National Recovery Plan

Before the war broke out in 2022, Ukraine had undertaken the reform of its governance system and the transformation of its economic model towards greater efficiency and sustainability, although it faced some challenges. According to the 2021 Voluntary National Review (VNR) of Ukraine, a series of reforms aimed at implementing socio-economic transformations and strengthening its democratic system have been launched since 2015.

The Sustainable Development Goals (SDGs) are integrated into state policy with the principle of “leaving no one behind”. According to the VNR findings, Ukraine has generally achieved progress in 15 of the 17 Sustainable Development Goals (SDGs). A key success is the reduction of poverty, from 58.3% in 2015 to 43.2% in 2018.

The outbreak of the war has dramatically changed the priorities and needs of the country, reversing some of the previous achievements and trends. Ukraine is committed to better rebuilding and reforming its socio-economic and industrial systems, with a future orientation towards resilience and sustainability. Integration into the European Union (EU) has become one of the key processes guiding Ukraine's national vision in terms of development goals. On 14 December 2023, the European Council decided to open negotiations with Ukraine on EU accession. The Ukrainian Government has further initiated an analysis of its needs in terms of compliance with the requirements of the EU acquis, which is the set of common rights and obligations that constitute the body of EU law and are incorporated into the legal systems of all EU members.

The strategic document outlining Ukraine's vision for economic and industrial development until 2030 is the National Economic Strategy, adopted in 2021. The expected results of the National Economic Strategy include creating a favorable environment for business development and investment, achieving competitiveness in the international market, developing innovation, modernizing economic sectors and developing human potential, as well as ensuring equal opportunities for women and men. The National Economic Strategy envisaged a review mechanism in 2024 and 2027, taking into account the results of its implementation, however, the ongoing war has called into question the relevance of national strategic documents, causing serious disruptions to economic activity and damage to infrastructure, the environment and the livelihoods of the Ukrainian people. In response to this, the National Recovery Plan was developed, presented at the Ukraine Recovery Conference 2022 in Lugano.

The guiding principles of the National Recovery Plan, summarized in what has been called the “Lugano Declaration”, are divided into seven points:

• Partnership. The recovery process is led by Ukraine and conducted in cooperation with its international partners. The recovery effort must be based on a robust and continuous needs assessment process, aligned priorities, joint planning for results, accountability for financial flows and effective coordination.
• Reforms. The recovery process must help accelerate, deepen, broaden and build Ukraine’s reform efforts and resilience, in line with the country’s European path.
• Transparency, Accountability and Rule of Law. The recovery process must be transparent and accountable to the Ukrainian people. The rule of law must be systematically strengthened and corruption eradicated. All recovery funding must be fair and transparent.
• Democratic Participation. The recovery process must be a whole-of-society effort, based on the democratic participation of the population, including displaced persons or those returning from abroad, local self-governance and effective decentralization.
• Multi-stakeholder engagement. The recovery process must facilitate collaboration between national and international actors, including the private sector, civil society, academia and local authorities.
• Gender equality and inclusion. The recovery process must be inclusive and ensure gender equality and respect for human rights, including economic, social and cultural rights. The recovery must benefit all and no part of society should be excluded. Disparities must be reduced.
• Sustainability. The recovery process must rebuild Ukraine in a sustainable manner, in line with the 2030 Agenda for Sustainable Development and the Paris Agreement, integrating social, economic and environmental dimensions, including the green transition.

The reconstruction of Ukraine will require significant financial resources, technology and expertise for the rapid reconstruction of industrial, social and residential infrastructure.