The Ukrainian Challenge

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Ukraine gained independence in late 1991 under challenging conditions, facing hyper-stagflation between 1991 and 1994, with inflation soaring above 10,000 percent in 1993. The nation struggled to build its political and social infrastructure amid declining living standards and concerns for its sustainability. By mid-1994, Ukraine appeared to have established a political foundation for a sustained transformation of its social and economic policies. Moving forward, it is crucial for the government, financial assistance agencies, and emerging employer and trade union organizations to prioritize substantial reforms in labor market and social policy. This report assesses the emerging trends in social and labor market policy in Ukraine, targeting both local stakeholders addressing complex policy challenges and academics studying Ukraine's transition and reform processes. Prepared by the ILO's Central and Eastern European Team in Budapest, the report was developed in collaboration with the United Nations Office in Ukraine and various Ukrainian governmental, trade union, and employer organizations. It was presented at the tripartite conference 'Reforming Labour and Social Policy in Ukraine' in Kiev in September 1994, and includes conclusions and recommendations from the conference.