Ukraine’s Reconstruction: Combining Institutional and Financial Architecture of Building Back Better

August 25, 2023
UkraineWorld spoke to Yuriy Romashko, Executive Director of the Institute for Analytics and Advocacy.
Photo credit: Visit

Key points – in our brief, #UkraineWorldAnalysis:

On the formula of Ukrainian ownership + international monitoring

  • We live in an environment of high uncertainty, so it is difficult to make predictions. During this time, the National Reconstruction Council has already overcome the first stage of defining the principles of reconstruction, which is already being used for planning.

If we look at the reconstruction of countries after the Second World War, they developed institutional and financial instruments. For example, we are building the Ukraine Facility, a financial instrument by which the government suggests a plan and EU institutions approve it. Recovery should be a major component of our European integration process.

  • Last year, although it may have seemed hasty to our partners, we managed to convince them that we needed to start carrying out urgent reconstruction. The Lugano Declaration speaks to the need for multi-stakeholder engagement, as well as focus on reforms, transparency, accountability, and the rule of law.
  • It is also worth highlighting the Ukrainian ownership + international monitoring formula. It is Ukraine that needs to be the owner of reconstruction, i.e. being responsible for the entire reconstruction cycle with transparency and accountability to international monitoring.

On Ukraine's principles and needs

  • Ukraine is currently developing the DREAM system - Digital Restoration Ecosystem for Accountable Management - to create the highest transparency framework for the full reconstruction cycle, from damage assessment to the actual monitoring of the timing, quality, and principles of reconstruction.
  • The basic principle of reconstruction is building back better, which means to do it in a greener, more inclusive, and democratic way. It is important for us to be in sync with the EU and its sustainable development goals.

A report prepared by the World Bank, the European Commission and the Ukrainian government says that in the first year of the war, the reconstruction needs amounted tomore than $400 billion, not including damage in the occupied territories.

On international benchmarking

  • We can look to France's experience in education and the development of research hubs. We can look to Japan in terms of investment in science and technology. For example, when we talk about green solutions, the question has been posed of whether Vuhledar should be rebuilt on the same principles as it was initially built.
  • The concept of rapid recovery is worth noting. For example, $14 billion is needed for this year to rebuild social infrastructure. The second priority is energy infrastructure. The third is the issue of housing, which needs quick resolutions right now.
Daria Synhaievska, Analyst at UkraineWorld
Yuriy Romashko, Executive Director of the Institute for Analytics and Advocacy