Economist Ustenko on Ukraine's Failing State Management: The High Cost of Abandoning Meritocracy

Critique of Ukraine's Public Management System

According to ХВИЛЯ: Economist Oleh Ustenko has criticized Ukraine's system of state management during an interview with political analyst Yuriy Romanenko. He argued that the absence of meritocracy, personal accountability, and strategic vision is causing the public administration system to deteriorate. Ustenko stressed that appointing individuals based on loyalty rather than professional competence severely undermines the effectiveness of government institutions. This critique comes at a time when Ukraine's governance is under intense scrutiny due to the demands of wartime and reconstruction.

During the discussion, Yuriy Romanenko compared current managers to those of the early 2000s, citing the business approach of Ihor Lytyvchenko and the company 'Kyivstar' as an example. He emphasized that specialists from that era not only understood their industry but also developed long-term strategies spanning 5-10 years. In contrast, he stated, modern strategy is often reduced to mere survival until the next tranche of funding arrives.

Ustenko noted that it is crucial to remember that behind every statistic is a specific person making decisions. If that person bears no responsibility for the outcomes of their actions, the country is left with ineffective governance. He further emphasized that during a war, when every billion can be used to procure thousands of shells, urgent measures to improve management practices are essential.

The Imperative for Reform

Both experts highlighted that the current system of state management represents a worst-case example of 'Soviet-style state capitalism.' They believe the state maintains assets that cannot be used efficiently, often just to install a 'loyal' person in a corresponding position. Ustenko underscored the necessity for personal financial and criminal liability for decisions that cause harm to the state.

The criticism voiced by these experts underscores the urgent need for reforms to ensure effective governance amid war and economic challenges. The importance of professional competence and accountability at all management levels is becoming increasingly evident as the country faces the need to optimize resources for strategic goals. Implementing these changes could be key not only to stability but also to the nation's development during this difficult period. The call for a merit-based system is a central pillar of broader demands for transparency and efficiency in Ukraine's post-war future.