US Special Representative for Economic Recovery of Ukraine Penny Pritzker on July 31 outlined a five-step reconstruction plan aimed at focusing all attention on Kiev and making the economy uniquely attractive for private sector investment.
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| Ukrainian Foreign Minister Dmytro Kuleba said that the reconstruction project of Ukraine will be the largest in Europe in the 21st century, in which billions of dollars will be invested. (Source: Bloomberg) |
“Ukraine is undertaking the largest and most complex economic reconstruction and recovery in Europe since World War II,” Pritzker said during a recent visit to a think tank in Washington.
Citing a World Bank estimate from the spring that Ukraine’s reconstruction would cost at least $486 billion, the US Special Representative added that the estimate was made before the Russia-Ukraine fighting intensified in March and this summer.
Pritzker added that Ukraine’s economy has shown remarkable resilience and growth amid the ongoing Russia-Ukraine military conflict. She expressed confidence that Kiev has its own economic strength. In 2023, Ukraine’s GDP grew by 5% and tax revenues increased by 25%.
“We have helped Ukrainians sustain their economies, tackle corruption, and increase private sector participation,” said US Special Representative Pritzker. Throughout the process, the US has worked with Kiev to develop a long-term recovery framework – “a blueprint that I call Ukraine’s Path to Prosperity,” Pritzker said.
In the long term, Pritzker said, Kiev needs to focus on attracting foreign investment. The international community should be encouraged by the fact that investment in Ukraine has increased by 17% and more than 37,000 new businesses were registered in 2023.
Believing in the future development of Ukraine, Ms. Penny Pritzker believes that the Eastern European economy has great potential for success, through the exploitation of important minerals such as lithium, titanium, or the development of agricultural and defense industries.
In addition, the defense industry has also been mentioned by Ukraine's Ambassador to the United States Oksana Markarova as "an integral part of Kiev's success" and has achieved record growth. For example, Ukraine's metal production has grown by 27%, cable and fiber optic production by 101%, and dozens of companies have been developing drones - a new industry that was created after the outbreak of the Russia-Ukraine conflict, Ms. Markarova said.
Even US Special Representative Pritzker assessed that "the time from innovation to implementation is only two weeks, American innovators should try to learn from Ukraine's ingenuity".
US Special Representative for Economic Recovery of Ukraine Penny Pritzker said her plan was "ambitious but achievable" and similar to the Marshall Plan - the US-funded program to rebuild Europe after World War II.
However, in terms of the steps to implement the plan, Ms. Pritzker said it is necessary to build a planning agency and prioritize reconstruction programs as "single projects" that are integrated with the needs of the city, the municipality and the region. Ms. Pritzker called this integration "the missing link in the reconstruction process of Ukraine".
Next, Ukraine needs to push for reforms, “rapidly increasing the number of projects ready to start construction” to prepare for investment and implementation. And, according to Ms. Pritzker, the world needs to mobilize more money for Ukraine.
Calling for investment cooperation in Ukraine's reconstruction, in a recent interview with Moldova's NewsMaker , Ukrainian Foreign Minister Dmytro Kuleba said that Ukraine's recovery project will be the largest project in Europe in the 21st century, in which billions of dollars will be invested.
“In the future, Ukraine will become the world's largest construction site and Kiev's restoration project will be the largest in Europe in the 21st century, bringing billions of dollars in investments.”
Mr. Kuleba also emphasized the prospects of closer economic cooperation with Moldova in the context of both countries' accession to the EU. “I am also sure that Moldovan businesses can play an important role in this process. And we will welcome any efforts by them to participate in the recovery of our country,” the Ukrainian minister urged.
Foreign Minister Kuleba added that Ukraine and Moldova's accession to the European Union (EU) is closely linked to Ukraine's recovery. Economic relations between Ukraine and Moldova will become increasingly closer and more connected.
He believes that EU membership will also open up new opportunities for Ukrainian and Moldovan companies in the international market thanks to improved access to the European market and reduced trade barriers; including joint infrastructure projects, such as the construction and modernization of transport routes and energy infrastructure. Cooperation in the energy sector will also be enhanced, including the development of renewable energy sources and energy efficiency, contributing to the overall energy security of the region.
Previously, at the Ukraine Reconstruction Donors Conference in Germany (June 2024), German Chancellor Olaf Scholz also called on private companies to invest in Kiev's massive reconstruction projects. Citing World Bank (WB) figures, Mr. Scholz estimated that Ukraine may need $500 billion in a decade to rebuild after the conflict. The German leader affirmed that companies will see business opportunities to invest and discussed Ukraine's potential in areas including renewable energy, information technology and pharmaceuticals, etc.
However, in reality, rebuilding the Ukrainian economy is a long and arduous journey, because it requires huge financial resources, in the context of the ongoing military conflict. The fighting has no end in sight, while aid to Ukraine will be like "salt in the sea"; Western countries are divided in their response to the conflict; the uncertainty of the global economy and a series of intertwined crises have made developed economies themselves face challenges, leading to hesitation to "open their wallets" for Ukraine's "mega-project".
Source: https://baoquocte.vn/tai-thiet-ukraine-dai-du-an-lon-nhat-the-ky-21-o-chau-au-my-ky-vong-nhu-ke-hoach-marshall-281305.html
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