Business news from Ukraine

Business news from Ukraine

RESTORATION OF UKRAINE SHOULD BE COORDINATED BY UMBRELLA STRUCTURE – OPINION

3 July , 2022  

The post-war reconstruction of Ukraine should be coordinated by an umbrella structure, including both governmental and non-governmental actors, in order to maximize synergy and efficiency, the Center for Economic Recovery (CEV), operating within the Council for Economic Development under the Cabinet of Ministers, made such a recommendation.
“Determine the responsible body for coordinating (not managing) the recovery process and establish unified coordination mechanisms that will prevent the ineffectiveness of parallel management,” says the CEV report, prepared at the request of the Organizing Committee of the Ukrainian Conference on Recovery, which will be held in Lugano on July 4-5.
The authors of the report point out that thanks to the success of the decentralization program, public administration reform and digitalization of public services, the Ukrainian public administration system is better prepared for the post-war recovery, but there is still a shortage of qualified managers, especially in the regions.
In the opinion of the CEV, the government agencies of Ukraine should be able to effectively and quickly implement the Recovery Plan without excessive involvement or external support from international organizations or local NGOs.
“Thus, Ukrainian public administration must become transparent, citizen-centered, inclusive and fully capable of providing effective governance,” the report emphasizes.
For this, according to the document, a reform of the anti-corruption system and the rule of law (including the cleaning of the High Council of Justice and transparent selection to the High Qualifications Commission of Judges), parliamentary control over the implementation of the Recovery Plan of Ukraine, building the capacity of local government, digitization and automation of the recovery process are necessary ( including e-contracts, reporting, fundraising, etc.).
In addition to the architecture of recovery, the CEV also offers its views on four other priority themes, in its opinion: infrastructural, economic, social recovery and environmental recovery.
In particular, according to experts, when restoring infrastructure, it is worth proceeding from current needs, comply with the digital and green transitions, and fit into integrated territorial plans and master plans of cities.
The CEV also proposes to focus on the development of industrial parks, resume privatization and create a network of business support centers.
With regard to logistics, the report proposes to expand the railway connection with the European gauge, develop ports on the Danube and river links with Europe, reconstruct or build 5-7 airports.
According to experts, the basis for economic recovery will be the preservation of macroeconomic stability, the expansion of economic freedoms, European integration and access to European markets.
The report also highlights the need to ensure access to finance, including through public assistance: wartime subsidies, loan guarantees and interest rate cuts, as well as mortgage coverage, low-risk SME lending.
It is also planned to develop the financial market by attracting venture capital, alternative financing, creating a fund of funds and restarting the capital market with a capital amnesty, pension reform and the medical insurance system.

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