Economics Knower: Future government must increase investments to 700m euros

Economist Muhamet Mustafa has stressed that the current economic growth of around 4%, however many call it solid for Kosovo, is not enough.

“To take the right direction, the internal development forces should be strengthened and promoted and implemented policies that boost local product supply for domestic market and export. This requires an increase in public investments for some 200 million euros and an increase in private investments of 500m per year, Mustafa wrote.

Full post of Mustafa without interference:

CEV ENGLISH ERIA T E RIX INVESTMENTS YEARS PUBLICIA AND PRIVAT E P SOME 700 MILLIO MILLIO

Taking an economic growth path at the fastest pace Kosovo needs remains even in 2020 is the most important issue. The current economic growth of about 4%, however many consider it solid for Konen is not enough.

This pace of economic growth is not only an increase in the initiative of certain factors related to developmental stage and some factors coming from abroad, but it is fragility and not sustainable. To take the right direction, the internal development forces must be strengthened and promoted and implemented policies that increase the local supply of products for the domestic market and for export.

This requires an increase in public investments for some 200 million euros and an increase in private investments of 500 50 million per year. As public investment increases, there are major problems with budget deformities that have been created with increased salaries in the government sector, so at the cost of leaving government and administration, a very high cost to the country's development rate.

Meanwhile, increased private investment remains a hostage to weaknesses in macroeconomic governance, not law enforcement and high corruption.

The new government has to deal with these not easy problems. On the other hand, the situation in society generally remains hostage to the defects in the creation and functioning of institutions that are produced by the primitive group and ruling political and party wars, putting power as the primary goal of serving party registers and grouping political and economic interests.

It remains very unknown as if things will flow here, after the Constitution of the 7th Parliament.

Will this moment create a new institutional practice or the power negotiations will also devalve this and enter a situation of expectation, status kvo, which will increase apathy with more associated degenerative problems.

I hope that the opposite happens and that there is a clarification of the logic and behavior of political actresses.