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"The task before the international community is to help the people in Kosovo to rebuild their lives and heal the wounds of conflict."
Former UN Secretary-General Kofi Annan (1999)
 

In June 1999, following a 78 day-long NATO campaign, the United Nations was tasked to govern Kosovo through its Interim Administration Mission in Kosovo (UNMIK), with an unprecedented sweeping mandate to provide Kosovo with a “transitional administration while establishing and overseeing the development of provisional democratic self-governing institutions to ensure conditions for a peaceful and normal life for all inhabitants in Kosovo.”


In accordance with UN Security Council Resolution 1244, UNMIK established an international presence in Kosovo. Over the eight years since, as Kosovo’s Provisional Institutions of Self Government (PISG) were established and gained capacity to assume more responsibilities, UNMIK has moved back from an executive role to one of monitoring and support to local institutions. UNMIK, in its present form, is now into its final chapter before status resolution.
Under the leadership of SRSG Lamberto Zannier, UNMIK’s structure currently comprises the Democratization and Institution Building Pillar (OSCE), where Ambassador Werner Almhofer is the head of the OSCE Pillar.

Global

• UNMIK budget for the fiscal year 2007/08 US$210,676,800.00 (Budget for the fiscal year 2006/2007 amounts to US$217,962,000. The budget for the fiscal year 2005/06 (until 30 June 2006): US$239,889,800.)
• UN Staff: (Police not included): International 462, National 1892, UNV’s 125. (as of Jan. ‘08)
• OSCE: A total of 999 staff. 283 International and 716 Local staff (as of 2007)


Standards

The standards for Kosovo were established in 2002-2003 as eight fields seen as priorities for the established Kosovo institutions. The purpose of the standards was to create a fairer and more tolerant society, and improve levels of public sector performance. The eight fields are: Functioning democratic institutions, Rule of law, Freedom of Movement, Sustainable returns and the rights of communities and their members, Economy, Property Rights (including cultural heritage), Pristina-Belgrade dialogue, Kosovo Protection Corps (KPC).

• Within these fields were identified 109 goals, presented to the Security Council in December 2003 in the document ‘Standards for Kosovo’. This document in turn was implemented through the ‘Kosovo Standards Implementation Plan’, (KSIP) finalized in March 2004.

• The SRSG reports regularly to the UN Security Council. These reports include a Technical Assessment on the implementation of the Standards for Kosovo, which covers a range of activities designed to promote good governance and multiethnicity.


European Partnership Action Plan

The European Partnership Action Plan (EPAP) is an important component of Kosovo’s European integration process and was adopted by the Kosovo government on 9 August 2006. This comprehensive document outlines measures that the Kosovo institutions intend to take to reach the priorities set out in the European Partnership and to fulfil the Standards for Kosovo. The EPAP not only responds to the priorities of the updated European Partnership, but it also aims to implement and accommodate the Standards for Kosovo process thereby allowing for a joint approach to both processes. This action plan therefore replaces, and in some respects combines, the previous action plan for the implementation of the European Partnership as well as the Kosovo Standards Implementation Plan (KSIP).


UNMIK Police

UNMIK Police, together with the Kosovo Police Service (KPS), has successfully investigated 182,983 cases, established 33 police stations and 13 border/boundry control points, policing Kosovo for over eight years through a range of activities from beat patrols and traffic checks to sophisticated investigations into serious crimes. During this time, in cooperation with OSCE, 8,270 KPS officers have been recruited, trained and deployed through the chain of command from the police stations up to the Main Headquarters level and into various specialised police departments (as of November 2007).
• UNMIK Police Commissioner: Richard Monk from the United Kingdom.

• From a peak of more than 3,300 police officers from more than 50 countries in the year 2001, UNMIK Police today (01 February 2008) has a greatly reduced presence of 1499 police officers from 31 countries.

• 499 Formed Police Units (FPU) from Pakistan, Romania, Poland, Ukraine (as of 01 February 2008).

• Specialized agencies, including Financial Investigation Unit (Guardia di Finanza), investigate misuse of public money and financial crime.

• Financial Information Centre (FIC) monitors financial transactions by banks, financial institutions and other entities as a check against money laundering operations.

Kosovo Police Service

The Kosovo Police Service (KPS) has become a highly respected institution that enjoys the trust of its citizens. With KPS now holding the command of all 33 police stations and five out of six Regional Police Headquarters across Kosovo, UNMIK Police has assumed a supporting and monitoring role while retaining overall supervisory authority of the UNMIK Police Commissioner. Further transition continues.

