As a result of these neoliberal economic policies, Ukraine's currency, the hryvnia, is the worst performing currency in the last year, losing nearly 60% of its value against the dollar. Other factors have made this worse, but the rules imposed by the IMF have made it nearly impossible to prevent the hryvnia from spiraling out of control. As of late Ukraine has subsidized natural gas so its citizens would be able to heat their homes. The IMF doesn't seem to think freezing to death in one's own home is of any concern though, and has demanded Ukraine end these subsidies. Prices are expected to triple in Ukraine, compounded by the fact Ukraine is in conflict with Russia's largest gas producer, Gazprom. The suffering brought about by austerity measures do not end there, however. Another requirement for the loan is that already weak retirement benefits and pensions be reduced in order to reduce the budget deficit.
Currency controls are the reason Russia's economy has stayed afloat. Allowing market forces to do all the work benefits foreign entities only. Removing regulation on businesses just makes it easier for companies to expand into the country, take all its natural resources, force local companies into bankruptcy, and eventually leave the land devastated and polluted. A wonderfully awful example of this was in the IMF's last loan, which was to Greece, which required the government to sell public utilities and land to foreign investors. Clearly the IMF wishes to extract every last bit of money from Ukraine before it totally collapses.
In order for Ukraine to recover, it needs to spend more, not less. More regulation and controls, not less. The only times that deregulation has been effective has been in former dictatorships where the entire economy was state owned, with the exception of Georgia. Ukraine is not Georgia, however, and extra measures should be taken to protect its people.
