Ukraine urgently needs to develop institutions in line with European standards, drawing on the support and solidarity of European countries. This was stated by James Robinson, the 2024 Nobel Laureate in Economics, during a public lecture entitled “Why Nations Fail: The Origins of Power, Prosperity, and Poverty,” organized by the Kyiv School of Economics and ICU investment group.

“For Ukraine today, there is great urgency in getting closer to Western Europe—particularly in building institutions aligned with European norms. Right now, you have that opportunity,” Professor Robinson emphasized.

According to Robinson, constant military threats should not prevent systemic reform and economic prosperity.

“South Korea lived under constant threat from the North for decades, and Taiwan faces threats from China, but that did not stop them from achieving some of the greatest economic transformations in history. Ukraine can also reform, even if the Russian threat does not disappear,” Robinson said.

Robinson emphasized that the current political changes in the United States could leave Ukraine vulnerable, but also create opportunities for deeper cooperation with European countries:

“The bad news is that with the rise of post-liberal America, Ukraine might find itself ‘out in the cold.’ The good news is that all Europeans are also ‘out in the cold’—the French, British, Germans, Swedes, Norwegians, Italians—all of them are your allies, and right now, there is considerable solidarity among you,” Robinson stressed.

The economist emphasized that the key to rapid economic growth in Ukraine is to create open and transparent institutions that fully unleash human potential.

“People with talent, ideas, and ambition exist everywhere. You need institutions that allow this potential to be realized. It is precisely inclusivity that creates economic success,” Professor Robinson concluded.

James Robinson is one of the most influential economists and political scientists of our time, co-author of the international bestsellers “Why Nations Fail” and “The Narrow Corridor”. His research explains why some countries prosper while others fail, focusing on the role of economic institutions, governance systems, and political leadership.

In 2024, Professor Robinson, along with Daron Acemoglu and Simon Johnson, received the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for their research on the impact of institutions on the long-term economic prosperity of nations.