Postwar Reconstruction Assistance and Local Governments in Ukraine
Costs of postwar reconstruction in Ukraine may be three to five times larger than the country’s 2021 GDP, so foreign assistance will be needed on a scale that vastly exceeds prewar government spending in Ukraine. This column argues that a significant share of foreign reconstruction assistance should be set aside for use by local governments, to support and advance their development. Decentralising some authority over foreign reconstruction assistance can also help to spread the profits of reconstruction among a broader class of businesspeople throughout Ukraine.
Centre for Economic Policy Research