Reconstruction of Europe after the Second World War began three years after the war ended. Before that, the viability of the post-war Western European economy was supported by imports from North America and subsidies and loans from the USA and Canada. If Ukraine’s economy is not restored after the war, it will need to be constantly subsidised – which would be much more expensive. World leaders seem to have learned this lesson well – plans for the reconstruction of Ukraine are already being talked about, even while hostilities continue.
On April 21, 2022, the President of Ukraine signed an order on the formation of the National Council for the Recovery of Ukraine from the War. This is a consultative and advisory body, which was entrusted with the task of developing a recovery plan. The war in Ukraine is unequivocally a tragedy. At the same time, it opens a window of opportunities: in particular, the involvement of world experts in the modernisation and restoration of the country.
The first step, while the war still rages on, is to minimise all kinds of damage inflicted on society and the economy. This means the relocation of businesses from the war zone to safer regions, housing for temporarily displaced persons, and in general, all measures aimed at keeping people and businesses safe and productive – keeping both society and the economy alive.
The documentation of damages is another crucial precursor to the rebuilding process, and technology is playing a vital role. The Ministry of Digital Transformation is working to accurately record the devastation resulting from Russian aggression in Ukraine. Through their “Diya” (Ukr. Action) mobile app, citizens are able to provide reports detailing all kinds of damages inflicted on both people and infrastructure – from housing destruction and environmental damages to looting and much more. All this evidence is then compiled into a single registry which will ultimately guide reconstruction efforts across the country.
In the future, the state and partners will need to direct efforts to restore the economy as a whole and its stable growth. The main efforts should be focused on creating jobs and permanent sources of income generation. These might include programmes to support and develop entrepreneurship, a balanced financial policy, and the strengthening of the energy sector. As part of the post-war recovery, Ukraine will have to rebuild some cities almost from scratch – but it is important that this reconstruction does not become a blind reproduction of what was destroyed. Instead, this is an opportunity to apply the latest approaches of urban planning and architecture to make Ukrainian cities more convenient and inclusive for their residents.
Why is Europe’s post-war experience important to Ukraine?
Some states, such as Poland, Germany, and the Netherlands, experienced so-called post-traumatic growth after WWII – eventually managing not only to overcome existing difficulties but also to surpass pre-war indicators of the quality of life. Their experience of post-war development can help Ukraine restore its infrastructure faster and return to normal life.
It is important to emphasise that the experience of post-war reconstruction in European countries
was not always successful. However, it is the analysis of past mistakes that will help Ukrainians to
avoid their own, taking into account all possible risks. For example, in Bosnia and Herzegovina, after the end of the Bosnian War (1992–1995), there was no significant economic growth, despite various financial and resource assistance from other countries that sought to help the coun try integrate into Europe in the future. The lack of a general development strategy, the lack of a single centre for coordinating reconstruction programmes, duplication of efforts, inappropriate use of funds, low management potential of authorities, etc., were all among the mistakes of that time.
Monitoring and control of financial flows aimed at industrial development are important for a country rebuilding after the war. This helps to avoid concentration of funds in the hands of one corporation or private entity that will only care about its own profits. Something similar happened in Italy after the end of the Second World War. At that time, a significant share of financial assets was taken over by representatives of big businesses and individual clans, which slowed down the country’s economic development.
Ukraine will need to resolve a number of social issues, including financial compensation for the victims. Of course, it will not be possible to do without financial assistance from other countries. So far, one can only guess whether this will consist of a new “Marshall Plan”, soft loans, or reparations from the aggressor country. In terms of the latter, Ukraine will have a long way to go. The options can be different: Russia’s voluntary agreement to pay reparations, or perhaps the forced recovery of the frozen assets of the aggressor country through international lawsuits. It should be taken into account that such reimbursement processes can last for years. In particular, in cases of reparations payments, due to the foreign assets of Russia and Belarus, each of the countries that will own such resources will have to work out their own legislative scheme to make these payments to Ukraine.
On June 23, 2022, Ukraine finally received the desired EU candidate status – so the country’s general recovery and development strategy must meet the tasks necessary for EU accession. In order to continue moving into the EU, Ukraine will need to continue the reforms started before the war and harmonise its legislation with European legislation. For example, to introduce a European certification system, and to continue large-scale privatisation, anti-corruption, and judicial reforms.
Foundations for the Future
In the context of the post-war recovery of production, it is also worth considering the example of Korea. After the end of the Korean War (1950–1953), the country was divided into the Southern and Northern parts. Industry in North Korea was more developed even before the war, but after the end of hostilities, the southern part had to gradually reorient itself to export and invest in the development of science and technology.
Localisation of production can become an important condition for full-fledged post-war development for Ukraine – at least 60% of products must be produced within the country. This point, by the way, is specified in the plan for the recovery of Ukraine after the war, which was approved by the specialised committee of the Verkhovna Rada in May 2022. The plan is designed for 10 years and aims to strengthen European integration and support private initiatives.
Reconstruction is a window for improvement. It is not only residential buildings, but also cultural and religious buildings, architectural monuments etc., which have fallen under the crosshair of the Russian army. However, reconstruction is a solid opportunity for Ukraine to move away from ineffective or morally outdated practices of both Soviet and modern planning, taking into account the historical legacy and the
modern context: real needs of people, landscape features, environmental friendliness, and aesthetics.
But reconstruction is not only about the restoration of physical objects. Ukraine needs qualified and experienced workers, and after the victory, this will become even more urgent.
Therefore, the government should do all they can to encourage citizens to return to the Motherland: negotiations are underway with EU countries on the possibility of providing refugees with financial support for a certain period after returning to Ukraine. They are also discussing the provision of additional funding to hire Ukrainians for jobs that will help rebuild the nation, as well as the creation of temporary basic income programmes for those who will return home.
Rehabilitation of those who remained in the country also requires special attention. War can leave a lasting mark on many individuals, and post-conflict rehabilitation is key to helping veterans, those with disabilities acquired during combat, or internally displaced people, heal. Rebuilding lives requires psychological support plus active engagement in everyday life.
After suffering through the ravages of war, Ukrainians need to remain firmly united on their way to recovery with strong support from international allies. By studying the strategies used by other nations after conflict, Ukraine can rebuild its infrastructure in a responsible manner that will outshine anything seen before. Wise investments plus competent experts mean this ambitious project could return not only to pre-war indexes but even higher, providing an improved society for all citizens moving forward.
The long journey back begins here.
