Over 33 years of independence, Ukraine’s economy has failed to become market-oriented or free. Political and business elites have preserved a post-Soviet structure of capital and employment. Ukraine is extremely poorly integrated into regional and global systems of division of labor. The share of goods exports stands at approximately 22% of GDP, while imports are approximately 40% of GDP. In terms of accumulated foreign direct investment per capita, Ukraine is the worst-performing country in Europe. We are also the poorest country in Europe by GDP per capita.
The Ukrainian economy is characterized by strong internal and external protectionism, widespread discriminatory practices, and bureaucratic favoritism (cronyism). In essence, the Ukrainian economy, with a non-market sector constituting 65–70% (government expenditures), is state-controlled and centrally planned. These facts are the root causes of corruption, which drives business into the “gray” economy, accounting for approximately 50% of GDP.
Ukraine is experiencing an acute deficit of economic freedom (ranked 150th in the world in the 2024 Index of Economic Freedom). We have very weak institutions for the protection of property rights (ranked 102nd in the 2024 International Property Rights Index, and 88th in the 2024 Rule of Law Index). Ukraine is characterized by low-quality public governance. In the World Bank’s Worldwide Governance Indicators for 2024, Ukraine received a score of 37.74% for “Government Effectiveness” (best score is 100%), 43.4% for “Regulatory Quality,” and 19.81% for “Rule of Law.”
Taking Christian values, liberty, property, and the pursuit of happiness as the basis for economic policy in a democratic, limited government;
Realistically assessing the low quality of management personnel and capital (capacity), and the fusion of the executive vertical of national and local administration with both legal and shadow business;
Considering the acute deficit of quality judicial and law enforcement services in economic relations, as well as the extremely low level of trust in all branches of government, including the judiciary;
Taking into account the positive experiences and mistakes of transition countries in Europe and Asia following the collapse of the Soviet Union;
Basing our approach on the achievements of modern economic science and the experience of countries that have demonstrated the phenomenon of an “economic miracle”;
We, a team of dedicated proponents of Christian, Western values, the free market, and capitalism, propose to conduct comprehensive, systemic, market-based reforms in Ukraine to create a private, free, competitive economy integrated into regional and global systems of division of labor. Our goal is the simultaneous reset of both the governance system and the economy. We propose implementing a full-fledged partnership between society, business, and government based on the principles of freedom, responsibility, and solidarity. The key actions and decisions are outlined below.
I. Public Administration
Implementation of Constitutional Reform: Adoption of an State Sovereignty Act and a new Constitution with a clear separation of powers between the President, the Government, and the Parliament.
Adoption of a “Fiscal Discipline Act.” This law establishes mandatory caps to ensure long-term stability.
- Government expenditure limits – maximum 25% of GDP;
- Volume of state ownership – maximum 15% of GDP;
- Inflation – maximum 2% annually;
- Budget deficit – maximum 2% of GDP annually;
- National debt – maximum 20% of GDP (medium-term perspective);
- Public sector employment, including the armed forces – maximum 15% of the workforce.
Adoption of a new simplified structure for the Cabinet of Ministers, consisting of eight ministries:
- Ministry of Defense,
- Ministry of Internal Affairs,
- Ministry of Finance,
- Ministry of Foreign Affairs,
- Ministry of State Property Management and Privatization,
- Ministry of Justice,
- Ministry of Veterans Affairs and Social Policy,
- Ministry of National Security.
- The National Bank serves as a special government institution.
Approval of the structure for each ministry, its KPIs, budget, operational regime, and reporting standards.
Establishment of a Clear Delineation of Powers, Responsibility, and Resource Base between national bodies and local self-government.
Establishment of a Control Regime over the activities of all public administration bodies.
Elimination of Function Duplication among public administration bodies with corresponding adjustments to their budgets.
Corporatization and Privatization Policy. Strict prohibition on the creation of commercial state monopolies. All non-strategic state-owned commercial enterprises must be transferred to the Ministry of Strategic Assets and Privatization for transparent sale at auctions. Strategic defense enterprises will be corporatized in accordance with OECD standards.
Development at the Local Level of a Mechanism for Targeted Social Assistance for citizens at potential risk of losing assets (the unemployed, large families, retirees, the disabled), monitoring of targeted social assistance programs, and partnership of regional authorities with civic and religious organizations.
