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The Project of Conception of Country Reformation from NGO «Successful Ukraine»

This project was elaborated and made public in September, 2006.  In the middle of a year 2008 we certified accuracy of the projects statements with pleasure.  And at the end of the year 2008 when the world and Ukraine face a cruel crisis, we declare:  Our project — is Ukraine's salvation!  This projects needs a bit of modifying but only in terms of our expectations of 2006 when we thought that the government and political elite would bethink themselves.  They not only didn't bethink themselves, but they almost completely discredited themselves.  We await your responses and proposals.  The most important goal of nongovernmental organizations and business we consider to be a systematization of our and other proposals and unification of efforts in pressure upon government in regards to the most crucial and burning problems of our country's life. 

Project's goal

The Purpose of Project:  To show Ukrainian society possibility to realize existent potential of country and do a «large jump» - to transform Ukraine into the developed European country within 10 – 15 years. The project is offered for the use of all political parties and non-government organizations of Ukraine. The project is opened for a discussion, criticism and revision.

Modern State of Ukraine:

Ukraine - 2006 is on the stage of transition from the period of initial accumulation of capital to the civilized democratic society. Now we cannot utillize enormous potential of country (natural, intellectual resources) in interests of society because of an unwillingness of power and insolvency of other citizens to create such conditions for a capital (money), that they work not only for a proprietor but also on the benefit of all society. As a result of it, in our opinion, we have such problems in Ukraine like:
- growing together of politicians and officials with large business
- uneffective use of state finances
- lawlessness and irresponsibility on all levels
- voluntary and forced lie (with all interconnected consequences: grafts, corruption, extraordinarily large shadow economy etc.) which threatens to grow into a national trait. Today the considerable part of citizens has moral defects (avidity, falsity, weak religious «brakes», low state identity, low culture etc.). The stage of initial accumulation of capital is the catalyst of these negative traits, especially in persons who belong to active part of society (politicians, officials, judges, businessmen etc.). In our view, to force such citizens to bring a benefit not only to themselves but also to the society under condition of weak civil society (disappointment, passivity of considerable part of citizens), is possible only with the help of hard measures, simultaneously giving more possibilities for self-realization of honest clever active citizens and with the help of use of ukrainian potential of industriousness, peacefulness.

Essence of the Project of Conception of Country Reformation:

Our conception of country reformation foresees establishment of democratic order in the country during 10 – 15 years, transformaion society socially – psychological mood to positive, forming command spirit of trust between the different layers of society and its use for swift development – « a large jump».
First 3 – 5 years is the transitional stage «Order». It presupposes setting order: accepting acts and systems of responsibility which will put active people (firstly, politicians, officials, judges and businessmen) and through them money under conditions they will be able to succeed, working honestly. As a result people will be forced to work not only for themselves but also for the society, as it first of all will be advantageously for them. The civilized terms of citizens self-realization  will be created according to their vital goals (if you want money – you go to business, if you want to serve society and have power – you go to the politics, state sevice, etc.)

We consider that in modern Ukraine it is needed to reform first of all people through the change of conditions of their work, and through the change of people it is possible to change conditions for motion of capital. Only after this we can professionally speak about investment, innovation, economic laws (today under the conditions of the shadow economy the act quite differently as in the market economy) and their role in the development of country. Clever active citizens who want to work honestly, and also  their money, in the created civilized conditions «AUTOMATICALLY» will do all necessary things for their own prosperity  as well as prosperity of their  country).

The result of the stage «Order» will be converting of society into TEAM and creation of conditions for a «large jump»:
- honest relations between the layers of society (politicians – officials - business – hired workers – other)  and cooperation between them;
- implementation of laws («a game by rules»);
- professionalism of active citizens (team «players»).

Next 7 – 10 years is the stage «Quick growth», during which Ukrainians will be able to repeat achievements of people of Japan, Germany, South Korea and Singapore.
Expected Results:
Ukraine – 2016 - 2021:
a) Traits of citizens: patriotism, professionalism, responsibility, law-abidance.
b) Compatible civilized market economy.
c) Favorable conditions for realization of entrepreneurial ability of people, which is the basis of potential of the state development.
d) Democratic development.
e) Growth of GDP in 2.5 – 3 times.
f) There is no poverty, middle class share is about  50%.

