UT1, Kiev, Ukraine, in Ukrainian, 21 Apr 04
BBC Monitoring Service, UK, in English, Wednesday, Apr 21, 2004

The following is an excerpt from a report broadcast by UT1 on 21 April; subheadings inserted editorially:

[Presenter] Ukrainian President Leonid Kuchma has delivered a speech at the scientific conference "The strategy of sustained development and structural-innovative transformation of the Ukrainian economy in 2004-15" held in Kiev. The president said that Ukraine, just like other CIS states, is seeing a totally new political situation take shape in society. Leonid Kuchma links this situation with the actual completion of the initial transformation stage in Ukraine and the beginning of a stage of long-term strategy implementation.

[Correspondent] Ukrainian President Leonid Kuchma noted that the scientific conference provided the opportunity to give an in-depth assessment of reforms and, most importantly, in the head of state's view, to map out strategic prospects.

[Kuchma] The discussion that has been held has shown that all of us are unanimous in our belief that Ukraine, just like other CIS states, is seeing a totally new political situation take shape in society. It is linked to the previous, in essence, initial period of systemic transformation and a transfer the practical implementation of long-term strategy tasks. It has so happened that in our country the beginning of this stage has coincided with a presidential election.

In this regard, someone may wonder whether we are trying to run ahead of the locomotive in this case and whether it would be better to postpone the issue till later, till after the election - when the new president comes and dots all the i's. Such a scenario is indeed possible. However, being the initiator of the conference, I was guided by somewhat different logic.

I proceeded from the belief that society has, first and foremost, to determine landmarks as to the future of our state and to identify electoral preferences accordingly. I believe this approach is a sign of deep respect for voters and is sufficiently democratic. It is aimed at helping citizens to make a well-conceived and well-thought-out choice.

[Passage omitted: Kuchma calls for socially-oriented and effective economic policy, favours the emergence of the middle class and urges scientific innovation in the economy.]

Amnesty for shadow capital

[Correspondent] The Ukrainian president dwelt on issues of raising the state's viability, in particular, on how to make it strong without reviving the old administrative system. Leonid Kuchma is convinced that this problem has become topical for all the post-Soviet states without exception.

[Kuchma] Let's be frank: no ready-made prescriptions have been worked out to address this extremely challenging task either by ourselves or other CIS countries. It is necessary to be guided in this issue by the experience that has been accumulated. One should realize that the much-touted policy in the West, the less state regulation the better, has suffered a crushing defeat in the CIS. This policy has become truly destructive in the transition period.

The spread of shadow relations to virtually all noneconomic areas has become particularly dangerous to society. I made the proposal in my annual message to the government and the Supreme Council [parliament] that they should consider the possibility of amnesty for citizens in order to legalize shadow capital. We are neither first nor last to do this. This is also done in Europe, and this procedure has been rather positive there. I submitted a draft law to this effect to parliament. In the light of this, it is very important to remember that, apart from financial effect, amnesty for shadow capital may become a step towards forming an economy of trust. [Passage omitted: more in the same vein]

Benefits of civil society

[Correspondent] Leonid Kuchma said that a state's viability is directly linked to the development of democracy and the maturity of civil society. Progress is possible only on the basis of democratic transformation. This is the president's position of principle.

[Kuchma] However, one has to be realistic and understand that it is impossible to make an instantaneous leap from one known system to a European-type democracy, no matter how badly one may wish that. We are talking about another illusory belief holding captive Ukrainian and foreign politicians alike. It is worth remembering that the process of modern European democracy asserting itself has had a history of more than 200 years.

It has not gone off without a hitch even in the now prosperous countries. Crises and setbacks have occurred throughout all history. The process had not become stable or unwavering until it was propped up by the mechanism of civil society - when the broadest stratum of the middle class, the main carrier of democracy and a guarantor of political society in any state, was formed. [Passage omitted: more arguments in favour of democracy]

The modernization of the socioeconomic area is possible only on the basis of a real revamp of the authorities and society in general.

[Correspondent] The president said political reform is fully in line with Ukraine's European integration strategy. The transformation of Ukraine into a stronghold of democracy in the CIS is of major significance not only to the Ukrainian people, but also to the international community, Leonid Kuchma is convinced. He believes the creation of a European-type political system is not limited to the problems of top power bodies, but rather requires drastic judicial and local government reforms. The president is convinced that Ukrainian politicians will find the strength to see these tasks through.

[Kuchma] However, issues of political reform should be separated from electoral issues. Those issues are separate in their essence and should not be mixed.

No need to rush European integration

[Correspondent] Foreign policy priorities. The president remarked that entry into the WTO and steps to secure NATO membership are the main real steps in implementing the strategy called European choice. Leonid Kuchma stressed that Ukraine should analyse all the negative aspects of this process in order to avoid the mistakes of Eastern European countries. [Passage omitted: more correspondent speculation]

[Kuchma] We can talk about the peculiar features of Ukraine's path of European integration, where the main emphasis is placed on the fundamental nature of domestic reforms. We are talking about the policy that could be called a policy of constructive European integration, which takes account of the risks and threats of expedited integration. We should implement the Copenhagen criteria precisely on this basis. Haste is absolutely unacceptable. That is why I would like to allay the fears of EU officials, who sometimes give overly straightforward interpretations of our state's European integration course.

