Category Archives: Business & Prices

Six impressions of America upon returning for the holiday

I’m back in NC for the holiday. I’m enjoying family, especially my niece who seems to think I’m a rock star, warm(er) weather, and American customer service — the best in the world!

My six impression upon returning for the holiday:

1) From the DC airport: Why are so many people wearing pajamas? By Ukrainian standards, this is criminally casual. Are whites America’s new minority?

2) You know that lonely feeling when you’re walking in the shoulder of a road? I wanted to get some fast food near my hotel. There were no sidewalks. Only the drive-thrus were open. The one at Taco Bell refused to serve me without a vehicle. So did the one at Wendy’s. The chill and smell of the air reminded me of nights at Fort Bragg. I’ll walk that memory lane when I visit Fayetteville next week. Welcome back to the USA.

3) Driving a car again. Love it. I can drive for hours and hours in any direction. My own car, after I jump started it, reminded me of the carefree days of Iowa City life. It was making noises first. Lots of them. But in the first few miles of driving they all disappeared, one by one.

Jump Starting my car

4) The U.S. has the best customer service in the world. It is also immensely convenient — from the parking lots, to the cheap products available, to the price tags and come off easily without ripping. You no longer need a scouring pad to remove the glue. I bought a ladder and Lowes. The packaging just popped off. I didn’t even need scissors. I returned it to get another ladder, and the return process literally took about 30 seconds. It came with a smile too.

cheap coats at WalmartKey Making Machine Do It Yourself

Meticulous thought has been devoted to anticipating and mitigating every difficult and inconvenience between my desires and their satisfaction. One example: since I used me credit card before at Walmart, I no longer have to sign the receipt. I’m not saying this is legal or a good idea, but it’s an example of how extraneous gesture is scrutinized with the aim of making life better. God bless Capitalism.

5) When I arrived at my sister’s my usually shy niece screamed my name and ran down the drive way to give me a hug. I think we all have a soft spot for such childish devotion and admiration.

Ema & Roman
Ema & Roman
Ema & Roman

6) My mom’s guest room is more Ukrainian than my L’viv apartment.

Moms guest room

7) I love playing scrabble with mom. I had a banner game with three turns > 50 points, the highest being 65 points for “Nascent” which used all my letters.

scrabble with mom

my best scrabble game ever

ps – Lastly, here’s a picture of a Nativity model older than I am. The lamps were made by my grandfather and recently restored by my mother. The lamp-shades rotate when the lamp (with old fashioned Earth-hating incandescent bulbs) heats up, showing a procession of figures toward the manger

Vertep

Q: How many signatures does it take to receive a water delivery in Ukraine?

A: TEN! I couldn’t believe it. Exactly ten. I counted.

I had two jugs (approx. five-gallons each) delivered for my water cooler. This was the initial delivery. Subsequent deliveries will only require three signature.

Here’s a picture of the documents they left me:

documents left after water deliver

On the other hand, Nova Poshta is emerging as a Ukrainian FedEx. They are professional, efficient and require only a single signature for deliveries.

Ternopil Area Taxpayers on the hook for €10 million loan

“The European Bank for Reconstruction and Development (EBRD) has issued a loan of EUR 10 million to Ternopilmiskteplokomunenergo under full municipal guarantees under a pilot project to modernize Ternopil’s central heating system.

The parties signed a relevant credit agreement in Kyiv on Friday.

“The term of crediting is 13 years, the interest rate is 5.9% per annum. The payback period of such projects in the field of heat supply is now five or seven years,” head of Ternopil City Council Serhiy Nadal said at a press conference in Kyiv following the signing of the agreements.” (Read more)

It is translated!

They were closed for an “archival day” but she had a connection and got us in to have a lady check our documents. The lady studied the one page document for a full minute, holding it close to her squinting face.

“The problem is this: it needs to be translated and the translation needs to be certified,” she said. She sort of leaned back in her chair, relieved, no doubt, that she wouldn’t be required to do any actual work this moment.

