An excellent short Policy Brief on the reform process in Ukraine and what the West ought to do in support has been written by Anders Aslund (@anders_aslund), adjunct professor at Georgetown University and senior fellow at the Atlantic Council in Washington, DC.
Ukraine stabilized its finances in 2015-2016 and returned to modest economic growth this year. It introduced major reforms, including restructuring the energy sector and anti-corruption measures such as public disclosure by public officials of their financial interests and making government procurement substantially more transparent. It has, as well, contained the threat from Russian-led insurgents in eastern Ukraine bordering Russia (without defensive arms support from the West).
Ukraine has achieved a lot and must do more to limit corruption, reform government, and free its internal market, but continued progress requires Western support. As set out by Aslund, the West needs to do three main things,
- "...mobilize its [the West's] resources for investment funding for the next half decade. Former Finance Minister Natalie Jaresko has proposed US$5 billion a year for the next five years for investments, which sounds right."
- "...allowing visa-free travel for Ukrainians in the European Union...This step alone could salvage the European Union's positive standing among Ukrainians."
- ...that the European Union expands or abolishes its 36 import quotas for Ukraine. These cover all of Ukraine's most important goods, notably all significant agricultural products.
With a population about half that of Germany and a land area 70% larger, with abundant and varied resources including a well-educated, industrious workforce, Ukraine has the potential to greatly augment Europe's economic strength.
The key is not to let this promising moment be wasted.
