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On June 6, 2024, the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine hosted an international workshop on “International financial aspects of the recovery of Ukraine’s economy”, attended by scientists from Ukraine, Georgia, Kazakhstan and Italy, who tried to formulate proposals for the recovery of the Ukrainian socio-economic sphere during and after the war.
The experts discussed the following topics:
• the role and capabilities of Ukraine’s banking system of Ukraine in wartime conditions;
• participation of international financial organizations in the economic modernization of the country;
• the role of public-private partnership in recovering Ukraine’s economy;
• the role of international financial funds and organizations in the transformation of the economy;
• debt strategy and assessment of the state’s debt security level;
• multinational companies as global investors today;
• international capital migration in modern conditions;
• spatial and sectoral imperatives of the productive capacity of Ukrainian regions at the current stage of European integration.
Welcoming the participants, Director of the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, Academician of the National Academy of Sciences of Ukraine Valery Heyets, emphasized the importance of solving the debt problem. According to him, threats, challenges and the state of finances within the country significantly depend on international capital flows. Since there are currently no ready-made tools for solving these problems, the joint thoughts and solutions formulated at the workshop on the above issues will help to develop steps to overcome Ukraine’s financial problems. Valeriy Heyets also noted the importance of using new tools using digital technologies, but emphasized that they can have both positive and negative consequences.
Interesting reports were delivered by the Deputy Director for Scientific Work of the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, Academician of the National Academy of Sciences of Ukraine Andrii Hrytsenko and Corresponding Member of the National Academy of Sciences of Ukraine Serhii Korablin, Head of the Subcommittee on Capital Markets, Other Regulated Markets, Securities and Financial Derivatives of the Committee of the Supreme Council of Ukraine on Finance, Tax and Customs Policy Andrii Nikolayenko, Head of the Sector of International Financial Relations of the Public Finance Department at the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, Doctor of Economics, Professor Olena Borzenko, Chief Researcher of the Sector of International Financial Research of the Public Finance Department at the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine Doctor of Economics, Professor Oleksandr Sharov, Professor of the Department of International Economic Relations of the Faculty of Economics of the Vasyl Stus Donetsk National University, Doctor of Economic Sciences Leonid Kisterskyi and others.
In his speech, People’s Deputy Andrii Nikolayenko drew attention to the need to carefully study the experience of the post-war recovery of the national economy based on the model of state capitalism, in particular the Republic of Korea (South Korea), which involves the active role of the state in the establishment and development of industries and corporate forms of production that are competitive on the foreign market. He welcomed the development and submission to the Verkhovna Rada of Ukraine and consideration in the first reading of the long-awaited draft law on the National Development Institution, which, by analogy with the so-called Marshall Plan [officially this document was called the European Recovery Program], should act in close coordination with an international financial institution – a transparent corporate structure through which financial and investment resources would be systematically directed for the economic recovery of Ukraine.
Academician of the National Academy of Sciences of Ukraine Andrii Hrytsenko emphasized that the recovery of Ukraine should be reconstructive, which means changing the development model, goal setting, and the priorities and mechanisms for achieving the goal. Special attention should be paid to the concept of nationally rooted development, which involves the assertion of sovereignty over the creation of own economic complex, the implementation of strategic planning as a condition for purposefulness and coordination of various and diverse efforts aimed at reconstructive recovery. In this context, the implementation of national target projects is of fundamental importance.
According to Doctor of Economics, Professor Oleksandr Sharov, it is important that the process of post-war economic recovery of Ukraine be based on a national development strategy, which could be called the “Kyiv Consensus”. The tasks of such a strategy should be fully consistent with our European integration program and contain effective anti-corruption safeguards.
Corresponding Member of the National Academy of Sciences of Ukraine Serhii Korablin called for a more realistic and rational approach to the prospects of attracting external financial funds for the purpose of post-war economic and social recovery. In this context, he gave the example of Iraq, where only 15% of total number of property cases regarding the compensation of damages and losses of national individuals and legal entities caused by military actions were compensated.
Doctor of Economics, Professor Leonid Kisterskyi supported the proposals regarding the priority need to create within the framework of the “Marshall Plan for Ukraine” – an appropriate international coordination center and an appropriate national state institution for post-war economic reconstruction, which would act on the principles of project regulation/management.
For the purpose of recovering the potential of our country after the war, Leading Researcher of the Sector of International Financial Relations of the Public Finance Department in the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, Doctor of Political Sciences, Professor Ihor Pilyaev suggested involving Asian multilateral development banks, namely the Asian Development Bank (founded in 1966 on the initiative of the United States and Japan; current assets – more than 270 billion USD) and the Asian Infrastructure Investment Bank (founded in 2014 at the initiative of China; authorized capital – 100 billion USD).
The participants also noted the following points:
• the recovery experience of other countries should be considered, but Ukraine has its own unique conditions, so they should be taken into account and acted upon in accordance with national interests;
• EU and US countries are interested in returning their investments and loans, as well as in strengthening the security system in Europe;
• Ukraine needs not only to strengthen its security and defense, but also to form a basis for sustainable long-term socio-economic development, therefore it is imperative to create a competitive military-innovative and processing economy based on a national consensus and effective anti-corruption safeguards.
Based on the workshop’s materials, a collection of theses is planned to be published on the website of the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine.