I looked at her with such a dead expression that she asked whether I understood Ukrainian. I told her it was translated. Every other line was in Ukrainian. We argued briefly about whether or not it was translated. Eventually, she realized it was.

To her great relief, however, she found a problem with the translation of my passport. It needed to show the page with my last entrance stamp to Ukraine. I needed to have it re-translated and re-notarized.

The Invincible Army of Saint Nicholas, Patron of Merchants

I thank the 2012 Property and Freedom Society Conference for reminding me that my opponents are bureaucrats, that their obstacles are weak and fake. They are centrally planned and therefore stupid and inefficient.

They can’t touch me. They can’t even come close. Commerce is as powerful and inevitable as the blossoming of flowers in the Spring. No amount of laws and bureaucrats can stop it.

***

I am reminded of the legend Dan Gable:

“If I knew I was going to Wrestle in the finals of the Olympics against a Russian and I knew he had been training specifically to beat me, but then I knew the guy was on Steroids, That would HELP me. Whereas some might think ‘oh he’s cheating, for me you didn’t pay the price. You’re not as committed as I am. It’ll tear him apart. He may be strong, but all I have to do during that 9 minutes of wrestling is loosen one single wire in his brain, make him do something that isn’t perfect, and he’ll fall apart.”

***

I am reminded of a conversation I had in Iraq in 2003.

Some context: Since the fall of Sadaam’s regime, farmers were no longer scared to take more than their quota of water from Iraq’s open air canal system. The farms down stream were drying out. My job involved escorting incompetent police in support of their stupid, archaic irrigation system. We’d go harass the farmers tapping the canal illegally. One industrious farmer had dug a channel and created a pond in his backyard.

When I told my colonel that enforcement was near impossible, and that arresting farmers was hurting the morale of my soldiers, he suggested we have our engineers fill up his channel, repeatedly if necessary, until the farmer gives up. “I’m pretty sure the US Army can out work some guy with a shovel.”

He was wrong. The US Army didn’t stand a chance.

***

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Black Harvest

“. . .
But I am afraid that Ukrainian farmers suffer more from lawlessness than from the current drought. The main issue is the so-called black harvest. In a nutshell, small-scale farmers are forced to load trucks with their grain for free. It’s the so-called black harvest. The black harvest trucks operated by thugs, allegedly from Donetsk region, show up when a farmer harvests his crops. Thugs take grains by force and load them in their trucks. Farmer is left with nothing. If farmer cannot recuperate his losses, he will go bankrupt.

If you wonder why farmer doesn’t call police, the answer is quite simple. It does not change anything. If the local police receives this call, they have to check with their headquarters whether someone is behind the stickup operation. Their headquarters has to check with other law enforcement offices at district level, city level, and province level. By the time they are done with the so-called background check, thugs are gone. But you cannot blame cops for their inefficiency. Cops and farmers have to play by the same rules.If cops arrest well-connected thugs, they will loose their jobs and they will be also fined.

What causes these unfavorable business environment? It’s also drought. Other kind of drought. The Ukrainian elite is running short on cash that it needs for the upcoming parliamentary elections. To get cash, they do what they do the best – rob hard-working people.”

Read more: http://ukrainewatch.blogspot.com/2012/07/black-harvest.html

My reaction in two words: GUN. OWNERSHIP.

Crossing to the EU, and a decade ahead in development

The cost of seeing Europe is, at a minimum, a three hour border crossing from Ukraine.

At first it’s depressing. Instantly, one recognizes how much poorer Ukraine is. You realize how bad Ukraine’s roads are, how shoddy the housing is, how long the buildings in the city centers have gone without repair.

I tell myself that the gap is opportunity. Having grown up in a fully developed economy, I know what the future looks like. A huge advantage for an entrepreneur. The future, that is, if Ukraine doesn’t first bleed out from its parasitic bureaucracy.

