In its October-November 2022 edition, Forbes Ukraine published an article on decentralisation based on the speech of Roger Myerson, winner of the Nobel Prize in Economics in 2007, at the KSE Foundation charity dinner in New York on September 17.

According to the article entitled The Reform That Stopped Putin Roger Myerson believes that the reform of local self-government was one of the main factors that strengthened the resolve of Ukrainians to fight for their country.

“Ukraine’s resilience in the face of Russian aggression surprised the whole world. Ukrainians in all regions of the country showed great determination to defend their homeland. In April 2014, things looked different: a handful of separatists in Donetsk and Luhansk met virtually no resistance. What caused this vital growth of national identity for Ukraine over the past eight years? (…) What changed Ukrainians? Patriotism ultimately depends on the belief that the political system is capable of serving the interests of the people. We must admit that such belief in Ukraine has been strengthened by the reforms that the Ukrainian government introduced since the Revolution of Dignity. The most important, in my opinion, was the reform of local self-government. It became one of the main factors that strengthened the resolve of Ukrainians to fight for their country. Citizens are willing to risk their lives and protect their homeland when they see the connection between serving the state and their own municipality.”

“Implemented since 2015, decentralisation created a new system of local self-government bodies. They got empowered to dispose of a significant share of local taxes and spend them on public services. As a result, the state spending system improved. Democratic decentralisation has brought forth local elected leaders with real powers to organise and support local territorial defence. Since the beginning of the invasion, there have been regular reports about the mayors leading the resistance to the Russian invaders.”

Roger Myerson, quoted in the article, stressed that the crucial role of local self-government should be taken into account when planning the post-war reconstruction of Ukraine. The main lesson of the Marshall Plan is that foreign aid can become much more effective if it promotes the reforms that lay the foundation for successful growth. Ukraine’s post-war development will depend both on strengthening ties with Europe and on building the capacity of local authorities to serve their municipalities.”

Read more in Forbes Ukraine October-November 2022.