The FINANCIAL — The Cabinet of Ministers of Ukraine last week approved the Concept Note for the State Target Program (STP) for Recovery and Peacebuilding in the Eastern Regions of Ukraine. The World Bank welcomes this as a critical step in advancing a Government-led strategy to guide both national and international response and support.
While humanitarian aid has kept people alive, it cannot address the growing employment, education, health, debt, psychological, and social consequences of instability. The World Bank has been advocating for an integrated development strategy that provides mid- to long-term solutions for conflict-affected communities and the nearly 2 million internally displaced persons in Ukraine, according to the World Bank.
The conflict has resulted in disruptions in industry, transport and small and medium enterprise activity leading to widespread job loss, and decreased investor confidence has stymied business development. Internally displaced people often face a mismatch between their skillsets and the economic opportunities in communities where they settle. Large scale displacement has also created strains on housing, education and municipal services in host communities.
The STP proposes to support three pillars for action: 1) restoration of infrastructure and social services; 2) economic recovery; and 3) social resilience and peacebuilding. The elaboration of the STP offers the opportunity for the Government of Ukraine to shape a development strategy to address the crisis and promote economic recovery.
In line with Ukraine’s broader reform process, the STP can also help take advantage of the opportunity to modernize and re-vitalize the Ukrainian economy and build it back up. The World Bank is committed to continuing to support Ukraine, including through the STP, in a development response to the conflict that can contribute to longer-term economic stability and recovery.