13:01 02.05.2023

Ukraine's post-war reconstruction to require hundreds of billions of dollars – German ambassador

3 min read
Ukraine's post-war reconstruction to require hundreds of billions of dollars – German ambassador

The process of restoring property damaged as a result of Russian armed aggression has already begun, but it will require significant funds in the framework of international support, German Ambassador to Ukraine Anka Feldhusen wrote in an article for the Kyiv Security Forum.

"The Ukrainian government, along with the EU and the World Bank, has calculated that the financial needs for the reconstruction of currently lost and damaged property will amount to more than $400 billion in the next decade. Maintaining the confidence of lawmakers in partner countries who will allocate these funds to Ukraine will require Ukraine to become example of corruption prevention. 'Building back better' requires the rule of law, anti-corruption and good governance as the first prerequisites," the ambassador said.

The same, according to Feldhusen, applies to decentralization.

"The war not only creates tremendous pressure on Ukraine's resources. It also poses different tasks for the regions and cities of the country. The eastern and southern regions experience the most destruction and hostilities, they host the wounded and a large number of military personnel. The western and central regions, on the other both sides host a large number of IDPs and relocated businesses, which poses unknown challenges to the housing market and the local economy. No central government, regardless of its goodwill and efficiency, can perfectly plan for both groups of regions," she said.

Decentralization implies the transfer of decisions and responsibilities to the regional and local levels under the principle of subsidiarity, that is, all political issues should be resolved locally as much as possible. Since people know better what is most necessary for them and their cities and villages. Just as important, the ability to create change inspires people to take responsibility and build prosperous and sustainable communities for future generations.

"During the early days of the Russian invasion, the Ukrainian decentralization reform helped a lot in defending the country. Many mayors rose to the challenge and used their powers and knowledge of the region to prepare in advance to repel Russian attacks, as well as to protect the civilian population. Lots of inspiring stories from the first weeks The war was about those courageous mayors who defended their cities, in some cases at the cost of their own lives or freedom," Feldhusen said.

Ukraine is aimed at joining the European Union and has the support of its international partners, including Germany, in the issue of restoring what was destroyed to a state of "better than it was" and cannot postpone the necessary reforms for the future, the ambassador said.

"If politics involves the right timing, Ukraine cannot afford to wait until the end of the war and put its reforms on hold. The government of Ukraine and the Verkhovna Rada must do everything necessary to build an even stronger democracy with independent institutions that live and breathe the rule of law," she said.

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