Anatoly Kinakh
First Vice-Prime-Minister of Ukraine

"Social and Economic Priorities of National Security of Ukraine"

Dear participants of the Form, colleagues and friends!

I would like to express my gratitude to all people present in this hall including foreign guests for your participation in the Forum. I would like to praise the organizers of the Forum for the opportunity to discuss very important global and regional problems. Taken into account that our state is only forming basic elements of national security and the ability to protect economic and political priorities, sharing your experience will definitely play a crucial role in compositional formation of all aspects of both national development strategy of Ukraine and state security.

State national security policy is formed, fist of all, on the basis of national priorities of state and society and prediction of those threats and challenges that Ukraine faces in the medium and long run.
Firstly, we should consider the following: social, political and economic processes of development of every country expend beyond national borders. If we use the example of Ukraine then we can feel the world “shrinking” around us with the borders of the EU becoming the external borders of Ukraine. Like in no other time in our history we can realize that such element as competition dominates the world. Competition not only between goods and companies, but also between states. Only those countries having the potential to form their own strategy of national security development on the basis of careful complex consideration of internal and external threats and challenges can find their niche in both European community and globalized world. Our position rests on the thesis that Ukraine as the country situated on the crossroads of interests of many states, it appears to be of paramount importance to get involved in the processes of providing high standards of welfare and security for its citizens.

On of the most instrumental components of Ukrainian national security is the fact that social and economic strategy at this stage is oriented on developing circumstances for public consolidation around such high-priority directions as modernization of Ukrainian economy. Let’s say it openly that Ukraine has no right to be the state with a low level of economy with all the technical, personnel and intellectual potential. Without a doubt, there is a need for balanced policies combining deep structural reforms with consideration of public interests and expectations. That is why when we speak about the processes happening in Ukraine at the moment with consideration of the aspects of national security it is, first of all, about us. It is about looking for ways, opportunities and incentives for consolidation of intellectual and personnel resources to bring economy and democracy to European and world standards and to increase competitiveness of the country generally. We accept challenges of the world around us and on this basis we should form our internal policy.

One of the main priorities is development of small and medium businesses which is likely to produce not only social and economic effect but is seen to be of great political and public importance. One should speak about efficient mechanisms of creation of new workplaces and, at the same time, about a powerful source of middle class formation – desperately important for Ukraine – which acts as a backbone of economic and political stability. Nowadays great importance is attached to the ability to solve existing conflicts and controversy through economic, legal and social mechanism on the basis of the dialogue between authorities and business.

Among the factors influencing national security we can point out shadow economy affecting the quality of life in many aspects. Here lies a serious problem. According to some experts 45-55% of Ukrainian economy is “in the shadow”. This means that billions of hryvnas are circulating outside the sphere of public interest and state and in no way benefit the life of our country. A number of positive changes in this direction are to be noted, for instance only the first four months after introduction of tightened preventive measures against smuggling gave additional 2 billion hryvnas to the national budget compared to last year. A carefully considered approach to this problem is necessary: fighting against shadow economy, corruption and smuggling should not worsen the conditions for others working fairly and openly.

Participation and involvement of non-governmental organizations in national security infrastructure is very important. We hope that the initiatives by the Ukrainian Union of Industrialists and Businessmen, International anti-terrorism Unity and other non-governmental organizations and associations in Ukraine will find support and assistance. This is promoted by clear and considerate position of the government and President of Ukraine, their endeavors to widen and support a constant dialogue with society looking for the best solutions achieved through cooperation.

At the same time, nowadays Ukraine is faced with serious problems of organizing economy including industrial security, counteraction to such notions as high level of physical and moral deterioration of the main funds. We confront the task of designing and implementing of a national development strategy for the next 10-15 years which appears to be impossible without proper and coordinated actions of legislative and executive branches of state power. All these factors result in social and economic parameters which enable the state to be competitive providing citizens with the necessary level and quality of life thus improving national security. We are firm saying that these problems will be tackled on the basis of joint endeavors of state authorities, society and non-governmental organizations. For example, there are more than 1500 independent analytical entities in the USA which closely cooperate with the National Defence Council and other state institutions and exercising the tasks outlined by these organizations. We are also moving in this direction and I am sure that this will bring positive effect.