University of Wrocław
Faculty of Law, Administration and Economics
Institute of Economics/ Economia
Impacts of the World Economic Crisis on Ukraine
dr Sebastian Jakubowski
December 17, 2012
The Greece crisis is any event that is, or expected to lead to an unstable and dangerous situation affecting individuals, groups, communities or the whole society at once. A crisis is expected to bring negative changes in the security, economic, political, societal or environmental sector, especially when they occur abruptly, with little or no warning.  In XVII-XVIII centuries the concept "Crisis" began to be used in relations which were connected to the military, political crises. Nevertheless, almost not changed value of crisis taken from medicine was thus used. Overall, in XIX century this particular concept passed to economy. The "classical" economic concept of crisis created in mentioned period of time, means not a desirable and drama phase in the capitalist economic system and is characterized fluctuations and the negative phenomena, hindrances. The signs of crisis observed in the American financial system began to show up in the second half of 2008 and were directly reflected in many countries, where large-scale and measures of regulators for stabilizing situation were so unprecedented high that it gives any reason to question the principle of the efficiency of the American financial model of capitalism and its viability in the conditions of the global market. The irreplaceable damage was actually caused by the number of key basic issues of a financial system, and it, being not able to function in the previous form, was partially nationalized or has been put under the state control. It is widely discussed, that world financial crisis began in August of the 2007 the market with crash of mortgage loans of the USA. The American economic model considerably develop, thanks to consumers as consumer expenses from about 2/3 Gross Domestic Product of the United States of America. Continuous growth of consumption was created within the last thirty years by a gain of Gross Domestic Product, the income of the population and the state budget of the USA. Falling of such a big economic player like America, couldn't but can affect the economy of other countries, for example particularly Ukraine. The economy of Ukraine is very sensitive to world economic tendencies and development. Movement of the world prices for raw materials (metals, crude oil or chemicals), and also turns in movement of the capital have considerable impact on internal economic tendencies. In 2008, the rapid changes in a world economic environment can be considered as one of the main reasons of emergence of an economic crisis in the observed country. In the middle of 2008 it was obvious that the financial crisis observed in the world, will affect and bring problems to Ukraine as well. Though the government of Ukraine long before declared that it was integrated into world economy very poorly and therefore crisis can be avoid somehow. But optimistic forecasts of the government didn't really work. It not the first shock for Ukraine. To the middle of the 90th years the economy of independent Ukraine recovered from a galloping inflation and an acute shortage of money. But in 1998 on the country world financial crisis extended. Being rather stable during few years exchange rates started changing again sharply. Within several months Grivna fall down its price from 2 UAH for 1 dollar to 5,5 UAH for 1 dollar. Within several weeks the housing market the prices on which fell in one and a half time was derailed. The country recovered from crisis by 2000-2001. In 2001 the situation was stabilized, the...
Please join StudyMode to read the full document