The Cabinet of Ministers of Ukraine has introduced the Reform Matrix, a new analytical tool for effective decision-making and management of the reform process.

 "The matrix is a huge plan of changes that systemises reforms and includes officially approved recommendations and requirements under the macrofinancial assistance programmes, such as: documents of the European Commission, IMF structural beacons, the Ukraine Facility Plan, and World Bank requirements,” noted the Prime Minister Denys Shmyhal.

According to the Head of Government, macroeconomic policies, institutional changes and structural reforms are the priorities set out in the Reforms Matrix.

The Reforms Matrix is an analytical tool for the effective implementation and monitoring of all planned measures. It includes more than 200 reforms (over 400 indicators) and contains an expert assessment of the impact of reforms on economic growth and recovery, conducted by the KSE and CES (Centre for Economic Strategy) in consultation with the Harvard University Growth Lab and with the assistance of the World Bank.

"The Matrix systemises the conditionalities and recommendations of Ukraine's international partners. In 2024 alone, we have to fulfil 410 indicators presented in official documents. The Matrix will help us prioritise and determine the sequence of reform measures. To meet the needs of the state, the focus should now be on steps that will have the maximum effect on strengthening macroeconomic indicators and economic recovery without significant fiscal costs. Internal transformations should be carried out systematically and consistently, while being supported through the improvement of external conditions with the assistance of partners," explained Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine, Minister of Economy of Ukraine.

It is critical for the Government to be as open and transparent as possible in the process of implementing the measures agreed with our partners. That is why the website of the Reform Matrix was launched and presented, where everyone can find the content, terms and schedule of fulfilment of conditions in various areas. The option of applying filters to a specific actor, indicator and its level of economic impact allows for a thorough analysis of Ukraine's implementation of the measures jointly agreed with partners.

"Such a huge amount of work requires systematisation, control and monitoring of its implementation. It is for this purpose that we are launching an analytical portal - the website of the Reforms Matrix, which allows each user to analyse the status of implementation of certain measures", said Minister of Finance of Ukraine Sergii Marchenko.

In his turn, First Deputy Minister of Finance Denys Uliutin emphasised: "Economic recovery and growth, ensuring high defence needs and bringing legislation in line with EU standards are the basis of all the reforms implemented by the Government of Ukraine. The Reform Matrix and the launched website make it easy to analyse and visualise such measures using a dashboard (BI tool). For example, in terms of time - which reforms need to be implemented in a particular quarter, by executors, by types of documents - law, CMU decisions, orders, etc. There are ready-made templates or each user can create their particular parameters for grouping and displaying information."

The Ministry of Finance of Ukraine is responsible for monitoring the implementation of the Reform Matrix, as well as the commitments under financial support programmes and to international partners. Other ministries and central executive authorities responsible for executing the measures envisaged by the commitments will have to provide regular updates on the results of the implementation of the measures.

At the same time, it should be noted that the analysis showed that the implementation of the measures envisaged by the Reform Matrix will not be sufficient to meet the critical needs of the state related to defence, energy sustainability, critical capital investments, technology transfer and market access.

It was determined that to maximise the effect of reforms, Ukraine, together with its international partners, should focus on three following areas:

 1.    Address macroeconomic risks with the help of partners within the Multi-Stakeholder Donor Coordination Platform and secure long-term (until 2027) external financing and in-kind support.

 2.    Promote faster recovery by removing the main obstacles to development. Air defence, energy resilience, stable and predictable access to foreign markets, labour shortages, and logistics (SEAL+) should be addressed.

 3.    Enhance potential growth - Reforms need to be complemented by timed and scaled investments and technology transfer arrangements from partners that will increase productivity and capital formation.