Displaced persons: how to keep and bring ukrainians back home

The ongoing armed conflict, the bleak security situation, and the lack of a systemic vision for resolving the IDP problem continue to force people to emigrate abroad. In order to retain people in Ukraine and facilitate the return of those who have left, the state and our international partners must propose a strategic vision for addressing this issue. Clearly, this requires the creation of a comprehensive set of socio-economic prerequisites. I refer to this concept as the “Ukrainian Dream,” drawing an analogy with the so-called “American Dream.”

This concept should provide answers to key questions such as employment opportunities, creating conditions for business development, and providing housing for those citizens who have lost it. Let’s consider these issues one by one. 

Addressing the housing problem

Individuals who have lost their housing due to hostilities or whose homes are located in occupied territories should be provided with the right to use alternative housing or given the opportunity to obtain preferential long-term mortgage financing to purchase such housing. In particular, it is necessary to expand relevant programs offered by the Fund for Support of Youth Housing Construction and Ukrfinzhytlo (eHome / e-Oselya).

For example, the Ukrainian government has spent over UAH 73 billion on payments to internally displaced persons (UAH 2,000 for adults and UAH 3,000 for children and disabled individuals per month). With these funds, the state could have constructed more than 300 multi-apartment residential buildings, each containing 280-350 apartments (for comparison, based on the average cost per square meter of housing approved by the Ministry of Infrastructure, 73 billion hryvnias would have been sufficient for the construction of 3.4 million square meters of housing, whereas, in the first nine months of 2023, construction began on 3.1 million square meters of housing). These apartments could have been made available for over 100,000 individuals who lost their homes. Additionally, a significant portion of the population could have been employed in the construction industry (for comparison, in 2021, over 690,000 people worked in the construction sector).

An alternative to multi-story buildings could be a model similar to Israeli kibbutz settlements, with five-story houses where displaced individuals live and work in agricultural or processing enterprises within the kibbutz’s territory. Such a solution may be somewhat more expensive than regular houses, but it immediately provides employment for the population and often includes necessary social and psychological programs for the kibbutz residents. The integration effects of such settlements can be genuinely significant.

Men engaged in such construction could be granted deferments from mobilization. A similar large-scale project would significantly boost economic development, support local production of construction materials, and, as a result, the state would acquire a substantial asset. In the long term, these apartments could be used as a flexible housing reserve, which low-income individuals could access for free, and others could purchase them through favorable state-sponsored mortgage programs if they desire.

The availability of such apartments where people can live for free and have the opportunity to get back on their feet while having a roof over their heads would encourage a certain portion of those who left, especially among the youth who lack their own housing, to return to Ukraine if they were guaranteed access to these apartments. For those planning to leave Ukraine, this could become an argument in favor of staying.

Funding for such large-scale housing construction projects could be proposed to international donors who have already expressed their willingness to provide additional compensation to Ukrainian returnees. Providing them with apartments could not only motivate them to return but also to stay if the condition of living in the apartment is set as a requirement for the possibility of obtaining ownership or purchasing it at a specific discount. 

Overall, the state could implement such a large-scale project. For example, it could breathe new life into Ukraine’s largest state construction holding, “Ukrbud.” Under the proper management and strict oversight from international observers and the public, it could become the general contractor for mass housing construction projects in Ukraine.

Additionally, it would be advisable to create a platform where internally displaced professionals (e.g., doctors and teachers) could find communities willing to invite them to work and provide suitable conditions, including housing. This way, it would be possible to simultaneously fulfill the labor needs of the respective community, address the integration problem of displaced individuals and their families, and encourage highly skilled professionals to remain in Ukraine. 

Employment and creating conditions for doing business

Ukrainians are a nation of entrepreneurs, so first and foremost, the state should simplify business conditions to the maximum extent possible. This includes implementing straightforward and transparent reporting and taxation rules, as well as establishing transparent, automatic tax monitoring.

Simultaneously, the state should actively support entrepreneurial education and provide grants for creating and developing small businesses. Within these grant programs, it would be beneficial to allocate specific quotas for young entrepreneurs and internally displaced persons. For the latter, it is essential to consider their successful entrepreneurial experience before displacement, which demonstrates their aptitude and necessary business skills for restarting their businesses in their new communities. Such an approach, among other benefits, would promote employment opportunities for IDPs. With the help of grants, IDPs would create job opportunities for themselves and potentially for other displaced individuals. 

This principle is also embraced by Olha Sanzharevska, an internally displaced person from Maryinka and a member of the IDP Council at the Darnytskyi District State Administration in Kyiv. She managed to secure a grant from the government for her own business and is now providing free training to other IDP women on creating business plans and applying for grants. 

“Of course, it’s just a drop in the ocean, but if the state were to allocate specific quotas for grants to IDPs within the ‘Own Business’ program, with the condition that an IDP hires themselves and two more displaced persons, it would significantly contribute not only to IDP employment but also provide them with more incentives to stay in Ukraine and develop their own businesses,” comments Olha on the situation.

At the same time, a hindrance to women’s employment or entrepreneurship is the shortage of places in preschool educational institutions. Olha Drozdova, co-founder of the NGO Radoslava and deputy head of the IDP Council at the Vyshhorod District State Administration, points out the following: 

 “Negative factors of the war impact Ukrainian women and encourage them to return from maternity leave earlier than stipulated by Ukrainian legislation. However, for many women, returning from maternity leave is impossible due to a lack of places in communal daycare centers, especially nurseries for children under three years old. This is one of the most pressing problems today: access to preschool education in Ukraine is very low, particularly for the children of internally displaced women due to long queues in public daycare centers. On the other hand, private daycare centers charge high fees for their services.

We need more women to work to reconstruct and revitalize Ukraine’s economy. We must create conditions that offer them equal opportunities in their professional and social lives. And we need high-quality and safe childcare services to allow women to balance motherhood and a career.

To achieve this, it’s necessary, firstly, to develop a State Program for developing kindergartens and other preschool institutions in Ukraine. Secondly, it’s crucial to increase the affordability of services provided by private kindergartens through state (local) programs or international funds. These steps would expand the economic opportunities for women in the labor market and support Ukraine’s economy.”

Finally, it is important to recognize that some of those who left may not return to Ukraine. However, we will need a significant labor force and economically active population for our recovery, both in terms of infrastructure and the economy. Migrants can provide the workforce that Ukraine may face a shortage of in the future. It is essential to acknowledge this and fully utilize the potential of this labor resource. Implementing the right policies in this regard can help prevent potential security risks and cultural and religious conflicts and attract professionals who can enhance our productivity and competitiveness in the global market.