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The social contract of trust: Why we cannot build a new country without it

As part of the New Country project, we have held dozens of open discussions on security, economy, justice, human capital, and new education. Our project is about the country, about what it should be like to become a strong, subjective country. And almost every issue we raised eventually came down to the relationship between the state and society, business and the state, society and business. We are talking about a new social contract that needs to take place. 

Ihor Liski
Photo: Oleksandr Ratushnyak
Ihor Liski
The idea of a social contract is not about an abstract political philosophy. It's about how we agree to live together, how we rebuild the country, how we build an economy where people want to stay, work, and have children. The state is an apparatus that is maintained for the sake of society and its development. All the Defence Forces are maintained at the expense of taxpayers. And the global discussion about Ukraine's future also concerns whether we will be able to support the army, what taxes will be, and how to make their administration transparent. This is not about slogans. It's about the basics: how we agree to live together. And the key word here is trust.

We have a traumatic historical past in which the state has repeatedly proved to be either helpless or unfriendly to its citizens. Business is no exception. I have had many emotional but also constructive meetings with the tax authorities in recent years. My partners and I invest in packaging production, honey processing, renewable energy, and the creation of new industries. This means tens of millions of dollars in taxes and thousands of jobs. And at the same time, there are thousands of challenges related to predictability, quality of administration, blocking of invoices or sudden changes in legislation.

Restoring Ukraine is not just about infrastructure, roads, schools or hospitals. It is about restarting the very logic of the relationship between the state, business and society.

 A coffee shop in Kyiv after the shelling.
Photo: EPA/UPG
A coffee shop in Kyiv after the shelling.

Business is a co-author of change

As an entrepreneur, I have enough experience to say frankly: the taxation system in Ukraine too often works not for development but for survival. We invest tens of millions of dollars in production, processing, and energy. And at the same time, we face blocking of invoices, sudden changes in the rules of the game, and pressure. In such conditions, business does not live in the market, but in stress. And if the government wants to see business as a partner, it needs to change its approach, not its reports.

Yes, I see positive changes: the tax authorities are demonstrating their willingness to engage in dialogue, advisory services are emerging, and the right messages are being sent by the State Tax Service leadership. This openness is a very positive development, but business needs more and faster in these difficult times.

I am impressed by the position of the current leadership of the State Tax Service. The institution is getting a face, because now business and society understand who is in charge of the tax service. Personal responsibility is crucial for building trust. For the first time in many years, I see not only public promises, but also actions: reducing the share of blocked invoices, setting up advisory centres, and a lively dialogue with entrepreneurs, even in difficult areas such as agriculture or the honey industry. In my opinion, these are the right signals of real steps towards a new model of interaction, where business is not an enemy but a partner.

We will not reach a qualitative level unless we are honest about the essence of the problem. Business does not want preferences - business wants predictability. If the rules of the game change every month, if the administration is incomprehensible, no investor will stay for long.

Photo: Oleksandr Ratushnyak

Trust is the economy

A successful economy is based on trust. Not on tax control, not on coercion. It is based on the belief that your tax return will not become a tool for pressure. That investing in Ukraine is not a roulette game, but a balanced decision that will be supported by the state.

We will be able to rebuild the country if business has guarantees of clear and transparent rules of interaction with the state. You create jobs, pay taxes, attract investments, create global brands, donate, volunteer, and the state must guarantee transparent actions, security, stable and balanced dialogue.

And this approach cannot be written by a lawmaker. It is about a different level of values, and it must be implemented by the whole country. The military, who defend our independence. Entrepreneurs who invest in the future. Educators who shape the next generation. Citizens who choose not to leave every day.

We must learn to be subjective, otherwise everything will be determined for us

Today, Ukraine is facing a tough choice. We build our own vision of the economy, state, and society, or we become a resource in someone else's plans. And it's not just about some conventional rules of the game, it's about the survival of the nation.

While we are discussing what the country should look like after the victory, others are already counting how many millions of able-bodied Ukrainians will remain abroad. Who will control the recovery. Who will get the markets. The world always has a plan A, B and C, and not all of them involve a strong, subjective Ukraine. It often seems that only Ukrainians need a successful Ukraine.

Photo: EPA/UPG

Our plan should be simple: to create a country that people want to come back to. Not because someone was forced to. But because we have faith: we can live here with dignity, develop and build. And this is only possible when everyone - from the smallest businessman to a tax officer or law enforcement officer - understands their part of the contract.

It is here that it is important to look for the very golden mean mentioned by Mr Ruslan (Ruslan Kravchenko, Head of the State Tax Service - Ed.) - between the fiscal tasks of the state and the viability of the economy. I am convinced that changes should take place not only at the level of mechanics - they should be based on a new vision. The tax service is not a punitive body. It is an institution that must ensure the fair circulation of money in society. We pay taxes not because we are afraid of punishment, but because we believe that these funds will go to the army, healthcare, education, and critical infrastructure. This is the subjective position of the citizens of the state. This is actually a sign of a new social contract.

Business today is not just about profit. It is about responsibility, about the risk we take in difficult times, about faith in this country. I do not intend to shift the responsibility to the state alone. But I demand transparency, predictability and respect. Without these, the new country will be neither innovative, nor competitive, nor stable.

Now is the time for responsible leadership. With an awareness of one's role for the country, because often it is not. Perhaps the idea of employees paying taxes personally will give a concrete understanding of how much of their salary they actually pay to the state, make everyone think about it and really consider themselves its owner.

We have a unique chance to change the model. Instead of a system of distrust, we need to build a system of cooperation. Instead of mutual suspicion, we need to create a common goal: a strong Ukraine with a modern economy and institutions that build rather than destroy. This is a real reform. Not technical, but entirely mental.

(From the Editor: This text is actually an extended opening speech delivered by Ihor Liski at the opening of the New Country meeting with Ruslan Kravchenko, head of the State Tax Service. This time, the discussion was held in the format of a public interview. It will soon be published on LB.ua).

Ihor LiskiIhor Liski, chairman of the EFI Group supervisory board, a co-founder of the Ukrainian Institute for the Future
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