DEEPENING DEFENSE MINISTRY TRANSPARENCY
To assuage international concerns about how the extensive military aid being provided for Kyiv's fight for independence is utilized, Ukraine's government is moving toward greater transparency. On May 20th, the country's Defense Ministry announced the creation of a Council of Donors, which will be made up of officials hailing from over 20 different countries and organizations. These officials are defense attachés, diplomats from allied states, and officials from international defense organizations working in Ukraine. The mandate of the Council is to streamline communication between Ukraine and allies on reform progress. It will also act as a conduit to request support for reform implementation. The members of the Council of Donors will use their experience and expert advice to aid the Ukrainian government. (Ukrainska Pravda, May 20, 2024)
THE WORLD STARTS TO TAKE NOTICE OF UKRAINIAN REFORMS
The 2022 Russian invasion of Ukraine, and Kyiv's need to secure – and then maintain – Western assistance in its fight has at long last prompted movement on meaningful domestic reforms, and the international community is taking notice. In its latest anti-corruption index, democracy watchdog Transparency International ranks Ukraine 104th out of 180 countries surveyed – the country's best showing ever. "Most Ukrainian anti-corruption institutions are showing pretty good results," confirms Andriy Borovyk, the executive director of Transparency International Ukraine.
But challenges remain. One, notes Borovyk, is ensuring that Western aid is spent well, and properly. "A lot of money is coming to Ukraine from the West, and of course they are asking whether there is proper control over this money," he notes.
Nevertheless, Ukrainian officials are pleased with the pace and increasing competence of their reform efforts. According to Andriy Synyuk, the deputy head of Ukraine's Specialized Anti-Corruption Service, mounting arrests and investigations are a positive sign. "This doesn't mean that more crimes are being committed," he notes. "This means that we've become better at doing our job." (BBC, May 21, 2024)
UKRAINE'S PLAN FOR PROSPERITY
The Ukrainian government may still be fighting for its independence against Russia, but Kyiv is increasingly looking beyond the current conflict – and seeking to stake out key principles that would guide it closer to the West. On June 5th, the country's Ministry of Finance and Ministry of Economy jointly released a white paper on "Immediate Economic Priorities for Growth." The white paper is a roadmap of sorts for how Kyiv plans to navigate the near future, in which growth is constrained by the current conflict and foreign direct investment is sorely needed. In particular, reports the Kyiv Post, the white paper focuses on three priorities: "economic stability, removing constraints on growth, and reforms."
The near term plan, the paper reports, includes a number of policy initiatives, including "seeking financing from external partners through to 2027 and gaining access to $320 billion of frozen Russian assets." Furthermore, it notes, "Ukraine has identified a need to boost growth through reforms related to production capacity, capital stock, skills, and technologies."
On that last priority, the Ukrainian government has established a new website, dubbed the "Ukraine Reforms Matrix," which will chronicle "achievement against pillars agreed with the EU and the International Monetary Fund." The list of those planned reforms is voluminous, totalling more than 200 measures this year alone. They include everything from enhancing the management of public investment to launching "sectoral reforms in the energy, critical materials, agriculture, and transport sectors." (Kyiv Post, June 6, 2024)