World Bank2013-09-092013-09-092001-02-01https://hdl.handle.net/10986/15708The report discusses the principal economic, and social reform policy tasks, Kosovo is facing, following the decade-long losses due to civic exclusion of a major part of its ethnic population, the absence of investments, and the neglect of physical, and human capital, a period which culminated in the 1999 conflict. It intends to inform on the framework of the United Nations Interim Administration in Kosovo, i.e., the consolidation of peace, by fostering social reconciliation, towards achieving sustainable economic growth in the province. The key challenges to the political economy address: 1) the formulation of a sustainable budget, increasingly financed through local taxation, hence, with reduced reliance on external donor support. Fiscal institutions need to be developed to ensure efficient public spending; 2) the establishment of trade liberalization, and a customs regime, to increase the potential for growth, and exports, allowing as well to benefit from the arrangements fostered by the Stability Pact, and the European Union; 3) the use of hard currency for internal transactions, and savings, and, the development of a strategy for banking sector development; and, 4) the creation of a reformed framework to encourage growth, by stimulating private enterprise development. Moreover, three aspects of social policy call for: an education policy at par with competitor countries; health policy that strengthens health care delivery, and addresses the effects of recent social traumas; and, social protection regarding a highly vulnerable population.en-USCC BY 3.0 IGOACCOUNTABILITYACCOUNTINGADMINISTRATIVE APPARATUSADMINISTRATIVE RESPONSIBILITIESADMINISTRATIVE SKILLSAGRICULTUREAUTHORITYBALANCE OF PAYMENTSBALANCED BUDGETSBANKING SECTORBANKING SECTOR DEVELOPMENTBANKING SYSTEMBUDGET FINANCINGBUDGETARY ASSISTANCEBUDGETARY SYSTEMSCENTRAL BANKCENTRAL PLANNINGCOALCONSENSUSCONSOLIDATIONCONSTITUTIONCONSTITUTIONAL ARRANGEMENTSCONSULTATIVE COUNCILSCOUNCIL OF MINISTERSCOUNCILSDECENTRALIZATIONDECISION MAKINGDECISION-MAKINGDEGREE OF AUTONOMYDEMOCRACYDEVOLUTIONECONOMIC ACTIVITYECONOMIC CONSEQUENCESECONOMIC DEVELOPMENTECONOMIC IMPACTECONOMIC POLICIESETHNIC GROUPSETHNIC TENSIONEXPENDITUREEXPORTSFINANCIAL INTERMEDIATIONFISCALFISCAL STANCEFISCAL SUSTAINABILITYFOREIGN INVESTMENTGDPGOVERNMENT DEPARTMENTSGOVERNMENT INSTITUTIONSHEALTH SERVICESHOUSINGHUMAN CAPITALHUMAN RIGHTSIMPORTSINDUSTRIALIZATIONINFLATIONINSTITUTIONAL DEVELOPMENTINSURANCEJUDICIARYLAWSLIBERATIONLOCAL ADMINISTRATIONMACROECONOMIC CONDITIONSMACROECONOMIC STABILITYMARKET ECONOMYMIGRATIONMUNICIPALITIESNATIONAL INCOMENATIONSNATURAL RESOURCE BASEPOLITICAL ECONOMYPOLITICAL LEADERSPOLITICAL LEADERSHIPPOLITICAL PARTIESPOLITICAL PARTYPRIVATE HOUSINGPRIVATE OWNERSHIPPRIVATE SECTOR DEVELOPMENTPRIVATE SECTOR GROWTHPRIVATIZATIONPRIVATIZATION AGENCYPUBLIC ADMINISTRATIONPUBLIC AGENCIESPUBLIC ENTERPRISESPUBLIC EXPENDITURESPUBLIC INSTITUTIONSPUBLIC INVESTMENTPUBLIC MANAGEMENTPUBLIC SECTORPUBLIC SERVICEPUBLIC SERVICE DELIVERYPUBLIC SERVICESPUBLIC SPENDINGPUBLIC SUPPORTPUBLIC UTILITIESREGULATORY FRAMEWORKREPRESENTATIVE GOVERNMENTREPRESENTATIVESRESOURCE ALLOCATIONREVENUE COLLECTIONSAVINGSSOCIAL ASSISTANCESOCIAL DEVELOPMENTSOCIAL POLICYSOCIAL PROTECTIONSOCIAL REFORMSSOCIAL SECTORSSOVEREIGNTYTAX ADMINISTRATIONTAX COLLECTIONTAX SYSTEMTAXATIONTRADE BALANCETRANSPARENCYUNEMPLOYMENT REFORM POLICY; ECONOMIC REFORM; SOCIAL REFORM; POST-WAR CONFLICT RESOLUTION; CONFLICT MANAGEMENT; HUMAN CAPITAL; PHYSICAL DAMAGE; INTERIM PROTECTION; PEACE PROCESS; ECONOMIC GROWTH; BUDGET ADMINISTRATION; FINANCIAL MANAGEMENT; LOCAL TAXATION; FISCAL CONSOLIDATION; PUBLIC SPENDING; TRADE LIBERALIZATION; CUSTOMS ADMINISTRATION; EXPORT DEVELOPMENT; EUROPEAN UNION; BANKING SECTOR REFORMS; BANKING SYSTEMS; PRIVATE SECTOR DEVELOPMENT; PRIVATE ENTERPRISES; EDUCATION SECTOR; HEALTH CARE DELIVERY; SOCIAL PROTECTION SYSTEMS; SOCIAL SAFETY NETSWorld Bank10.1596/15708