Adoption of a Law on Public Procurement, creating institutions and mechanisms for public procurement based on the following principles: accountability of all authorities, integrity and fairness in bidding and contract execution; transparency of decision-making and financial flows; open competition for the right to produce and supply goods and services ordered by authorities and state enterprises; uniform procedures and practices for all commercial organizations.
Adoption of Performance Criteria (KPIs) for state and local authorities in the following areas:
- Economic growth,
- Efficiency of budget resource management,
- Development of competition,
- Investment,
- Foreign trade,
- Energy, water supply, heating, and other utilities,
- Education,
- Healthcare,
- Social standards.
II. Money and Finance
Phased Expansion of Currency Freedom post-war (5 years): Ukraine will gradually lift temporary currency restrictions and allow wider use of foreign currencies in the private sector alongside the Hryvnia. This primarily concerns the US Dollar and the Euro as key reserve currencies, as well as other stable currencies of trade partner nations. The Hryvnia remains the sole official state currency and means of payment for taxes and budget obligations. At the same time, businesses and citizens gain more freedom to use stable foreign currencies for savings, investments, and contracts.
Abolition of Restrictions on Capital Flow for current and capital accounts of the balance of payments.
Abolition of Discretionary Price Regulation by authorities on all goods and services, except for services provided by monopoly producers (utilities, public transport, etc.).
Free Formation of the Exchange Rate of the Hryvnia (₴) relative to foreign currencies.
Authorization of Electronic Payment Instruments (e.g., Bitcoin) in domestic and international settlements. Recognition of digital assets (cryptocurrencies) as intangible assets protected by property rights. Establishment of a favorable, low-regulation regime (aimed at combating fraud, terrorism financing, and ensuring tax transparency) for mining and trading digital assets. Establishment of a favorable tax regime subject to strict adherence to international AML/KYC standards and sanctions control.
Implementation of a Simplified Registration Procedure for Financial Intermediaries (banks, financial companies, funds) to provide financial and payment services to business entities, based on a notification principle.
Creation of a Free Market for Gold, Precious Metals, and Stones. Elimination of legal and administrative restrictions in this segment of the economy.
State Divestment from Financial Organizations and Banks: Full privatization of banks and insurance companies to create conditions for open competition in the financial services market, ensuring equal competition between Ukrainian and foreign companies in the financial services market, and eliminating conflicts of interest.
Establishment of a Single Mandate for the National Bank – an inflation target of 0–2% per year. Inclusion in the “Law on the National Bank” of a provision stating that if the established inflation target is exceeded by the country for two consecutive years, the Governor of the National Bank automatically resigns.
III. Budget and Taxes
Implementation of a Fiscal Rule: Maximum level of general government expenditures – 25% of GDP (achieving this level 3–5 years after the war ends); maximum/threshold level of national debt – 20% of GDP (achieving this level 5–7 years after the war ends).
Implementation of a Law: Local self-government bodies must maintain balanced local budgets. In the event of a violation of the balanced budget norm for two consecutive years, the head of the local authority automatically resigns.
Establishment of Clear Quantitative and Qualitative Criteria for assessing the efficiency of public spending across all types of budget expenditures.
Abolition of All Extra-Budgetary Funds, including the Pension Fund. Transfer of state pension and social obligations to the state (central) budget. Implementation of the principle “all budget revenues are used to fulfill all state obligations” within the framework of established protected budget items and priorities. All targeted social support programs (for the disabled, unemployed, low-income families) will continue to operate within a transparent, financially responsible system with clear eligibility criteria and distribution mechanisms.
Transition to an Innovative Tax System within 5-7 years after the end of the war:
- Gradual simplification of VAT and transition to a Retail Sales Tax: A single flat rate of 15% applies to all goods and services without exception.
- Excise taxes on producers of electricity, gas, mineral products, alcoholic beverages, and tobacco products at rates that ensure a balance of interests between producers, importers, and consumers, as well as the elimination of the shadow economy in these sectors.
- Personal Income Tax (Flat Tax): A single flat tax rate of 10%. All other taxes are abolished, except for specific mandatory contributions to individual social/health accounts described herein
- The reform will be implemented in a fiscally neutral manner to ensure macroeconomic stability and the continuity of essential public services.
Introduction of a Single, Fixed Import Duty Rate of 5% on all goods and services, within international obligations. Exports of goods and services are duty-free. In the sphere of mineral resource extraction, a fixed royalty rate for land/resources will be introduced.
