Page 14 - The Economist

14 Leaders The Economist December 9th 2017
Ukraine
Don’t give up

Ukraine is a mess. TheWestshould pressithardertobring itselites into line
FTER the Maidan revolution to extricate itselfwith Maidan.
Aand the start of the Russian Ukraine’s grubby politicians and oligarchs have tried to
war against Ukraine in 2014, frustrate Western aimswithoutopenlydefyingthem (see page
Western policy had two aims: to 51). Partly as a result, policy under Mr Trump has lost its focus
halt and punish Russian aggres- on fighting graft. Kurt Volker, the American envoy to Ukraine,
sion and to help Ukraine be- works on external security; America may soon sell the coun-
come a democratic state gov- trylethalweaponsforthefirsttime. Butwhen the State Depart-
erned by the rule of law. ment complains about corruption, it is ignored—because (un-
America imposed sanctions on Russia, ordered the president, like Mr Biden) the White House offers it no support. As for the
Petro Poroshenko, to establish an anti-corruption force and EU, few believe it would jeopardise its association agreement
sent Joe Biden, then vice-president, on repeated visits to insist with Ukraine for the sake of the rule of law. So, the country’s
on fighting graft. The EU imposed sanctions on Russia, and elite no longerfears attackinginvestigators and activists.
made supportforcivil-societyand the rule oflawa linchpin of
the association agreement it signed with Ukraine in 2014. Layoffthe pay-offs
In that light, the news out of Ukraine over the past few If they succeed in ending the attempts to fight graft, it will be a
weekshasbeendire. Thecountry’sprosecutor-general hasdis- disaster for Ukraine—and a step backfor Europe and America,
rupted investigations by its National Anti-corruption Bureau, too. The country is the focal point of the West’s conflict with
withtheapparentconsentofMrPoroshenko.Theinteriormin- Russia.Weakanddivided,itisvulnerable to Russian encroach-
isterhasintervenedtoprotecthissonfromsimilarscrutiny.Of- ment, especially if Vladimir Putin decides he needs to fire up
ficers in the security service, the SBU, have tried to arrest Mik- patriotic Russian voters. Chaos would also buttress Mr Putin’s
heil Saakashvili, the former Georgian president turned claim that the West’s aims in Ukraine are purely anti-Russian
Ukrainian corruption-fighter, only to be driven backby protes- and have nothing to do with democracy or the rule of law. All
ters. Prosecutors are targeting anti-corruption activists; the this would undermine the rules-based global order, with con-
army, interior-ministry troops and private militias work at sequences in the South China Sea and elsewhere.
cross-purposes, answering to different politicians or oligarchs. Now that Ukraine is defying complaints by America’s State
MrPoroshenko’s government has been seriously weakened. Department and the EU’s foreign-policy arm, it is vital that
To some Europeans and Americans, this picture suggests America and Europe use everytool attheirdisposal to support
that their efforts to persuade Ukraine to turn over a new leaf corruption-fighters in Kiev. The EU should make plain that the
werealwaysdoomedtofail.Thatisamisreading.Infact,there- benefits of the association pact depend on progress against
cent chaos in Ukraine comes in part because in the past year, graft; America should attach the same conditions to arms
especially since the inauguration of President Donald Trump, sales. Prosecutors in Western capitals should investigate the
Europe and America have eased the pressure. Ifthey do not re- laundering of ill-gotten Ukrainian wealth. Support for Uk-
store their commitment to defending anti-corruption reforms, raine’s territorial integrity should not involve tolerance for the
Ukraine risks sinking back into the morass from which it tried lackofintegrity amongits politicians. 7

Tax reform
Twice bankrupt

Worryaboutthe Republicans’ taxbill. Worryeven more aboutthe waytheypassed it
OME political theorists argue House ofRepresentatives in November. It would slash the cor-
Sthat the law draws legitimacy porate tax rate from 35% to 20% (albeit a year later than the
not just from voting, but also House bill). Taxes for unincorporated businesses and individ-
from public debate before legis- uals would fall substantially. The personal exemption, which
lation is passed. In voting reduces a household’s taxable income in accordance with its
through a tax-reform bill on De- size, would be replaced with a much higher standard deduc-
cember 2nd, Republicans in tion, the flat amount that can be earned tax-free. The child tax
Congress have tested this princi- credit would also rise. To raise money, the bill curbs some de-
ple to destruction. The bill, like most, has its strengths and its ductions, such as those fordebt interest and state levies.
weaknesses, but Republicans have rushed it through disre- Lawmakers reconciling the bills confront three main differ-
garding the value of consistency and evidence. Their success ences. First, the Senate proposal leavesthe deduction formort-
will weigh on the quality ofAmerican government. gage interest mostly intact; the House wisely wants to curb it.
The Senate’s bill is broadly similar to one that passed in the Second, whereas the House would abolish the estate (inheri- 1