On April 15 the parliament hall was full to capacity. President Leonid Kuchma submitted to Verkhovna Rada his annual state of the nation speech this time titled On the Domestic and International Situation of Ukraine in 2002. This was attended by practically the entire Cabinet of Ministers with Premier Viktor Yanukovych in the lead; the ministers of defense and internal affairs; National Security and Defense Council Secretary Yevhen Marchuk; Prosecutor General Sviatoslav Piskun; the heads of the National Bank, the Auditing Chamber, the Central Electoral Commission, oblast and city councils; representatives of the diplomatic corps, and a large number of journalists.
THE SETTING
The opposition opted for aggression from the very outset: as soon as the head of state entered the session hall, several SPU and KPU faction members demonstratively returned him the opulent copies of the address texts distributed earlier to the deputies (observers believe the action was initiated by Socialist Yury Lutsenko, well known for his continual attempts to confound the audience). It was almost like in the famous quip, “I haven’t read this book (the demonstrators could hardly have been expected to peruse this hefty tome overnight — Author), but I don’t like it...” To be fair, this incident was suppressed instantly by members of the Regions of Ukraine faction, who quickly picked up what the opposition dropped. Yet, the president’s opponents refused to listen quietly and occasionally jeered at some of his phrases. Pres. Kuchma, on his part, remained calm, turning blind eye to such escapades. In any case, the deputies listened attentively to most of the 25 minute presidential message.
The address, submitted to Verkhovna Rada under Article 106 of the Constitution, contains two sections: “The Sociopolitical Development of Ukraine: A Strategy for Political Reform” and “Results of the Socioeconomic Development of Ukraine in 2002 and Targets for 2003,” six topical reports on the most pressing government policies, including the priorities of Ukraine’s technological development, demographic situation in Ukraine, Ukraine-WTO: the mechanisms and socioeconomic results of cooperation, the Euro-Atlantic Integration of Ukraine, along with tables of figures.
POWER
Contrary to his own tradition of criticizing the highest legislative body, Pres. Kuchma made some advances to it in his speech. “This year’s presidential address is being delivered to a qualitatively new parliament,” he said. “It is this composition of Verkhovna Rada that was the first to make an attempt — albeit, unfortunately, without the required constitutional foundations — to depart from the counterproductive nonpolitical principles of forming the Cabinet of Ministers and form a coalition government, thus assuming responsibility for its activities and for the nation’s state of affairs. Therefore, the year 2002 virtually saw the beginning of the political system reform... I proceed from the fact that not only society but also the parliament has a constructive atmosphere and a deep conviction that there is an objective need for a major systemic reform aimed at strengthening the effectiveness of government.” In the chief executive’s opinion, last week’s parliamentary hearings on the political reform confirmed the proximity of views on the key points of the proposed changes to the supreme law of the land (the opposition benches took the liberty of disagreeing). The head of state explained his heatedly debated proposal to institute a bicameral parliament by, among other things, “the insufficient maturity of the political parties supposed to take over the function of forming not only the legislative but also the executive branch of power” and the necessity to improve the quality of lawmaking. “A bicameral parliament will be a balancing mechanism in this respect also,” the president declared. He also did not rule out the possibility of a transition to a bicameral system after carrying out an administrative territorial reform in 2006-2010, which could be stipulated in the transitional clauses of the Constitution.
What also raised the opposition’s ire was the president’s call to agree that “plebiscites with legally binding results are the highest form of the people’s power,” and, hence, “we should work out clearer mechanisms for a nationwide referendum on changes to the Constitution to be legally binding, taking into account international experience and democratic standards.”
“I think it necessary to seek compromise on this and other issues,” Mr. Kuchma said, “but I want to emphasize again that relevant amendments and supplements should be introduced before the end of 2004 by implementing a formula in which the newly-elected president stands for a new political system... Apart from this, I cannot share the skepticism of some politicians as regards our citizens’ capability for competent and well-considered insight into the essence of things, which they have ordained us to do in government buildings.”
Calling on all Ukrainian politicians, including the parliamentary opposition, to intensify the political dialog on these issues, the president said he was confident that such a dialog “will not only contribute to political stabilization but will also help create a new broader coalition of political forces.” He also noted that he “was pleased” to familiarize himself with the text of the memorandum signed by the leaders of KPU, SPU, BYuT, and Our Ukraine (the memorandum of unity whereby the Four suggest leaving intact the presidential and parliamentary term of office, a unicameral parliament, etc., but still switching over to a system of proportional representation — Ed.). “Leaving certain assessments on the conscience of the authors, I would like to note two things which, to my mind, are the most important: despite all the controversy, I am pleasantly surprised by the constructive nature of their approach to the proposed changes,” the president went on to say with what seemed to be a trace of irony in his voice, “for the memorandum supports the overwhelming majority of the presidential proposals.” With this in view, he suggested that a round table on political reform be held involving representatives of parliamentary factions, the cabinet, and the president.