We are sure that Ukraine and its citizens deserve such quick development. We do not accept the cynical theses of many politicians and political scientists that for implementation of necessary reforms the country needs «change of 2 – 3 generations ».
What We Should Do:
1.  Create legislatively conditions for every group of active people – driving forces of society progress (politicians, officials, judges, representatives of mass-media, businessmen and others), when they can arrive at success, working honestly. After creation of such conditions we should set hard responsibility for violation. The next section («How to do?») contains our version of creation of  such conditions («transformation instruments») for politicians, officials, and businessmen.
2.  Stage «Order» is gradual changes during 3 – 5 years (evolution, but not revolution). Accordingly, an algorithm of solving every public problem (groups of problems) must be as following: formulation of problem, determination of responsible persons, discussions in society, formulation and acceptance of conception of reforms for 3 – 5 years, realization;
3.  Political forces and society negotiate the most rapid and adequate completion of the stage «Order» and bringing the proper legislative changes, after which stability of legislation must be provided. During the stage of active transformations it is possible to inculcate a two-levels legislation: first level - simplified about main issues in an accessible for most citizens kind («Duties, rights, responsibility of citizens with good expectancies»), the second level is an ordinary law with the necessary working out in detail, which will do impossible ambiguities and etc. (it is for swindlers, «optimizers», advocates, judges.).
4.  The necessary condition of success for the stage «Order» is that the reforms must be begun with politicians and officials (an elite - «team leader» must show an example for other citizens). In the case of acceptance of our conception of country reformation political parties can choose one of two ways:
- to agree about general implementation, signing a new agreement like to «Memorandum on national unity». The point is that the project measures are directed on establishing an order, based on common to all mankind values and state attitude toward the business by politicians. They must be acceptable to most political forces. Such way is success for Ukraine;
- if there is no agreement all this can do political force which is at power. It (as well as all of predecessors) will have unique possibility to enter in country history as such that will show first STATE ATTITUDE toward implementation of the duties. The first sign for society that this event took place, can be, for example, consent of these politicians, their parties and public organizations, and also officials and their relatives to complete annual declaration of the profits and charges during, for example, 10 years after arrival to power (a sum which exceeds the legislatively fixed limit must be accountable), and also concordance on legend publicity and verification of these declarations. After politicians and officials, judges, large businessmen will have done it, the representatives of middle, small business and other citizens of Ukraine have to follow this example.
5.  In the case of making decision to begin the stage «Order» and transformations the political force will have to undertake other steps on cleaning (limitation of its oligarchy (work on those, who finances it) etc.). A reward for such political force on next elections will be free voices of millions of Ukrainians, which where tired from lie, and also those, who will see the real growth of the prosperity. Thus the problem of financing of electoral company will be partly decided in the conditions of limitation of oligarchy.
6.  During the stage «Order» it is necessary to conclude all society memorandums about non-usage of force (punishments) to those, who passes to the civilized rules of game gradually with a positive dynamics.
7.  The main feature of our project of conception of country reformation is that these measures will create conditions for self-convalescence and self-development of the country “organism”. We consider basic forces of public organism of PEOPLE (brain) and MONEY (blood). If to do how it is offered, a public organism will be “brought into a healthy state” independently:
-  A BRAIN will think about decision of its and publicly meaningful problems (active clever talented people will find possibilities for self-realization wherein they will be able to bring a benefit to themselves as well as to society: in authorities, business and etc., other citizens will occupy other life niches.  There will be created COMMAND by common mankind life rules, showing a healthy example to young people (unlike injury of the young generation by a lie, which takes place today);
Normal blood «circulation» will be set (a money, investments will flow there, where it is advantageous for all of the society, but not there, where officials or politicians will order them to flow (presently in a considerable part money flow in shade).
Only in the case of realization of these measures in Ukraine a simple, but very effective market mechanism of its bloom will begin to work: the money of domestic and foreign investors and states will begin to flow in industries which indeed will create the most added cost at minimum expenses and for the minimum segment of time. Today the too large stake of money flows there, where it is succeeded to deceive, to steal, etc. Besides they flow often not “from there” – from investors, which cannot bring modern technologies of business and production. Most of all, it goes not to the benefit of a country: for example, such methods to gain “rapid” money, as a “gray” import and contraband do noncompetitive domestic commodity producer, but he means new workplaces in Ukraine and ours, not the foreign added welfare.
8. The principles declared in conception have «meaning» of common to all mankind values. An assistance to their realization does not have the political coloring, that is why creation of public mechanisms of making the country of the offered type healthy can be the issue of activity of public organizations. Most effective would be creation of public organizations by the directions of application key «instruments» which make the country healthier. There is a few possibilities of financing the activity of NGO in this direction:
-  by foreign donor organizations. Similar support of process of civil society creation in Ukraine will be welcomed from the side of almost all citizens and political forces;
-  by the citizens of Ukraine;
-  by the state through the created fund (5-10% of budgetary receipts won back at a shadow economy for a year). Division of facilities between public organizations under projects must be on tender basis with the conditions of conducting of European standard tenders.
9. NGO «Successful Ukraine» intends actively to co-operate with political parties in the questions of realization of the offered conception. In the case of unwillingness of politicians, officials, oligarchs to flatten eyes and accept the stage «Order» (actually, to pass to STATE ATTITUDE toward the mission and work), we have only to hope that in Ukraine will work standard democratic «electoral» instrument of influence on politicians, officials, oligarchs: opening of reasons, essence, participants of corruption and shadow charts of their activity and flattening of eyes to the electors. It is, actually, that way which Ukraine moves now. This way to success looks much longer, than we offer.
How to Do? The «Order» for Politicians and Officials:
1. Annual declaration of their own incomes and charges and incomes and charges of their relatives during, for example, 10 years after arrival to power (a sum which exceeds the legislatively fixed limit must be accountable), and also concordance on legend publicity and verification of these declarations. All of large purchases and gifts must be cashless with obligatory declaration. Creation of conditions for non-cash settlements.
2. The legislative fixing of declaration of profits (all sources of financing) and charges of parties and obligatory publicity of parties’ declarations in society, and also legislative fixing of fund limitations of pre-election campaign and their openness for society monitoring and control by European standards. It is important to establish severe punishment for violation of the noted requirements (up to the exception of political party from an electoral process, and criminal responsibility of leaders and official persons of that or other party).
3. All deputies and officials must work on a workplace time set in law. Voting must be only personal (for example, by the imprint of finger).
4. Abolition of deputy inviolability.
5. Legislative establishment of possibility of the prescheduled elections and impeachment of the president by referendum.
6. Creation of the effective system of state power: one branch of central power (in stead of two competitive parallel ones now – parliament-government and presidential).
7. Creation of effective local power with the redistribution of powers and budgets between a center and places to correlation 50% - 50% from existing 70% - 30% during 3 – 5 (taxes from small and middle enterprises – in local budgets and others like that).
8. Creation of conditions which do impossible the negative phenomena. For example, with the purpose of counteraction a corruption:
·  worthy providing of officials (mainly, on credit basis)
· diminishing of people contacts with officials, to whom powers belong edition of permissions and licenses or acceptance of alternative decisions of property character on own discretion
· «electronic» government and other organs of power
· exception of grant possibility to elect the different variants of decisions officials at concrete circumstances
· providing severe responsibility and its inevitability at offences (crimes), also by the way of stimulation of effective activity of law authorities and citizens.
9. Acceptance acts which eliminate the groundless change of officials at the changes of power.
10. Acceptance budgetary code with the civilized budgetary principles (limitation of subsidizing, exception of «eating» money from privatization, establishment of the hard personal responsibility for the ineffective use of budgetary facilities, establishment of responsibility for distribution of untruthful information about violation in a budgetary sphere, and others like that).
11. Gradual reduction of state machinery and budgetary charges by limitation of spheres, where the state can invest (spend) money.
12. Increase of role of institutes of civic society, which are created with the purpose of efficiency increase of power organs (public councils and collegiums etc.), by introduction of responsibility for counteraction of work of these institutes or ignoring their suggestions, on the stage “Order”– by distribution of reports through governmental and parliamentary MASS-MEDIA about a decision and implementation (non-fulfillment) of decisions of these deliberative bodies.
How to Do? The «Order» for Businessmen:

1. The quickest way of completion of the process of privatization.
2. Defense of property rights (laws on joint-stock companies, impermissibility of reprivatization etc.).
3. Most citizens should become proprietors (purchase of stocks after setting of  civilized fund market).
4. Tax reform for 2 - 3 years with the purpose of creation conditions for honest work with profitability, which corresponds to the modern conditions of Ukraine (country of the high risk). As a result of reform we will get the tax system with such traits as: gradual transition to the new system, simplified and which eliminates an ambiguousness, provides presumption of innocence of taxpayers, corresponds to European standards (there will be only a financial account according to the international standards, and the fiscal accounting will be abolished), foresees the generally recognized methods of development and innovations stimulation, (accelerated amortization and free economic areas, a speed-up for really worth projects), etc. Then must be coding of tax laws (approval of tax code) and introduction of hard inevitable responsibility for breaking the law (“honest rules of game”). NGO «Successful Ukraine» has own vision of conception of the tax system reformation of Ukraine.
5.  The immediate diminishing of the surplus tax loading (tax requirements) in most industries of economy, which results only in growth of shadow economy, corruption. Determination of optimum level of the tax loading on business and dynamics of its change during the time of the stage «Order» (for the different types of activity) and establishment of the proper rates of taxes. Actually, we pay attention to a necessity of the transition period from the present state of economy (large risks, instability, over incomes) to the stable state (less risks, stability and incomes at the level of the civilized country which develops). As a result of transition the part of businessmen overcomes, which can be utilized on a graft (with the purpose of achievement the advantages over competitors), will disappear, on financing political parties etc. If legal conditions will be created, when in business it is possible to get adequate income in Ukraine, working honestly (paying all taxes), in society will begin to work the “public” mechanism of transformation at participation of all of citizens:
-  business (especially small and middle) will get independence from politicians and authorities (will «jump down from the hook» of unpaid taxes) and will be able to say «No! » to the official or politician which requires a graft;
-  the hired workers will honestly get salary and require defense  of the rights from employers. Trade unions will begin to work effectively;
-  custom and tax inspectors who help often today domestic business to survive (not paying attention to non-payment of taxes which it is impossible to pay, however they can become grafters) will transform to the defenders of the state interests from dishonest businessmen.
6. Pension reform.
7. A facilitation of conditions entering business (creation of conditions for realization of enterprise potential of people which are basis of potential development of the state, and also creation of powerful middle class, the representatives of which it is difficult to «buy» during elections):
- simple registration, simplified system of account and taxation (united tax) for indeed small enterprises in some industries. To make impossible use of the simplified system for avoiding taxation for middle and large business (not worse than in Russian Federation);
- realization of the government program of stimulation the development of small and middle business «Successful Business», developed by NGO «Successful Ukraine»;
- simplified account and taxation system for all industries on condition of limitation of sale volumes and declaration of unused of methods of taxation optimization (charges overstating, salary in envelopes, off-shore charts etc.). In an exchange on this simplification there is consent of businessmen to the increased responsibility: application by tax administration indirect methods of taxation, hard punishments for violation.
    Actually, the already mentioned method of «two-levels» legislation is offered: for small (and partially middle) enterprises: simple rules are set for conducting business, description of which in an internal revenue code occupies 5 – 10 pages (it is the first part of the proper section of code, here clear for people conditions and determinations are used), and taxes, which must be paid, can be counted by a businessman in a hour with the help of a calculator (an accountant is not needed) (according to the Tax code of Russian Federation). For persons interested to work «on subtleties» of legislation (to optimize the tax loading etc.) is the detailed norm settings in the next code sections.
8. Providing conditions for honest competition (equality of prices for all categories of customers and social support by address grants, absence of privileges, tender basis of the state purchase which limits a level of corruption (requirements to the object of purchase and suppliers which foresee participation of wide circle of participants, other norms according to the European standards).
9. Providing of protectionism policy for the domestic producer.
10.  Limitation of the cash use (large purchases – only through a bank with declaration).
11.   Gradual closing of “obnaischku” (cash) on 2 – 3rd years of the stage «Order» (simultaneously with the active phase of realization of tax reform).
12.   A decline to the minimum of contraband goods for most commodities by tariff optimization and establishment of hard responsibility (together with tax reform and introduction of WTO norms).
13.  Hard sequence of reforms on the stage «Order» (at first declaration of profits, tax and other economic reforms, limitations of state charges (setting order in the state), and only then application of such instruments of development and innovations stimulation as free economic zones, active state purchase etc).
14.  Increasing of role of particular branch associations in defending of businessmen interests by including their representatives to the deliberative bodies, commissions at the authority organs.
15.  Legislative assistance to patronage activity from the side of business.
How to Do? The «Order» for Other Citizens, Who Want Make Quicker Transformation of Ukraine into the Successful State:

Enter into public organization, to defend the rights and press on politicians, officials, judges, businessmen, representatives of MASS MEDIA – to set an order in a country and to create civil society. After they fulfill the conditions of the stage «Order», I:
1.  Trust that my own success is a pledge of family and state welfare under the conditions of trust between all layers of society
2.  Study, become a professional, promote the «price»
3.  Study the programs and political parties’ team and vote correctly
4.  Does not buy, does not read, does not look, does not listen unobjective MASS-MEDIA
5.  Does not give grafts, does not go by violation
6.  Know and execute laws
7.  Count the profits and charges, declare them and pay honestly taxes
8. Began my own business
9.  Require a complete official salary from an employer, because it is my social defense
10.Invest to Ukraine.

The Conclusion:

The project of conception of country reformation from NGO «Successful Ukraine» - it is only the PROJECT, opened for a discussion, criticism and revision. Some sections (for example, «How to do? «Order» for judges», «How to do? «Order» for MASS-MEDIA», «Risks of conception application») were not developed by our organization.
Substantially we do not see the considerable risks of conception application, because its meaning is introduction of the European values (setting democratic order in the country, introduction of proper politician and official relation to the business, establishment of honest trust relations between citizens) – we consider it is directed at the increase of country competitiveness. Certainly, there are risks for citizens and organizations, which will not want (not able) to accept European work and life standards. There is a risk for an entire country, if civilization development will go in the direction of increase of influencing of the gangster – dictatorial states.
Most sections of the project need subsequent general revision with participation of different organizations. A project is offered for the use all political parties and non-government organizations of Ukraine.

September of 2006



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