INVESTMENT RESOURCE OF INTERNATIONAL TECHNICAL ASSISTANCE PROGRAMS IN UKRAINE'S ECONOMIC DIPLOMACY SYSTEM (ON THE EXAMPLE OF USAID PROJECTS)
Abstract
The article examines the conditions under which international technical assistance (ITA) programs can function not merely as instruments of reform support, but as an indirect investment resource within Ukraine's economic diplomacy system. The research focuses on four USAID projects in Ukraine – DOBRE, AGRO, Competitive Economy Program, and Energy Security Project – which together represent over USD 1.4 billion in donor commitments across local governance, agriculture, business competitiveness, and energy regulation. Methodologically, the study employs a qualitative multi-case design following the logic of Robert K. Yin, comparing the four programs against eight analytical criteria: budget, implementation period, target sector, type of influence on the investment environment, mechanism of investment resource formation, character of investment effect, sustainability of results, and key limitations. The central finding is that ITA forms an investment resource primarily not through direct substitution of private capital, but through creating preconditions for capital entry: institutional capacity of communities, development of market infrastructure, regulatory predictability, export readiness of businesses, and alignment with international standards. The comparative case analysis demonstrates that the shortest path to investment outcomes belongs to programs combining technical assistance with a market signal, sectoral specialization, and a clear channel to potential investors. The article proposes a conceptual model of grant-to-investment-resource transformation, identifying the critical "chain gap" between formal reform adoption and the actual reduction of transaction costs. Cross-country comparative evidence from Georgia, Moldova, and the Western Balkans reinforces the finding that ITA converts most effectively into investment outcomes when embedded within a structured project pipeline. The findings carry practical implications for the Ministry of Economy of Ukraine, development partners, investment promotion agencies, and local communities designing post-war recovery programs.
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