• 7,124 Kosovo Police Service (KPS) officers. By gender; 6160 male, 964 female. By ethnicity; 6082 Albanian, 746 Serbian, 414 other minorities. (as of November 2007).


Department of Justice

The UNMIK Department of Justice (DOJ) has made great strides in the area of prosecuting serious crime, including cases of corruption, terrorism, war crimes and March 2004 riot cases. The DOJ has also continued the transition of responsibilities to local institutions, the Ministry of Justice and the Kosovo Judicial Council, and established the Kosovo Special Prosecutors Office to enable local prosecutors to take on more serious cases in the future, including corruption, organised crime and crimes against public office.

Applicable law
New Provisional Criminal Code and Provisional Criminal Procedure Code of Kosovo came into effect from April 2004. UNMIK Regulation No. 2005/52 established the independent Kosovo Judicial Council and UNMIK Regulation No. 2005/53 established the Kosovo Ministry of Justice.
Courts

The courts are responsible for the administration of justice in Kosovo in accordance with the applicable law. The court structure includes the Supreme Court of Kosovo, District Courts, Municipal Courts and Courts of Minor Offences (including a High Court of Minor Offences). A Special Chamber of the Supreme Court deals with Kosovo Trust Agency related matters.

Judicial Inspection Unit (JIU)
The JIU is an independent office mandated to investigate complaints of judicial and prosecutorial misconduct, and refers cases to the KJC for disciplinary action as appropriate.

Judicial and Prosecutorial Appointment

Upon the signing on 25 February 2008 of a memorandum of understanding between UNMIK, UNOPS, the EU and the US Office, the vetting and appointment process for Kosovo's judges and prosecutors will commence. It is envisaged this process will strengthen Kosovo's courts by eliminating presently serving judges and prosecutors whose performance is not of the requisite ethical and technical standard for a modern European legal system.

Kosovo Judicial Council (KJC)

The KJC is an independent professional body responsible for the judiciary and courts. It is composed of five judges (of whom the President of the Supreme Court is an ex officio member) and 2 prosecutors and four other ex officio members, namely the Minister of Justice, the President of the Kosovo Chamber of Advocates, the Chairperson of the Assembly Committee on Legislative, Judicial and Constitutional Framework Matters and a professor of law nominated by the Assembly upon the recommendation of the governing board of the University of Pristina.

Access to Justice

The DOJ has been involved in the development of a comprehensive system for legal aid and the implementation of UNMIK Regulation No. 2006/36 On Legal Aid. In September 2007 the Legal Aid Commission was formally inaugurated and in January 2008 five (5) District Legal Aid Bureaus opened to the public providing legal aid to eligible persons in civil and administrative legal matters. Full transfer of competence from DOJ to the Legal Aid Commission, including in financial matters, will occur following the signing of an MOU between the Legal Aid Commission and the DOJ.

• There are currently 302 local judges and 83 local prosecutors. However, additional positions have been made available in the 2008 budget to increase the total to 392 judges and 92 prosecutors.

• 15 international judges and 11 international prosecutors.


Office on Missing persons and Forensics

Office on Missing Persons and Forensics (OMPF) was created in 2002 as a division in the UNMIK Department of Justice. Today the office consists of 65 staff members, 55 local staff under the Ministry of Justice and 10 international staff, who work to clarify the fate of the missing persons. This office is also responsible for all forensics work dealing with homicides. OMPF is building up the capacity of local staff to carry out forensics activities after the end of the UNMIK mandate. The Office on Missing Persons and Forensics (OMPF), Ministry of Justice, has a dual mandate:

1) To clarify the fate of missing persons:
- Assess and exhume if necessary suspected graves
- Perform autopsies of unidentified remains in order to determine cause of death whenever possible and complete identification in a professional manner, using DNA analysis whenever necessary
- Keep the families of the missing persons informed on the progress and return the identified remains to their families in a timely and respectful manner
- Keep up-to-date records and statistics on missing persons in Kosovo

2) To provide a medico-legal system in Kosovo of European standards, including but not exclusively limited to the following services:
- Medical examinations of victims of sexual/physical offences
- Autopsies in cases of suspected non-natural death
- Cases of medical malpractice
- Toxicological analysis
- Histo-pathological analysis
- Medico-legal analysis of crime scenes

• The Police (UNMIK Police and KPS) focus on investigating missing persons and the circumstances behind their disappearance. The Police’s responsibilities include locating illicit graves, identifying the perpetrator and collecting evidence related to the crime itself.

