Starting With Ukraine, IMD Launches Initiative On ‘Responsible Reconstruction’

Podil, an historic neighborhood in Kyiv, Ukraine, is shown after Russian bombing during the war. Courtesy photo

As wars, natural disasters and geopolitical instability create growing demand for rebuilding, IMD is launching a new global initiative to help companies take part in reconstruction responsibly and profitably.

The Switzerland-based business school’s Accelerating Responsible Reconstruction Initiative is a research and engagement platform exploring how the private sector can contribute to post-conflict and post-disaster reconstruction in ways that are both commercially viable and socially responsible.

The initiative will begin with Ukraine, where reconstruction needs are expected to stretch across the next decade. But IMD says the goal is broader, to shape reconstruction practices that can be applied in other regions where governments, institutions and companies must rebuild.

“Every conflict that ends will generate demand for reconstruction. Every natural disaster already does, so does asymmetric warfare,” says Simon Evenett in a release. He is a professor of geopolitics and strategy at IMD who will lead the initiative.

“The private sector is going to be part of that rebuilding whether we prepare for it or not. The question is whether companies do it well or badly, responsibly or recklessly. This Initiative exists to help them do it well.”

A PLATFORM FOR RESEARCH, FRAMEWORKS & POLICY DIALOGUE

The initiative is supported by the Responsible Reconstruction Fund, established with support from the AHL Foundation. It will produce research, develop practical frameworks, and convene a policy dialogue later this year with policy leaders, financing institutions and private-sector firms.

Its work begins as reconstruction needs rise around the world. According to IMD, 60 conflicts worldwide are driving demand for rebuilding while public budgets face increasing pressure. Ukraine’s reconstruction needs are estimated at more than $500 billion. The European Bank for Reconstruction and Development has deployed more than €9 billion in Ukraine since Russia’s full-scale invasion, while Switzerland has committed CHF 500 million to private-sector engagement in Ukraine’s reconstruction.

Existing business frameworks were built largely for conditions of relative stability. As conflict and reconstruction become more frequent, those frameworks need to evolve. The initiative’s role, the school says, is to make that transition practical, evidence-based and useful for the companies and institutions expected to deliver results on the ground.

WHY UKRAINE COMES FIRST

Ukraine will be the initiative’s first focus because of the scale of destruction, the level of sustained international attention and the structure provided by the country’s path toward European Union accession.

But IMD says the questions raised by Ukraine’s reconstruction are not unique to Ukraine. In many post-conflict settings, private companies arrive before institutions are fully rebuilt. Their decisions can shape markets, labor systems, infrastructure and public trust for decades.

IMD’s research points to the long-term stakes. A 2025 study examining private-sector strategies in Serbia and Northern Ireland after their respective conflicts found that reconstruction markets operate according to their own logic. Companies that enter early can gain advantages that persist for decades. Firms that treat workforce development as a competitive strategy, rather than a cost, can build positions that late entrants struggle to replicate. Those that invest in transparency and local credibility can also gain access to financing and partnerships that others cannot secure.

For IMD, the challenge is not whether business will be involved in reconstruction. The challenge is helping companies participate in ways that strengthen local economies rather than exploit fragile ones.

‘THE ULTIMATE TEST’ FOR BUSINESS

The AHL Foundation, which is supporting IMD’s work on the initiative, says reconstruction is a proving ground for the idea that business can improve lives in difficult circumstances.

“The AHL Foundation has always believed that business should contribute to improving lives in the most difficult circumstances,” says Christine Batruch, representing the foundation. “Reconstruction is the ultimate test of that belief. It is where the stakes are highest and where the consequences of getting it wrong are borne by the people who can least afford it.”

Batruch says the foundation sees responsible reconstruction as both possible and commercially viable, but argues that practitioners still lack usable concepts to guide their work.

“We see this as the beginning of a long-term effort, not a one-time project. The ideas will be developed with those who must implement them, tested against the realities on the ground, and refined as we learn.”

IMD says the new initiative fits its broader mission of connecting research to real-world leadership challenges. It also turns attention to a problem that is likely to grow more urgent in a time of rising tensions around the world.

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