Government threatens to resign if Rada does not approve economic program (03/26/00)

Government threatens to resign if Rada does not approve economic program

by Roman Woronowycz
Kyiv Press Bureau

KYIV - With criticism of the Cabinet of Ministers' five-year economic program mounting, its economic chief put the future of the government on the line on March 20 when he stated that if the program is not approved by the Parliament, the government would resign.

The economic development program, which is a general outline of the government's objectives through 2004 with 22 specific economic targets, has been criticized by two influential lawmakers since it was released to the Verkhovna Rada for review and analysis on March 13.

"Let's be realistic here, how can a Cabinet of Ministers work if its program is not accepted?" said Minister of the Economy Serhii Tyhypko.

He explained that Prime Minister Viktor Yuschenko had already said as much when the plan was released to the Parliament on March 13 and rejected any notion that such assertions were designed to put pressure on the Parliament to pass the program.

"The prime minister said that if the program is not approved, he would not like to work in such a government, one that is not supported by the parliamentary majority," said Mr. Tyhypko.

Mr. Tyhypko has expressed concern that the economic program could have a difficult time getting approved by the Verkhovna Rada because certain deputies might not find it to their advantage to support it.

Hopes for quick approval of the program by lawmakers suffered a setback when two leading members of the parliamentary majority, First Vice-Chairman of the Verkhovna Rada Viktor Medvedchuk and National Deputy Oleksander Volkov, head of the Regional Rebirth faction and a close confidante of President Leonid Kuchma, expressed less than unqualified support for the Cabinet of Ministers' five-year plan in the first days after its release.

Mr. Volkov said he is "categorically opposed" to the program, while Mr. Medvedchuk criticized the government for the way it was undertaking its lobbying effort. Mr. Medvedchuk suggested that the government had acted "improperly" when Prime Minister Yuschenko briefed members of the Kyiv international diplomatic community on the working document prior to turning it over to the Parliament. He called the government's pressure tactics and threats to resign "political blackmail."

"By their scenario, a document of this type should be approved through a mechanical vote and to the sounds of wild applause," said Mr. Medvedchuk.

Although neither Mr. Volkov nor Mr. Medvedchuk has given a specific explanation for his remarks, some political experts believe the criticism of the government and its plan is due to the program's call for an overhaul of Ukraine's energy sector. Firms owned by Mr. Volkov, and particularly Mr. Medvedchuk, are major players in the country's oil and gas markets.

President Kuchma stepped into the fray to state his support for the Yuschenko government on March 22 and expressed surprise over the statement by Mr. Tyhypko. He explained that the Constitution of Ukraine does not envisage the resignation of the government should its program not receive Parliament's approval. He said he believed that lawmakers would ultimately approve the package.

Evidence that the economic program was in trouble withered to an extent on March 23 when the Verkhovna Rada passed a resolution approving a memorandum of cooperation between the executive and legislative branches. The government had suggested earlier that the memorandum and the economic program should work together. The economic program is set for floor debate on April 6, with a vote expected the following day.

Cabinet ministers, along with Prime Minister Yuschenko, have carried out an intensive lobbying effort in the halls of the Parliament in the last two weeks to assure passage of their program. Mr. Tyhypko said that government ministers had held meetings with most of the factions and 25 committees regarding problems lawmakers foresaw with the working document. He said that substantial changes suggested by the national deputies had already been incorporated.

The Cabinet of Ministers program, titled "Reforms for Prosperity," contains five sections and 22 quantitative targets to be achieved by 2004. Each year the government will submit an economic memorandum along with its annual budget, which will explain how the program is to develop during that fiscal year. If fully carried out, the program envisages an eventual 1.3-1.4-fold rise in real incomes for Ukrainians and an annual average increase of 6.5 percent to the country's gross domestic product beginning in 2002. For the fiscal year 2000, it forecasts a GDP increase of 1 to 2 percent.

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