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To rebuild Ukraine, turn to the Millennium Challenge Corporation

A law enforcement officer stands next to a gymnasium building destroyed as a result of hostilities in 2022 in the town of Izyum, Kharkiv region, on September 10, 2023, during the first anniversary of liberation of the small town in eastern Ukraine. Moscow’s forces pulled out of vast swathes of the Kharkiv region bordering Russia last September, leaving behind smashed-up houses, mine-riddled farms, torture centres and mass graves. (Photo by SERGEY BOBOK / AFP) (Photo by SERGEY BOBOK/AFP via Getty Images)

Not long after Russia’s illegal invasion of Ukraine, former U.S. Defense Secretary Robert Gates warned us that we were facing an “era-defining conflict.”

Sadly, he’s been proven right. 

Putin’s actions pose profound questions that go to the heart of the American global leadership. If we aren’t going to stand with Ukraine — a sovereign nation, a legally recognized member of the United Nations, the World Trade Organization, the Organization for Security and Cooperation in Europe, the International Monetary Fund and more, why should any power anywhere believe we’re serious about defending territories, maritime zones and airspace? 

Why should they think we’re serious if we aren’t willing to act against a brutal invader that’s committed thousands of atrocities and war crimes, taken innocent children away for reprogramming, trained missiles on civilian targets including schools and hospitals, threatened nuclear strikes and weaponized food against those in need in Ukraine and many parts of the world?

Ukraine is giving us answers to those questions each and every day, in the most courageous and inspiring ways. Our role is to provide the financial assistance and military tools they need to liberate their land for the last time. 

But there’s another way we can answer Putin’s challenge to the free world. We can begin to plan for a Ukraine that embodies the democracy, market-based economics and rule of law that Putin fears most.

Just as Gates warned of a changing era, we should embrace the opportunity to ensure an era-defining reconstruction. We should seek a plan to rebuild that doesn’t repeat the mistakes of past efforts in places like Iraq and Afghanistan, but safeguards taxpayers, enhances Ukrainian capacities and forges a path toward the Ukraine that can be.

Ukraine must reform its institutions to take on challenges like corruption and the rule of law, and its allies should ensure that every dollar from every source strengthens Kyiv’s path. Ukraine has made clear that its future is with Europe and key institutions like the European Union, which means that Europe should take the lead.

America can help by funding defined projects with clear timelines and precise end dates. But we should do more. Our funds should address precise problems and needs, and they should enhance Ukraine’s capacity to take on those needs themselves

The U.S. government should turn to its Millennium Challenge Corporation to help lead much of America’s role in Ukraine’s reconstruction. 

Launched 20 years ago with broad bipartisan support, the MCC helps countries that are committed to good governance and market-driven economics to take on significant infrastructure projects. More importantly, it does so in ways that simultaneously build the capacity of partner countries to govern more transparently, more effectively and more justly — all of which Ukraine’s citizens are demanding. 

The MCC doesn’t provide grants, it offers compacts with clear terms and conditions. Practically that means that the U.S. provides money, but its compact partners must reciprocate with reforms — both in policies and institutions. Experiencing those changes, as precise projects are being carried out, prepares a whole new generation to lead. In Ukraine’s case, those reforms and experiences, plus a generation of new leaders, might just be worthy of the sacrifices we’ve already seen.

That’s partly because the MCC also recognizes that it isn’t just building things — like physical infrastructure — that counts but building self-reliance. Ukraine has also long expressed its desire to become an MCC compact country — another sign of their dedication to democracy, and to markets. 

Putin’s invasion has put a normal MCC compact out of reach for a while, but in light of all that Ukraine has gone through — and all that Ukraine can be — Congress should create special provisions to authorize the MCC to work with free Ukraine. They can help the country become a better destination for private investment, and a better partner in the pursuit of trade and open markets.

The Millennium Challenge Corporation is currently celebrating its 20th anniversary — two decades of helping countries become freer and more prosperous. Its legacy of success can be found in many parts of the world. 

By bringing its approach to an era-defining reconstruction effort, we can create a more prosperous future for Ukraine and Europe, honor the sacrifice so many Ukrainians have made and rebuke Putin’s effort to undermine their cause.

Ambassador Mark A. Green (ret.) was formerly the administrator of USAID and served on the Millennium Challenge Corporation board during the Obama and Trump administrations.

Tags Millennium Challenge Corporation Politics of the United States Robert Gates Russo-Ukrainian War Ukraine aid Ukraine reconstruction Vladimir Putin

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