The Advisory Council on Economic Policy, comprising leading Ukrainian and international economists, has developed a policy document for the international community titled 'Financing Democracy: Why and How Partners Should Support Ukraine.' It contains a series of recommendations for formulating effective policies for the reconstruction of Ukraine during and after the war.
"Despite the ongoing war, the Ukrainian government is already working on the country's recovery. The scale of destruction requires comprehensive approaches and strong international support. Therefore, I am grateful to the Advisory Council on Economic Policy and leading global economists for developing specific steps for partners to support Ukraine. I hope this work will serve as an additional incentive for the international community to continue actively supporting the Ukrainian economy and laying the foundation for its reconstruction," said First Deputy Prime Minister of Ukraine and Minister of Economy Yulia Svyridenko.
The co-authors of the document 'Financing Democracy: Why and How Partners Should Support Ukraine' propose structuring the agreement between partners and Ukraine in a way that builds trust and the most effective mechanism for Ukraine to win the war and transform into an EU partner.
In the mentioned document, economists acknowledge positive steps, such as the launch of the Ukrainian Fund (Ukraine Facility) – a financial instrument to support Ukraine with a budget of 50 billion euros over the next 4 years, as well as the inter-agency Coordination Donor Platform.
"Ukraine is a state with a liberal democracy that seeks to embody respect for human rights and freedoms in its institutions in a democratic society, the rule of law, including through full EU membership," the document states.
At the same time, concerns are expressed about adhering to the start dates of the program, financial support commitments from other partners, conditions imposed on Ukraine for support, and more.
"The protection and reconstruction of Ukraine require significant military efforts and a massive reconstruction program, which necessitates unprecedented support from partners over an extended period," the document notes.
In particular, experts proposed a 'Democracy Financing' agreement that could provide necessary guarantees to partners, establish a limited set of conditions for Ukraine that are agreed upon and realistic for implementation at different stages of the war, improve overall coordination, and thus reduce the burden on the government, whose main focus is on defending the country.
The Advisory Council on Economic Policy, established in 2023 to develop recommendations for the architecture of Ukraine's recovery, including fiscal and monetary policy, labor market conditions, and state regulations, consists of leading global and Ukrainian economists. This includes:
- Roger Myerson, Nobel laureate in economics, professor at the University of Chicago.
- Kenneth Rogoff, professor at Harvard University and former chief economist of the International Monetary Fund.
- Torbjörn Becker, director of the Stockholm Institute of Transition Economics (SITE).
- Gerard Roland, professor of economics and political science at the University of California, Berkeley.
- Timothy Milovanov, President of the Kyiv School of Economics, professor at the University of Pittsburgh, and others.
The council is headed by Professor Yuriy Gorodnichenko, Department of Economics, University of California, Berkeley.
