A New Economic Strategy for Kharkiv's Recovery
UNECE together with Norman Foster Foundation and Harvard and Oxford Universities has released a comprehensive report outlining an economic strategy for Kharkiv's sustainable recovery and development. The study, authored by Edward Glaeser, Professor of Economics at Harvard University, and Ian Goldin, Professor of Globalisation and Development at the University of Oxford, charts a path for transforming Ukraine's second-largest city of Kharkiv into a knowledge-driven economy while building on its industrial and educational heritage.
The report emphasizes reorienting the economic and accelerating integration with European partners, while developing sustainable infrastructure and fostering innovation. A cornerstone of the proposed strategy is the creation of a new science neighborhood that would connect universities, research institutions and innovative businesses.
““This report provides a framework for Kharkiv to emerge stronger through sustainable reconstruction efforts. By focusing on knowledge-driven sectors while preserving the city’s industrial capabilities, Kharkiv can become a model for urban economic transformation.””
Key priorities outlined in the report include:
Attracting and retaining skilled talent through improved urban amenities and opportunities
Developing green infrastructure and industries aligned with EU standards
Reforming regulatory frameworks to encourage investment and entrepreneurship
Building economic resilience through diversification
Creating a science neighborhood centered around universities
Strengthening connections between academic research and industry
Modernizing industrial capabilities for sustainability
Improving quality of life through enhanced public spaces and services
The study highlights Kharkiv's significant assets, including its strong university system, skilled workforce, and industrial base. These existing strengths can be leveraged to accelerate the transition to a modern, sustainable economy integrated with European markets.
The authors emphasize that reconstruction efforts should focus not just on rebuilding damaged infrastructure, but on transformative improvements that position the city for long-term prosperity. This includes developing new economic clusters in areas like green technology, digital services, and sustainable agriculture.
The report's recommendations draw on international examples of successful urban reconstruction while remaining grounded in Kharkiv's local context. Particular attention is paid to fostering collaboration between local stakeholders and international partners to ensure sustainable, inclusive development.
“As long as the human capital remains, Kharkiv will continue to be resilient.”
The study is part of UNECE's broader UN4UkrainianCities initiative supporting the sustainable reconstruction of Ukrainian cities. It complements ongoing work on Kharkiv's physical reconstruction masterplan being developed with the Norman Foster Foundation.
The full report is available on the UN4UkrainianCities website, along with supplementary materials examining specific aspects of the economic strategy in greater detail.