• OMPF is working in close cooperation and coordination with the International Committee of the Red Cross (ICRC), the International Commission on Missing Persons (ICMP), the PISG Governmental Commission on Missing Persons, and family associations. The Office is also providing forensic services to the Working Group on Missing Persons chaired by the ICRC.

• OMPF has always relied heavily on donor funding to carry out its activities. Without the financial support of the Swiss, US, British, Irish, Norwegian and Swedish governments, OMPF would not have been able to conduct even a fraction of its activities. In 2007, OMPF received funding from the Government of United Kingdom for exhumation activities and capacity building projects in the field of forensic.

• A total of 5,206 people were reported missing in Kosovo after the conflict in 1998-99. By the end of 2007, 1,998 persons (Kosovo Albanians, Kosovo Serbs and other ethnic minorities) where still listed as missing according to International Committee of the Red Cross (ICRC) figures. Between 2002 and December 2007, the Office on Missing Persons and Forensics (OMPF) reduced the number of missing persons by over 50%. As of end December 2007, 1,950 missing persons have been pronounced dead and have had their remains returned to their families. In addition, 100 missing persons have been identified, but the families have chosen not to accept the bodies until other members of their families or communities are found so they can be buried together. As of December 2007, there are around 455 individuals whose remains have not yet been identified.


Returns

According to UNHCR statistics, more Internally Displaced People (IDP) have returned to Kosovo in 2007 than in 2006, thus reversing the continuously declining trend of returns per year since 2003. UNHCR estimates that 1685 minority community members returned in 2007 as opposed to 1627 in the year 2006, with the highest number of returns in the regions of Mitrovicë/Mitrovica and Gjilan/Gnjilane, and the total number of minority returnees since 2000 is estimated to be 17,821.


MINORITY RETURNS TO KOSOVO FROM INTERNAL AND EXTERNAL DISPLACEMENT (as per UNHCR)
2000 2001 2002 2003 2004 2005 2006 2007* Total
1906 1453 2754 3801 2469 2126 1627 1685 17821
*subject to revision


Building on the existing mechanism for returns developed during the last few years, the comprehensive policy framework for voluntary returns is in place, which put Kosovo institutions and the displaced persons at the centre of the returns process. Thus, the updated returns policies were promulgated by the Government of Kosovo on 24 May 2006, which was followed by the signing of a protocol of cooperation on returns between Prishtinë/Priština and Belgrade on 6 June, and subsequent revision of the Manual for Sustainable Return. The three documents, which came out in a short span of about six weeks, significantly altered the returns landscape in Kosovo, leading to the recognition of IDPs right to free and informed choice of residence, along with greater prospects for assistance.

Programme activities oversaw, in close cooperation with UNDP and PISG, the completion of several return projects funded from Kosovo budget of over € 40 million as well as donors money in 47 locations, which include Babush i Serbëve/Srpski Babuš, Surcine/Svrcina, Talinovc/Talinovac (Ferizaj/Uroševac), Klinafc/Klinavac (Klinë/Klina), Lug/Ljug and Blagaca, Gjuarakoc/Gjurakovac (Istog/k), Cige/Siga, Brestovik & Levoshe/Ljevosa (Pejë/Pec), Drajcici, Sredska, Bogoševce and Lokvice villages in Zhupa Valley for return of K/Serbs and K/Bosniak families (Prizren), Koshutovë/Košutovo, Bistricë/Bistrica, Ceranja/Ceraje, Leposavic/ Leposaviq for return of Kosovo Albanians (Mitrovice/Mitrovica Region), Magure, Medvec/ Medvec, Hallaq I Vogel/ Mali Alas, Mostina for return of Kosovo RAE (Prishtinë/Priština region).

While ever more returns projects are being developed by municipalities, lack of funding remains the single most important obstacle to returns. A funding shortfall of €18 million affects 23 approved return projects.

