10 Years of Economic Failure

Businesses continue to battle with lack of energy, even though an agreement was reached at the end of the preliminary year for building the new Kosova e Re thermal power plant. The government, despite calls and formal invitations, has failed to bring in any investors.

In contrast, Macedonia with the roughly same population, has over 740,000 employees, over 1,000 per cent with multiple exports and over 200% more import.

Kosovo in the past three years tried to make fiscal policy changes, even if not immediate, such as TV growth U.S. out of 16 to 18 percent, which directly affects the increasing budgetary revenues by povertying citizens' pockets.

Then several other fiscal reforms continued, removing customs duties for raw materials and half products, which at the beginning of this year are enjoying production businesses. Neither has the signing of the Stabilisation and Association Agreement (MSA), which happened 2 years ago, yet has produced no effect.

The trade deficit continues to grow, by the end of 2017 it has amounted to 267.8m euros. While the export of goods in December 2017 was worth 29,4m euros, import of 297.3m euros, which is a 20.2% increase for export and 9.5% for import, compared to the same period in 2016.

As neighbouring states continue to be more attractive in promoting foreign investors. Kosovo issued the law enabling strategic investments but failed to complete it with other underground acts. As a result of those 10 years, foreign investments were threatened. Tourism fails, even though Brezovica accounts for having the best paths in the region, it remains far from concession.

With financial crisis and inflow failures, public companies, telecoms, mail, KEK, are also facing financial and inflows, as early as the main source of revenues. Tripca by law without enforcement and lack of the board.

Despite achievements, failures and challenges, Arian Zeka, chairman of the American Economic Ode, says World Bank reports in the last 4-5 years have ranked Kosovo to better positions and has recognised the reform process that Kosovo has done in the business-making environment, however, adds that there is a lack of concrete results such as investment, which it says is good for the country now to concentrate.

“However, there has been a lack of connection with concrete results with the aspect of attracting foreign investment duets. This is what the place needs to focus on from now on. As for fiscal policies, of course there have been improvements that have been slow, and I believe that all of those fiscal actions that have been undertaken over the years over 2009 -2013, 2014,2015, 2017, all have been able to deal with one step at a time without violating budget stability are enabling a much more competitive position of our producers in regional disputes from which our producers have by late enjoyed”, Zeka said.

He says there was also a deadlock in decision-making.

“As if it has become a practice for the decisions of one government not to be implemented by another government. I have to remember here the July 2017 decision again by a government leaving the 2.0 fiscal package with 22 measures the new September 2017 government does not implement. Likewise, the Brezovica project, which despite the hard work done by both U.S.AID has failed as such today there is no light at the end of the tunnel what is expected to happen with a project that will turn Kosovo into a map of states that have or offer potential for the development of winter tourism. And for other rural tourism, summer troms on these sides are not speaking at all “, Zeka said.

While, Berat Rukiqi of Kosovo's Economic Oda, says there was great expectation that political independence would facilitate economic processes, but Kosovo failed to make up for the next decade to step with developed countries.

And the fact that even though there is this improvement, we can't get the step in other countries. If we have more stable economic growth in us, this growth is still not enough to create jobs. If we see and see that we have certain investments, none of these investments are quality investments. ...Looking at the list of investors is a sin that the whole list of things doesn't concern an investor with a certain name and has to say international reputation. Mostly there are diaspora investments or investments that have not cried out to create a lot of value added to the economy.”, Rukiqi said.

Enver Hoti, MP and member of the Parliamentary Commission for Business and Finance, says we should feel proud of what has been achieved so far, but citizens should seek greater responsibility from the state.

I think the social situation in the country is difficult. This is not supposed to be it. Could be better. Must be better. We have to work and it's the last moment this decade of independence, the country must serve the country's leaders for a call to take additional obligations and return to their real duties, create development and prosperity opportunities for the citizens of the country. It is disturbing that after 10 years people still see their economic, social solution leaving the country. Their main concern I think in this 10-year-old should be and it's people leaving the country. This is terrible, not acceptable, and many I think should be disturbing to the country's own leaders and the entire political class in the country.”, Hoti said.

Similarly, Nasser Osmani, a member of the Board and Finance Commission, estimates that economic development in this decade is allowed to be desired. Name some achievements such as the new fiscal package, the establishment of the Trepca legal base, and the law for strategic investments.

“As to economic development, let to wish. Because we were more optimistic. We thought Kosovo would develop economically, function this economic potential that has been, new jobs will be opened. Unfortunately, this has not happened as we thought. Despite the success, thanks to the fiscal package that has brought great facilities, especially for local producers. The law for strategic investments I consider among the most important laws, the Trepca law that I consider success as well as the implementation of “Boras”, is a success “, Osmani said.

In contrast, according to Finance Minister Lulzim Rafuna's adviser, Kosovo in the fiscal area in revenues has achieved progress.

If they get it from 2007 until 2017 when we close it as a fiscal year. Total income is up 87 percent. So in 2007 we started with 903 million revenues we inherited from the UNMIK period. Now in 2017 we talk about 1 billion of 685m euros “, Rafuna said.

According to him, budget revenues continue to be dependent on tax revenues from ATK and Dogan. Tax revenues over 10 years have increased by 107 percent