Economic Sustainability of Kosova as an Independent State, and the Role of Resolution 1244 in Achieving Economic Sustainability

Four years of political trusteeship by the international community over Kosovo have produced insufficient progress on the economic front. The unemployment rate remains close to 60%; no overall vision for economic self-sufficiency exists; privatization has barely begun; and few steps have been taken to exploit the potential of entrepreneurial energy to start new small and medium enterprises. Uncertainly about final status is partly responsible. UN lawyers have questioned legal authority to restructure inefficient enterprises, and Kosovo's lack of independent identity discourages outside investors. Kosovar political leaders are distracted from the important job of developing concrete programs for developing the private economy. In other respects, uncertainty about final status is merely an excuse for public entities not doing their jobs. UNMIK does not promptly and reliably public its "regulations" - legislative acts. The EU Stability Pact mostly leaves Kosovo out of regional economic development activities. Kosovo political parties have not developed coherent economic programs. The United States should begin the process of convening an international conference to decide the final status of Kosovo. UNMIK and provisional governmental institutions must meet their responsibilities to reform law and public administration to create a better investment climate, and must establish important financial services intermediation to make it easier for entrepreneurs and investors to get together and to make deals