The allocation from Kosovo budget last year to support returns was € 5.2 million. Six Organised Returns projects costing €3.7 million were launched in 2007. Five projects were completed, leading to the return of 108 families in Lipjan/Lipljan, Vushtrri/Vucitrn, Berkovë/Berkovo (Klinë/Klina), Lismir/ Dobri Dub and Nakaradë/e (Fushë Kosovo/Kosovo Polje), and Abdullah Presheva/Presevo (Gjilan/Gnjilane). The returns project in Vushtrri/Vucitrn was directly implemented by the Ministry of Communities and Returns (MCR). The remaining returns project in Klinavc/Klinavac will be completed in early spring this year.

MCR also took new initiatives last year to facilitate equitable integration of all communities and their members currently residing in Kosovo. In this regard, the Ministry approved the implementation of 51 Community Development and Stabilization (CDS) projects worth €2.08 million.

Although serious capacity gaps exist in the Ministry of Communities and Returns (MCR), the European Agency for Reconstruction (EAR) led capacity building project to support MCR is continuing. The project has stressed the need for addressing shortcomings in internal financial management in the Ministry. Senior Management of the MCR is being assisted by UNMIK/OCRM together with the international community in establishing strict financial controls in the Ministry by implementing the recommendations of the various audit reports.

Dual reporting line to the Ministry of Local Government Administration (MLGA) and Ministry of Communities and Returns (MCR) was established for the Municipal Return Officers (MROs) and Municipal Community Officers (MCOs) with signing of Letter of Intent in September 2006 by the two ministries. While MROs and MCOs are within the municipal structures, and thus under the MLGA chain of command, their work mostly relates to the MCR. The dual reporting line has strengthened the cooperation and coordination on returns and minority related matters.

Transfer of competencies

In line with the policy of transferring competencies to local institutions, most of the competencies in the area of voluntary returns have already been transitioned to the Government, primarily to the MCR. UNMIK transferred last year the chair and operations of the Central Review Mechanism (CRM) as well as the Communities Outreach and Communication Group (COCG) to the Government of Kosovo. CRM reviews voluntary return projects and other initiatives endorsed by the municipalities, whereas COCG coordinates the outreach and communication strategy on returns related issues.

The Ministry has appointed a Returns Information Coordinator to work with the UNHCR on the returnee registration and creation of a returnee database. MCR, together with the Ministry of Finance and Economy, has also been monitoring the implementation of Fair Share Financing (FSF) requirement by the Municipalities.

Full operational and financial competency to provide humanitarian transportation (minority bus and railroad operations) for minority communities was also handed over to the Government.

Repatriation

In 2007, the overall number of those involuntarily repatriated from host countries stands at 3125 persons, with Germany alone accounting for 896 individuals, the largest number of deportees to Kosovo from any country.

Although UNMIK will continue to directly manage the repatriation of Kosovars denied legal status in host countries, the Ministry of Internal Affairs is required to establish the origin of persons proposed for repatriation from 1 January 2008. Pursuant to UNHCR position papers, UNMIK currently does not allow the repatriation of Roma, Kosovo Serbs and Kosovo Albanians (in areas where they constitute a minority).


Housing and property rights


• The Kosovo Property Agency (KPA), former Housing and Property Directorate (HPD), was established on 4 March 2006 under UNMIK Regulation 2006/10, as an independent body.

• It is mandated to resolve claims resulting from the armed conflict that occurred between 27 February 1998 and 20 June 1999 in respect of private immovable property, including agricultural and commercial property.

• Under UNMIK Regulation 2006/10, the HPD with its staff and assets are subsumed into the KPA. The KPA therefore assumes responsibility for the implementation of all residential property claims that were pending with the HPD on 4 March 2006, and it will ensure their resolution in an effective and expeditious manner. Further, the Housing and Property Claims Commission (“HPCC”) will continue to decide the small number of remaining claims that are currently pending before it.

• KPA has, subject to appeal to the Supreme Court of Kosovo, exclusive jurisdiction to resolve claims for private, immovable property, including agriculture land and commercial properties, arising from the armed conflict in 1998-99. As of April 2007, KPA has received more than 18,000 property claims in Kosovo.


UN Civil Administration

• UNMIK Civil Administration has been instrumental in organising, supervising and monitoring activities pertaining to civil registration (habitual resident registration), in accordance with UNMIK Regulation No 2000/13 on the Central Civil Registry.

• In May 2000, a Joint Registration Taskforce (JRT) was set up with OSCE to start registration of habitual residents throughout Kosovo. Applicants were registered between May and July and included in the newly created Central Registry Database. Since the first election in 2000, Central Registry Database has been used to create a voters list for all of Kosovo’s elections during the UNMIK mandate.