“the toilet paper is softer in America”

Before I returned to Ukraine, a American who’s lived here for almost a decade advised that it’s not for everyone. “The toilet paper is definitely softer in America,” he said.

He was talking about all the little things which are more difficult in Ukraine. These are no big deal in my opinion, but they are interesting.

***

First, some reasons I prefer Ukraine . . . for now:

All in all, I feel safer in Ukraine than in the US, especially from violent crime.

Toilets work. (The privately owned ones, that is.) For an expose on American toilets see Jeffrey Tucker’s, The Relentless Misery of 1.6 Gallons.

The markets are much less developed. Opportunities abound. I walk around everyday and imagine various enterprises. I think: “this could work. That could work.”

Although there are real, devoted advocates of economic Marxism here, everyone considers them ridiculous. I think they’re mostly devoted to the sacrificed their ancestors made to the red banner and hammer and sickle. As I’ve written before, when an endeavor is sprinkled with the blood of good people, it becomes its own justification, regardless of whether or not is a moral and economic abomination. In the U.S. Marxism is treated like a good idea that hasn’t yet been properly implemented.

There is less cultural Marxism here. It is okay for women to be beautiful and men to be manly and people to be successful.

There is less of a slave mentality (maybe). Although the U.S. still has the hottest entrepreneurial talent in the world, by far, I feel like most Americans now have a slave mentality. They want to be caged and taken care of by the state. Perhaps it’s because government in Ukraine is such an obvious and spectacular disappointment, that most people (excluding pensioners) don’t expect anything from them.

***

Now, the bad:

1. Opening a door. There seems to be a 50/50 chance that the door will bump into another door, or a closet, or a person standing by the sink of a restaurant’s bathroom. Things aren’t designed as well in Ukraine.

2. Turning on a light. In most apartments that majority of light switches are centrally located. It’s as if the home’s commissar, following in the great socialist tradition, wanted a commanding height from which to bestow the blessing of light upon his subjects who are obviously too stupid to do it themselves. The result — I spend frustrating seconds switching lights on and off until I see, through the cracks of a door at the end of the hallway, that the proper switch has been flipped.

In renovated apartments, the light switches are no longer centrally located, but they are poorly placed. You have to reach around a door, for example, to flip the switch.

3. Unplugging something. If you’re not careful, the plastic socket casing will come out of the wall pulling guts and wiring with it.

4. Browsing the internet. It has to do with how IP addresses are assigned. When I unplug one laptop and switch the ethernet cable to the other, I have to wait for 30 minutes before I can use it. (This was solved when I got WIFI.) Also, if you misspell your password just once on a Ukrainian website, you’re immediately confronted with a Captcha verification. No second chance.

5. Showering. Hot water is unreliable, even in my gym. It’s getting much more reliable, though! Some building have gigantic water heaters beside them — again the Soviet lust from centralized control — but little by little, people are installing private water heaters in their homes. Many bathrooms are small and crowded, and many showers are handheld, with the fixture for fastening the nozzle above you broken. I’m learning to wash single-handed.

6. Going to a restaurant. There is the generally poor customer service which I’ve written about before. There seems to be a common practice of labeling every table “reserved” on certain nights. A place will be half empty, but every seat and table will be marked “reserved,” and you’ll get scolded for sitting there. (What the fuck?) You’d think they’d welcome your money. They don’t even offer to sell you a reserved table. Perhaps it’s up to me to offer them money. I don’t understand this system.

7. Shopping. A store may be locked during normal business hours with no explanation. Or, the main door may be locked and you’ll never realize that only the side, alley-way door is open. When you point it out, the lady behind the counter will have no idea why you’re bothering her with such trivialities.

Also, in Soviet times, shops were run by the government. The clerk, much like the clerks Americans interact with at the Department of Motor Vehicles, is a government employee who enjoys a monopoly on the “service” they offer. They were rude as hell, and asserted their authority by abusing customers. The legacy of this is that some retail people assert their authority by being rude. This is changing slowly. The free market takes time. Businesses with bad customer service has to go bankrupt or change. The best ones will slowly increase their market share. The further a market is from free, the slower this process. Also, you have to pay for your bag and bag your items yourself.

