A successful effort to rejuvenate Ukraine’s economy will be an enormous and challenging undertaking that will require multi-year engagement and international coordination, not just by governments but also with the private sector. The Ukrainian government has published a 10-year reconstruction plan that encompasses 850 wide-ranging projects requiring an estimated $750 billion, while the World Bank in its latest report estimates reconstruction costs of $411 billion over the next 10 years.
The United States has provided $18 billion in budget support to the Government of Ukraine through World Bank mechanisms. An additional $4.9 billion will become available in September. This funding, along with support from the EU, the IMF and others, allows the government to provide critical services for its citizens while fighting Russia’s brutal aggression.
However, the scale of financing required for reconstruction can only be met by working closely with the private sector to spur investment. As Under Secretary of State Jose Fernandez said during his remarks at the Forum, “The need for the bold and original ideas of the private sector will be more important in Ukraine than ever before.” Ukraine’s success must be underpinned by needed reforms that focus on good governance, rule of law, and anti-corruption efforts, which will support Ukraine’s eventual EU accession and improve Ukraine’s investment climate.
