THE CURRENT STATE AND CONTRADICTIONS OF THE DEVELOPMENT OF THE INTERNATIONAL SYSTEM OF GRANT SUPPORT FOR THE ECONOMY IN THE CONTEXT OF POSTWAR RECONSTRUCTION OF UKRAINE

Abstract

The research provides an analysis of the role international grant support plays in Ukraine’s post-war economic recovery, drawing from global examples. The focus is on grants, which, unlike loans, provide essential financial resources without increasing national debt, making them a key tool for rebuilding infrastructure, institutions, and livelihoods after conflict. The study utilizes data from international recovery projects, such as the Multi-Donor Fund (MDF) in Indonesia and renewable energy initiatives in Liberia, both of which showcase how effective grant management can lead to successful recovery. While the dynamics of foreign aid to Ukraine, OECD data are taken into account. Key areas for improving grant effectiveness in Ukraine, including aligning projects with local needs, optimizing administrative processes, and capacity building to ensure long-term institutional sustainability, are identified in the research. The emphasis is placed on the importance of integrating long-term recovery strategies and strengthening local governance capacity to maximize the benefits of international grants. Without these, grants will have less chance to achieve their full potential in supporting sustainable development. The research highlights the challenges of bureaucratic inefficiencies, a mismatch between donor priorities and local needs, and administrative burdens, which may detract from successful project implementation. Additionally, the article raises the risk of grant dependency and stresses that international aid should promote self-sustaining economic growth rather than creating reliance. It calls for improved governance, accountability, and transparency in managing grants to ensure they contribute to Ukraine’s sustainable recovery. In conclusion, the article underscores that while international grants are vital for Ukraine’s recovery, their success depends on effective management, alignment with local needs, and long-term development goals. The study provides actionable recommendations to enhance grant effectiveness and ensure that Ukraine’s post-conflict recovery is both sustainable and robust.