• UNMIK Travel Documents that enable Kosovars to travel abroad. Total number of Travel Documents: 717,897. According to figures for 2007/2008 the average is about 2,500 Travel Documents per week. In addition, average of Travel Document extensions is 1,800 per week. (Figures as of 01 February 2008). Travel documents are recognized by 39 countries: Albania, Armenia, Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, FYROM, Germany, Greece, Hungary, Iceland, Ireland, Italy, Jordan, Latvia, Lithuania, Luxemburg, The Netherlands, Malaysia, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom, United States of America, and Uzbekistan.

• UNMIK Identity Cards: 1,474,973. (Figures as of 01 February 2008)
• Driving licenses: Issued since 2000: 356,000 (Figures as of 01 February 2008)
• KS vehicle plates: Now accepted in: Albania, Austria, Belgium, Bulgaria, Croatia, Denmark, Finland, Germany, Greece, FYROM, Montenegro, Netherlands, Norway, Sweden, Switzerland, and United Kingdom.

EU Pillar

Before closing down on 30 June 2008, the EU Pillar was part UNMIK and funded by the European Commission. Mandated to facilitate economic development in Kosovo, the EU Pillar included the Central Banking Authority of Kosovo (CBAK), the Fiscal Affairs Office (FAO), the Kosovo Trust Agency (KTA) and the UNMIK Customs Service.

Economy

• GDP (in millions): according to International Monetary Fund:
2004 - €2,271
2005 - €2,207
2006 - €2,273
2007 - €2,378

• Inflation rate: according to International Monetary Fund:
2004 – -1.4
2005 – -1.4
2006 – 1.5
2007 – 2.0

• Unemployment: In 2006, the Ministry of Labor and Social Welfare (MLSW) reported an unemployment rate of 39% to 42%. The total registered unemployed (according to MLSW) as of 06/2007 were 332,775 persons.

Kosovo Trust Agency

• The Kosovo Trust Agency (KTA) was established on 13 June 2002 and is responsible for the governance and privatisation of Socially-Owned Enterprises (SOEs), which are present in a wide variety of economic sectors in Kosovo. During the 1990s, Kosovo’s economy suffered from years of under-investment and was burdened by the legacy of central planning, which greatly reduced Kosovo’s capacity to produce and compete. It was clear that a fundamental reform was needed and KTA was established in order to assist, through appropriate governance, development and privatisation strategies, in the transition of Kosovo’s economy towards a successful market economy.

• Privatisation of Socially Owned Enterprises (SOEs): by the beginning of November, the KTA had launched 29 waves of privatisation. 545 NewCos have been tendered for sale and 325 sales contracts signed. The total privatisation proceeds now amount to over €345 million, of which over €69 million is eligible to be paid to workers of SOEs. Additionally, the KTA Board has approved a total of 106 liquidations, the proceeds from which currently amount to over €3.5 million.

• Incorporation is a legal process of "Creating a Company" or "New Legal Entity" and registering it in Business Registry Office, other from the legal aspects, incorporation includes:
o Restructuring and complying the demands deriving from regulators office;
o Identification, registration and evaluation of all company assets;
o Review of all contracts, cadastral records, and other company records;
o Publishing all legal and financial reports.

• Incorporation is needed for defining and clarifying the objectives of the enterprise and achieving its primary goals.

Post and Telecommunications of Kosovo J.S.C. – June 2005
Pristina International Airport J.S.C. – June 2005
Kosovo Energy Corporation Holding J.S.C. – December 2005
Kosovo Railways Holding J.S.C. – December 2005
District Heating Termokos Holding J.S.C. – December 2005
District Heating Gjakova Holding J.S.C. – December 2005
Kosovo Landfill Management Company J.S.C. – December 2005
Transmission and Market Operator Holding J.S.C. – December 2005

• Incorporation of a number of water, waste and irrigation enterprises ongoing.

• Pristina International Airport handled just under one million passengers in 2006. In June 2006, Pristina International Airport was awarded the ‘Best Airport 2006 Award’ in the category ‘under 1 million passengers per year’. This major honor was presented by Airports Council International (ACI), the only worldwide professional association of airport operators. ACI recognised Pristina International Airport’s unique history, impressive 300% increase in passenger traffic over recent years, the major investment in facilities and the rapidly expanding airline network.

