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www.debaty.orgThis was the first ever Public Debate in history to be broadcasted from Ukraine by BBC World Newsin 225 coun...
www.debaty.orgKey StatementsDavid Aaronovitch states that there is no           Kateryna Yushchenko points that “in countr...
www.debaty.orgPress CoverageThe Public Debate “Free Market Capitalism Has Failed the Former Soviet States” received huge n...
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Free market economy has failed the former Soviet states


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Free market economy has failed the former Soviet states

  1. 1. www.debaty.orgFREE MARKET CAPITALISM HAS FAILED THE FORMER SOVIET STATES PUBLIC DEBATE BRIEF June 15th, 2010 National Academic Ivan Franko Drama Theatre, Kiev, Ukraine
  2. 2. www.debaty.orgThis was the first ever Public Debate in history to be broadcasted from Ukraine by BBC World Newsin 225 countries for an estimated audience of 76 million people. The event was moderated by aworld renown BBC reporter and news presenter Zeinab Badawi. It was made possible as a result ofa joint effort of the Foundation for Effective Governance (the FEG) and its British partnerIntelligence Squared (IQ2).The FEG believes that with a benefit of almost 20 years of hindsight the analysis of mistakes andachievements of the transition period could contribute to the formation of an effective futuredevelopment strategy for the region. The adoption of capitalism and free–market system by statesthat emerged from the Soviet Union after its collapse led to GDP fall, fierce inflation, widening ofincome gap and substantial poverty rise all over the region. It fueled a dispute on whether theeconomic model of “Free Market” Capitalism was a flawed one for those economies?All the Debate speakers were unite in acknowledging that Capitalism is the best system availablefor efficient channelling of resources into production of economic wealth. The argument, however,centred around whether the particular type of Capitalism that was suggested for adoption byexternal advisors was wrong, or all the apparent problems were largely due to inadequateimplementation. The voting revealed audience’s support for the motion: “Free Market Capitalismhas failed the Former Soviet States”.As one of the Debate speakers David Aaronovitch mentioned: “The absolute bedrock underneath asuccessful functioning of Capitalism is to have a free and vibrant press, and media, and debate.”The FEG and IQ2 share the view and consistently work on fostering the debate culture in Ukraine inhope to contribute to the formation of educated socio-political consensus concerning futurecountry development. Speakers FOR the motion Speakers AGAINST the motion David Aaronovitch Kateryna Yushchenko British Broadcaster and The Former 1st Lady of Ukraine, Columnist Economist, for The Times of London Chairman of “Ukraine 3000” Foundation Irina Khakamada Andriy Shevchenko Economist, MP of Ukraine, Former Russian Presidential journalist and broadcaster candidate, Former MP of the RF
  3. 3. www.debaty.orgKey StatementsDavid Aaronovitch states that there is no Kateryna Yushchenko points that “in countriesfeasible alternative to capitalism, however, the where quick and comprehensive marketparticular forms of capitalism that were reforms were implemented, results wereadopted by former Soviet States have failed immediate and impressive.” She continues bythem. “Your system has to be well regulated citing the US university professor Peter Boettke:and anti-monopoly. “Glasnost” should have “If you bound the arms and legs of gold medalcome first. When knowledge is with the people swimmer Michael Phelps, weighed him downand they have the capacity to run it, you will with chains, threw him in a pool and he sank,formulate a Capitalist system that is not the you wouldn’t call it a failure of swimming. So“Free Market” system with which you’ve been when markets have been weighted down bysaddled.” inept and excessive regulation why call this aIrina Khakamada argues that it takes time to failure of Capitalism?”build capitalism and we were wrong to assume Andriy Shevchenko argues that the adoption ofotherwise as society was not ready to take Capitalism initiated an irreversible process ofresponsibility while political elite cared solely positive change in the region by providingabout personal enrichment, and it was naïve to people with opportunities and inspiration forexpect the “poor who came to power” to act development.differently.Q&A and Comments Session