Open AccessLegal support of cooperation between Ukraine and the International Monetary Fund in the field of social security (2014–2020): shortcomings and ways to strengthen
Author(s) -
Andrii Dvorak
Publication year - 2020
Publication title -
časopis kiïvsʹkogo unìversitetu prava
Language(s) - English
Resource type - Journals
ISSN - 2219-5521
DOI - 10.36695/2219-5521.4.2020.81
Subject(s) - government (linguistics) , loan , ukrainian , inefficiency , order (exchange) , social security , international law , political science , business , economics , finance , economic policy , law , market economy , philosophy , linguistics
Due to the government’s inefficiency, unfair policies and other tough circumstances, in 2014 Ukraine confronted a social crisis,which led to the so-called ‘Euromaidan revolution’. After the re-election of a new government, Ukraine began to cooperate tightly withdifferent international financial institutions such as the International Monetary Fund (IMF), the World Bank and the European Bank ofReconstruction and Development in terms of credit relations.This article highlights the support of the IMF, which consists in the Stand-By Arrangement and Extended Fund Facility programs,and the legal principles of the cooperation between Ukraine and the IMF in the sphere of social security. The urgency of this issue liesin the importance of strengthening the social security of Ukraine weakened by the government in its attempt to fulfil the gaps in theeconomic or bank sector by shortening the social standards.This article is aimed at: a) a critical analysis of the legal principles of the Ukrainian law regarding the international acts, whichconcern the cooperation with IMF during 2014–2020; b) finding out the social aspects in the obligations of the four agreements ratifiedduring 2014–2020; c) outlining the ways to improve the Ukrainian legal principles of international cooperation in order to strengthenthe social sphere of the country.The process of receiving a loan from the IMF presupposes the following steps: a lender (country) gives an ‘offer’ (letter of intent)and a lendee (IMF) decides to accept it or not. The offer includes a list of the prior actions and structural benchmarks, which should bedone to receive the next tranche.
The author believes that the Ukrainian government requires to restructure their approach to the international agreements. Forexample, to secure the social interests, the Ukrainian government can enlist the Ukrainian ombudsman, whose signature will be alsomandatory to accept the “letter of intent”. Also, before the release of the “offer” to any international institution, it is necessary to attracthighly-qualified experts who can unbiasedly analyze and criticize the principles of the agreement.