
As had been reported earlier numerous times, Ukraine is greatly suffering during this financial crisis. The Hrivna is collapsing, the people's support for President Viktor Yushchenko has dropped from 4% to 1.5%, protests gripping are the country and a great deal more. A normal government, such as the USA and most European governments, do what they can to appease the people. They listen to the people's complaints, often in the form of protests, and try to accommodate their people's needs. Not in Ukraine!
As reported last week, Lorry Drivers started protesting and the government clamped down on them. The Lorry Driver's protest started because the Financial Crisis has eliminated their source of income. But, this is only the beginning.
The fact is, all European and American Lorries are purchased with US Dollars. Since most Lorry Drivers do not have enough spare cash to purchase a Lorry outright, they all received loans. The problem begins with the fact that their loans are in US Dollars. Now that the Hrivna has dropped in value almost 50%, the Lorries have literally doubled in cost. Without steady deliveries, the Drivers don't know what to do.
The story gets much worse. The fact is, Ukraine is an extremely corrupt country. While the ports have slowed to a crawl, there is still ample work to go around, assuming you know the right people. Big Lorry companies may have lost substantial revenue, but they are still receiving enough loads to remain profitable. The ports don't want to be completely unfair, so they give some work to the private drivers, but the bulk of the loads go to their friends that own the larger companies.
Now we get to the meat of the problem. Before the Financial Crisis struck, a load travelling from Odessa to Kiev (450 km) and back would net about $1200. After expenses, the owner of the Lorry is left with about $700. Seeing as how this trip usually takes about a week, considering loading/unloading and waiting, the drivers made enough money to pay off their loans and put some money aside. Now, with ample drivers but fewer loads, the price has changed, as could be expected. In order for the ports to maximize profits, they pay an absolute minimum for transportation. Current rates give Drivers about $500 for the same trip, leaving them with nothing to pay their loans, and virtually no leg room to feed their families. To drive the nail into the coffin, the friends of the ports that were mentioned earlier only see a small reduction in their rates, they are still netting about $1000 for the same trip (of course, they kick back to the person providing the job). The Drivers know this and are a little upset.
So, the protests began. The Drivers, with nothing else to do with their time, gathered and concluded that without government help they would die. The banks are threatening to take back the Lorries and they have no money to feed their families. When you have no money, you have no food and you are angry, what do you do? ... you protest. The Lorry drivers at first asked for very little, they wanted work and they wanted the banks to ease payment terms until the economy picked up. The government was not only deaf to these demands, but as shown in the previous article, they tried crushing the protests by force.
This was the government's biggest mistake. By doing so, they alerted the entire city of Odessa to the Drivers cause, which led to a massive following of the Driver's cause. Various workers in different spheres began joining the drivers in their quest for justice from the government.
Open Market workers joined the fight. With the financial crisis in full effect, the government needs to fill their coffers. How to do this? Raise rents and raise taxes of course! If the government would look two steps ahead they would see that their problems pale in comparison to the open air markets, where there is no business at all. By raising rents and raising taxes, the open air markets have absolutely no means to survive. They can't pay the old rent considering their small earnings, how the government expects them to pay more boggles the mind.
The Pensioners have also joined the fight. When the government raised rents and taxes, it affected virtually everyone. Some Pensioners who make less than $70/month can barely survive as it is. They already rummage the trash bins for food, beg on the streets and do whatever they can in order to live an extra day. It seems like the government is trying to kill them off to ease the government's payments.
As more and more groups join the protests, the government is getting more and more nervous. There is already no support of the government, so if riots begin the government officials may be forced out physically. They have done everything in their power to contain this, from arresting those running the protests, to arresting officials that support the protests. At this point not a single protest has become violent, but that has not slowed the police response.
Yesterday, a small protest was staged outside Odessa's central court building. While not too many people attended, it aggravated the government. No arrests were made, but there were many threats. Today, at the site of yesterday's protests, a group organized a petition entitled, "Say NO to Oppression", directly aimed at stopping the government from arresting more people. While there, I witnessed dozens of people coming and going, signing the petition, speaking to organizers and pledging their support. The organizers provided food for those that wished to stay, coffee and tea. It was a very calm atmosphere, but the police were all over. While I was there, the police began to harass the organizers, explaining that some of their literature can be construed as libel, and may ignite the crowd. While the organizers didn't agree, the literature simply stated a fact, they didn't argue and removed all traces. Tomorrow, a new wave a protests will occur on that same spot.
The literature in question described a government official close to the mayor that sympathized with the protesters. He had openly pledged his support for the protesters several days ago. The day he did so, he was arrested and has yet to be released. The arrest was extremely questionable. It turns out that about 2 or 3 years ago, this official had been in a fight of some kind. The courts 'coincidentally' came across this case and ordered him to appear in court. The order was made at 1600, and the court appearance was scheduled for 1700 of that same day. Since no one bothered to tell the official of this, he didn't make his court appearance. A warrant was immediately ordered, and the official was arrested. These are the true Ukrainian games.
Ukrainian games are for grownups, children should stay at home. If you upset the status quo, you will first be arrested and then charges will be thought up. You can always pay your way out of jail, but the price will always be just more than you can afford, regardless of how much you have. Going into debt is a sure fire way to keep people quiet, and bowing to their masters.
Tomorrow I will join the protests, talking to more people, and providing more news. I have only skimmed the surface here, I will try to add more detail as the days pass. Check back if you are curious.
Echoed on Mizozo.