First of all, Ukraine needs decentralization – Nobel laureate

Kyiv: Roger Myerson, a prominent American economist and Nobel Prize laureate in economics in 2007, considers decentralization a key economic and political reform for Ukraine. He told about this in an exclusive interview with Front News.

“Among many reforms, people talk a lot about reform. Ukraine has great potential, but reform is needed. Reform is a too vague word. So let me say what I think is the most important reform. I think it is decentralization”, “said the Nobel laureate.

According to Roger Myerson, it is necessary to provide more autonomy and responsibility for the local budget to the administrations of municipalities, districts and regions:

“Decentralization at the rayon level or oblast level would mean giving more executive authority, or allowing the council to choose a chief executive, who runs the administration rather than making it a central presidential appointee”

He also noted the importance of political autonomy on the ground and its systemic consequences: “Across the world where there is more democratic decentralization there is also more competitive national policy.”

Answering a question about what prospects Ukraine now has, Myerson said:

“I’m very impressed by patriotism of people in this country and it is a very powerful force. I’ve heard some terrible economic statistics about economic growth and performance in recent years. And when I hear terrible statistics that got to mean that there is a possibility for enormous growth in this country”

The Nobel laureate believes that to realize the existing potential and successful economic development in Ukraine, the key is the reform of decentralization.

Roger Myerson became famous in the world for his research in the field of game theory. For his contribution to “creating the foundations of the theory of optimal mechanisms” he received the Nobel Prize. Application of the conclusions of this theory in practice makes it possible to distinguish situations in which market mechanisms work well from those in which they harm.