Corporatization of Ukroboronprom means war for Ukrainians, money for reformers and officials offshore.
Corporations no longer need lobby the government.
They are the government.
The process of deindustrialization continues in Ukraine under the sensitive leadership of “Western partners”. It’s Ukroboronprom’s turn.
What does the corporatization of Ukroboronprom mean for Ukrainians and Ukraine?
- On the one hand.
Ukraine will need a lot of weapons for a very long time, so corporatization is needed in order to profitably transfer (privatize, steal) Ukrainian enterprises and technologies to private corporations, including foreign ones. Ukraine has become a guaranteed sales market for corporations. Every businessman employed by the Ukrainian government (hereinafter referred to as “management”) – presidents, deputies, officials, prosecutors, judges, police officers – must get their piece of the multibillion-dollar pie, and the Ukrainian people will pay for everything. For a long time, Ukraine becomes a market for the sale of weapons, a generator of income for arms dealers and a generator of their excess profits.
- On the other hand.
The process of transferring Ukraine, as a state and as a territory, into private ownership to private corporations, including foreign ones, for which Ukrainian officials (“management”) work is ongoing. Ukraine has already become a private corporation owned by “private owners”, not the Ukrainian people. Therefore, “management” to maximize profit in their own interests and the interests of “private owners”:
- Increases the income of the corporation (increases taxes and tariffs, takes loans, sells land, subsoil, enterprises, energy companies, ports, communications);
- and cuts expenses (closes schools and kindergartens, builds parks and squares with skyscrapers, closes hospitals…).
Therefore, all reforms carried out in Ukraine (of a private corporation) are aimed at maximizing the profit of the “private owners” of the Ukrainian corporation and its “management”, and not at the implementation of the Constitutional rights and freedoms of citizens of Ukraine.
The Constitution of Ukraine states that the people of Ukraine are the source of power.
Article 5. Ukraine is a republic.
The bearer of sovereignty and the only source of power in Ukraine is the people.
Any power, including the source of power – the Ukrainian people, cannot exist without property and without finances, that is, without sources of funding for its functions and duties. The criminal sale (privatization) by “management” of land, plants, factories, subsoil, energy companies, communications, and ports led to the fact that Ukrainians do not have public property and money. “Managers” transferred all property and money into private hands. And then the market power of private corporations (territorial or industry monopolies, oligopolies) grew into the public power of the state and local self-government. Private owners of Ukraine manage state bodies, enterprises and appoint their “managers” to all branches of government and state enterprises. In this way, people who call themselves deputies, officials, prime ministers, presidents, policemen, prosecutors, judges – actually work for the benefit and are “managers” of these private corporations, and not work for the benefit of the Ukrainian people. And Ukrainians, alienated from public power and public property, are forced to sell their votes and lives in elections for a piece of bread or a spoonful of soup.
For many years, Ukrainians will pay billions not only for loans, but also for new weapons. Ukraine is turning into an eternal cash cow (if Ukrainians survive).
What are the consequences of the corporatization of Ukroboronprom?
How does a joint-stock company (even if 100% of its shares still belong to the state) differ from a state-owned enterprise?
The approach to evaluating the efficiency of the enterprise has changed.
Efficiency of states enterprise is determined by the quantity and quality of its performance of the functions assigned to it by the state (by analogy, a communal enterprise performs the functions assigned to it by the territorial community), including the production of public goods.
An efficient public enterprise produces more cheap and high-quality public goods, rather than maximizing profits like a private commercial enterprise. The effectiveness of Ukroboronprom’s work was previously assessed by the quantity, quality and cost of production. In this case, the public good is modern high-quality and cheap weapons in the right amount, ensuring the safety of Ukrainian soldiers.
On the scale of the state, public good is security, life support, realization of human rights, education, health care, science, ecology, etc.
Example: the cost of a bullet was 5 hryvnias, but it became 4.5, the production of bullets with increased penetration was increased, or a tank cost, for example, 100 million hryvnias, and began to cost 95 million hryvnias. with the same characteristics or even the best.
In the past, to achieve the goal, new technologies were implemented (should be implemented), scientific research and research and development were conducted to improve product quality, reduce cost, and produce new types of weapons.
After corporatization, the efficiency of Ukroboronprom will be measured by profit.
Profit and only profit.
The effectiveness of the joint-stock corporation Ukroboronprom will be determined by the amount of the profit.
Earlier in my articles, I wrote that the profit indicator is an indicator of the work of a private company, which has one goal – maximizing offshore profits.
Profit is an indicator of work efficiency:
work of a private enterprise
the work of the state, which uses the levers of regulatory influence on a private enterprise (increase or decrease in the tax base)
increasing or decreasing the profitability of capital in the public interest (for the benefit of society) and private interest (for the benefit of the private owner).
Where is the safety of soldiers, shells, tanks, body armor?
In this way, the Ukroboronprom enterprise will maximize profits for those who control the enterprise, instead of increasing the production of high-quality, modern and cheap military products and supplying them at cost to Ukrainian soldiers to protect Ukraine.
How will the management of Ukroboronprom maximize its profits at the expense of Ukrainian lives?
- Sale (privatization) of enterprises that are part of the Ukroboronprom corporation.
This will result in:
Ukroboronprom will show short-term profit growth in its reports, and in the long term, Ukrainians will buy the products of a private enterprise at many times higher prices.
- Sale of enterprises of a foreign corporation that produces competing products (ie, a direct competitor).
This will lead to the fact that: the competitor will liquidate the privatized enterprise and sell its products in Ukraine at inflated prices.
- The management of Ukroboronprom will reduce the salaries of the company’s employees and increase their own salaries many times over.
This will lead to the fact that: in Ukraine, poverty and the criminogenic situation will increase. The best specialists will go to work abroad.
- Less military products will be supplied to the troops, but at a higher price.
This will lead to an increase in the losses of the Ukrainian army at the front: killed and wounded Ukrainian soldiers.
- Investments in scientific developments for the needs of the army will be reduced.
Consequences for Ukraine?
- Ukraine will lose valuable production,
- Employees will become unemployed and subsequently lose their qualifications or go abroad to work,
- Social payments to the unemployed will increase.
- Ukraine’s budget spending on social assistance to the families of the dead, treatment and assistance to the wounded will increase.
- Funding of social infrastructure will be reduced: education and health care, pensions, science, etc.
- Taxes will be increased.
- The housing and communal tariffs will be increased.
It is necessary to stop privatization, sale, concession and other actions aimed at transferring national wealth into private hands. The time has come for Ukrainians to become the owners of their state, cities, villages (territorial communities), the source of power. Factories, subsoil, land, energy, ports and other things should become:
- the material basis of the functioning of legal entities of public law is the state of Ukraine and territorial communities (for example, Kyiv, Lviv, Donetsk, etc.);
- legal entities of public law – business entities, elements of the public production circuit (state and communal);
- the public production circuit should create public good for Ukrainians, not offshore profits.
By public good I mean:
- security (well-trained, equipped army, professional police, etc.);
- ensuring the rights of citizens and people;
- education and upbringing of citizens of Ukraine;
- life support industries (electricity, gas, water, heat);
- health care;
- social security of soldiers and members of their families;
- a dignified old age;
- ecology, etc.
All this PUBLIC GOOD should be financed mainly through the efficient operation of the public production circuit, and the taxation system should turn into a clubbing for financing socially significant projects, and not a source of enrichment for the “management” and private owners of the Ukraine corporation.
About this in the following articles.