During the 1990s, inherited from the Soviet era vague distinction in economic, political, and administrative power, reflected in poor rule of law, corruption and other institutional problems, effectively prevented creation of a system of endogenous economic growth based on profit seeking entrepreneurship. Sluggish long-awaited and often inconsistent reforms seem to give fruits after a decade of falling output. The reasons for Ukraine’s embarrassing economic performance over most of the last decade are analyzed. Driving forces for growth, started in 2000, as well as barriers still hindering recovery and threatening possible sustainability are identified. Ukraine’s transition experience is compared with that of Russia and Latin America.
- Economic development of transition