Kosovo’s current business environment and high unemployment rate present real challenges to Kosovo’s economic development. The country has the youngest population in Europe, but due to rampant unemployment and an ever-growing labor pool, new jobs are unable to absorb those who are already unemployed and those who are joining the work force. Despite real progress made under prior USAID projects, which moved Kosovo from 113 in the World Bank’s Doing Business report in 2010 to 75 in 2015, work remains to be done to further streamline regulations and create a business environment conducive to private sector growth.
The Kosovo Partnerships for Development project collaborates with USAID and central and local government institutions to build Kosovo government capacity to create a business environment that leads to sustained and inclusive economic growth, implement laws and reforms related to construction and spatial planning, and improve public financial management. Additionally, through implementation of government-to-government development assistance funds, the project helps enhance government capacity to identify, plan, procure, implement, and monitor technical assistance funded by USAID using Kosovo government systems, legislation, and procedures.
The Partnerships for Development project builds on work done under the USAID-funded Chemonics-implemented Business Enabling Environment Project to improve Kosovo’s business environment and rank in international surveys. In addition, Partnerships for Development focuses on streamlining the construction permit process, removing barriers to construction in Kosovo, and registering unpermitted construction.
Additionally, the project is assisting the government in improving and sustaining macroeconomic policy and public financial management to ensure overall macroeconomic and fiscal stability. It supports the procurement process for development of the Brezovica Resort, which has been declared a project of national significance. The Brezovica Resort Development Project has attracted a French-Andorran consortium to design, construct, finance, and operate the resort and turn it into a world-class recreational facility. Partnerships for Development will continue to support this and other public-private partnership opportunities in Kosovo.