• The number of passengers at Pristina International Airport for the period Jan-Oct 2006 was 767.384 and for the same period of 2007 the number of passengers increased to 849,554, which is an increase of approximately 9,5%. As for the flights, for the period Jan-Oct 2006 the number of flights was 3526, during the same period of 2007 the number of flights increased to 3664, which is approximately 4% higher than in 2006.

UNMIK Customs

• UNMIK Customs has been a great success story - a modern organisation collecting over 70% of the Kosovo Consolidated Budget (KCB) funds. Since 2000, the UNMIK Customs has consistently improved collecting over €2,5 billion towards Kosovo's budget. 2006 was a busy and defining year. Throughout, Customs' main function was to collect revenue in line with the Treasury’s target. Some €460 million (gross) was collected, representing an underlying increase of some 12% on collection in 2005 and 8% above the target for 2006. Impressively, the average cost of collection was less than 1.5 euro cents for each euro collected.

• In 2007, UNMIK Customs already reached its target for the current year by the end of October: they already collected around €440million. It is expected that UNMIK Customs will exceed the projected target by 20% and collect approximately €500million.

• In April 2007, local UNMIK Customs Officer, Naim Huruglica, took over UNMIK Customs and thereby accomplished the transfer to local personnel. Former UNMIK Customs Director Peter Walker remained as an advisor with the organisation.

Banking and Insurance

• On 22 September 2006, the Banking and Payments Authority of Kosovo (BPK) was transformed into the Central Banking Authority of Kosovo (CBAK). This new regulation was drafted with the aim of increasing the role of Kosovars and Kosovo’s institutions in CBAK activities. In essence, the goals of the CBAK are to ensure a sound, efficient and competitive financial system, as well as to provide ‘central bank’ related financial services. The CBAK, however, is not authorised to grant any loans, including liquidity, to banks. The main aim of its ‘monetary policy’ is to foster financial stability.

• The CBAK supervises and regulates Kosovo’s banking sector. All of Kosovo's banks are private, some of them foreign-owned. There are six registered banks with approximately 230 branches, two foreign branches (BKT from Tirana and Komercijalna Banka Belgrade); 15 micro - financial institutions, three non-bank financial institutions, five money transmitters, 23 registered exchange bureaus and nine insurance companies.

• The CBAK also performs a number of other tasks normally undertaken by a central bank. These include cash management, transfers, clearing, management of funds deposited by the treasury or other public institutions, collection of financial data, and the management of a credit register.

Free Trade

• In December 2006, Kosovo joined the new modernised and enlarged Central European Free Trade Agreement (CEFTA). The market created by this CEFTA comprises nearly 30 million consumers. The other parties who signed the agreement were Albania, Bosnia and Herzegovina, Bulgaria, Croatia, former Yugoslav Republic of Macedonia (FYROM), Moldova, Montenegro, Romania, and Serbia. The Agreement will unify, simplify and modernise trade relations among the parties, and also create new institutions, such as the Joint Committee and the Secretariat, which will be established to support the work of the CEFTA. Kosovo derives three major benefits from trade liberalisation, namely improved export opportunities, better investment conditions and stable relations with its neighbours.

Budget

• The development, management and implementation of the Kosovo Consolidated Budget have been transferred to the Ministry of Finance and Economy. However, the SRSG has final authority and signs the annual budget regulation. He is supported by the EU Pillar's Fiscal Affairs Office.

• The 2007 Kosovo Consolidated Budget totals €718 million, around 30% of GDP. This represents a moderate nominal increase of 2% on previous year budget. Within the overall total, more room has been made for public investment.

• At the end of October 2007, out of the €718 million, €495 million has been spent, of which 20% on capital projects, leaving the current budget surplus € 210 million. It is projected that there will be a substantial amount of underspending mainly on capital projects.

• The Medium Term Expenditure Framework (MTEF) for the period of 2008-2010 was approved by the Government in October 2007 and was presented to the donor community. The preparation of the draft 2008 Kosovo Consolidated Budget is currently ongoing.

Taxes

• The initial revenue projections of € 682.8 million for 2007 as presented in the 2007 Kosovo Consolidated Budget were revised to € 733.8 million during the Mid-Year Review process. However at the end of October 2007, the collected revenue totaled € 763 million, thus exceeding the 2007 target.

