier Dmytro Salamatin, forced into Meanwhile, many patients did not receive proper and timely treatment after authoritiesis who failed will to purleadchase the tuber battlecu- and resignationcoal inbusiness 2012, talked in about the 2017 as a possible deadline. Now, the losis vaccines and hemophilia medication in a timely manner in 2011. In 2012, therwhosee was a shortage interests of antir it etrwillovir alpromote DefenceDonbas Miniry is talking about a gradual switch, whereby up to 7,000 therapy for HIV patients and drugs for children with cancer. On March 1, 2013, the Law “On Amending Some Laws of volunteer soldiers will be enlied by July 2013 at age one; nearly Ukraine on Licensing Imported Medicines and the Definition of the Term “Aive Pharmaceutical Ingredient”” signed by 30,000 in July-December 2013 at age two; and 3,000 more in 2014 at the President came into effe, introducing the licensing of imported drugs. According to experts, this will result in the 26 ages three and four. However, these are only promises so far. 30 re-diribution of the pharmaceutical market and increase the price of good quality imported drugs. “As a top priority, officers without homes will be provided with housing. I will introduce NEIGHBOURS a procedure to provide accommodation for young officers within their fir year of service” Anti-corruption campaign Putin’s Purges: Pavel KhodorkovskyA ccording to experts, as of 2012, nearly 45,000 currDoesent army a “Sorry”officers and 20,000 reserve and In Oober 2010, Yanukovych ated that “we will finally be ableInterpreting to condu a speaks about how his retired officers, Afghanian veterans and familiesMake of soldiers Sense? killed while in service, had no an effeive ate policy to fight the corruption, which is currentlysudden a threat crackdown father has become housing. The 2013 budget provides UMichaelAH 12mn to Binyon build housing for the military. to the country’s national security” on extravagant a symbol of political The conruion of housingon how effective The Law “On the Prevention of Corruption and Counteraion Again It”, passed officials repression in Russia“The government should make a large contra forofficial apologies on April 7, 2011, introduces the mandatory reporting of expenditures exceeding UAH 150,000 by officials and their family members. As requeed by Party of and why hethe posesconruion a of social housing. 10 million apartmentsare for historical Regions MPs, the Conitutional Court later cancelled the requirement for officials 34 threat to forPutin young people, public35 seor employees, poor familiesreconciliation 38 to report their 2011 expenditures. Overall, theHISTOR new anti-corruptionY law was never and the disabled will be built over the course of 10 years” really implemented in Ukraine. Among other things, the government does nothing to prevent corruption regarding land, To meet this promise, the government should have built courts, public procurement and more. In aual fa, corruption has reached a scaleLiberated, unseen over the Only pa to few Be years Sent. As ainto Inactivity300,000 Leads new aptoartments Hell:Jaroslav over the p a three years. result, Ukraine was 144th out of 176 countries in Transparency International’s CorruptionBattle: Per ceptionsBattles Index for inUkraine 2012. and PešekInead, talks the number about of passive families w societiesaiting for social housing the merciless exploitation of the that let dictatorsdecreased from ascend 11,000 into 2 010power to 7,000 – in 2011. local population in the offensive and why modern Ukrainian society operations of the Red Army cannot afford to be inert 40 43 CULTURE & ARTS NAVIGATOR The Great Flood: The Ukrainian Week Besieged by the The real Biblical offers an overview Past: A peaceful deluge – and a of new records from invasion to number of other women in rock and the quiet catastrophic floods a selection of events old Zbarazh that have shaped to enjoy in March in Western modern Europe 44 48 Ukraine 50 Natalia Romanec, Shaun Williams, Editors; Anna Korbut, Translator Mailing address: PO Box 2, Kyiv, 03067 The Ukrainian Week № 5 (47) March 2013 Publisher address: vul. Mashynobudivna 37, Kyiv 03067 Ukraine Founder: ECEM Media Ukraine LLC Publisher: The Ukrainian