8. Finding your way around. Street signs are not located at intersections. They are *sometimes* located on little placards on buildings. I’ve walked a quarter mile trying to figure out the name of the street I had turned onto.

Address numbering is weird. It can still be in the single digits on one side of the street, while on the other they’re reaching the thirties. Some addresses are inside courtyards accessible only by alleyways.

Also, major roads in Kyiv (and in some other cities) are crossed by going through underground passageways. They are often filled with shops and it’s impossible to go the direction you think you need to go.

9. Checking a movie listing. Once while walking through Kyiv, sounding out the names of stores, I noticed a ‘kinoteater,’ a theater. There was no brightly lit sign depicting movie listings as one may find in the US, so I went inside. I studied the various posters and announcements above the ticket booths, but found no listings until a crowd off to one side attracted my attention. They peered over each other’s shoulders to study an 8 1/2 by 11 sheet of paper taped to the wall below eye level on which the listings were printed in black & white. Hunger Games was not playing.

10. Water deliveries. Despite repeated promises, they don’t arrive. (Ukraine’s tap water is non-potable.)

11. Calling a cab. The operator of a cab company hung up on me suddenly and without explanation as soon as we began to have difficulty understanding each other. When I called back the first time, the same lady answered. She recognized my voice and hung up instantly. I called back a third time, got a different operator and ordered my cab. I still use them, because they’re inexpensive and tell you the price beforehand. When no cabs are available, sometimes you’ll get a text message telling you. Sometimes they just leave you waiting.

12. When it rains neither umbrellas nor taxis seems to be available.

13. Interpersonal space. Ukrainians sometimes have a strange sense of it. Example #1: When the metro leaves a station, it is not usual to be tapped on the shoulder immediately and asked whether you’re getting off at the next station, simply because you’re standing between another person and the door. They expect to switch spaces with you even if it’s too crowded to switch spaces, even if you’re the only person between them and the door, and even if you’re a nice person who always gets out of the way for people.

Example #2: I went to eat at an inexpensive local buffet style restaurant called Puzata Xata. There were many free tables, but beside the windows, there was only one. A small table. It had a blue folder on it. I didn’t see anyone nearby, so I sat there and began to eat. A middle aged woman put her tray down opposite me and sat down. She rummaged through her purse. “Was this table taken?” I asked in Ukrainian, ready to move elsewhere if it was. She seemed not to hear me. I asked again, a little louder. She didn’t react in the slightest, and I wondered if she was deaf. “Excuse me,” I said in English. Again, no reaction. She pulled a cell phone from her purse, and then I knew she wasn’t deaf. She was ignoring me. “Was this table taken?” I asked again in Ukrainian, determined to get an answer. She looked at me angrily and said “Well sit. It’s a common area. Sit and eat. What do you want?” We both ate our food, sitting just a few feet apart facing one another. Both of us took phone calls during our meal. I left when I finished.

14. Boorish behavior. The lady behind me in line at the supermarket kept tapping my bag, accidentally, I thought. I was in a good mood and felt more shocked and amused than irritated. She seemed to be with her husband or lover. He was whispering softly to her in Russian. I guess her tapping was supposed to be a hint that I didn’t grasp. Eventually, she shoved me from behind. I turned around, shocked. She raised her chin defiantly. The man immediately grabbed her and moved himself between us. He scolded in in the same gentle, lover’s voice. The line was unusually long and slow — late night rush. Eventually, she shoved me again. I think she felt frustrated that I wasn’t crowding the person in front of me. I turned around and again the man put himself between us, and lectured her. I did too. I told her I was a foreigner. That in America people don’t push each other. She waved her hand dismissively and said something like “move along America.” Her man continued to gently berate her in a lover’s voice. He said something like “this man came all the way from America to visit us and his is how you’re treating him.”