• The revenue collected in 2007 is expected to reach around € 837 million by the end of the year. Strong revenue performance is expected to lead to a surplus of € 124 million.

• The revenue collection performance is stronger in all components, but also it has been boosted by the one-off revenue resulting from the payment of the telecommunication license fee of € 75 million.

Aid

• In 2006 Official Development Aid (ODA) amounted to € 185 millions committed, out of which €149 millions have been spent. Assistance for capital investment has continuously declined from 2002 while donor funds for technical assistance have continued to grow. In 2006 technical assistance has captured 60% of funds, followed by capital investment (9%) and reconstruction/rehabilitation (5%). The “Public Utilities” sector has absorbed the biggest share of aid with 18% of the total amount committed, followed by “Democracy, Human Rights and Civil Society” (17%), “Public Administration” (15%) and “Justice, Home Affairs and Security” (12%), etc.

• The share of donor sector to GDP was 29% in 2006.

• In 2006 the European Union was still the largest donor with 30% of the total amount committed,
followed by the United States (18%), Norway (7%), Sweden (7%) and Germany (6%), and the World Bank (6%) etc.

• In general terms, the donor presence is projected to sharply decline in the medium term. At the same time, according to the MTEF, donor financing requirement for 2008-2010 period amounts to €1.255 billion.

Integration towards Europe

• Kosovo participates in the Stabilization and Association Process (SAP), the EU’s policy framework towards the Western Balkans, by following the guidelines of the European Partnership. The SAP steers Kosovo’s reform process according to EU best practices and European legislation. The Partnership document outlines the main priorities that Kosovo needs to fulfil, thereby also taking into account the requirements of the Standards for Kosovo. The Stabilization and Association Process Tracking Mechanism (STM) is the instrument that guides and monitors Kosovo’s development with regard to the European Partnership. Important elements of the STM are the regular political meetings between the European Commission’s services and the Kosovo authorities at which progress is discussed and further challenges are identified.


OSCE

The OSCE mission in Kosovo, currently the largest OSCE field operation, is mandated to promote institution- and democracy-building, human rights and the rule of law through its specialised Departments and a field presence across Kosovo. Today effective remedies are available when laws are broken or human rights are violated.

Democracy-building

• OSCE played a central role in establishing the judicial system in 1999 by identifying judges and providing necessary logistical support. Since the establishment of the justice system, OSCE has served as a monitor of the system to ensure its compliance with international human rights standards. By monitoring the legal aid system, OSCE ensures the protection of rights and interests of all communities and, in particular, vulnerable groups.

• The development of an effective legal community has also been an OSCE priority. OSCE has focused on capacity-building for the Kosovo Chamber of Advocates (KCA), the legal aid system, and the Kosovo Bar Association. Following a detailed assessment of the legal community, OSCE helped kick-start the KCA in 2000 and continues to provide technical assistance, legal education and training to KCA members, and material and logistical support.

• OSCE helped re-establish the Kosovo Bar Exam in 2001. From 2001-2006, OSCE helped 1,500 lawyers to prepare for the exam through a comprehensive preparation programme.

Human Rights

• OSCE also analyses and reports on issues related to human rights and rule of law in Kosovo. Reports have covered topics such as access to justice, parallel structures, the implementation of Kosovo Assembly laws, and a needs assessment on alternative dispute resolution.

• OSCE has created a number of institutions that support the legal community. Two have transitioned to full local ownership: the Kosovo Judicial Institute, which trains judges and prosecutors, and the Ombudsperson’s Office, which investigates complaints concerning human rights violations and abuse of authority by officials.


Media

• In 1999, the OSCE began its efforts to help develop the media through establishment of the public service broadcaster, Radio Television Kosovo (RTK).

• The Office of the Temporary Media Commissioner (TMC) was established in 2000 with the mandate to develop media and ensure professional standards. The Independent Media Commission (IMC) succeeded the Temporarily Media Commissioner with the establishment of its Council on 28 August 2006.