MONEY
The President named such achievements of the national economy as “virtually the highest economic growth rate in Europe,” a notably higher inflow of investments, a rise in real take-home pay (by 39.7% in the past three years), the continuing upward trend in Ukrainian exports, a decline in Ukraine’s public debt, and a stable national currency. At the same time, the President thinks Ukraine still has a great deal to do in order to finally overcome the consequences of the economic crisis, especially in terms of the social sphere and living standards.
What needs major adjustment, according to the head of state, is economic policy, which must focus primarily on the use of mechanisms for a structural innovative economic renewal.
On the issue of the shadow economy the president sounded almost like an opposition politician. “This all-enveloping disease has already spread to the extra- economic segments of our society,” he emphasized, noting that there is a shadow political and social market and shadow lobbying, and all is far from well in science, education, and medicine. The cause is known, he said: in addition to the heritage of double morals, the pseudo- market tax pressure is virtually pushing the entrepreneur into the shadows. “How many more times in my annual addresses do I have to plead with parliament and the cabinet to take this country out of its state of tax absurdity?” the president asked rhetorically.
VECTORS
Speaking of Ukraine’s foreign policy, Pres. Kuchma noted that, in accordance with the aims set out in his European Choice message, last year saw Ukraine step up its policy of European integration. “The year 2002 will go down in history as the year when Ukraine declared its intent to join NATO,” he emphasized. “I would like to stress that this intention will be followed by more efforts to accelerate purposeful organizational and political activity in this regard.” Ukraine is also likely to join the World Trade Organization not later than in 2004. The head of state views this step as “one of the main prerequisites for a future free trade zone between this country and the European Union.”
On the other hand, our chairmanship of the CIS is an opportunity to increase Ukraine’s influence in establishing a free trade zone based on WTO principles in the post-Soviet region, and this will in turn facilitate closer economic relations along with the exchange of goods, capital, services, and labor, he said.
It is particularly important for Ukraine, the president added, to develop a constructive dialog with the United States of America. He also believes that Ukraine has found a fitting response to such a serious challenge as the Iraq crisis. “Discharging their duty, Ukrainian servicemen were ready to be among the first to assist the civilian population if weapons of mass destruction had been deployed,” he said. “This was our joint decision, and this is a sign of our civilized nature and our commitment to universal values, although it was a difficult choice for each of us. The point is not only that it is difficult to shun international politics when you are in one of its epicenters. To paraphrase a famous politician, one has to realize that it is impossible to live in a globalized world and be free from it.”
In conclusion, the president promised the people’s deputies to do his best to make sure the election of his successor is conducted in a civilized and democratic manner, in full compliance with the law in force.”
COMMENTS
Leonid KRAVCHUK, SDPU(O) faction:
“One should not regard every presidential address as something new. We face the same problems with each passing year. All we have to do is place the right emphasis. The address outlines and proposes ways to solve today’s ‘sorest spots.’ We stand a good chance to reach compromise on key points, including one on political reform. We just have to take an organized approach to the implementation of this reform. No work is being done so far. The president has presented his draft and is waiting for it to be discussed. Then he will present the final draft based on the debate’s results. Yet, Verkhovna Rada must also do its work. I think the delay has been mainly caused by inaction of the parliament’s constitutional commission. The latter must be more active; it must choose the best draft, suggest wording, carry out talks, and — approximately in June — introduce its own political reform bill to Verkhovna Rada for consideration.”
Yury KOSTENKO, Our Ukraine:
“The political reform problem boils down to the attitude one takes toward what the president said. It is a good idea to hold a round table on political reform. After holding a series of inner consultations, the opposition concluded it is necessary to hold such a meet involving, above all, the president, Verkhovna Rada, and the cabinet. As to foreign policy, I discussed this the other day with Premier Viktor Yanukovych. As is known, Mr. Yanukovych had toured several European countries, where he spoke about Ukraine’s desire to integrate with Europe. On the other hand, President Leonid Kuchma had made a few Eastern tours, speaking about the need to strengthen our political and economic ties within the CIS. I asked the premier what our foreign policy doctrine puts as the top priority. The answer was basically as follows: we are a European state, so we have European priorities. Still, we must work within the CIS framework. I agree we must indeed develop relations with our neighbors, especially Russia, but there should be some kind of consistent policy. Our Western partners feel no such consistency. This causes us to lose potential investors. As to the problems raised in the address’s economic section, they really are urgent. Yet, they can be effectively solved only if the government and the parliamentary majority know that they will work at least a few more years, not just six or twelve months.”
Heorhy KRIUCHKOV, KPU:
“There are different opinions within the opposition about the problems raised, including the political reform. For example, I do not share the view of the so-called presidential favorite who thinks that the reform should be preceded by the presidential elections. I an aware that this person wants to gain power and sees no point in losing it too soon. But there also are other attitudes in the opposition. Our faction and the Socialists consider that the reform must be really carried out and Ukraine really turn into a parliamentary-presidential republic. If the will is there, so will be the result. As to the idea of a legally-binding referendum, I think this is demagoguery.”
