The Economics of Winning Hearts and Minds : Programming Recovery in Eastern Ukraine

Since 2014, the armed conflict in Ukraine’s eastern provinces (oblasts) of Donetsk and Luhansk has dealt a heavy blow to people’s lives. The conflict has magnified the long-standing problems and created new ones. This study shows that scaling up ef...

Full description

Bibliographic Details
Main Author: World Bank
Format: Report
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/en/456551624599304372/The-Economics-of-Winning-Hearts-and-Minds-Programming-Recovery-in-Eastern-Ukraine
http://hdl.handle.net/10986/35908
id okr-10986-35908
recordtype oai_dc
spelling okr-10986-359082021-07-15T05:10:40Z The Economics of Winning Hearts and Minds : Programming Recovery in Eastern Ukraine World Bank GROWTH DRIVERS CONFLICT-AFFECTED STATES DESTRUCTION DISPLACEMENT FORCED DISPLACEMENT DISORGANIZATION LABOR MARKET ACCESS TO BASIC SERVICES POLICY EFFECTIVENESS RECOVERY FINANCE DEVELOPMENT STRATEGY INTERNAL MIGRATION DEMOGRAPHIC TRENDS Since 2014, the armed conflict in Ukraine’s eastern provinces (oblasts) of Donetsk and Luhansk has dealt a heavy blow to people’s lives. The conflict has magnified the long-standing problems and created new ones. This study shows that scaling up efforts in the government-controlled areas (GCAs) of Donbas is desirable despite the subdued productivity in the region. This study recommends a decision tree approach to programming recovery in Donbas. Given the looming uncertainties and scenario-sensitivity of optimal policies, the recovery strategy should distinguish contingent policies from no-regret policies. Contingent policies change between the status quo and the reintegration scenarios, and they include interventions to mitigate conflict-related risks, risk-related transfers to address skill-shortages in GCAs, and investments for a contingent infrastructure strategy. By comparison, no-regret policies are desirable regardless of the conflict dynamics. They include the reforms to eliminate regulatory burdens and corruption; policies to open up the housing market; investments to modernize education for jobs and target low-hanging fruits in infrastructure; and efforts to produce better data to address knowledge gaps. 2021-07-14T19:22:55Z 2021-07-14T19:22:55Z 2021-06-25 Report http://documents.worldbank.org/curated/en/456551624599304372/The-Economics-of-Winning-Hearts-and-Minds-Programming-Recovery-in-Eastern-Ukraine http://hdl.handle.net/10986/35908 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: General Economy, Macroeconomics and Growth Study Europe and Central Asia Ukraine
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic GROWTH DRIVERS
CONFLICT-AFFECTED STATES
DESTRUCTION
DISPLACEMENT
FORCED DISPLACEMENT
DISORGANIZATION
LABOR MARKET
ACCESS TO BASIC SERVICES
POLICY EFFECTIVENESS
RECOVERY FINANCE
DEVELOPMENT STRATEGY
INTERNAL MIGRATION
DEMOGRAPHIC TRENDS
spellingShingle GROWTH DRIVERS
CONFLICT-AFFECTED STATES
DESTRUCTION
DISPLACEMENT
FORCED DISPLACEMENT
DISORGANIZATION
LABOR MARKET
ACCESS TO BASIC SERVICES
POLICY EFFECTIVENESS
RECOVERY FINANCE
DEVELOPMENT STRATEGY
INTERNAL MIGRATION
DEMOGRAPHIC TRENDS
World Bank
The Economics of Winning Hearts and Minds : Programming Recovery in Eastern Ukraine
geographic_facet Europe and Central Asia
Ukraine
description Since 2014, the armed conflict in Ukraine’s eastern provinces (oblasts) of Donetsk and Luhansk has dealt a heavy blow to people’s lives. The conflict has magnified the long-standing problems and created new ones. This study shows that scaling up efforts in the government-controlled areas (GCAs) of Donbas is desirable despite the subdued productivity in the region. This study recommends a decision tree approach to programming recovery in Donbas. Given the looming uncertainties and scenario-sensitivity of optimal policies, the recovery strategy should distinguish contingent policies from no-regret policies. Contingent policies change between the status quo and the reintegration scenarios, and they include interventions to mitigate conflict-related risks, risk-related transfers to address skill-shortages in GCAs, and investments for a contingent infrastructure strategy. By comparison, no-regret policies are desirable regardless of the conflict dynamics. They include the reforms to eliminate regulatory burdens and corruption; policies to open up the housing market; investments to modernize education for jobs and target low-hanging fruits in infrastructure; and efforts to produce better data to address knowledge gaps.
format Report
author World Bank
author_facet World Bank
author_sort World Bank
title The Economics of Winning Hearts and Minds : Programming Recovery in Eastern Ukraine
title_short The Economics of Winning Hearts and Minds : Programming Recovery in Eastern Ukraine
title_full The Economics of Winning Hearts and Minds : Programming Recovery in Eastern Ukraine
title_fullStr The Economics of Winning Hearts and Minds : Programming Recovery in Eastern Ukraine
title_full_unstemmed The Economics of Winning Hearts and Minds : Programming Recovery in Eastern Ukraine
title_sort economics of winning hearts and minds : programming recovery in eastern ukraine
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/456551624599304372/The-Economics-of-Winning-Hearts-and-Minds-Programming-Recovery-in-Eastern-Ukraine
http://hdl.handle.net/10986/35908
_version_ 1764483959495852032