Economic miracle for Ukraine in the works?
Experts meet - "Hundreds of billions of dollars" needed
Created: 04/15/2022Updated: 04/15/2022 10:11 p.m
By: Aleksandra Fedorska
Vadym Denysenko, government adviser in Ukraine, wants to end the "Soviet economy" in the country.
© IMAGO/Pavlo Bahmut
Poland and Ukraine are working on an "economic miracle" for the war-torn country.
However, this can be expensive - Zelenskyj's government has a specific plan in mind.
Warsaw/Kyiv – Ukrainian economists and international experts are already working on reconstruction plans for Ukraine in the ongoing Ukraine conflict* with the support of the Polish elite business school Warsaw School of Economics.
According to Yakub Karnovsky, a senior manager at Ukraine's railway company and post office, the construction will take a long time - and possibly hundreds of billions of dollars.
“This is needed to restore infrastructure, housing, hospitals and schools.
No less important is the creation of a legal infrastructure of the state, including an independent judiciary, which are the prerequisites for sustainable economic growth and the functioning of democracy and free media," Karnowski told the Polish newspaper
Rzeczpospolita
.
Post-war reconstruction in Ukraine: Independent experts and institutions are working flat out
The Warsaw School of Economics' own publication states that the team, which has a wide range of expertise, has been meeting regularly for weeks to present the Ukrainian government around President Volodymyr Zelenskyj* with a concept for the country's economic reconstruction.
In addition to prominent scientists and economists, experts from the fields of energy management, finance and banking were also invited to the working group.
The spiritual father of the “Polish economic miracle”, Leszek Balcerowicz, is in charge.
The World Bank and the International Monetary Fund have already signaled that they will help Ukraine to rebuild.
“The World Bank was established in 1944 to help Europe rebuild after World War II.
As then, we will be ready to help Ukraine rebuild when the time comes,” World Bank Chairman David Malpass said in an address at the Warsaw School of Economics on Tuesday (April 12).
Zelenskyj adviser explains plan for reconstruction of Ukraine - End for "Soviet economy"
Speaking to Radio Svoboda, Vadym Denysenko, who advises the Ukrainian Ministry of the Interior, first and foremost named corruption as the main obstacle to economic development.
He also recommends a revision of the constitution for the post-war period, which should give the government more powers.
Denysenko predicts a turning point for Ukraine.
“That means the remnants of the Soviet economy, which in many ways still shaped the last 30 years, are practically exhausted.
In fact, today we must clearly understand that it is impossible to go back to the economic model that existed before February 24, 2022.
And we have to make that big leap from the economy of the mid-20th century to the economy of the 21st century.
Those are the two most important things we need to do after the war,” Denysenko said.
Meanwhile, the Ukrainian media are trying to be more cautious and reserved than euphoric about the new economic plans for the future.
The final end of the Ukrainian "clan-oligarch economy" is being demanded, which has dominated the country for far too long - and which also played a prominent role in Zelenskyj's sitcom "Servant of the People"*.
The authorities and the bureaucracy in Ukraine would also have to change significantly so that the country can grow economically in the long term.
The first thing to do is to reduce the number of regulatory authorities and their powers and liberalize the approval process.
Furthermore, the private sector should be given priority over sectors with a high state share.
Export monopolies, which focus primarily on raw materials and agricultural goods, also need to be broken up in order to create real competition between suppliers.
Ukrainian economy defies war - government strives for normality
The conditions of the Ukrainian economy are quite good, at least for the moment.
Although the Russian bombings cost a great many lives and the infrastructure in some regions has been completely destroyed*, large parts of the country, especially in western Ukraine, have remained intact.
Ukrainian society and the state managed to maintain the most important functions of the state, logistics and economy even in the conditions of war.
This is a huge credit to the political leadership of Ukraine.
Meanwhile, wherever possible, life goes on as if the attacker were not in the country.
The cities of the western and central counties come back to life.
In addition to grocery stores and pharmacies, even restaurants open there.
Ukrainian authorities are appealing to medium and small businesses to open when circumstances allow.
Normal school operations have recently resumed in many parts of the country.
Older people get pensions and public sector workers get their wages.
The government has ordered banks to give citizens full and unrestricted access to their deposits to keep households liquid.
All entrepreneurs can also get an interest-free loan.
This support program is intended to be accessible to companies during the war and one month after the end of the war.
*Merkur.de is an offer from IPPEN.MEDIA.
Aleksandra Fedorska