UNMIK on Air
12 January
2004
(By Gezim Kasapolli)
It’s
already been predicted that 2004, will be one of the most important periods in
the post-conflict Kosovo era. Parliamentary elections and fulfillment of
standards will be the main points of attention for all Kosovans and the
international community in general.
Hello
and welcome to this edition of UNMIK on Air
UNMIK
and the Kosovan government agree that strong foundations must be built in order
for “Kosovo’s Standards” to be achieved and they all believe that economy is
the linkage that could help and determine the level of progress in achieving
these standards. Nicky Lamsdorff, head of EU emphasizes the need for a legal
framework, which according to him is essential for the economic development of
Kosovo.
Nicky
Lamsdorff: On a very broad basis,
Kosovo clearly needs a new legal and institutional base for economic
development. It also needs a regulatory framework. Much of this has already
been achieved in the last two or three years, there are some parts missing but
the basis is there. This is, indeed, in common basis with UNMIK, the PISG and
of course the Assembly, they are doing this together and we have to do this
together.
Meanwhile
the Kosovo government has drafted a few laws that were already handed over to
the parliament; these will be indispensable legal tools that will allow the
development of an economic infraestructure. According to Besim Beqaj, adviser
to Kosovo’s PM for economy and representative for the Stability Pact, the
government is presently working on the sub-standards within the economy
standard and they predict for the legislation to be completed by the end of
2004.
Besim Beqaj: This will be a specific activity
that will enable us to be competent and competitive with economies in the
region. For example, in order to sign an agreement for free trading with
countries of the region it is necessary to have 21 laws which will be
incorporated within that agreement for its implementation, not only for the
process of signing. So, it is obvious that one of the most urgent issues is
complementing the legal infrastructure for developing an economy.
The
lack of domestic products and export of goods into neighboring countries is
also a matter of great concern for all Kosovan business entrepreneurs. However,
says Naim Gashi, economy analyst, this is the result of an unfavorable policy
for domestic producers and their inability to access neighboring markets.
Naim Gashi: In order to fulfill the economy
standard it is necessary to change the fiscal policy in Kosovo that favors
domestic products and stimulates employment. I would emphasize the importance
of creating fair rules in trading relations with neighboring countries, because
Kosovan businessmen do not have access to none of the neighboring markets,
except for Albania with whom we have signed the agreement on free trading,
while on the other hand foreign producers and businessmen have total access to
the Kosovo market.
The
need for foreign investments is still a vital necessity for Kosovo’s economy.
But, these investments always face the most “notorious” obstacle in Kosovo –
KEK. KEK problems, says Naim Gashi, are the consequence of bad management and
the inexistence of a proper mechanism that would push people to pay their
bills. The outcome is more than obvious.
Naim Gashi: I believe that the energetic
problem in Kosovo rests within KEK’s management; that would influence directly
into the economic development, thus achieving the standards. I do not think
that Kosovo lacks energetic capacities, but the reason for this situation is
KEK’s bad management, because a compulsory mechanism for paying the bills was
not created as well as the proper management that would ensure the rightful administration
of KEK’s capacities and potentials.
Nicky Lamsdorff stresses
that although KEK is vital to Kosovo’s economic growth, there are other
“privately owned enterprises” that need to be updated and all these companies
should become the backbone of Kosovo’s economy and the path to a modern trade
economy.
Nicky Lamsdorff: If you look at the publicly owned
enterprises, they have to become modern companies, transparent companies which
are able to support the economy and of course the people of Kosovo. This of
course is one of the major issues that KTA and the government are working on,
we just discussed KEK, but KEK is not the only one, there are other POE’s; then
there are some minor details, we need a reliable economic data and statistics
on Kosovan economy and this is still not really there.
But one thing is for sure,
all the necessary economic legal instruments will have to be drawn very soon
for these laws to begin to be applied.
And there is no doubt
then, that the linkage between Kosovo’s economy and the fulfillment of all
other standards will prove to be the most serious and complicated item of
“Kosovo’s standards”.
That’s it for this edition
of UNMIK on Air, thanks for listening and stay tuned for more.