CSIS – Global Development Forum: Panel Discussion on Envisioning a Free and Prosperous Ukraine

On the 13th?of October a panel discussion on?“Envisioning a Free and Prosperous Ukraine”??took place at the headquarters of the Center For Strategic and International Studies (CSIS) as part of the Global Development Forum 2022.

Opening comments were delivered by the Honorable Pat Conroy, the Australian Minister for International and the Pacific and Minister for Defense Industry.?

The panelists were: Sergii Marchenko (Minister of Finance, Ukraine); Odile Renaud-Basso (President of the EBRD); Lenna Koszarny (CEO of Horizon Capital); Karan Bhatia (Global head of Government Affairs and Public Policy – Google); and Daniel F. Runde – Senior VP CSIS).

The Australian Perspective

The Australian Minister made some pertinent comments on the current great disruptors of the global economy and national wellbeing, the primary ones being climate change, covid, emerging geopolitical challenges, and the war in the Ukraine.??The minister said that a fundamental practice that needs to be adopted when financial support is sought for development projects is that nations should avoid assuming unsustainable debt.??He also stressed that regional cooperation is critical to success, that small nations voices need to be heard, and that all major development initiatives should receive proportional support from larger nations.??He also pointed out that multidisciplinary development indexes need to be developed that address more than financial thresholds. In his closing comment, the Minister reminded the audience that Australia is the strongest supporter outside of NATO.

The Ukraine’s Perspective

Sergii Marchenko of the Ukraine pointed out the although the situation was dire, there is increasing optimism about Ukraine’s future that is receiving ongoing military and economic support from the EU, NATO and Australia.??He said that currently Ukraine is facing severe budgetary constraints and will need in the vicinity of $300 billion to accomplish national recovery.???Sources of financing will be needed for reconstruction of a post-conflict economy and this could primarily occur through collaborative agreements with development banks and friendly nations.??It was also suggested that frozen Russian assets could be seized as compensation for Ukraine’s eventual recovery.??He also pointed out the Ukrainian companies have been extremely resilient during the war with 97% of pre-war companies still operating. Lenna Koszarny echoed this sentiment and called the Ukrainian private sector heroic.

Google’s Perspective

Karan Bhatia said that Google has four focusses in the Ukraine.??They are -??getting good info into Ukraine; combatting Russian misinformation; improving cyber security to protect government e-platforms; and strengthening the education media.??He stressed that Google is bullish about Ukraine and is focused on developing a recovery model that is independent of philanthropy - which will not build a sustainable future Ukraine. He also stated that Goggle has a 3P development model that is focused on products, people, and partnerships.

The EBRD Perspective

Odile Renaud-Basso of the EBRD reiterated that the bank is committed to the Ukraine and is the biggest investor of the Ukrainian development fund – Horizon Capital.??Odile stated that recovery will depend on wise investment in infrastructure, upskilling people, adopting a technology first approach to development, and strengthening the Ukrainian investment and development enabling environment as it moves toward accession to the EU.

The Perspective of Horizon Capital

Lenna Koszarny??- CEO of Horizon Capital – commented on the need to improve the business and legal enabling environment as the Ukraine moves toward accession with the EU.??She stated that policy reforms (under way and being considered) must include structural reforms, strengthening of rule of law, tax reforms, and adopting technology as part of a digital government future. Lenna reiterated that it is important to build trust and confidence in the Ukrainian economic environment so that private sector worries about legacy concerns vis-à-vis corruption and the influence of Ukrainian oligarchs is mitigated.??

Closing Observations

Lenna’s views were supported by Odile who said that there must be no backtracking on reforms, that corporate governance needs to be strengthened, that the control of oligarchs needs to be diminished, and that human capital needs to be reinforced, especially in the IT sector which shows considerable promise in the Ukraine.

In closing Karan reiterated that Google is focused on confident building and doubling down on investment in the Ukraine.??Odile reiterated the need to strengthen governance in the Ukraine as well as support for the obligatory judicial reforms that will be required for EU accession. Lenna completed her comments by saying that a culture of anti-corruption needs to be adopted in the Ukraine that starts with every Ukrainian, both in government and in the private sector.

Panelist were confident that a newly built Ukraine will be one of the strongest countries in the world; that the transatlantic alliance is strong and will persevere;??that its people are one of its strongest assets; and that the outstanding courage, capacity, and resilience of the Ukrainian needs to be recognized.

Every one of the panelists felt that strong economic and political foundations are being built that will create a public-private sector dialogue that will see a free and prosperous Ukraine emerge and prevail.