American Oda: Issue of increasing political interference in economy, judiciary directly undermines investor confidence

The American Economic Oda in Kosovo has asked the Kurti Government to address immediately the challenges of economic growth.

According to OECA, the disturbing conclusions drawn in Kosovo's recently published Investment Climate Declaration by the US State Department cannot be ignored

“These findings, stressing substantial political interference in the economy and lack of public-private dialogue, place in the area's ability to attract foreign direct investment (IHD), which is crucial to economic development”, are said to be in response to this approach.

“It is disturbing to see that such issues are not only affecting the international image, but also sparking dissatisfaction among Kosovo citizens. The latest UNDP public Pulse survey has shown that only 17.7% of citizens are satisfied with Kosovo's economic direction. This statistics signals an urgent need for change and systematic improvement in economic governance by underlining the weight of tasks that must be implemented”, it is now said.

According to OECA, the issue of increasing political interference in the economy and judiciary directly undermines investor confidence, hinders market dynamics, and poses considerable danger to potential investors.

This intervention questions Kosovo's reputation as a stable and predictable investment environment. Without addressing this, the country risks further eroded investor confidence and its citizens”, it further says.

“in a similar way, the lack of a functional and systematic public-private dialogue, despite regulations that impose public consultation, is an issue of concern. Approval of new regulations often without substantial discussions with interest parties creates an unpredictable regulatory environment that could prevent investors”, Oda adds.

In turn, it estimates that the country should address other important challenges, such as limited regional and global economic integration, good inter-side relations, unreliable energy supply and difficulties in establishing property rights.

“The major informal sector and rampant corruption continue to be stumbling to investors, while heavy reliance on international financial support and remittances question the long-term sustainability of the Kosovo economy”, OECH adds.

The government must act quickly and decisively to ease these concerns. Eliminating political interference, establishing an effective public-private dialogue and implementing strategies to fight corruption and improve Kosovo's infrastructure must be among the government's top priorities. Promoting a climate of transparency, predictability and open dialogue, the country will inevitably improve its image before foreign investors”, Oda estimates American.