World Bank Regional Director: Key to Ukraine post-war growth - a more competitive market economy and strengthening the coverage and targeting of social assistance

Interview for Interfax-Ukraine news agency of Arup Banerji, World Bank Regional Country Director for Eastern Europe 

According to the forecasts of many experts and analysts, the war is protracted and may last for years. How does awareness of this affect financial, humanitarian and technical assistance to Ukraine? Do priorities change?

As we look back on this terrible year, I remain amazed and impressed by the resilience and bravery of Ukraine’s people and its leadership. But obviously, the longer Russia’s invasion of Ukraine continues, the greater the cost to Ukraine and its people, and the greater the financial need for recovery and reconstruction. Ukraine’s current and future financing needs are staggering. Ukraine still needs approximately about US$3-4bn/month just for essential services – pensions, salaries, education, social transfers – in this calendar year. More is needed for critical investments to help repair – not even rebuild – destroyed infrastructure and to help farmers and businesses revive economic activity.

The government, faced with these challenges, has been clear on its priorities for economic needs, and has communicated this to all its development partners, including the World Bank. This is also based on the important data coming from the September 2022 Rapid Damage and Needs Assessment, but also the evolution of damages and needs since then. The first priority is continued support to the government budget for the core public services such as health, education, and social protection. The second is to repair and restore the energy system, which is continually under attack. Third is to help restore critical infrastructure – which includes repairing schools and hospitals, ensuring heating,