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Cliff hanger economics…

May 23, 2009

In Kiev, it looks as though the country’s economy is in good shape. The streets are packed with shoppers and street vendors are selling their products.

Many feel appearances are deceptive and Ukraine is on the edge of an economic cliff. However, there have been some things that happened that kept Ukraine a bit stable while on the edge of the cliff. For example, the International Monetary Fund announced it would release the second part of Ukraine’s $16.4 billion loan. Still analysts here warn the country’s economy is far from being stable.

Ukraine’s neighbor Russia, which traditionally considers Ukraine as part of its sphere of influence, is undoubtedly monitoring the situation very closely. While Russia might have some influence in political maneuvering before Presidential elections, the most important question is how Ukraine, a country of 46 million, manages to deal with the economic crisis. And that, observers are saying, will not be decided by elections but by how soon Ukraine’s political leaders can put aside their differences and make some significant economic reforms.

Elderly woman trying to make ends meet by begging on the streets of Kiev

Elderly woman trying to make ends meet by begging on the streets of Kiev

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