Ukraine is grappling with structural challenges that will need to be resolved. These are social challenges—stemming from a breakdown in relationships due to the war. A significant portion of men has been deployed to the front lines, while a large number of women have left the country. There are also demographic challenges, which were already dire before the war. Now, with a substantial portion of women and children having fled, demographics could become Ukraine’s Achilles’ heel.
Additionally, Ukraine faces long-standing problems related to public policy and business practices that fall far short of European standards. The country operates largely in a gray or even black economy—marked by corruption and a lack of institutions capable of effectively carrying out their responsibilities. The reconstruction of Ukraine must encompass not only economic recovery but also social and institutional rebuilding.
“The reconstruction of Ukraine will be an enormous challenge. Today, businesses are primarily focused on the opportunity to participate in infrastructure investments on the contractor side,” said Kamil Sobolewski, chief economist at Employers of Poland, in an interview with eNewsroom.pl. “Such investments can be large in scale, with significant budgets, and could present profit opportunities for Polish entrepreneurs. However, we must remember that investments ultimately lead to a more competitive economy and the creation of production capacities that will allow for greater output with the same level of access to resources, such as labor.
Meanwhile, Ukraine remains embroiled in conflict. A full-scale reconstruction of Ukraine—reintegrating it into global supply chains and modernizing its economy—is still premature. It all depends on stability and the prospect of lasting peace in the coming years,” Sobolewski analyzed.
Source: ceo.com.pl
