Ukraine economy ministry to be reduced by 50 percent, minister says

The necessary documents have been submitted to reduce the Economic Development and Trade Ministry by 50 percent, said on Jan. 21 Minister Aivaras Abromavicius, as reported by the Ukrinform news agency. The cuts are aimed at making the ministry mobile, with an optimal number of staff, which can address contemporary needs. In December, he reduced the ministry’s departments to 15 from 24 and promised an overhauled state body in four months.

The wages of state officials are too low and need to be raised, Abromavicius told a television program, as reported by the Ukrainian News agency. “I would want the government to begin to reduce staff while simultaneously raising wages,” he said, “People who handle large financial resources can’t have wages of USD 300 (a month),” he said. Government salaries should be competitive with the private sector, he said.

Zenon Zawada: The presence of private sector veterans, such as Abromavicius of Lithuania, is among the sources of hope for the new government. Cutting staff and hiking wages is precisely what most government bodies need to be more efficient and the economy minister is taking such measures beyond words by implementing them.

Unfortunately, he’s only part of a small handful doing so. American-born Finance Minister Natalie Jaresko, who ran a venture capital fund, seems to have been held hostage by political pressure in failing to prepare an acceptable 2015 budget.