Ukraine and Privatization: A Second Chance to Make a First Impression

By Michael Willard

Three decades ago in Washington, D.C., my boss looked across the table and asked: “How would you like to lead a large USAID market reform program in Ukraine?”

I asked, “Where’s Ukraine?”

“Heck, if I know,” he replied. “Somewhere near Russia.”

Today, almost everyone with a radio, television, or reads a newspaper knows where Ukraine is due to its geopolitical importance vis-a-vis Russia. It is, indeed, an independent country currently waging war against the Kremlin, which is supporting separatists in its eastern regions.

Within two weeks in the fall of 1994, I had packed my bags and left my live-aboard Potomac River cabin cruiser, bound for a week in Moscow and then on to Kyiv, Ukraine. It was all part of the market reform education effort connected with the large-scale privatization of state properties.

Ostensibly, every man, woman, and child would receive a share of an enterprise by obtaining a privatization certificate. The theory possibly was sound, but, in practice, various oligarchs and financial institutions bought up most of the certificates for the equivalent of pennies from citizens.

Today, after a quarter-century of living in Kyiv, I know Ukraine’s layout, landscape, and multiple personalities through two revolutions, various economic meltdowns, and revivals. I know its hopes and dreams and have lived through a few…