Pretty pathetic behavior from an adult. I was on my way home from Brazilian Jiu Jitsu and therefor in a good mood. I was more stunned than anything else.

15. Banking. This is related to the interpersonal space issue. When I go to a bank, to inquire about my account, withdraw money, or the like, the people behind me in line are right up in my shit. Their noses are on my shoulder. They watch closely as I fill out forms, count money. Sometimes they pretend I’m not there and begin conversations with the teller while she’s in the middle of helping me.

16. Leaving your apartment. You need a key, sometimes two. This is a fire hazard catastrophe waiting to happen.

17. Toilets in public places. You have to pay an attendant. Despite that, they are filthy. Often, they are squat toilet. Often, they are filthy squat toilets. Filthy, pay squat toilets.

18. Old ladies closing the windows on public transportation. Okay, so most public transportation is crowded, a little dirty, uncomfortable, etc. Ukraine’s public transport has the added feature of, old women who sincerely believe that drafts (as opposed to germs) cause disease. It’ll be miserably hot, steamy and smelly on a public bus, and some idiotic, sweater-clad babushka will insist that the windows be shut. She’ll insist as if her life depends on it, because she believes it does.

19. Removing a price tag, especially from a cup or dish. They don’t have the ones that come off smoothly like in America. These bastards are sticky and fall apart. Once you’re done picking off the paper — one torn bit at a time, you have to use a scouring pad to remove the glue from your new dishes.

(I’ll likely be expanding this post as more things occur to me.)

I like to describe Ukraine as not quite designed for humans . . . yet. Socialism is not designed for humans, and Ukraine, given the perversion and distortion that characterizes it’s two decades of lurching away from the Soviet system, is recovering slowly.

Ukraine’s Anti-Corruption Action Center

http://antac.org.ua/

Great Resource. Most of the stories are in Ukrainian. The official English version of the site isn’t developed, but you can auto-translate.

Particularly impressive are the success stories in the left-hand sidebar. Here’s a translation of their most recent success story:

“”Our Money” reported that the National University of Internal Affairs on February 15 after the tenedru signed a contract with LLC ” Lyemyetra Ltd “to lease space for training and consultation point in Poltava on February-December 2012. The cost of the transaction amounted to 960 thousand USD.

The lack of documentation did not give us to understand why the Kharkov University Ministry office rent in Poltava more and for the money. So with the People’s Deputy forests Orobets we asked about this Kharkiv Prosecutor Gennady Tyurin, who overthrew our regional appeal derzhfininspektsiyi, head which AA Kozina pleased with our response , that the said contract terminated.

It is evident at the Kharkov University Ministry could not come up with an explanation of this purchase, so it had to cancel. We hope that saved 960 thousand USD. be used to improve the educational process at the university, not the welfare of individual officials. ”

These guys are like the Institute for Justice in the US.

Cheating Taxis at Kyiv Borispol Airport

Every since I paid an outrageous 250 UAH for my first trip from Kyiv Borispol Airport, I’ve been ignoring the cabbies.

They seem to accept my body language, and no longer even try to take me for a ride. I call one of two taxi companies who quote a price over the phone. It’s nice, though they are sometime rude. The girls will hang up on you if they don’t understand you, and hang up again when you call back.

Anyway, the price is usually 130 UAH.

Recently, just out of curiosity, I approached the official looking black and yellow taxi booth in Terminal B.

“How much to the center?” I asked.

“What street?”

I told her.

Without consulting any computer or chart, she thought for a moment and said 260 UAH. I laughed out loud.

I expect many soccer fans to get cheated during Euro Cup 2012.

Grocery Price Comparison

broccoli, bread, chicken in Ukraine

.49 kg Broccoli = 18.61 UAH
———> 37.98 UAH/Kg ———-> $2.16 / lb (In the US it’s about $1.50)

.44 kg Chicken Drumsticks(4) = 22.98 UAH
———-> 52.22 UAH/Kg ———-> $2.97 / lb (In the US it’s about $2.50 — right?)

