Economic future and stability in Kosovo

Kosovo has the opportunities to create a modern, good-working economy, but the lack of investments from foreign einterprises and the unability of the Kosovan government to support mayer investments, make it a succes-story that still has to be written.

The final status of the tiny future-country hasn't been officially decided yet, but likely it will be an independent country in 2008. Since the beginning of international support in 1999, and the settlement of an internationally guarded government, Kosovo has come from far. But there is no reason to be fully optimistic.

Lacking a well-maintained, modern energy policy, and running on broken electricity transport networks, the main obstacle to form a healthy economy, the country is at the mercy of time before the infrastructure is too messed up. Power cuts in the country remain normal, and even the capital Prishtina isn't saved from this.

"The UNMIK is responsible for the economic reconstruction, but the succes of that is mainly limited," says Franklin De Vrieze of the OSCE mission in Prishtina.

Mr. De Vrieze is responsible for the co-ordination and support of the Central Assembly of Kosovo. He watches the democratic institutions and the good governance in the country.

"The UNMIK (United Nations Mission in Kosovo) has to work in a very difficult context. The economic future of Kosovo depends on the future status. To be able to export products, a country needs an official status. And as long as this hasn't been decided, this remains difficult. The lack of a definitive status also means that foreign enterprises won't be attracted to invest in Kosovo's economy. There is no juridical framework for enterprises to work in, there are no guarantees from the government to support investments in Kosovo. Of course, the main investments in Kosovo come from money earned by Kosovan Albanians abroad. This also isn't good to form a healthy economy."

Kosovo has a very young population. The majority of it under the age of 25, gives the opportunity to boast a dynamic working population. But there is little room for jobs, as almost 50% of the working class is unemployed.

Also the unability to decide of the government seems to be a problem. Law- enforcing decisions remain difficult and have receive permission from the UNMIK, who is in fact co-governing the country. The execution of legislation seems to be a mayor obstacle.

"If Kosovo attracts foreigners to invest, these people have difficulties in knowing who is responsible for what," says Franklin De Vrieze.

The international community has a big responsibility concerning Kosovo. The country has been an experiment in international Balkan policy the last years, and has many attractions, but these can only be reached with intense support and aid. Kosovo seems to be democratic now to go its own way, having the possibility to remain stable and not to call on ghosts of the past, but by looking forward. It also has many opportunities for tourism, being a centre in the Balkan, and hosting many religious monuments, lush mountain landscapes and a rich history. It is now the responsibility of the Kosovars to make this reality and to prove themselves.