with the AudienceQ: “Would there be less disappointment if the Swedish version of Capitalism was introduced?”A: Kateryna Yushchenko:“Unless we have a Free Market system that generates wealth, we will nothave any wealth to distribute, such as the Scandinavian countries have.”Q: ”Could the adoption of so called State Capitalism, as in Russia or China, improve economicsituation?”A: Irina Khakamada:”In China there is a very effective model of State Capitalism when the statestimulates the development of small and medium size businesses. Nothing of this sort is present inRussia: state controls big corporations while nothing is done to develop SMEs, there is nocompetition, no Free Market.”Q: ”Shall we define and adopt the Ukrainian type of Capitalism?”A: David Aaronovitch:”The form of Capitalism you adopted didn’t work for you because it didn’tembed the moral, social and political values which you need to carry on in order to make sureCapitalism works.”A: Kateryna Yushchenko:”What disappoints me is that everybody seems to be wanting to choose athird way rather than just learning from examples of what actually exists and what is best.”Comment:”The voting results before the debate reflect that this society has not yet decided what itwants: is it a true market-oriented economy with all the benefits, or whether they’re still trying tofind a third way.”Comment:”The danger in any system is unregulated self-interest. And I believe it is far moredangerous to have self-interest inside of an unregulated Socialistic State than it is to have it insideof a private market.”
  4. 4. www.debaty.orgPress CoverageThe Public Debate “Free Market Capitalism Has Failed the Former Soviet States” received huge national andinternational media attention. In Ukraine the event was highlighted in 72 media materials, with sourcesincluding 3 information agencies (Interfax, UNIAN, Ukrainian News), 9 paper periodicals (Commentaries,Den’, Kiev Post, Kiev Weekly, Svoboda), 2 TV channels (TRK Ukraine, ICTV), 1 radio station (BBC Ukraine –Radio Era FM), and 12 internet news portals.Capitalism Will Be Built after the Political Elite is changed, Commentaries, Weekly Newspaper, 18/06/10“In her opening speech the Managing Director of the Foundation for Effective Governance Nataliya Izosimova notesthat “after the economic crisis the whole world is discussing the ways of further development of Capitalism, in thisrespect it is important to discuss whether Capitalism is an outdated model or we did not implement it properly.”Interview with Nick Pisani, Kyiv Weekly, Weekly Newspaper, 03/06/10“First lf all this debate is going to be revealing, nobody expects a debate in English in Kiev, in Ukraine, on BBC WorldNews, and now we can bring it to the TV viewers in 225 countries all over the world… 99% of BBC World Newsviewers currently have no idea about what is happening in such countries as Ukraine and now we will change it.”Interview with Nataliya Izosimova, Den’, Daily Newspaper, 02/06/10“- The BBC World News, a multimillion audience channel, will be broadcasting the debate on Capitalism which wasorganized by the Foundation in Kiev. How did you manage to get such international media support? - The BBC assessed the quality of speakers, the quality of audience, which actively takes part in our debates andbecame interested in us. The media corporation representatives asked us whether we could gather an Englishspeaking audience of the same quality and we answered positively.”Information Program, Radio Era, 16/06/10, 19:00“The debate was on Capitalism in Post Soviet states. The reach of this political show, which was broadcasted by BBC,was unrivaled in terms of number of its viewers in all continents. In Kiev it was moderated by Zeinab Badawi, popularBBC presenter.”Sobytiya Nedeli, TRK Ukraine, TV Channel, 20/06/10, 19:00“The organizers expected 400 people, twice as many actually showed up. Theater balconies were opened toaccommodate all the debate participants as seats available in the Ivan Franko Theatre’s parterre were not enough.Here for 2 consecutive hours the discussion was held solely in English, so that TV viewers from the whole world couldhave a chance to listen to and to understand Ukrainians.”Voting Results The Debate was broadcasted on BBC World News on 3rd and 4th of July 2010. Further information on the Debate is available on the organisers’ websites: and Further information and the video version of other FEG’s debates can be found on:, Debate videos are also available on FEG, 23-F Kudryavskaya st., Kiev, 04053, Ukraine tel: +380 44 501 41 00