Restructuring of Public Finance Management: Merger of the Ministry of Finance, State Customs Service, State Tax Service, State Fiscal Service, and State Service of Export Control into a single body – the Ministry of Finance.
Capital Repatriation Program: Citizens and businesses may undergo a one-time legalization of undeclared assets with minimal disclosure requirements, excluding proceeds from corruption, war crimes, or collaborationism. A condition for legalization is the payment of a one-time fixed contribution (e.g., 5%) to the state budget, provided these funds are invested in the Ukrainian economy. Legalization is possible exclusively after passing financial monitoring under FATF standards.
Amnesty for Non-Violent, Non-Corrupt Economic Offenses committed before 2022, excluding large-scale fraud and crimes against the state.
Conducting Large-Scale Privatization: The preferred form of privatization is the cash privatization of resources and assets through open tenders/auctions. Large state-owned commercial organizations, including banks, railways, insurance companies, and energy assets, will be privatized with the assistance of specialized, reputable companies from Ukraine’s partner nations, involving supervisory boards formed of representatives from US/EU investors and auditors.
IV. Business Climate, Regulatory Competitiveness
Establishment of the Basic Principle of Good Faith (Presumption of Innocence) in Business Law: A business entity cannot be penalized by state authorities (confiscation, account blocking, debiting of funds, seizure of property) prior to the establishment of guilt in accordance with legal procedure.
Abolition of Regulatory Acts that Violate the Principle of Equal, Open Competition and Restrict Economic Freedom: This will involve a review of the regulatory framework and the introduction of a “regulatory guillotine,” i.e., large-scale deregulation.
Establishment of a Rule for State Regulation: New regulatory acts will be introduced only if there is a scientifically grounded analysis and assessment of their contribution to ensuring rapid, long-term economic growth with a high level of economic freedom.
Ban on Inspections by State Control Bodies regarding business entities whose activities pose no or minimal risks to consumer health and safety.
Implementation of a Legislative Norm Exempting Business Entities from Liability for Minor, Insignificant Infractions: Business entities and aggrieved parties (individuals or organizations) will have the right to independently determine the damage compensation regime, including through mediation and private arbitration mechanisms.
Introduction of the Principle of Tacit Consent (“Silence is Consent”) in Legislation: This allows a business entity to perform certain actions without obtaining permission from a regulatory body for licenses, permits, or certificates, provided the body does not send consent or refusal within the established timeframe.
Review of the Volume, Content, and Frequency of Official Statistical Reporting: Reduction of the volume of mandatory data submitted to authorities.
Expansion of the Use of Self-Regulation Principles in Commercial Activity: Encouraging participation in industry organizations and associations and the adoption of their rules, norms, standards, and codes of conduct in the market.
Creation of a Special Regulatory Regime for the Self-Employed, Micro, and Small Business: Abolition of all licenses, permits, certificates, and approvals, except for areas directly related to national security.
Transition Exclusively to a Digital Format for Relations Between Government and Business Entities: Ensuring legal, organizational, and technical capabilities for electronic document flow.
Adoption of a New Labor Code: Creation of a flexible labor market, lowering transaction costs for opening and closing jobs while forming a new market structure of capital and employment.
V. Pensions and Targeted Social Support System
Modernization of the Targeted Social Support System in Ukraine based on two principles: 1) Monetization of all benefits, subsidies, and services provided to various categories of the population, 2) A means-tested approach to defining recipients of social support based on clear criteria.
Introduction of the Following Criteria for Targeted State Social Support: 1) Level of monetary income, 2) Health status (presence of disability), 3) Presence of non-monetary income, 4) Number of dependents, 5) Education level, 6) Amount of savings, 7) Ownership of housing, assets, land, and real estate.
Maximum Amount of Monthly State Financial Targeted Support for socially vulnerable segments of the population is established at the equivalent of 300 US dollars for three years after the end of the war.
Transition to a System of Basic Guaranteed Pension Income for all citizens of Ukraine who have reached the age of 63. All citizens reaching retirement age are guaranteed a basic pension set at a fixed percentage (e.g., 40%) of the average wage in the country. Existing retirees will receive this universal pension during the transition period, ensuring a smooth shift from the old system to the new one. This protects retirees and eliminates bureaucratic manipulation.
