On 24th of August 2004 Ukraine celebrates the thirteenth anniversary
of its independence. Over the last years the absence of ethnical and national
conflicts, irreversibility of democratic transformations, active reforming
of economic, political and social life have become inalienable features of
state-building processes in Ukraine.
A new stage of internal reform in Ukraine is aimed at securing profound systematic
transformations in the country's life, corresponding to the standards of a
democratic state with socially-oriented market economy.
Ukraine's internal development
Over several consecutive years Ukraine's economy has demonstrated
one of the highest growth rates in Europe. Against the background of stable
financial situation the exports are rapidly growing, the Ukrainian goods strengthen
their competitive capacity on the domestic market; the volumes of investments
and construction are growing, as do the volumes of consumption and household
income.
The real DGP growth in January - June 2004 reached a record level of 12, 7%
(9, 2% last year), the volumes of industrial output grew by 15,9%.
In the first five months of 2004 the exports of goods increased by 51,3% compared
with the same period last year, the imports - by 32,5%. The foreign trade
surplus totalled over $ 2 bln (almost $ 409 m in the same period in 2003).
Last year Ukraine reached considerable progress in implementation of tax and
pension reforms, resumed the privatisation of big enterprises and improved
the legislation in mortgage and land regulation and crediting. There was established
the flat personal income tax rate of 13%; the corporate income tax rate was
also reduced.
As a result of socially-oriented policy of the Government in January-May 2004
the nominal household income grew by 19, 7%, the real salary by 26, 7%.
Constructive dialogue between Ukraine and the international financial institutions,
the implementation of the external debt payment schedule and the considerable
potential of further economic growth resulted in upgrading of Ukraine's credit
rating by the leading international credit agencies.
Ukraine met in full the FATF requirements on fighting the money-laundering
and was excluded from the organisation's "black list" in February
2004.
The country's economic achievements became possible owing to the formation
of the coalition Government and its backing by the parliamentary majority.
The prospect of implementation of the constitutional reform, initiated by
the President, which would consolidate the responsibility of the Parliament
for the forming of Government and its policy, is currently being discussed
in the country.
One of the key priorities in the Government activity at present is the conduct
of free, transparent and democratic presidential elections in accordance with
the national legislation and the European norms and standards. First of all,
it is about creation of equal opportunities for all candidates during the
election campaign and securing the unimpeded activity of independent media.
Foreign policy of Ukraine
During the recent years the necessary mechanisms for implementing the whole
complex of measures in the internal and external policy, that will bring Ukraine
closer to integration to the European Union and NATO, have been created in
Ukraine. The course towards European and Euro-Atlantic integration is based
on clear awareness of the Ukrainian national interests and corresponds to
the realities of our country's development.
During the Ukraine-EU Summit in Hague in July 2004 the parties agreed to continue
discussions on the development of the Ukraine-EU Action Plan. The document,
as both the Ukrainian side and its EU partners are convinced, should build
upon the principles of joint ownership, differentiation and added value. Ukraine
confirmed its interest in adoption of such a plan, which would define specific
steps of each side, contain specific tasks and obligations and will be aimed
at securing real positive achievements for Ukrainians and qualitatively improve
the relations between Ukraine and the EU.
The Ukraine-NATO Commission Summit in Istanbul confirmed the strategic character
of relationship between Ukraine and NATO, and the principal support by the
NATO countries of Ukraine's course towards integration into the Euro-Atlantic
security structures. It also recognized a significant progress in implementation
of the Ukraine-NATO Action Plan and annual Target Plans, underlying the intention
to further pragmatic cooperation.
Ukraine took responsible position towards the Iraqi issue, the participation
in Stabilization Force and the rebuilding of the country. Starting from September
2003 the 1800-strong Ukrainian peacekeeping contingent carries out its mission
in Iraqi Vasit province, maintaining security in this part of the country,
delivering Humanitarian Aid to its inhabitants, being actively involved in
infrastructure reconstruction.
Ukraine remains one of the most active countries in preserving peace and security
in the hot spots around the globe: at present it is represented by over than
1400 peacekeepers in 9 UN peacekeeping operations.
During the last year the progress in completion of the legal procedure of
the boundary delimitation of Ukraine was achieved. Treaties between Ukraine
and Russia on the Ukrainian-Russian State Border and on cooperation in use
of the Azov Sea and Kerch Strait were signed and ratified. A long negotiating
process was completed by signing the Treaty on the Ukrainian-Romanian State
Border. Transition to a new stage of preparation the agreement on delimitation
of the continental shelf and exclusive economic zones of Ukraine and Romania
in the Black Sea has been secured.
Ukraine gradually and confidently moves on the way towards joining the World
Trade Organization. On the whole Ukraine has signed 24 bilateral protocols
with the WTO member-states.
Ukraine made its contribution to the international efforts on protection of
environment by ratification of the Kioto Protocol by the Parliament of Ukraine
in February 2004.
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The global changes in the architecture of European cooperation,
connected, in particular, with the EU and NATO enlargement, demand from Ukraine
the intensification of its foreign policy and pragmatic upholding its national
interests on the international arena.
Ukraine will continue to give priority importance to the European and Euro-Atlantic
integration, the integration into the world economy, strengthening its position
on the external markets, strengthening of regional stability, development
of bilateral relations with neighboring countries and its strategic partners.
Ukraine sees its main task at present in consolidation of European values
and standards in a politics, economy, and social sphere, regarding it as a
pledge of its social stability and sustainable development.