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Kosovo - Systematic Country Diagnostic (English)

Kosovo is Europe’s youngest country in terms of history and demographics. Both characteristics are defining the country’s overarching development challenges. The country’s geographical position along major trade routes made its territory a pawn in the hands of powerful neighbors, from the Romans and the Ottoman Empire to Yugoslavia. The considerable amount of self-governance granted to Kosovo under the Yugoslav Constitution of 1974, as a province of Serbia, but not as a constituent republic of the federation, proved politically unsustainable, as temporary gains in self-rule were reversed by Belgrade during the Milosevic era. The period after 1989 was characterized by increased repression and violence, culminating in war and population expulsion in 1998–99. During the immediate post conflict period, United Nations (UN) Security Council Resolution 1244 placed Kosovo under UN interim administration. In 2008, Kosovo declared independence. The transition period of supervised independence ended four and a half years later. International recognition has remained partial and has precluded Kosovo from joining the UN as a full member.4 In the wake of these developments, public institutions had to be established from scratch and earn the population’s acceptance and credibility as their own. The remainder of this document is organized as follows. Section two presents the country context, including political and economic conditions, and discusses factors behind recent trends in growth, shared prosperity, and poverty. It concludes with a proposed conceptual framework. Sections three–six describe key drivers and the principal constraints to growth, shared prosperity, and poverty reduction. Section seven examines the priority areas for action.


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    Systematic Country Diagnostic

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  • Region

    Europe and Central Asia,

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  • Doc Name

    Kosovo - Systematic Country Diagnostic

  • Keywords

    Rule of Law;Agriculture;European Bank for Reconstruction and Development;small and medium enterprise;Stabilization and Association Agreement;labor productivity;real effective exchange rate;efficiency of public spending;Natural Resources;high population growth rate;Environment and Natural Resources;investment in energy efficiency;renewable source of energy;number of asylum seekers;Environmental and Social Impact;customs and trade regulations;information and communication technology;per capita consumption growth;labor force participation rate;active labor market program;spending on primary care;Tax Policy and Administration;effectiveness of public spending;comparative advantage;equality of opportunity;national poverty line;financial intermediation;human capital;Social Protection;Job Creation;rates of unemployment;source income;source of income;value added tax;labor force survey;extreme poverty line;global value chain;secure property right;trade and investment;foreign direct investment;socioeconomic development;production base;remittance;maintenance of road;labor market policy;fight against poverty;self-employment and entrepreneurship;quality and relevance;economies of scale;cost of capital;labor market information;independent monetary policy;participation of woman;money transfer agency;thermal power plant;labor market participation;energy efficiency measure;formal financial system;power generation facility;scale and scope;illegal economic activity;analytical and advisory;analysis of trends;lack of opportunity;purchasing power parity;competitive market forces;unit labor costs;lack of transparency;limited administrative capacity;Public Administration Reform;economic reform program;commercial bank lending;sustainability in agriculture;impact of shock;mandatory health insurance;quality of education;impact of health;impact of trade;general education system;health care spending;quality of care;changing labor market;household budget survey;public sector wage;role of remittance;total factor productivity;weights and measure;income tax performance;corporate income tax;personal income tax;change in income;average monthly wage;private sector wage;export of goods;basic financial service;structure of taxes;social protection expenditure;gdp growth rate;corruption perception index;indicators of access;rural transportation infrastructure;functioning market economy;political business cycle;human capital formation;degree of compliance;investment in mining;share of employment;international labour organization;consultations with stakeholders;lack of skill;natural resource revenue;vulnerability to disaster;agriculture and service;development on migration;free trade agreement;international good practice;labor market pressures;consumer price index;primary health care;good governance;inclusive growth;Equal Opportunity;demographic dividend;public expenditure;Tax Administration;tradable sector;land market;Financial Stability;outward migration;social inclusion;business environment;poor household;sustainable management;reservation wage;international standard;soft infrastructure;broadband penetration;nonmetallic mineral;unskilled worker;enrollment rate;private investment;Business Climate;direct taxation;formal employment;domestic productivity;affordable energy;South East;business expansion;public resource;bottom quintile;Financial Sector;creating job;Learning and Innovation Credit;vulnerable group;official poverty;consumption distribution;export growth;rural area;knowledge gap;Informal Economy;young population;sectoral composition;minority group;political objective;productivity gain;full employment;physical infrastructure;total employment;environmental standard;increase productivity;accelerating growth;Fiscal Sustainability;internal market;ethnic group;Justice Systems;public finance;average age;



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Kosovo - Systematic Country Diagnostic (English). Washington, D.C. : World Bank Group.