Transition to the Market in Post-Communist Ukraine

Ukraine became independent in 1991 and formally abandoned central planning. But the development of market methods of input supply and product distribution was impeded by continuing price distortions and the survival of various methods of administrative commodity allocation from the central planning period. This paper outlines the background environment of central planning in Ukraine, reviews the extent to which central planning practices have continued, and illustrates this through two sectoral examples: coal mining and agriculture. It is found that significant elements of non-market allocation of goods and services remain in Ukraine, and proposals are made for further reforms. JEL Classification: P21, P23.