The biggest mega project of the 21st century in Europe, America expects like the Marshall Plan

On July 31, Penny Pritzker, the U.S. Special Representative for Ukraine's Economic Recovery, outlined a five-step reconstruction plan aimed at drawing attention to Kyiv and making its economy particularly attractive to private sector investment.

Ukrainian Foreign Minister Dmytro Kuleba stated that the reconstruction of Ukraine will be the largest project in Europe in the 21st century, with billions of dollars invested. (Source: Bloomberg)

Speaking to a research group in Washington following a recent visit to Kyiv, Pritzker said, “Ukraine is undertaking the largest and most complex economic reconstruction and recovery in Europe since World War II.”

Citing a World Bank estimate from last spring that the reconstruction of Ukraine would require at least $486 billion, the US Special Representative added that this estimate was made before the escalation of fighting between Russia and Ukraine in March and this summer.

Adding further information, Ms. Pritzker stated that the Ukrainian economy has shown remarkable resilience and growth amidst the ongoing Russia-Ukraine military conflict. She expressed confidence that Kyiv possesses inherent economic strength. In 2023, Ukraine's GDP increased by 5% and tax revenue increased by 25%.

"We have helped Ukrainians sustain their economy, address corruption, and increase private sector participation," said U.S. Special Representative Pritzker. Accordingly, throughout this process, the U.S. has worked with Kyiv to develop a long-term recovery framework – “a blueprint I call the Ukrainian Prosperity Pathway,” Pritzker said.

In the long term, Ms. Pritzker advises, Kyiv needs to focus on attracting foreign investment. The international community should be encouraged by the fact that investment in Ukraine has increased by 17% and more than 37,000 new businesses were registered in 2023.

Believing in Ukraine's future development, Penny Pritzker believes that the Eastern European economy has great potential for success, through the exploitation of important minerals such as lithium and titanium, or the development of agricultural and defense industries.

Furthermore, the defense industry, which Ukrainian Ambassador to the US Oksana Markarova once mentioned as "an integral part of Kyiv's success," has achieved record growth. For example, Ukraine's metal production has increased by 27%, cable and fiber optic production by 101%, and dozens of drone development companies have emerged – a new industry established after the Russia-Ukraine conflict broke out, Markarova said.

Even U.S. Special Representative Pritzker commented, "With a timeframe of just two weeks from innovation to implementation, American innovators should try to learn from Ukraine's ingenuity."

Penny Pritzker, the U.S. Special Representative for Ukraine's Economic Recovery, said her plan was "ambitious but achievable" and similar to the Marshall Plan—a U.S.-funded program to rebuild Europe after World War II.

However, regarding the implementation steps of the plan, according to Ms. Pritzker, it is necessary to establish a planning body and prioritize reconstruction programs as "single projects," integrated with the needs of cities, municipalities, and regions. Ms. Pritzker called this integration "the missing links in Ukraine's reconstruction process."

Next, Ukraine needs to make reform efforts, "rapidly increasing the number of projects ready for commencement" to prepare for investment and implementation. And according to Ms. Pritzker, the world needs to mobilize more money for Ukraine.

Calling for investment cooperation in the reconstruction of Ukraine, in a recent interview with Moldova's NewsMaker , Ukrainian Foreign Minister Dmytro Kuleba stated that Ukraine's recovery project would be the largest in Europe in the 21st century, with billions of dollars invested.

"In the future, Ukraine will become the world's largest construction site, and Kyiv's reconstruction project will be the largest in Europe in the 21st century, attracting billions of dollars in investment."

Mr. Kuleba also emphasized the prospects for closer economic cooperation with Moldova in the context of both countries joining the EU. “I am also certain that Moldovan businesses can play an important role in this process. And we will welcome all their efforts in participating in the recovery of our country,” the Ukrainian minister urged.

Foreign Minister Kuleba added that Ukraine and Moldova's accession to the European Union (EU) is closely linked to Ukraine's recovery process. Economic relations between Ukraine and Moldova will become increasingly close and interconnected.

He believes that EU membership will also open up new opportunities for Ukrainian and Moldovan companies in the international market thanks to improved access to the European market and reduced trade barriers; this includes joint infrastructure projects, such as the construction and modernization of transport routes and energy infrastructure. Cooperation in the energy sector will also be strengthened, including the development of renewable energy sources and energy efficiency, contributing to the region's overall energy security.

Previously, at the Conference of Donors for the Reconstruction of Ukraine in Germany (June 2024), German Chancellor Olaf Scholz also called on private companies to invest in Kyiv's massive reconstruction projects. Citing World Bank figures, Scholz estimated that Ukraine could need $500 billion over a decade to rebuild after the conflict. The German leader affirmed that companies would see business opportunities to invest and discuss Ukraine's potential in areas including renewable energy, information technology, and pharmaceuticals.

However, in reality, rebuilding Ukraine's economy is a long and arduous journey, as it requires enormous financial resources amidst ongoing military conflict. The fighting is far from over, while aid to Ukraine will be like a drop in the ocean; Western countries are divided in their response to the conflict; the uncertainty of the global economy and a series of intertwined crises pose challenges even to developed economies, leading to reluctance to "open their wallets" for Ukraine's "mega-project."

Source: https://baoquocte.vn/tai-thiet-ukraine-dai-du-an-lon-nhat-the-ky-21-o-chau-au-my-ky-vong-nhu-ke-hoach-marshall-281305.html