Yanukovych to offer stability but little reform
Overview:
Despite Yulia Timoshenko’s refusal to concede defeat, it now seems certain that Viktor Yanukovych will be installed as the new President of Ukraine later this month. While Yanukovych has a controversial background, he is likely to be more pragmatic in office than his more pro-Western predecessor. This may be no bad thing if it means improving Ukraine’s relationship with Russia without damaging its existing links with the West. On economic policies, stability might be Yanukovych’s strongest suit. He is unlikely to commit to a strong set of economic reforms that could reduce economic rent-seeking and, therefore, upset his industrial backers. However, the adoption of relatively sensible macroeconomic policies would be sufficient to restart IMF funding and help sustain the economic rebound just starting to take root.