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Articles

The Ukrainian Power Elite and Poverty Reductive Efforts: An Inquiry into a Selection of Elite Members’ Legislative and Philanthropic Initiatives

 

Abstract

This study inquires the efforts of the Ukrainian political–economic elite to improve the situation for the poor in Ukraine through legislative and private philanthropic initiatives. We compare three groups: politically active philanthropists, non-politically active philanthropists and politically active non-philanthropists. Findings show that poverty reduction efforts made by the selected elite members are rather negligible. While the wealthiest business owners focus on non-poverty reductive single-shot actions, politicians seem to emphasize non-poverty reductive long-term projects. Those with both political and economic capital tend to use either both types of capital or none of them to ease the situation for the most vulnerable groups.

Notes

1. The number of inhabitants was nearly 52 million at independence, while closer to 48 million in 2002, and by 2010, even though the birth rate had slightly increased and some emigrants has returned after the Orange Revolution in December 2004, the amount of inhabitants was 45,7 million.

2. However, rural and urban poverty differs greatly, as the informal economy is more important in the countryside and the small plots for growing basic foodstuff complement formal income. See e.g. Williams and Round (Citation2007) and Ledeneva (Citation1998).

3. See further on the working poor phenomena: Smith et al. (Citation2008).

4. With executive or legislative power.

5. Unfortunately figures from before 1999 are unavailable.

6. Libanova (Citation2008). A subjective poverty measure would stretch the number of poor even higher; some state that about 70% of Ukrainian people considered themselves to be poor.

7. Should orphans be considered poor? Ella M. Libanova, who means they are in most cases very well fed, does not support the point of view that orphans should be considered poor. “It is hard to say whether these children are poor or not, as they are obviously given food… If you count their expenses – then they are not poor.” Interview, 19/3 2012, Ella M. Libanova, Director, Ptoukha Institute for Demography and Social Studies, National Academy of Sciences of Ukraine.

8. This can be compared with e.g. Russia: 42 (2010) Sweden: 23 (2005), the US: 45 (2007). Source https://www.cia.gov/library/publications/the-world-factbook/fields/2172.html

9. Interview to the “Delo” newspaper dated 23 August 2012. Full text is available online: http://delo.ua/opinions/v-chem-sila-brat-ili-paradoksy-pokolenija-rovesnikov-nezavisimos-183742/ (last accessed on 28 August 2012).

10. Cultural Actors of Change in Belarus, Ukraine and Moldova. pp. 4, 10. http://youth-partnership-eu.coe.int/youth-partnership/experts/yohana-forbrig-/yohana-forbrig-.html

11. Survey conducted by Kyiv International Institute of Sociology (KIIS) in June 2009 within the framework of International Social Survey Programme (ISSP). In total, 2012 respondents were surveyed representing the population nation-wide. The data-set is available for downloading free of charge via the link: http://info1.gesis.org/dbksearch19/download.asp?db=E&id=37859.

12. The ranking as published in the magazine “Korrespondent” No 22 (459) on 10 June 2011.

13. The list of the famous Ukrainian philanthropists as published in the magazine “Kontrakty” No 17–18 (988–989) on 25 April 2011 and magazine “Korrespondent” published Dec 16th 2011.

14. See e.g. SOU (Citation1993:82).

15. Further research is needed on the impact of Tereshchenkos initiatives, especially with regard to employment conditions.

16. Giving without expecting something in return. See e.g. Desai and Acs (Citation2007, 283).

17. In some old orthodox texts she reads that “Labour not to be rich”. Even in the Soviet Union, this kind of philanthropy existed: many workplaces were transformed into disguised almshouses, as nobody worked but they still received enough for a living (Dinello, Citation1998, 113–115).

18. Referred to by Desai and Acs (Citation2007).

19. For further discussion on choice of notion, see Anheier and Salamon Citation1992, 281 f.

20. Viktor and Elena Pinchuk have one foundation each. Some individuals have more than one foundation, but are here presented as one unit. Firtash does not have a foundation, but is exceptionally included here as the amount he donates is large when compared with many foundations.

21. Akhmetov: 198 (million UAH (according to Korrespondent the figure is slightly higher)); V. Pinchuk 167,1; Feldman: 45,1; Firtash 44,8; Poroshenko: 23; E. Pinchuk: 21,8; Kolesnikov: 11,2; Klitshcko: 10,1; Yushchenko: 4,1 (2010); Yatsenyuk: 3 (2010); Onishenko: 1,9; Tolstoukhov: 0,2.

Total: 530,3 million UAH (average: 44,2 million UAH, median: 22,4 million UAH).

Largest: 198 million UAH.

Smallest: 220 000 UAH (Note that Tolstoukhov does not appear among the largest philanthropists).

22. Philanthropy specialist and previous employee, Victor Pinchuk Foundation, 26 October 2011.

23. Employee, Development of Ukraine (Rinat Akhmetov foundation), 23 March 2012.

24. Employee, Development of Ukraine (Rinat Akhmetov foundation), 23 March 2012.

25. Philanthropy specialist, Ukrainian Philanthropists Forum, November 2011.

26. Employee, Development of Ukraine (Rinat Akhmetov foundation), 23 March 2012.

27. Culture activist, June 2012.

28. Student, August 2012.

29. Philanthropy specialist and previous employee, Victor Pinchuk Foundation, 26 October, 2011.

30. This can however be problematized as to how long is the “long” in long-term, and may it in some time perspectives even lead to larger income gaps? Or even if it does initially, will they have trickle down effects? These are very complex questions often impossible to answer which is why we will not attempt to do so here.

31. Employee, Kolesnikov foundation, mail conversation, 14 November 2011.

32. Video no longer available on the foundation’s website.

33. Philanthropy specialist and previous employee, Victor Pinchuk Foundation, 26 October 2011.

34. This foundation is not included in this study as the founder and main funder of this foundation is of international origin.

35. Philanthropy specialist and previous employee, Victor Pinchuk Foundation, 26 October 2011.

36. Employee, Development of Ukraine (Rinat Akhmetov foundation), 23 March 2012.

37. Employee, Development of Ukraine (Rinat Akhmetov foundation), 23 March 2012.

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