UNMIK on air
Process of privatization 2005
By Gëzim Kasapolli
Hello and
welcome, from the studios of UN radio in Kosovo ….
Privatization
policy is one of the more controversial economic processes in Kosovo. Critics
have called the process flawed and slow-moving. In January, the Institute for
Enterprise Management and Engineering or IEME hosted a conference to address
the criticism and recommend methods for improving the process.
Members of
the Kosovo government were in attendance as were members of the international
community.
Conference
organizer, Dr. Edmond Hajrizi is director of the University for Business and
Technology and IEME in Kosovo. He said the time was right to embrace change in
the privatization process.
Hajrizi
Based on the results achieved so far
in the process of privatization but also based on other developments related to
this process such as the economic and social situation of Kosovo, as well as
with the, constitution of the new government, changes in UNMIK’s Pillar IV,
proposals for changing the KTA regulation, transfer of more competences to the
local institutions, fulfillment of the standards – all of this shows that we
should have a new approach towards this process in the future.
One of the
main participants at the conference was Kosovo prime-minister Ramush Haradinaj.
He suggested that transferring more powers to Kosovo’s provisional institutions
would actually attract investment.
Haradinaj
It is more then necessary to create
a sustainable system of privatization because in the future the large
enterprises will be targeted and this way we would demonstrate our seriousness
before the community of investors. This year the developments that will occur
related to the transfer of competencies in economy will create circumstances
for the government of Kosovo to give greater support to the process of
privatization.
The new minister
of trade and industry, Bujar Dugolli, also spoke at the conference. A history
graduate, Dugolli’s limited input was mostly directed at recalling past
blunders in the process rather then suggesting ideas about how the process
should be developed in the future. Dugolli’s recommendations for transforming the
Kosovo Trust Agency policy, the agency responsible for regulating
privatization, hinged more on political than economic justification.
Dugolli
If there will be a modification of the KTA regulation, which is a
must because the owners of the enterprises in Kosovo are the citizens of Kosovo
and the workers of those enterprises. In this matter there should be no
question about the ownership of these enterprises because the citizens are the
owners and the representatives of these citizens are the institutions of Kosovo
elected and recognized internationally.
Critics of
Kosovo’s economic policy, see the recent departure of European Union Pillar 4
head, Nikolas Lamsdorff as a positive signal in the privatization process. The
KTA is a European Union run agency, and Lamsdorff often bore the brunt of
criticism for the measured pace with which he approved privatization contracts.
The EU maintains that successful privatization policy relies heavily on
assuring that corruption is not allowed to creep into ownership.
Citing improvements
in the current UNMIK administration, Haki Shatri, Minister of Finance and
Economy said that he is confident that privatization will improve.
Although
the participants and the audience praised the importance of organizing such an
event, the lack of new ideas and plans was more than obvious. Recent debate in
the European Parliament suggests that problems with a lack of foreign
investment can only come through the resolution of Kosovo’s status. Still, the
debate on Kosovo’s privatization process is far from over.
And
with this we end today’s program. Thanks for listening and stay tuned for more.