Kosovo Country Profile

Snapshot of the Kosovo Country Profile


Over the past few years Kosovo's economy has shown significant progress in transitioning to a market-based system and maintaining macroeconomic stability, but it is still highly dependent on the international community and the diaspora for financial and technical assistance. In partnership with the private sector, Kosovo has been developing a modern and diverse economy that generates revenues, invests in strategic commercial infrastructure, provides business opportunities for SMEs, and attracts foreign investment. According to the EU Commission Progress Report 2008, corruption is still widespread and remains a major problem in Kosovo. This is due to insufficient legislative and implementation measures, lack of political will, a culture of clientelism, and weakness of the judicial system.

Positive developments in relation to corruption and investment:

  • Over the recent years, Kosovo has achieved some progress in key structural reform areas, including public enterprise restructuring and law enforcement.
  • In addition, in order to reduce red tape and promote transparency in the regulatory processes, the government has launched several internet portals and has created one-stop shops to reduce propensity for corruption, as meetings between civil servants and companies decrease.
  • Furthermore, Kosovo has begun to move towards a somewhat more competitive politics, with the ability to penalise corrupt officials at the polls.

Risks of corruption:

  • In Transparency International's Global Corruption Barometer 2009, the judicial system is identified as the area which is most affected by corruption in Kosovo.
  • Public administration in Kosovo can be characterised as inefficient and subject to political interference, while the civil service and public finance management functions lack full transparency and accountability.
  • According to Global Integrity 2009, areas that require particular attention in regards to anti-corruption efforts include public procurement, privatisation, the judiciary, as well as public administration.