We are not asking anyone for anything. We have not done this in the past, nor are we doing this now. The course we have declared deals mainly with the European self-identification of the Ukrainian people, the strategic goals of domestic reforms, the logic of deepening transformation processes and the policy of a new wave of reforms. A course in this direction is our own challenge which requires time and is fully up to us and no-one else. The strategic partnership with Poland is of special importance in this context. This is our mutual aspiration. I am convinced that the Year of Poland in Ukraine will be conducive to the attainment of the aforementioned goal.

CIS ties

Ukraine was, is and will always be objectively interested in developing multilateral cooperation with CIS countries in every aspect.

The implementation of the agreement on forming the Single Economic Space involving Belarus, Kazakhstan, Russia and our country can play a positive role in this respect. Parliament's decision [on 20 April] to ratify the above accord is an important step in this direction.

At this stage of development, it is not a dilemma [of choosing] between integration alternatives that is important to Ukraine, but constructive and mutually beneficial economic cooperation. [Passage omitted: elaborates on the need to cooperate in industry and science]

I would also like to respond to my opponents who artificially set Ukraine's eastern and western [integration] policies against each other, seeking to benefit from this politically. This sort of antagonism shows utter political ignorance. Ukraine is at the crossroads of geopolitical interests. These represent not only difficulties but also objective advantages for us, of which we have to be able to take advantage.

In addition, deepening regional cooperation is fully in line with EU principles. At their core is an understanding of the fact that only through cooperation and partnership with neighbours can each individual country implement its potential to the fullest and defend national interests.

A boost to integration processes between our countries can facilitate the creation of a zone of sustained social and political development and rapid economic growth in Eastern Europe, which is something the European and world community is very much interested in.

Our active position on issues related to optimizing relations with Russia and bringing them up to the level of real strategic partnership is fully in line with our European integration policy. The European community is objectively interested in this course of events, including in the mutual coordination of our country's European integration policies.

However, the creation of the Single Economic Space cannot be at odds with Ukraine's membership of other subregional integration entities, such as GUUAM [an alliance of Georgia, Ukraine, Uzbekistan Azerbaijan and Moldova] and the Black Sea Economic Cooperation Organization. The advantage of these vectors of international cooperation lies in the fact that our country is their recognized leader and is at the core of regional integration.

Revived partnership with USA

[Correspondent] Leonid Kuchma views the resumption of a constructive dialogue with the USA as a one of the successes of foreign policy.

[Kuchma] On the whole, I have always consistently advocated the idea that the establishment of a strong partnership with the USA, especially in the military and political field, is of strategic importance to us, in particular in view of Ukraine's Euro-Atlantic strategy and common views on the fight against terrorism and strengthening the security in Eastern Europe and the Black Sea and Caspian regions.

We would very much like to always be sure that the American side's approach to us is fair. We count on this. The country's political leadership is well aware of present-day realities in the world and of the need for concerted efforts to address new global threats, such as international terrorism.

Ukraine has always been in favour of making the most of the UN's authority in solving the most acute problems of collective security. It has always favoured the creation of natural preconditions which would not only counteract dangerous and destructive processes in modern global development, but would also pre-empt them.

We are talking about a joint search for mechanisms which, in the global dimension, would bring countries closer in terms of their living standards. A world where the dangerous gap between the rich countries and the poor ones is widening instead of being closed cannot be stable.

No need to copy foreign experience

[Correspondent] Summing up what he said, the president noted that Ukraine should take advantage of the world's best experience in order to develop as fast as possible, but warned against copying foreign experience blindly.

[Kuchma] We, on the one hand, state our intention to build a strong sovereign state. On the other hand, we always bow to someone, bragging about our aspiration to be just like everyone else and not different in any way. There is a deep contradiction there. Over the years of independence, we have failed to develop a desperately needed sense of national pride and confidence. Our colonial past is still dragging us down, stopping us from straightening up, raising our head and making our presence known.

It is not really about our uniqueness or Ukrainian efforts to reinvent the wheel. There is something else that needs to be grasped. What has taken the West several hundred years - we have to go through in several decades' time. Politicians who do not understand this reality and for whom the standard matrix endorsed by a Western official is above everything have no promise. I do not see myself among them.

Pledges of fair election

[Correspondent] In his speech the president did not skirt the important subject of presidential elections. He once again gave assurances that he would do his best to make sure that the presidential election is held in a democratic way and in full compliance with current legislation.

[Kuchma] The key aspect of the presidential election this year has got to be, in my view, ensuring the continuity of state policy in the social, economic and political areas. Polls carried out by the national institute for strategic research indicate that the majority of the Ukrainian population fully shares the aforementioned stance.

I this connection, I would like to stress the following. Realizing that the state policy will inevitably be adjusted to fit the programme and ideology of the new head of state, we will have to do all we can to ensure the consistency of our country's policy as a precondition of retaining the positive achievements of society's development. I repeat, society is rightfully cautious about any electoral schemes that pursue the aims dictated by the selfish ambitions of some politicians. We have no right to allow this to happen.

However, it is worth preventing any attempts by external forces to interfere in the election race in Ukraine. The holding of a fair, transparent and democratic presidential election in Ukraine should be regarded as a key factor in speeding up European integration processes, establishing productive relations with leading democracies and improving the Ukrainian state's international image.