“The main requirement of this aid is strict austerity”: an expert explains why the IMF is demanding that Ukraine raise taxes

Social policy expert Andriy Pavlovskyi explained why the IMF has given Ukraine an ultimatum to raise taxes by the end of March—something that could effectively destroy small capital, Politeka reports.

He spoke about this on the program “Personality with Serhii Doiko.”

“They don’t understand, and our government officials don’t explain to them that this shouldn’t be done. I even suspect that they themselves are feeding them these ideas, because the IMF is dominated by specialists with libertarian views. The very history of the IMF and its so-called assistance to different countries shows that the main requirement of this aid is strict austerity. And at whose expense? Usually, it means cutting social programs, reducing the number of public sector employees, and lowering wages,” Pavlovskyi explains.

He also recalled that after the Revolution of Dignity, all social standards in Ukraine were frozen for two years—that is, the minimum pension and minimum wage did not increase by a single kopeck. According to the expert, this was done under IMF pressure; they said they did not care how the balance was achieved, as long as expenditures did not significantly exceed revenues.

As the program guest explains, in such situations incompetent officials most often resort to raising taxes, cutting social benefits, and freezing social standards, because it is the easiest option and requires the least effort. However, he emphasizes that these are openly anti-people measures against their own population.

“They are not concerned about the problems of the population or small businesses. It’s like in that joke: the sheriff doesn’t care about the problems of the Indians. Likewise, the IMF is not concerned about the problems of Ukraine’s impoverished population, and our officials are the ones proposing this to them. They don’t care—as long as the balance adds up, thank God,” Pavlovskyi concludes.

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