About $100 billion it will cost to rebuild Ukraine’s infrastructure from war damage – we learn from the analysis of the German Marshall Fund (GMF). The document stresses the need for strict control of aid funds and strengthening of Ukraine’s anti-corruption mechanisms, reports The New York Times.
The American newspaper describes a report prepared by the German Marshall Fund research center commissioned by the German government. The Washington-based organization made recommendations on financing reconstruction Ukraine. An international conference on the reconstruction of Ukraine is scheduled for October 25 in Berlin – the New York Times reports. He adds that the GMF analysis is already under discussion among donor countries.
How much will the reconstruction of Ukrainian infrastructure cost?
According to the document, the G7 countries are obliged to appoint a person to occupy the position of coordinator of the reconstruction of Ukraine. Ideally, it should be someone from United States of America, with a fixed position in the world – additive. In order to save time, it is necessary to use already existing institutions to finance the reconstruction of Ukraine, as well as various multilateral forms of financial cooperation, which would allow to reduce the influence of representatives Russia And China in international institutions – provides more advice for the report of the World Meteorological Forum.
The document stresses that Ukraine must accept strict control over funds, as well as strengthen the legal and judicial system in order to reduce the possibility of corruption. The report stated that the response to Russian aggression should be a vision of “a free, democratic, modern and European Ukraine.” She added that the transfer of such large funds would also require foreign oversight and Ukraine should understand this.
For the reconstruction of Ukraine, it is also necessary to maintain the work of Ukrainian state institutions, which – according to International Monetary Fund estimates – cost about $ 5-6 billion per month – notes the “New York Times”. He adds that donor countries need guarantees to continue directing large amounts of taxpayer money to a country known for corruption.
Aid intended for the reconstruction of Ukraine must be transferred in several stages and adapted to the situation on the front and a possible peace treaty, says the report of the World Meteorological Forum. According to the think tank, the United States, which spends more on military aid to Ukraine, should focus on this form of support, and the other G7 countries should fund reconstruction and modernization. Likewise, first and foremost, non-European countries should be more involved in helping, and will replace it over time European Union.
“No one wants Ukraine to turn into a failed state.”
GMF experts wrote that given the state of the Ukrainian budget, most of the aid should be in the form of long-term subsidies or loans. They add that EU countries in particular should soon decide on a specific form of financing aid, as other countries may follow solutions adopted in Brussels.
In the opinion of “The New York Times”, the large European Union countries will oppose the proposal to finance aid to Ukraine by incurring a common debt, explaining that the money obtained in this way should be used within the community.
The GMF report describes the idea of financing the reconstruction of Ukraine by seizing the Russian Central Bank’s frozen reserves in the West and accessing $300 billion as unrealistic in the short term and legally questionable.
According to GMF experts, the reconstruction of Ukraine should begin as soon as possible. It is also necessary to provide some guarantees and insurances to the private institutions that, despite the war conditions, will participate in the reconstruction programme.
– Without rapid reconstruction, Ukraine will not start accession negotiations with the European Union and will not be a country where people will live (…); Nobody wants Ukraine to turn into a failed state – emphasized Jacob Funk Kierkegaard, one of the authors of the report.
Main image source: Kozlovsergey Environmental Protection Agency
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