Loaf of bread (medium quality) = 12 UAH
———-> $1.50 (In the US it’s about $2.50)

Please post if I didn’t get the US prices right. The verdict is:

Imported produce: MUCH more expensive
Chicken: about the same
Bread: cheaper

Black Market in Agricultural Land is Booming in Ukraine

All these stupid people with pseudo-patriotic concerns about foreigners buying too much of Ukraine’s land are nothing but useful idiots for corrupt oligarchs and politicians who want to eliminate competition from the land sale business.

“A sale of agricultural land has been illegal in Ukraine since the Moratorium Act of 1992. Despite many promises, neither administration liberalized a market in agricultural land. Nonetheless, a black market in farmland has thrived. Now it is becoming one of the largest illegal markets in farmland, with approximately $900 million in annual sales, in Eastern Europe. The black market has a backing of local state officials. Corrupt bureaucrats embezzle their power to stuff their pockets with cash while they are stripping the nation of important natural resource and robbing poverty-stricken rural population of their private property. The black market causes environmental degradation and undermines sustainable economic development of Ukraine, one of the major world grain exporters.

The moratorium has never stopped the black market in Ukraine. According to Ukraine’s State Committee on Land Resources (SCLR), almost 20 percent of farmland changed ownership in the last decade. And it seems that the black market is booming now more than ever. ” (Read more from ukrainewatch.blogspot.com)

Farming by hand

I suspect one of the images of Ukraine I’ll remember will be the view through a train window of huge, finely checkered fields with a single individual farming by hand. I’d see a lone babushka bent over in an enormous field planting on the little square which I assume was hers. I’ve seen a man pulling a hand plow, stepping and pushing hard to drag it over the loose earth. It looked like a giant comb with widely spaced teeth.

On one hand, growing your own food, self reliance, being in touch with the source of your nutrition is beautiful. On the other hand, farming by hand is grossly inefficient. Specialization and trade leads to prosperity.

A friend of mine told me he wanted to eventually move to his wife’s village and farm. I suggest it was good if one enjoys farming in itself and also self-reliance and nature, but that it’d be a mistake for him, who has no experience, to do it for financial reasons. I referred him to this funny story about a businessman turned farmer, turned farming-resort-manger.

Of course, there is also increasing investment in large-scale farming:

Two Little Stories from Easter

1) Lost Bells

She knew it was St. Mykola’s Church whose bell-ringing reached us faintly in the wind because it was just a bell. The Church of Blahovishchennia (how would I translate that?) and Saint Sofia’s both had several bells.

The three bells of St. Mykola’s were buried during the war when the Germans began taking church bells for the metal. No one remembers where they are buried.

2) The Fishy Discount

During Easter, I was told by my 2n’d cousin’s husband Vitalik and his friend that they took the marshutka to L’viv to buy fish.

The price was 23 hryvnias per kilogram. The weight of the fish selected was 950 grams.

The lady told them the price was 22.50, but she’d discount it to 22.00.

During the marshutka ride on the way back, they did the arithmetic.

I asked whether they couldn’t get fish in Horodok, wondering if this wasn’t another business opportunity. They said yes, but in L’viv it was cheaper and better. His mother-in-law, by contract, told me they just wanted an excuse to travel to L’viv.

My Fed Ex Experience

I had the idea to send a cell phone back to the United States to ease the upcoming visit of a friend. Using their website’s store locator, I couldn’t find a Fed Ex in L’viv, so I wrote an email to the Kyiv office.

They promptly replied with a contact here in L’viv, whom I just called. She answered the phone with “hello?”

After a huge amount of frustration and confusion — she shouted “HELLO!?” every time I paused to think for more than half a second — I learned that to send a cell phone, I’m going to need a receipt and a photocopy of my passport.

I could not figure out how I would pay, or anything else, and I got sick of the woman, so I hung up.

Maybe I’ll try Meest.