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Donor Coordination for Reconstruction and Regional Development in Ukraine
22/04/2025

Depositphotos
Depositphotos

How can the coordination of billions in aid for Ukraine’s reconstruction succeed? An IER research paper highlights the opportunities and weaknesses in donor coordination, showing why transparency and targeted investments are more important than the sheer volume of funds.

Ukraine faces the immense challenge of addressing the extensive destruction caused by Russia’s ongoing war of aggression. In this context, the effective coordination of international support is of central importance. In their paper “Coordinating International Public and Private Donors in Ukraine’s Reconstruction and Regional Development”, Oleksandra Betliy and Iryna Kosse from the Institute for Economic Research and Policy Consulting (IER) analyse the existing mechanisms for donor coordination in Ukraine's reconstruction.

Given the enormous financial needs, currently estimated at around 400 billion USD, the success of the reconstruction process largely depends on smooth and efficient collaboration between international donors and the Ukrainian government.

Established platforms such as the Multi-Agency Donor Coordination Platform and the Ukraine Facility have made important contributions. However, the paper highlights that there is still significant potential for improving efficiency. A key instrument in this regard is the DREAM platform, which could enable a more targeted and needs-based allocation of aid funds. The challenges lie less in the volume of available funds and more in the strategic coordination and prioritization of investments.

Team & authors

About the Ukraine Perspectives: Strategies for Reconstruction and EU Integration project: The Ukraine Perspectives project is generating new insights into the reconstruction process and the potential of Ukraine's accession to the EU through policy-relevant analyses. Moreover, it strengthens Ukrainian voices and regional expertise in the German political debate.

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