Policy insights Ukraine Initiative

Financing democracy: Why and how partners should support Ukraine

After almost two years of full-scale war, the outcome is not yet clear. On the one hand, Ukraine has preserved its statehood and a working government, regained a large part of the territory occupied in 2022, materially degraded the Russian navy in the Black Sea, and is operating the seaborne shipping corridor without Russia’s goodwill. Furthermore, Ukraine’s economy has been resilient. On the other hand, the war of attrition is taking a heavy toll. Without a doubt, Ukraine would not have been able to resist for so long without the military, humanitarian, and financial aid of other governments and international organisations. But while continued support is vital for Ukraine to prevail, it currently appears to be at risk, with some saying that spending on Ukraine is not a priority and further US support held up in Congress.
The authors of this Policy Insight argue that supporting Ukraine is not charity, since Ukraine’s existential war for its own survival is also a war to defend the international rule of law, European democracy and security.

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Citation

Becker, T, O Bilan, B Eichengreen, V Dombrovskis, A Fedyk, Y Gorodnichenko, P Nagy-Mohacsi, T Mylovanov, J Nell, N Shapoval, I Sologoub, G Roland and B Weder Di Mauro (2023), Financing democracy: Why and how partners should support Ukraine, CEPR Policy Insight, CEPR Press, Paris & London. https://cepr.org/publications/financing-democracy-why-and-how-partners-should-support-ukraine