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Generating Broad-Based Economic Growth in Kosovo

The Business Enabling Environment Program in Kosovo created a simple, transparent business setting that encouraged entrepreneurship, generated employment opportunities, and encouraged long-term economic stability.

The Business Enabling Environment Program (BEEP) in Kosovo was an innovative three-year initiative by USAID leveraging a methodology applied in other countries that used third-party measures of performance to drive crosscutting reforms. At the same time, the program pursued holistic strategies, taking into account all aspects of the legal environment for economic activity and the collaboration with other donors and projects.

The project promoted economic policies that increased business accessibility and provided a stable, clear, and minimally intrusive legal business operating environment. It also reduced trade barriers with neighboring countries through improved trade policies, access to information, and capacity building. The reduced lending risks in the financial sector increased the amount of high-quality information available in the credit registry to improve lending decisions and reduced credit risk and borrowing costs.

In addition, the project collaborated with municipalities throughout Kosovo to bolster economic activity in the region. Branching out from the core eight municipalities, it used 25 municipal coordinators, who worked with partner municipalities to identify and recommend reforms to further improve the local business environment.

The coordinators maintained relationships and pursued demand-driven reforms in 37 municipalities in Kosovo. The project hired international experts and subcontracted a local survey firm to design and carry out the first municipal competitiveness index in Kosovo. The index received positive feedback from ministries, municipal mayors, and business associations, and incentivized demand-driven reform by municipalities.

Project Results:

  • Worked across 37 municipalities, 7 ministries, and 22 Parliamentarians to launch the country’s first Legal Information Database – a publicly accessible, digital, centralized source
  • Established Kosovo’s first online credit portal where businesses and citizens can access their own credit reports, which led to a more than 150% increase in the amount of annual credit report requests
  • Contributed to 27 laws, eight of which related directly to the World Bank’s Doing Business reports
  • Supported the creation of the Trade Policy Working Group, which helped coordinate improvements that boosted Kosovo’s overall ranking in the World Bank’s Doing Business reports.

Read the Final Report here.

Project Duration: 2010 - 2013


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