Country Economic Memorandum

239 items available

Permanent URI for this collection

Items in this collection

Now showing 1 - 3 of 3
  • Thumbnail Image
    Migration and Economic Development in Kosovo
    (Washington, DC, 2011-05-25) World Bank
    Kosovo has one of the largest international migration flows in the world. Much emigration has been for economic reasons and to escape armed conflict in the late 1990s; resolution of the conflict does not appear to have offered migrants enough incentive to return. Even though migration slowed with the global economic crisis, a reported 3.5 percent of the working population aged 15 and above have expressed interest in emigrating in the next 12 months. The first objective of this study is to illustrate the importance of migration and remittances for Kosovo, drawing on data from recent surveys. The second is to identify policies implemented in other countries that the Kosovan authorities might find useful for maximizing the benefits from its large migrant population. The study does not specify policies the Kosovan authorities should adopt; instead, it sets out policies and instruments the authorities could consider if they wish to more tightly link migration to development. The study has two parts. The first describes migration and remittances trends in Kosovo and links them to labor outcomes, poverty, and investment. The second presents migration policies other countries have introduced, including some countries that are, like Kosovo, small, post-conflict, developing countries with a large diaspora in developed countries.
  • Thumbnail Image
    Kosovo - Unlocking Growth Potential : Strategies, Policies, Actions - A Country Economic Memorandum
    (World Bank, 2010-04-29) World Bank
    Kosovo's economic growth in the past decade has been solid, yet, with a gross domestic product (GDP) per capita of 1,760, the country remains one of the poorest in Europe. The end of the conflict, output was growing at double-digit rates, driven by the donor-funded reconstruction efforts. Since 2005, annual growth has decelerated to below 5 percent. However, the other countries in Southeast Europe have been growing faster, so the income gap has widened. Kosovo's economy would need to more than double its growth rate to 10 percent per annum over the next decade to reach Albania's income level (assuming Albania's economy continues to grow at 5.5 percent annually over this period). To reach Montenegro's current GDP per capita level of about 5,700, the economy would have to grow at 12 percent per annum for an entire decade. At the same time, Kosovo has the weakest employment track record in Europe: the unemployment rate has reached 48 percent and the employment rate is extremely low (26 percent). Consequently, poverty remains persistent and widespread (though shallow) with 45 percent of the population estimated to consume less than the national poverty line, while 17 percent are extremely poor. Much of the economic progress in the recent period has been based on donor aid and remittances, which cannot be the foundation of a sustainable economic strategy. Kosovo has the potential to shift toward faster, private sector led growth. Kosovo's products have free market access to the European Union (EU) and Central European Free Trade Agreement (CEFTA) countries, so exports could become an important pillar of growth. Unleashing that potential will involve bringing on line three production factors that are now sitting partially idle: labor, land, and energy and minerals. The encouraging news is that unleashing this potential is within the country's own grasp, because most of the current obstacles are of a policy nature. However, simultaneous action will be required on several policy fronts.
  • Thumbnail Image
    Kosovo : Economic Memorandum
    (Washington, DC, 2004-05-18) World Bank
    Prospects for economic growth depend upon the success of two overarching factors (1) mitigating risks related to political uncertainty and the maintenance of peace and security in the region; and (2) implementation of a policy program that promotes private sector- led growth, including completion of the reconstruction effort. Such a package of reforms might include the following measures: Within a sound fiscal position proceed with prioritized capital projects to complete the rehabilitation of infrastructure, but resist unsustainable spending on recurrent expenses such as the public sector wage bill. Pursue improved trade relations within the region. Maintain a uniform tariff rate and reduce the rate across the board. Consider a compensating revenue effort to raise taxes from the value-added tax, including through improved administration. Proceed with privatization of socially-owned enterprises and restructuring of publicly owned enterprises, including privatization of land-use rights of public enterprises (SOEs) slated for liquidation. Strengthen the capacity of the municipal courts to implement and enforce creditors rights and contracts. Rehabilitate the power sector, including lignite mines, and pursue a strategy for integrating with the regional power grid. Develop a strategy for the revitalization of the rest of the mining sector. Address overstaffing issues in private enterprises and SOEs, address transitional unemployment issues and facilitate redeployment to alternative productive activities. Keep the labor market relatively unencumbered by payroll taxes. Facilitate employment search. by linking information systems to enterprise surveys and the provision of vocational training. and then looking at the particulars of several sectors. Chapter 2 looks at macroeconomic stability, and considers the prospects for improving economic growth in Kosovo. Chapter 3 discusses a conducive business Climate. Chapter 4 examines the prospects for export-led growth in the power, mining and agriculture sectors. These are three sectors in which Kosovo could have a comparative advantage, as it is relatively well endowed with (1) lignite, (2) other minerals, and (3) fertile agricultural land; enjoys free trade with the European Union and is geographically located close to Western European markets. Finally, Chapter 5 reviews the labor market outcomes and policies for a liberal labor market and an appropriately skilled labor force.