Economic developments in Kosovo

• Pages: 284-289

Vol. 7 No. 1

March, 2021

Academic Journal of Business, Administration, Law and Social Sciences

IIPCCL Publishing, Graz-Austria

ISSN 2410-3918

Acces online at www.iipccl.org

284

Economic developments in Kosovo

Alban Brati

Abstract

Kosovo, the last country to emerge following the collapse of the former Yugoslavia is dealing

with many challenges to seeking economic prosperity and growth, social and political stability

and European Integration. With almost half of its working force unemployed and poor

economy Kosovo is looking forward aer its declaration of independence to developing in

large scale in every sector of its economy. But still foreign investment remains low and the

GDP is one of the lowest in Europe. In addition citizens are considered the most isolated if not

in the world at least in Europe because of not having the opportunity to travel abroad. Visa

liberalisation process with EU has started with the countries in the region, but Kosovo still

has long way to go to full its requirements. In a short period of time Kosovo went through

dierent bodies of administration and things had to be coordinated with UN, EU. Corruption

is still a very serious “disease” and it is slowing the economic and social development. There

are many plans to develop the economy of Kosovo, but still it looks like these plans are not

having the desired eect. This paper emphasizes main problems of the economy in Kosovo

and its problems toward the EU integration. Furthermore the political complexity is stopping

and giving stress to the economic development. Finally it looks like diplomacy this time is

going to succeed and a new era will begin for Kosovo and entire region towards prosperity,

economic development and EU Integration.

Keywords: Kosovo, economic development, EU integration, investment, growth.

Introduction

Kosovo is the newest country in the world, which became independent from Serbia in

February, 17th 2008. Still it hasn’t been recognized from all countries in the world, but

this process is going on. Kosovo was part of Yugoslavia since 1913, but as the split of

this union started with Slovenia and Croatia, everybody knew that in one particular

time the same thing was going to happen with Kosovo, but it was just a question of

time and the way of happening.

Kosovo’s economy in the last few years is in progress, but it remains still one of the

poorest economies in Europe with a per capita income between 1500 to 2000 Euro.

Its economy depends very much on the diaspora and the international community.

The money sent from the diaspora is estimated to account for about 15% of the

GDP of Kosovo (CIA webpage, Kosovo, economy). Then there is a large amount of

money which comes from international community and international donors. The

unemployment rate is very high, and it’s estimated to be around 40%. This is a huge

problem for the people, government and the international community. In the last ten

years Kosovo has done a good deal and privatized almost 50% of its state-owned

enterprises by number, and over 90% of state-owned enterprises by value, but the

industry in Kosovo still remains very poor, because foreign investments are missing.

The government is hoping to get FDIs and open a new era of industry in Kosovo