An Economic Policy Advisory Council, which includes leading Ukrainian and international economists, has developed a recommendation document for the international community "Financing Democracy: Why and How Partners Should Support Ukraine". It contains a number of recommendations for developing an effective policy for rebuilding Ukraine during the war and after the victory.

"Despite the fact that the war is ongoing, the Government of Ukraine is already working to rebuild the country. The scale of the destruction requires comprehensive approaches and strong international support. That is why I am grateful to the Economic Policy Advisory Council and leading global economists for developing concrete steps for partners to support Ukraine. I hope that this work will become an additional incentive for the international community to continue to actively support the Ukrainian economy and lay the foundation for its recovery," said Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine.

The co-authors of the document "Financing Democracy: Why and How Partners Should Support Ukraine" propose to structure the agreement between the partners and Ukraine in such a way as to build trust and the most effective mechanism for Ukraine's victory in the war and for Ukraine's transformation into an EU partner.

In this document, the economists recognise positive steps, such as the launch of the Ukraine Facility, a financial instrument to support Ukraine in the amount of EUR 50 billion over the next 4 years, as well as the interagency Donor Coordination Platform.

"Ukraine is a liberal democracy that seeks to embody in its institutions respect for human rights and freedoms in a democratic society, the rule of law, in particular through full membership in the EU," the document reads.

At the same time, concerns are expressed about the timing of the programme and the financial support commitments of other partners, the conditions imposed on Ukraine to receive support, etc.

"The defence and reconstruction of Ukraine require significant military efforts and a large-scale reconstruction programme that will require unprecedented support from partners over a long period of time," the document states.

In particular, the experts proposed a "democracy financing" agreement that could provide the necessary guarantees to the partners, set a limited list of conditions for Ukraine that are consistent and realistic to meet in different periods of the war, improve overall coordination and thus reduce the burden on the Government, which is focused on defending the country.

According to the experts, Ukraine's objectives should include reconstruction based on the Ukraine Facility programme, effective implementation of this programme, and transparency and accountability in the use of resources.

The partners suggested that the agreement should include the fulfilment of obligations in a certain scope and timeframe, compliance with certain criteria, coordination of cooperation between donors and the Ukrainian side, funding in the form of grants and advance financing.

As a reminder, the Economic Policy Advisory Council was established in 2023 to develop recommendations on the architecture of Ukraine's recovery, including fiscal and monetary policy, the labour market, and government regulations. The organisation includes leading global and Ukrainian economists. In particular, Roger Myerson, Nobel Prize winner in economic sciences, professor at the University of Chicago; Kenneth Rogoff, Professor at Harvard University, former Chief Economist at the International Monetary Fund; Rory McFarquhar, Senior Vice President, International Institutions Engagement, Mastercard; Beatriz Weder di Mauro, President at Center for Economic Policy Research(CEPR); Torbjörn Becker, Director of the Stockholm Institute of Transition Economics (SITE); Gerard Roland, Professor of Economics and Political Science at the University of California, Berkeley; Tymofiy Mylovanov, President of the Kyiv School of Economics, Professor at the University of Pittsburgh, and other participants. The Council is chaired by Yuriy Gorodnichenko, Quantedge Presidential Professor of Economics Department of Economics, University of California, Berkeley.