Posted by Yanko on August 10, 2000 at 19:49:06:
In Reply to: Re: Majbuttia posted by Ahmed on August 10, 2000 at 17:38:28:
: Do you understand what is compounding effect in economical growth?
: Ukraine has the lowest GDP per capita in Europe in terms of USD is about 600. Slovakia has about $ 8000. Let's say Ukraine's growth is 10% per year and Slovakia's is 2%. At the end of the year Ukraine has USD 660 while Slovakia has USD 8120 per capita. Slovakia is $60 ahead of Ukraine. Now, take in consideration that no country can have 10% sustainable growth for ten years. Japan and S. Korea had 7 to 8% growth in their peak for a few years (3 to 4 years.). Can you comprehend what it means a sustained decline of Ukrainian economy for 10 years?
Ok, let's say a generic plant that used to produce 10000 gizmos per year has over the last ten years decreased its output to 100 gizmos per year because "cheap" Russian energy and "wise" Ukrainian tax policies have made costs prohibitive. Now imagine that by a stroke of a magic wand energy sector and taxation are finally made reasonable. Classroom problem: calculate the industrial growth rate for the next year. Homework problem: formulate and solve an analogous problem for the agricultural sector. Of course, this is an oversimplification, but I hope you get the idea.
: Wishful thinking does not help here. Better to stick to the facts and to hard numbers generated by professionals in the field and not by politicians.
Right. Let professionals speak. I'm listening.