Ukraine’s Recovery: Local Actors Vital for Overseeing Reconstruction
The estimated cost of reconstruction and recovery in Ukraine has reached several hundred billion euros. To ensure a successful recovery, it is crucial that local actors are given a central role in overseeing the country’s reconstruction efforts.
Since Russia’s invasion of Ukraine in February 2022, critical infrastructure has been systematically targeted, resulting in devastating damage. A joint assessment by the Ukrainian government, the World Bank Group, the European Commission, and the United Nations has estimated that the cost of reconstruction and recovery in Ukraine now stands at €383 billion.
The question arises: who will cover this massive bill? With the scale of needs on the ground, a collective effort involving allied governments, multilateral international organizations, and private investment will be necessary. However, securing private investment in the current context is especially challenging.
The international community has responded with immediate relief, providing military and humanitarian aid totaling almost 170 billion euros. Furthermore, high-level international events, such as the recent London donor conference, have been organized to mobilize further political and private sector support for Ukraine’s economic and social stabilization.
While immediate support is crucial, the long-term recovery of Ukraine requires commitments from both authorities and civil society within the country. Investors seek security guarantees for Ukraine, a responsibility of the international community, but also strong accountability mechanisms within Ukraine itself.
This accountability should build upon Ukraine’s ambitious decentralization reforms initiated over a decade ago, even before the war began. These reforms have already proven beneficial, as they have improved the quality of social care, healthcare, and administrative services, leading to higher revenue and better coordination between local and national governments, according to a survey by the OECD.
The European Union has recently proposed a Facility for Ukraine that aims to attract public and private investments, supported by a robust system of audit and controls. This proposal aligns with the investment per reform model employed by EU member states for post-pandemic recovery and reconstruction plans.
Recognizing the importance of local self-government, the European Parliament has emphasized the need to give local authorities a prominent role in decision-making regarding reconstruction projects. Numerous organizations and initiatives, including USAID, U-LEAD, the G7, the Council of Europe, and the European Alliance of Cities and Regions for the Reconstruction of Ukraine, also prioritize decentralization in Ukraine’s recovery.
It is crucial for Ukraine to secure not only its democracy on the battlefield but also in establishing good governance. In times of crisis, there is a risk of consolidating discretionary power, making the role of local governments and civil society even more important in overseeing the recovery process.
Mayors and local governments are directly accountable to the residents for reconstruction priorities and progress. Their firsthand knowledge of the specific needs for reconstruction, especially in cities heavily targeted by Russian attacks, makes them critical actors in the recovery efforts. Moreover, the recovery plans will be iterative and long-term, requiring the agency, creativity, and innovation of local actors.
Focusing on the local level is not new for Ukraine, as the decentralization reforms implemented since 2014 have shifted power away from the old regional and local administrative system inherited from the Soviet Union. This decentralization process has contributed to Ukraine’s resilience in the face of Russian aggression.
However, there are still unresolved elements from the previous reforms, including tensions arising from territorial-administrative reorganization and the lack of clarity in tasks and responsibilities. Discrepancies in capacities among local governments, especially in rural areas, also pose challenges. To effectively utilize the funding for reconstruction, local governments must have the necessary capacity and legal framework.
Further decentralization efforts should focus on establishing a better distribution of competences between national and local authorities. This should be integrated with anti-corruption measures, capacity-building, fiscal policy, regional development, urban planning and infrastructure, housing, utilities, energy systems, education, and social service provision.
Additionally, local governments should seize the opportunities presented by collaboration with civil society, particularly in achieving a green recovery. Civil society has long been a force for democratic resilience, transparency, and accountability in Ukraine. By working together, local governments and civil society can ensure a democratic and sustainable recovery.
International partners, including national governments, multilateral organizations, cities, and city networks, should engage with local partners in Ukraine to provide expertise and advice on developing innovative multi-level governance structures.
Ensuring the success of Ukraine’s recovery and reconstruction efforts will require the active involvement of local actors, building upon the gains made through decentralization reforms. By empowering local governments and promoting collaboration with civil society, Ukraine can pave the way for a democratic and resilient post-war future.
