Economic areas in Kosovo, for the sake of mayors

The free economic zone is a territory that has a special economic status.

The law on economic zones in Kosovo envisions four types of free economic zones -- economic areas or industrial parks, technological parks and innovative centres.

Economics expert Muhamet Sadiku tells Radio Free Europe that most of these economic areas have been established without any economic analysis in relation to the international market, in relation to foreign investment and in relation to trade liberalisation in general.

There are some strange phenomena in Kosovo, as the beginnings of successful businesses, similar investments occur, as it is, we have had a euphoria in the opening of private universities, euphoria at the opening of restaurants and basins, and now the situation has managed to open to Kosovo as many free economic zones as possible, and this has included a large number of cities, and there are ambitions to form other” economic areas, Sadiku says.

The economic areas operating in Kosovo are: the business park in Drenas then in Mitrovica, the technology park in Skenderaj, the industrial zone in Suhareka, the Dutch industrial park in Prizren, the Vushtrri business park, the technology park in Investments, the economic area in Gjilan, and the economic area in Ferizaj.

The chairman of the Kosovo Economic Ode, Berat Rukiqi, tells Radio Free Europe that in the case of Kosovo, decisions for free economic zones are political.

“The conditions we're going to go to where each mayor or minister is willing to have an economic zone, I think not only will they not be functional, but they will degrade the entire concept of the economic zone”

“We don't even have an economic area in the full sense of the word that means it's not only infrastructure that offers the state to make an economic area, but it should be the part that is related to the conveniences that are created there, such as fiscal facilities that help the business infrastructure perform”, Rukiqi says.

Establishment of free economic zones, according to Professor Muhamet Sadiku, should be put into context of Kosovo's size as a state and as a market economy. He says all cities in Kosovo cannot become free economic zones.

It is better to proclaim Kosovo's entire free economic zone than 30 cities in Kosovo to declare themselves free economic zones with different approaches to foreign investors. Therefore, it would be good for the Government of Kosovo to stop doing a serious analysis on the possible effect of these free economy areas”, Sadiku says.

The creation of free economic zones in Kosovo by representatives of the country's institutions was constantly highlighted as a priority for attracting international investment.

But despite the creation of these free economic zones, field experts say Kosovo continues to remain one of the most underdeveloped economies in the region with no more than 4 percent and higher unemployment rates than 30 percent.