The situation in which Ukraine’s financial system finds itself today is characterized by a lack of deep structural reforms and a high dependence on external Western financing. However, within this crisis lies a unique historical opportunity.
When the traditional system is not fully functional and a country faces the task of rebuilding devastated areas, a «blank slate» (open field) emerges. On this canvas, a fundamentally new, highly efficient financial and economic model can be built—one capable of delivering a technological and economic breakthrough.
1. The Concept of a Special Economic Zone and Joint Territories
Following the cessation of active hostilities, the question of rebuilding the regions most affected by destruction or possessing a complex legal and political status (for example, territories east of the Dnieper) will inevitably arise.
The idea of creating a «buffer zone» has no future and is unacceptable to Moscow.
Instead of attempting to implement outdated bureaucratic mechanisms, it is proposed to create a special international economic zone operating on the principles of independent management and international support, while preserving the political and state sovereignty of both Ukraine and Russia (in accordance with agreements reached during the negotiation process).
Key parameters of the zone:
- Tax and Customs Preferences: Full or significant exemption from export-import duties and traditional taxes to stimulate capital inflow.
- Multilateral International Oversight: Establishment of an International Public Council, which could include representatives from Ukraine, the West, as well as key global and regional players (including China, India, and Russia). This will ensure a balance of interests and international guarantees for investment security.
- Attracting Transnational Investment: Enabling capital from various jurisdictions to operate within a unified legal and technological framework.
2. Digital Finance, AI, and Eliminating Corruption
Corruption and the misappropriation of funds remain the main obstacles to effective reconstruction. The answer to this challenge lies in the deployment of advanced financial technologies:
- Complete Transparency: Transitioning the funding of the zone to digital currency (utilizing smart contracts and blockchain technologies) makes every transaction fully traceable.
- AI Control: Artificial intelligence algorithms can monitor the movement of funds in real time, eliminating the human factor and preventing oversight from being «switched off» at someone’s whim.
- Accessible Capital: The implementation of new digital platforms will allow credit resources to be raised at minimal rates (down to 0.5–1% per annum), standing in stark contrast to the high rates of traditional banking systems.
3. Public Companies as the Foundation of the Economy
As the core legal and organizational form for business in this zone, it is proposed to use the model of public/community corporations (Public Companies) and cooperative-artels built according to strict international (specifically Western) standards of shareholder protection.
The Principle of Transparency: In a public company, even a minority shareholder has the right to initiate an audit and involve regulatory bodies (similar to the US SEC) to inspect management actions. This ensures the highest level of executive accountability to investors and the public.
Historically, similar flexible economic models (cooperatives, artels), combined with the adoption of foreign technologies, have already demonstrated high efficiency in the Russian Empire and the USSR during periods of large-scale industrial leaps in the 20th century (in 1906–1913, and the 1920s and 1930s, including the practice of attracting thousands of Western engineers and companies to build new industry).
4. Historical Parallels and the Challenges of State-Building
Objective historical and technological processes demand the creation of modern institutions oriented toward the future intellectual paradigm of the economy.
When analysing a new zone-building, it is essential to consider historical lessons:
- National-Territorial Structure: In the 1920s, the division of spaces into individual republics and Communist Party branches was created as a mechanism to retain power in the absence of the expected world revolution. However, this approach planted time bombs beneath the integrity of a unified economic space.
- Rejection of Hyper-Centralization: Excessive state control over the economy frequently leads to diminished efficiency. Successful development requires a balance between state regulation, market planning, and free public-cooperative initiative.
5. Prospects and the Necessity of a New Initiative
Existing political elites are often trapped in the logic of the ongoing conflict and confrontation. Realizing the breakthrough described above requires new ideas and new forces.
Why is this project beneficial to all parties?
- For Ukraine: The creation of a modern technological hub becomes a locomotive for the economic recovery of the entire country, demonstrating tangible results and attracting world-class technology.
- For Russia: The emergence of a stable, clear, and transparent mechanism of economic interaction and infrastructure in neighboring territories, as well as the restoration and development of regions affected by the war.
- For the West and the International Community: A guarantee of the targeted use of allocated funds, a reduction in escalation risks, and a testing ground for future financial technologies.
Conclusion
Using the reconstruction territory as an experimental zone for the deployment of digital finance, AI oversight, and public companies offers a chance to move away from the dead-end logic of destruction and toward the creation of a progressive economic system for the 21st century. The realization of this potential depends on society’s ability to form an intellectual and organizational force ready to take on the implementation of this concept.
