Candidate Oleksander Moroz speaks at Harvard University (11/01/98)

Candidate Oleksander Moroz speaks at Harvard University

by Janet Hunkel
Harvard Ukrainian Business Initiative

CAMBRIDGE, Mass. - "Living by one's wits" could be Ukraine's version of the "Right Stuff." To live by one's wits was one of presidential candidate Oleksander Moroz's solutions for survival in Ukraine's current economic situation. And living by one's wits is the stuff of which Mr. Moroz is made.

Mr. Moroz, leader of the Socialist Party of Ukraine and the candidate many consider most likely to win the 1999 presidential election, spoke on "The Role of Ukraine in the Modern World: Geopolitics and Economic Development." Held on October 15, the event was co-sponsored by the Center for International Development, the Harvard Ukrainian Business Initiative (HUBI) and the Ukrainian Research Institute at Harvard.

Mr. Moroz was educated and worked as an engineer in the agricultural sector during the height of Soviet military-industrial power. As was true of all people in power at that time, he was also a member of the Communist Party. Ukraine's independence in 1991 and the break-up of the Soviet Union created new roles and unique opportunities while vaporizing those previously considered institutions. Mr. Moroz, living by his wits, has re-emerged as a politician.

During his talk Mr. Moroz portrayed Ukraine's economic situation in dire terms: the GDP has declined twofold since 1990; the payments crisis is severe, with credits surpassing revenues; and back wages owed to state workers equal the entire budget. Ukraine is still in the middle of its painful economic transition.

This dismal report set the stage for his proposal for change. Part of Mr. Moroz's formula to resolve the problems is to strengthen the links between the branches of government, limit the number of political parties and work out a joint platform that would stabilize industry. Ukraine could financially survive with taxes and other budget revenue. Then they could send the IMF home.

Mr. Moroz responded to tough questions in the style of the best of consummate politicians. Starting off the discussion was a comment on the recent report by Transparency International, which cited Ukraine as having one of the worst records on corruption. If elected president, would Mr. Moroz eliminate immunity for Verkhovna Rada members? Mr. Moroz explained, "I worry about corruption and am happy my name isn't tainted." He commented that corruption isn't centered in the Parliament - although some deputies are corrupt - but rather in the presidential administration.

When a local businessman explained that Ukraine's laws make it easier to invest in California banks than Ukraine's, Mr. Moroz explained that although tax legislation is being reformed it is fourth on the list of critical issues. Actually, it is the banking system and the banks' connections with industry that are the number one problem. Following the talk Mr. Moroz made arrangements to continue the discussion with the businessman, revealing his pragmatic side as a politician.

He took the more conservative side on one of Ukraine's major issues: the question of land privatization. "The mere talk of the privatization of land is preposterous," he said. Mr. Moroz considers land to be the main wealth of the country and in 10 to 20 years from now, when he predicts overpopulation will make the availability of food critical to survival, the key issue will be who is the owner of land in Ukraine? The uncertainties in the process of land privatization persuade Mr. Moroz not to attempt it.

When asked his views on Ukrainian journalists, whether he found them aggravating and the source of wrong information or helpful and purveyors of correct information, he revealed yet another dimension of his background: that he had been a journalist and had authored four books. He said that the freedom of the press is not fully implemented, as permitted by the Constitution, and although journalists have improved their style, many still write what they are told.

No talk these past weeks can go without a question on Kosovo, and Mr. Moroz was not immune. While he said he supports a political solution along with the rest of the international community, Mr. Moroz also questioned whether the West should actually be militarily positioning itself against Yugoslavia. There was a distant echo from the old establishment, from another time when one lived by one's wits.

Mr. Moroz came to the United States to meet with agricultural businesspeople in Washington and Chicago with the intention of encouraging their investment in Ukraine. His trip to Harvard was the result of a long-standing invitation from the Harvard Institute for International Development (HIID), where he was to speak with noted economist Jeffrey Sachs about macroeconomic issues.

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