• Currently there are 116 licensed broadcast media - 22 television stations (three Kosovo-wide) and 94 radio stations (four Kosovo-wide). In addition, the number of daily newspapers in Kosovo has reached ten. (as of 4 April 2007)

Elections

Since 2001, OSCE has organized and supervised four elections in Kosovo:

2001 Central level
2000 Municipal level
2002 Municipal level
2004 Central level

• On 17 November 2007, Kosovo Assembly, Municipal Assembly and Mayoral elections were held throughout Kosovo. Elections were organized by local election institutions, with the support - including for technical preparations - of the OSCE Mission in Kosovo. Elections, however, are still a reserved responsibility of the UN interim administration in Kosovo, which have been delegated to the OSCE. This requires the Mission to pro-actively monitor the preparation and conduct of elections and intervene as necessary to prevent or remedy any potential misconduct or deviation from electoral rules. OSCE has helped to create local election institutions – the Central Election Commission (CEC) and its Secretariat (CECS), and over the last four years, OSCE has been building their capacity to run elections independently.


Kosovo Government


The President, with a five-year mandate, is elected by the Assembly. The main function of the President is to take action in the field of external relations in coordination with the SRSG following consultations with the political parties in the Assembly. The President has the power to dissolve, in agreement with the SRSG, the Assembly. He is also expected to report to the Assembly on the general state of affairs in Kosovo at least once a year.

President: Fatmir Sejdiu (LDK)
Prime Minister: Hashim Thaci (PDK)
Deputy Prime Minister: Hajredin Kuci (PDK)
Deputy Prime Minister: Rame Manaj (LDK)


15 Ministries and their ministers

• Minister of Energy and Mining – Justina Pula-Shiroka (PDK)
• Minister of Justice – Nekibe Kelmendi (LDK)
• Minister of Education, Science and Technology – Enver Hoxhaj (PDK)
• Minister of Health – Alush Gashi (LDK)
• Minister of Interior – Zenun Pajaziti (PDK)
• Minister of Culture, Youth and Sports – Skënder Hyseni (LDK)
• Minister of Agriculture, Forestry and Rural Development – Ideriz Vehapi (PDK)
• Minister of Trade and Industry – Lutfi Zharku (LDK)
• Minister of Local Government – Sadri Ferati (LDK)
• Minister of Economy and Finance – Ahmet Shala (PDK)
• Minister of Transport and Telecommunications – Fatmir Limaj (PDK)
• Minister of Public Services – Arsim Abram (PDK)
• Minister of Environment and Spatial Planning – Mahir Yagcilar (KDTP)
• Minister for Returns and Communities – Boban Stankovic (SLS)
• Minister for Work and Social Welfare – Nenad Ristic (SLS)

Reserved powers of SRSG -- Law and order (international police and Kosovo Police Service), appointing judiciary, ensuring and protecting the rights of minorities, UNMIK Customs Service, monetary policy, external relations, concluding agreements with states and international organizations, administering public, state and socially owned property, adjudicating disputed residential property and administering abandoned residential property, supervision of Kosovo Protection Corps.


Kosovo Assembly

• Since its inaugural session on 10 December 2001, the OSCE has provided substantial assistance to the Assembly of Kosovo. The same year, the Mission established the “Assembly Support Initiative” (ASI), which brings together donors and co-ordinates technical assistance, capacity building and democratization programmes of the international community who are involves in the Assembly’s work.

• 120 seats of the Assembly of Kosovo: 100 seats for all the political subjects directly voted, 10 seats set aside for the representatives of the Serb community, 10 seats set aside for the representatives of the other communities – 4 seats for the Roma, Ashkali and Egyptian communities (RAE), 3 seats for the Bosniak community, 2 seats for the Turkish community and 1 seat for the Gorani community. Assembly President is Jakup Krasniqi (PDK).

* 7+ Group (3 KDTP, 3 VAKAT, 1PREBK) *No Group (3 PDAK, 2 SDSKIM, 1 SNS, 1 SNSDKIM)

 

Links

UN - http://www.un.org/
UNMIK - http://www.unmikonline.org/
OSCE http://www.osce.org/
OSCE- Kosovo http://www.osce.org/kosovo/
EU Pillar - http://www.euinkosovo.org/
IMF - http://www.imf.org/external/index.htm
KFOR - http://www.nato.int/KFOR/
UNDP - http://www.kosovo.undp.org/
UNHCR - http://www.unhcr.org/cgi-bin/texis/vtx/home
IMF - http://www.imf.org/external/index.htm
UNICEF - http://www.unicef.org/
UNICEF - Kosovo http://www.unicef.org/kosovo/
Stability Pact - http://www.stabilitypact.org/
ICO - http://www.ico-kos.org/english/index.html
EUPT - http://www.eupt-kosovo.eu/new/index.php

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