The world Bank called for four reforms, which Ukraine should implement in the first place

Ukraine should first carry out four reformsto the growth performance of the economy was higher. We are talking about pension, land, healthcare and anti-corruption reforms.

About it in interview “to Mirror of week” said world Bank Director for Ukraine, Belarus and Moldova satu Kähkönen.

“The first is pension reform. From a fiscal point of view, it is extremely important to 11% of the national GDP is spent through the Pension Fund, with only half of these funds is covered by the pension contributions of the population, the rest is financed by the budget. This is a huge imbalance,” said Kähkönen.

Now, in her words, almost 70% of the Ukrainian pensioners live below the poverty line, and therefore need the protection of the state.

“Second in importance is land reform. It requires significant transformation, but can itself become a significant impetus for shifts in case of successful implementation. The lifting of the moratorium (on the sale of land for agricultural purposes), preparation and opening of the land market will become an impetus to attract investment in the country,” Kähkönen said.

The reform of the health need, because the financing of this sector is extremely inefficient.

“Ukraine spends on health care more than 4% of GDP — significantly more than any other country with a similar income level, and quality of health services remains unsatisfactory. And it’s not just a question of inefficient use of budgetary funds, but also indirect economic losses — increase of life expectancy on year increases GDP per capita by about 4%,” says Kähkönen.

She added that in Ukraine every year due to premature death and disability “lost” nearly 6 million years of productive life.

Anti-corruption reform is one of the key for Ukraine, as well as for private investors, including foreign ones.

We will remind, the world Bank predicts that in 2017 Ukraine’s economy will grow by 2%, while inflation will be 10% instead of the previously forecasted at 8.5%.

“Given the current rate and an unfavourable situation on foreign markets, the blockade on Donbass and other factors, in 2017, we forecast a slight increase of 2%. In order to accelerate economic growth and achieve sustainable recovery, it is necessary to implement reforms. No other recipes,” Kähkönen said.

The world Bank also said about the passivity of the Ukrainian ministries responsible for international projects.

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