Commentary

A Victory for Democracy in Ukraine?

It appears from the initial vote count in Ukraine that Viktor Yushchenko has emerged the winner of the December 26 presidential election. Yushchenko, along with his American and European financial backers and various Ukrainian nationalist organizations around the world, has declared the results to be a great victory for democracy in Ukraine. However, nothing could be further from the truth.

In 1991 when the Soviet Union was dissolved, Ukrainians were told that communism was responsible for the anti-democratic activities of their leaders. Tens of millions of dollars poured into the country to convince them that their desire for genuine democracy, as well as economic and social renewal, could be achieved only under capitalism. Instead, Ukraine, like other former Soviet Republics and countries of Eastern Europe, was devastated by the introduction of market capitalism. Millions of workers were thrown out of their jobs, factories were closed down and the top bureaucrats, managers and “communists” not only consolidated and legalized the power they had previously exercised illegally, but they also “privatized” the public wealth and property belonging to the Ukrainian people into their own pockets and the pockets of various foreign financiers. Instead of democracy, the Ukrainian people got rule by a gang of billionaire oligarchs many of whom previously ruled as bureaucrats and “communist” officials.

 When Ukrainian workers fought back against these attacks on their livelihoods and demanded real democracy, the Ukrainian oligarchs and their Western backers brought to the fore a new group of “democrats” and “reformers”. The old “democrats” and “reformers”, those who had actually brought in the capitalist reforms, now became “Stalinists” and “conservatives”. In this way, the new capitalist rulers of Ukraine hope to divert the struggle of the people for freedom and democracy into a dead end.

Viktor Yushchenko is an example of the “new reformers”. Victor Yanukovich is an example of the “old reformers” who have now become “conservatives”. However, not very long ago, Viktor Yushchenko was also one of those “old reformers”, a Soviet bureaucrat who got rich quick by expropriating public property. Prior to 1991, Yushchenko was a very loyal “communist” and a top bureaucrat in the agricultural division of the Soviet Gosbank. He, along with other top managers of the bank, took advantage of the chaos between 1989 and 1991 to effectively seize control of the Ukrainian branch of the bank, eventually converting it into Bank Ukraina.  Through a series of shady deals Yushchenko and his cohorts transferred virtually the entire assets of the bank – the savings of millions of Ukrainian working people – into their private bank accounts. When Bank Ukraina collapsed, charges were brought against Yushchenko and other bank officials. While some of his colleagues were convicted and sent to jail, the charges against Yushchenko were quietly dropped and Yushchenko remains one of the wealthiest men in Ukraine. One of Yushchenko’s main supporters within Ukraine is Julia Timoshenko, who similarly used her position within the Soviet state apparatus to seize control of the state energy company, and is now worth over $5 billion.

During the past few years Yushchenko became a protégé of George Soros, a multi-billionaire financier who has been instrumental in financing regime changes in numerous Eastern European countries. Soros financed and groomed Yushchenko to become a leading figure in Ukrainian politics and Yushchenko also quickly became a favored recipient of tens of millions of dollars from various U.S. state agencies. It is estimated that Yushchenko and his political organization have received in excess of $65 million from the U.S. alone in recent years. In addition he has received huge sums of money from various European capitalists eager to get their hands on the wealth and resources of Ukraine.

During a two-year stint as prime minister between 1999 and 2001, Yushchenko launched an attack on the wages and pensions of Ukrainian working people. Later, while in “opposition” he continued to advocate cutbacks to pensions and opposed the repayment of wages and pension benefits owed to workers from the period in the mid-1990s when the Ukrainian government ran out of money due to the looting of the treasury by people like Yushchenko. With his European backers openly calling for “shock therapy” for Ukraine, it appears that, as president, Yushchenko will likely escalate both the attacks on Ukrainian workers and the looting of the public treasury. When he becomes thoroughly discredited, he will in turn earn the label “conservative” and some new “reformer” will arrive on the scene to hoodwink the people. This has become the modus operandi of the Eastern European oligarchs and their Western allies. Only by overthrowing all of the oligarchs and building a new, socialist society will the Ukrainian people achieve the democratic renewal of their society that they so deeply desire.


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