The World Bank in Ukraine

Ukraine joined the world bank in 1992, and over the 25 years since, the World Bank has committed $10 billion to over 70 projects in the Ukraine.[1] Ukraine is in a constituency with Armenia, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Georgia, Israel, Macedonia, Moldova, Montenegro, Romania, and the executive director of the constituency is Frank Heemskerk from the Netherlands.[2]

History

After the collapse of the Soviet Union, Ukraine obtains its independence in 1991, and in September 3, 1992, Ukraine joins the World Bank.[3] Ukraine’s aspirations to social and economic reforms with help from the World Bank were always delayed due to difficulties in implementation of reforms stemmed from corruption and poor governance. The lack of capacity to decently implement policies due to corruption made it difficult for the World Bank to initially begin projects in Ukraine.[4]

Since President Viktor Fedorovych Yanukovych came into power he began economic reforms that emphasized on improving implementation of policies by strengthening institutions throughout the government.[4] These reforms helped strengthen the implementation mechanisms and governance standards in Ukraine. They allowed the World Bank to implement infrastructure projects throughout the country.

Current Issues

Water

Then World Bank Intervention in Ukraine has long been aimed at the development of Ukraine's infrastructure. Since late 2014 the World Bank has begun multiple projects in the Ukraine aimed at improving roads, highways, municipal structures, waste managements, and ultimately allowing Ukrainian markets to open up abroad. The cities of Ukraine all face problems with decades old irrigation system that was inefficient in its use of energy as well as problematic in its dealing with waste.[5] The International Bank for Reconstruction and Development (IBRD) gave Ukraine a $140 million loan. and provided in order to assist Ukraine to deal with the decaying pipeline, by replacing the older pumps with new systems that are more efficient in the movement of water and waste. The city of Kolomyia managed to install eight kilometers of new water pipes and sewage disinfection system, which is technological advanced is the first city in Ukraine to keep the water clean without the use of Chlorine.[6] In addition to developing new pipeline the World Bank has also loaned $22.8 million for improvement of water pumps that will allow utility companies access to newer more efficient pumps which allow for deeper drilling for purer water.[7]

Road

Ukraine has many mountain roads, and as such tends to have many car accidents due to most drivers not being aware of how to drive on Ukraine's long mountain roads. Ukraine makes a great deal of capital from tourist who come to see the natural scenery from the mountains of Ukraine. The World Bank has begun projects to improve the safety of these mountain roads that are the location of many accidents. Ukraine has recently managed to widen roads, and install emergency sidetracks on the mountain highways, as well as increases warning signs to signal drivers to drive more cautiously along the mountains.[8] According to the World Bank, the improvements of the roads of Ukraine will not only diminish the amount of accidents, but also allow for easier transportation of goods throughout the country allowing the Ukrainian economy to grow.[8] There has been a great deal of demand for the improvement of roads from private businesses to allow for the transportation of goods, the World Bank involvement in safety improvement have also been an answered to the demands of many private businesses, particularity farmer who previously were limited in their capacity to transport good. The growth of roads allows for increase of trade within Ukraine, and opens doors to exporters to gain access to trade abroad as well.[9]

World Bank analysis indicated that the improvement of roads allows for the economic development within Ukraine, however in order to further stimulate growth, the World bank has worked directly with Ukrainian banks in order to provide long-term loans that will allow companies in Ukraine to began exporting abroad. The world bank has invested in Ukrainian exporters via the International Finance Corporation (IFC) to work with Ukreximbank, which is the trade bank of Ukraine in order to help Ukrainian exporters recover from the recession.[10] The growth of the economy and benefits to exporters gave the World Bank incentive to further improve transport connectivity, road safety, and improve road network management in Ukraine, in order to allow for the growth of exporters throughout the country. However, the conflict in Crimea and Eastern Ukraine has resulted in the prevention of the completion of this project, as well as changes in planning [11]

References

  1. ↑ "World Bank Portfolio".
  2. ↑ "EDS19 Home".
  3. ↑ "Member Countries".
  4. 1 2 "International Bank for Reconstruction and Development: Ukraine" (PDF).
  5. ↑ "Modernizing Municipal Infrastructure in Ukraine".
  6. ↑ "Ukraine: Making Ukrainian Cities More Livable".
  7. ↑ "In Ukraine: Fixing an Old City's Old Water System".
  8. 1 2 "Ukraine: Making Roads Safer".
  9. ↑ "Improving the condition of the M-03 highway and increasing road safety in Ukraine".
  10. ↑ "Helping Ukrainian Exporters Find New Markets Abroad".
  11. ↑ "Road Sector Development Project".
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.