Since the war in Ukraine began, the country has faced immense social, political, and economic challenges. Millions of people have been displaced, infrastructure has been destroyed, and livelihoods have been severely disrupted. In addition, there are 3,669,000 Internally Displaced People[1] (IDPs) in Ukraine. As of October 2024,[2] there are 6,752,000 refugees from Ukraine recorded globally.

As a result, the economy faces significant challenges, including labour shortages due to military mobilisation, energy infrastructure damage from Russian attacks, and the need for extensive reconstruction. As of 31 December 2023, the total cost of reconstruction and recovery in Ukraine was US$486bn over the next decade.[3]

In this light, economic initiatives can therefore support war-affected people by fostering stability through job creation, reducing poverty and addressing inequalities. They encourage cooperation across communities, empower local populations, and provide sustainable livelihoods, thereby reducing conflict drivers and promoting social cohesion essential for long-term peace.

This article will examine how these initiatives have supported social cohesion at a community level, in regards to IDPs, and how they have aided veterans to reintegrate society as seamlessly as possible.

Efforts to reduce poverty across Ukraine and elevating living standards

As Ukrainians were faced with leaving their homes and communities due to the escalation of conflict, numerous individuals lost their jobs and the sense of dignity that comes with having one. To address this problem, a governmental platform with vacancies in all sectors was created, providing learning courses and free vouchers for professional skilling, reskilling or upskilling to allow war-affected people to join trainings programmes delivered by the state, civil society organisations or private companies.

In parallel, local businesses have been paired with education platforms to develop and suggest free reskilling online courses and employment counselling. For example, Kyiv-based education platform ‘Prometheus’ helps people on competitive basis to acquire new professions such as project manager, sales manager, auditor, or marketing expert. The programme makes a significant impact on economic stability of people. In practice, that means someone trained in digital marketing or a reskilled project manager can help to run local businesses to support the national economy. Also, this reskilling initiative empowers displaced people through jobs, provides economic stability and also restores dignity and hope.

Some local organisations like the ‘Right to Protection Foundation‘ provide not only career counselling for war-affected people and IDPs but also humanitarian help, legal aid, free courses for entrepreneurs, and other services. By helping war-affected people to meet both their basic needs and opportunities in skilling and reskills, the CSO promotes social and economic integration and helps people to reintegrate in the community and foster stability.

Also, microgrants are provided to promote gender equity and women’s leadership by organisations like Ukrainian Women’s Fund (UWF). The Fund actively supports initiatives to develop women’s entrepreneurships in Ukraine through providing grants, professional trainings, mentorship on ecologically responsible goods and services, technological innovations, social responsibility, fashion and design, health and beauty, education and consultations, tourism and hospitality. The Fund hopes its programmes for women can drive social and economic recovery, foster equity, sustainability, and resilience.

Integrating IDPs into host communities

The conflict in Ukraine has displaced millions of people, many of whom face significant challenges in integrating into new communities. The Platform for Social Change in Ukraine runs a programme that empowers IDPs and local community members by fostering social enterprises. This initiative provides training in business management, marketing, and financial planning, and offers grants to help participants launch community-oriented enterprises. This project, which spanned from 2023 to 2024, has focused on empowering women and youth among IDPs, fostering economic self-sufficiency, and enhancing social cohesion between displaced individuals and host communities through shared economic activities and collaboration.

At the same time, in northwestern city Lutsk Volyn Perspectives launched a project supporting the integration of IDPs from minority backgrounds. This initiative includes workshops on entrepreneurship, civic engagement, and leadership for IDPs, along with psychological counselling and roundtable discussions to address integration challenges. The project is part of a broader effort to foster social cohesion and support minority communities in Ukraine, helping IDPs enhance their economic opportunities and actively engage in community life.

Infrastructure & the environment

Rebuilding critical infrastructure in conflict-affected areas is essential for promoting economic recovery and long-term peace. Because of the war, agriculture fields are contaminated by mines. Out of 14 million hectares, only 3 million hectares have been demined. A number of local and international organisations, such as Ukrainian Deminers Association and others, are supporting efforts to clear landmines from agricultural lands, especially in eastern Ukraine.

This initiative compliments financial grants to enable safe farming activities that increase food security and promote sustainable agricultural practices in war-affected regions of Ukraine, which can reduce tensions over land resources and support food production.

Also, local initiatives in Ukraine have focused on restoring infrastructure, including schools, healthcare facilities, and roads. Not only do they create jobs but also help restore trust in local governance, as communities see tangible improvements in their daily lives.

For example, the city of Voznesensk invested money in the production of solid fuel briquettes. This helped turn organic matter (such as branches from tree pruning) into heat for households. Having access to locally produced fuel and energy is precious, especially at a time when there are disruptions to gas and electricity supplies.

The post-war recovery will have a significant impact on the country’s development for many years. Therefore, it’s important to focus on sustainable energy, energy-efficient buildings and infrastructure like using solar panels.

By promoting environmental sustainability alongside economic growth, local organisations are helping to create resilient communities that can withstand future economic, environmental, or conflict-related challenges and bring peace in the community. One of the organisations, EcoAction, has a programme focused on promoting the inclusion of green elements and environmental security.

Reintegration of veterans

There are initiatives to empower veterans through entrepreneurship, provide them with essential resources and support networks, and strengthen their role in rebuilding social and economic resilience in Ukrainian communities. Veteran Development Centres focus on long-term reintegration strategies for veterans. Located in educational institutions across Ukraine, these centres provide job training, entrepreneurial skills, and social reintegration programmes. They also work to foster community ties by offering veterans opportunities to participate in local economic activities. By empowering veterans to create sustainable livelihoods, the programmes help to reduce the risk of social unrest and fosters a sense of community among veterans and civilians alike.

For veterans and their family members, there are special grant programmes to start or develop businesses, and programmes to help with the relocation of businesses to safe regions. The Ukrainian Veterans Fund has launched a joint project with NPC Ukrenergo – a programme called ‘Razom’ (‘Together’) – where veterans have the opportunity to acquire skills for new careers in the energy sector and are guaranteed employment.

Conclusion

Russia's brutal war against Ukraine has had significant negative consequences for Ukrainian economy, businesses and the financial sector, including a decrease in business activity, income, and production due to population displacement and lower spending capacity.

In parallel, integration of millions of Ukrainian refugees into the labour market in Ukraine will pose a significant challenge, yet it is essential for both the refugees' successful resettlement and Ukraine’s post-war economic recovery. A large proportion of these refugees are women with young children or school-aged dependents.

Through local efforts, communities in conflict-affected regions are being empowered to rebuild their lives and contribute to long-term peace and stability. These initiatives demonstrate that economic development is not only essential for recovery but also a key pillar in the broader peacebuilding process. By investing in local economic initiatives, Ukraine is not only rebuilding its economy but also fostering the conditions necessary for sustainable peace.

[1] https://data.unhcr.org/en/country/ukr/751?secret=unhcrrestricted

[2] https://data.unhcr.org/en/situations/ukraine

[3] https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099021324115085807/p1801741bea12c012189ca16d95d8c2556a