Ensuring the Gradual Transition of the Insolvent “Pay-As-You-Go” Pension System to Individual Pension Accounts. Current contributions will continue to fund the pensions of existing retirees during a 10-year transition period. New contributions will be directed to private savings accounts. These will grow along with contributions and investment returns.
Granting Pension Payments the Status of Non-Reducible Obligations: Implementation of the principle “All state revenues are used to fulfill all state obligations.” Inclusion of the state pension fund into the state budget.
Guarantee of Full Inheritance of Pension Assets: Up to 100% of accumulated funds in a citizen’s private pension account are their private property. In the event of death, these funds are immediately transferred to heirs tax-free to cover funeral costs and family maintenance.
Implementation of the Voluntary Principle of Private Pension Insurance: Every citizen of Ukraine entering the workforce, as well as those with at least 20 years remaining until retirement age, must open an individual pension savings account in one of the private pension funds or authorized financial organizations managing such accounts.
Integration of Veterans into the Social and Economic Life of Ukraine: Implementation of a system of targeted grants that a veteran can use to pay for education or as start-up capital for a business. Special regime for businesses founded by veterans: 0% profit tax for 5 years. Involvement of the private sector and religious organizations in providing medical/psychological services based on the “money follows the patient” principle instead of maintaining state sanatoriums.
VI. Education and Healthcare
Grant full institutional autonomy to schools and universities, including control over budgets, curricula, and personnel, with optional corporatization models. Begin gradual diversification of ownership models in higher education, including private, public-private, and foundations.
Ensuring Autonomy of Primary and Secondary Schools: Conversion of primary and secondary schools into Open Joint-Stock Companies (OJSCs), allowing them to independently determine work schedules, relations with teachers, select programs and textbooks, grading systems, relations with parents, sponsors, etc. Transfer of 100% of shares of primary and secondary schools to local self-government bodies. Creation of a mechanism for the sale of up to 50% of shares to private commercial structures and individuals.
Abolition of the Ministry of Education: Creation of an Agency for the Educational Services Market, transfer of state property managed by the Ministry of Education on behalf of the state to the management of the Agency for Privatization and State Property Management. Radically reduce staff and transform the Ministry of Education into a standard-setting and monitoring body.
Introduction of Education Vouchers, issued by the state to every citizen of Ukraine upon reaching the age for entry into school or university: transition from funding schools to funding students, implementing the principle “money follows the student.” Parents of all school-age children will receive a voucher of equal value.
Expansion of the Practice of Issuing Student Loans: Higher education institutions may act as guarantors of student loans for higher education. Establishment of state scholarships for the best students to study abroad.
Reform of Higher Education Ownership and Governance: Adoption of a long-term plan for the transition of higher education institutions to diversified ownership and independent governance models. Within six years after the war, universities will be encouraged to move away from direct state control through privatization, public-private partnerships, foundations, and independent boards of trustees. The state may retain a minority, non-controlling stake (no more than 25%) in selected strategic institutions to protect national interests and ensure academic continuity. The government reserves the right to determine which educational institutions should remain state-owned.
Transition to a System of Individual Health Savings Accounts (HSAs): Funds for these accounts will be formed by monthly contributions from citizens amounting to 3% of their monthly wage, as well as annual budget transfers. Funds from these accounts can only be used to purchase medical services. Funds in these accounts will accumulate throughout a person’s life and be transferred to heirs.
Size of Financial Transfers from the State Budget to personal medical savings accounts combined with basic catastrophic insurance, with incentives linked to healthy behavior. The state will cover 100% of the cost of medications for patients with diabetes and other diseases determined by the Agency for the Medical Goods and Services Market.
Transformation of All Structures of the State Healthcare System (polyclinics, hospitals, laboratories, research medical centers) into Open Joint-Stock Companies: Their shares will be transferred to local self-government bodies. Shares of national research medical centers and specialized hospitals will be transferred to the balance sheet of the Agency for Privatization and State Property Management. All medical institutions will receive full economic independence and the right to engage in commercial activity.
All Medical Service Providers Will Compete in Open Competition for the right to provide services to consumers nationwide, regardless of location. Within five years of the start of healthcare reform, local authorities will sell up to 75% of the shares of medical organizations on their balance sheets. The final outcome should be a competitive market for medical services with gradual corporatization and private ownership, preserving access guarantees for vulnerable population groups. Some clinics and services (e.g., emergency care) may remain in state ownership to ensure free access for socially vulnerable layers of the population.
