The Historical Economic Hour

It says: Shenoll Muharremi

Kosovo needs (for the start) a 25-30 billion-euro economy a year to stabilise politically, boost prosperity and build its defence and security capacities. Now we're at 10 rain yet, and our main task is to find methods for our difficult political conditions and culture to speed up growth. If it took us 10 years to double our economy (2013-23), how can we do that in 5 years, that's the point.

With 3.5 billion euros we started the economy/bpv in the year of independence. Between 2008 and 2023, it takes 15 years to achieve a historic moment or 10 billion euros in economies. Today Kosovo has gross domestic product, all its products and services worth 10 billion annually. This, although very modest, is a historic moment! The first time in history that Kosovo is reaching 10 billion euros in GDP.

Kosovo suffers for political stability and good conditions for doing business and investment.

Because of foreign and domestic political problems, her economy is becoming sick. Never until now was there a political calm and focus on the economy to be able to see the country's potential. To double BPV takes 10 years, from 2013 about 5 billion to 2023 about 10 billion. During 2024, predictions are that Kosovo's BPV will be 10.5 billion euros.

The current government's economic policies are independent, the government has no real policies and applied tactics and actions that have troubled the private sector. In case she threatened to close up the businesses. This week she used public companies (telekom) to attack and hit the private sector and make unfair competition.

During the period of historic inflation, the government had no policy to try or manage the situation. But this is not a case and an attempt to assess the government, these are just some indicators that with current policies and the style and deeds we've seen in recent years, we're not going to be able to do more without changing something essentially in the economic thinking of power. The government needs to be hostile to businesses and the private sector, and that is to be concerned.

A new paradigm is needed to achieve this double (10 billion to 20 billion) and growth for five years rather than 10 years. First it needs to be understood, even though it's basic, that the private sector needs to grow and strengthen, not the state and the government. The government is a servant of business and economics. Relief policies have to change.

We shouldn't produce parasites waiting for social assistance. We need to transfer these people into the labor market. The Labour and Trade Deficit Market are the two main structural anomalies where the local economy's node must begin to be resolved. Over 700,000 people off the labour market (over 60% of the active labour population) and -50% of GDP commercial deficit in goods are the main anomalies.

It needs to be completed with strong policy and physical interventions. From asphalt to construction to soft programs. Work market programmes, import replacement programs with local products. Programs for entrepreneurs and start Ups.
Innovation and IPT programs. Restructuring the deepening service sector economy. These are some interventions that would enable a new economic paradigm. But it is not enough to touch these subjects.

It takes a strong approach to produce the right effect.

From the attack on supporting the private sector and businesses in all the linkes of business and economic competition. Above all, the government must spend all the financial capital available and must lower taxes. Working with the financial sector for free loans that stimulate the private sector to freeze more capital and undertake and increase their business activities.