Commentary: The extraordinary opportunities presented to Ukraine by postwar reconstruction should be used to push its economy forward.
People in downtown Lviv, Ukraine, on Feb. 11, 2023. As the country's leaders lay postwar plans, companies from around the world are jockeying for advantage in what could be a multibillion-dollar effort, although one loaded with risk.
The first Russian invasion finally pushed Kyiv toward a reform-oriented path, including ensuring macroeconomic stability and, more importantly, moving toward European integration and signing an Association Agreement with the European Union. Along with the agreement, the most successful reform the country undertook was decentralization, allowing municipalities and regions far more responsibility for self-governance.
Most importantly, and as the decentralization reforms have shown, Ukrainians are natural entrepreneurs, and they should be encouraged to open businesses, take risks and jump-start the economy. This will necessitate a large rollback of the state and elimination of much of the regulatory apparatus that exists, removing burdens from firms and improving the business environment.
Ukraine would do well to start the postwar era with an entirely new judicial structure, and it is highly likely that Ukrainians would support this wholeheartedly. A legitimate judicial system is harder to corrupt and better for encouraging commerce.
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