Evolution of swag in the agro-industrial complex

Unfortunately, the formation of agricultural policy in Ukraine is often not connected with the needs of the people, but rather with the ability of officials to make money on popular “schemes”.

The main points from the press conference of representatives of the Ministry of Agrarian Policy are easily conveyed: where the ministry can “earn the most” is where the main points from PR are.

To demonstrate this, I have mentally seen three periods in the formation of agricultural policy.

Continued political and economic upheavals radically changed the ability of officials to “earn money,” and with them, ministerial policies, “programs,” and the regulatory framework.

The first period - until 2008: “deriban” to the budget or “budgetary support for galusi”.

Before the 2008 crisis, Ukraine lived with a remarkably balanced government budget. There was still a place for various types of development, including subsidies for farmers.

Compensation of lending rates, profit margins, farm life - from the distribution of these funds, officials of the Ministry of Agriculture have learned to earn money. Krusty was on to something: the budget reached $1,6 billion in direct subsidies for the agro-industrial complex.

However, the 2008 crisis hit the budget hard on revenues, shortening revenues with subsidies. Therefore, officials discovered new, more “profitable” types of corruption.

Another period - 2009-2014 fates: swag for permission and theft of quasi-budgetary funds or “the struggle for grain tastiness and China.”

The rural dominion was a united kingdom, as it survived the crisis of 2008-2009 without decline. Due to these benefits and investments, farmers have received cash. So, officials created schemes to “collect” pennies from market participants.

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The greatest reputation of this plan was taken away by the painful State Inspectorate of State Inspectorate, established in 2010. Through “control” of grain grain, inspection officials removed up to 5 dollars per ton of waste. In general, the control bodies regulated by the Ministry of Agrarian Policy issued about 140 different permissions, usually through swag.

Officials also realized that indirect expenditures could be transferred to the sovereign budget, for example, an issue from the NBU and loans with sovereign guarantees.

At the end of 2012, the State Food and Grain Corporation of Ukraine withheld 1,5 billion dollars from the Chinese government with sovereign guarantees. In 2013, the growth of PJSC “Agrarian Fund” took away 5 billion UAH from the injection of emigration funds from the NBU. Because of the weather this year, a significant portion of these funds disappeared.

The third period - after 2014: robbery of state enterprises and “the search for effective management.”

After Yanukovych’s departure from Ukraine, the haberdashery lost its high-ranking patrons. The farmers insist that the farms have appeared, and their size has decreased significantly. Without the need to bring the “mountain”, officials either stopped extracting pennies for permission, or the brothers began to pay much less.

The snail of 2014, Minister Igor Shvayka, from the order of the Ministry of Agrarian Policy, all control bodies were taken away and transferred to the Cabinet. After this, the Ministry changed: all initiatives have begun to support the collection of permissible documents. Thus, at the beginning of 2015, a large number of grain quarantine certificates were collected.

Former head of the Ministry of Agrarian and Industrial Complex Igor Shvaika

Former head of the Ministry of Agrarian and Industrial Complex Igor Shvaika

Moreover, the worsening financial crisis has put a damper on the issue of pennies and loans with sovereign guarantees. Therefore, the officials of the Ministry of Agrarian Policy lost one source of shadow income: state enterprises.

The ministry has over 500 enterprises. Ukrspirt, which has the right to produce alcohol, is the most valued for pennies. The dark market for alcohol should be 30-40% for a cold drink. This is billions of hryvnias of shadow income.

Quite profitable for officials is the ever-growing DPZKU, which still accounts for a good part of the $1,5 billion Chinese loan.

Tsikavo, the main carrier of grain for DPZKU in the rest of the season was LLC “Zernolodzhistik”, which owns 25% of DPZKU, and 75% belongs to an unknown private individual. In private conversations, market participants connected the company with the DPZKU kerivnik in 2014, Peter Vovchuk. Before speaking, law enforcement cannot find out.

The Agrarian Fund has no less surprising sympathies. One agricultural holding has entered into a contract with a fund worth UAH 1 billion for the 2015 harvest at the end of 2014.

The remaining time is the current PR epic called “Effective Management”. This very thing was written by great writers in the program of the ministry.

Despite all attempts to broadcast televised planting competitions, the recent search for “effective management” for Ukrspirt ended in a scandal. According to the Prime Minister, the two leaders of the competition have ten criminal records. Chantly, it just didn’t work.

Minister of Agriculture Alexey Pavlenko

Minister of Agriculture Alexey Pavlenko

How to start the right period?

State enterprises are the remaining source of shadow income for officials of the Ministry of Agrarian Policy. I only believe in one effective management - private. All state-owned enterprises were to be privatized, and the lands were allocated and given to the villagers. Business - to business, agricultural policy - to the ministry.

It is possible that there is an imbalance between the needs of the government and the agenda of the ministry. Farmers are now benefiting from tax subsidies, PDV-rahunki, the addition of benefits and protection from growth in connection with devaluation, and the expansion of land yields.

“Effective management” of the ministry’s enterprises - that will not stop feeding, as there are 4,7 million single-family workers, 29 thousand farming states and 535 thousand workers in Galusia, and even more than a few hundred people Some of them will be employed at state enterprises.

The Ministry of Agrarian Policy itself will do what it is necessary to do: effectively protect the interests of the country, open new markets, and work on proper deregulation.

 

 

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