Tuesday, May 3, 2011

KOSOVO

Republic of Kosovo
Republika e Kosovës (Albanian)
Република Косово (Serbian)
Republika Kosovo (Serbian)
Flag Coat of arms
Anthem: Europe[1]
Kosovan National Anthem Instrumental.ogg

Location of Kosovo on the European continent
Location of Kosovo on the European continent
Capital
(and largest city)
Pristina (Prishtina, Priština)
42°40′N 21°10′E / 42.667°N 21.167°E / 42.667; 21.167
Official language(s) Albanian, Serbian
Recognised regional languages Turkish, Gorani, Romani, Bosnian
Demonym Kosovar, Kosovan
Government Parliamentary republic
under international supervision
- President of Kosovo Atifete Jahjaga
- Prime Minister Hashim Thaçi
- International Civilian Representative Pieter Feith (EU)
Independence1 from Serbia, UNMIK
- UNSCR 1244 10 June 1999
- Proposal for Status Settlement 26 March 2007
- EULEX 16 February 2008
- Declared 17 February 2008
Area
- Total 10,908 km2
4,212 sq mi
- Water (%) n/a
Population
- 2007 estimate 1,804,838[2]
- 1991 census 1,956,1962
- Density 220/km2
500/sq mi
GDP (nominal) 2009 estimate
- Total $5.352 billion[3]
- Per capita $2,965
Currency Euro ()3 (EUR)
Time zone CET (UTC+1)
- Summer (DST) CEST (UTC+2)
Drives on the right
Calling code +3814
1 Independence has only been partially recognised internationally.
2 The census is a reconstruction; most of the ethnic Albanian majority boycotted.
3 Adopted unilaterally; Kosovo is not a formal member of the Eurozone.
4 Officially +381; some mobile phone providers use +377 (Monaco) or +386 (Slovenia) instead.
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History of Kosovo
Kosovo
This article is part of a series
Early History
Prehistoric Balkans
Roman Empire
Byzantine Empire
Middle Ages
Bulgarian Empire
Medieval Serbia
Battle of Kosovo
Ottoman Kosovo
Eyalet of Rumelia
Vilayet of Kosovo
Albanian nationalism
20th century
First Balkan War
Kingdom of Serbia
Kingdom of Yugoslavia
Albanian Kingdom
AP Kosovo and Metohija
SAP Kosovo
AP Kosovo and Metohija
Recent history
Kosovo War
UN administration
2008 Kosovo declaration of independence
Contemporary Kosovo
See also Timeline of Kosovo history

Kosovo Portal
v · d · e

Kosovo (Albanian: Kosovë, Kosova; Serbian: Косово, Kosovo, pronounced [ˈkɔsɔvɔ]), officially the Republic of Kosovo (Albanian: Republika e Kosovës; Serbian: Република Косово, Republika Kosovo) is a partially recognised state and a disputed territory in the Balkans. It is self-declared and has de facto control over most of the territory of Kosovo, while North Kosovo, the largest Kosovo Serb enclave, is under control by institutions of the Republic of Serbia.[4][5] Serbia does not recognise the unilateral secession of Kosovo[6] and considers it a United Nations-governed province within its sovereign territory.[7]

Kosovo is landlocked and borders the Republic of Macedonia to the south, Albania to the west and Montenegro to the northwest, all three states recognise Kosovo. The remainder of Kosovo's frontier to the north and east is the subject of controversy and is with the Central Serbian region. The largest city and the capital of Kosovo is Pristina (alternatively spelled Prishtina or Priština), while other cities include Peć (Albanian: Peja), Prizren, Đakovica (Gjakova), and Kosovska Mitrovica (Mitrovica).

After the Kosovo War and the 1999 NATO bombing of Yugoslavia, the territory came under the interim administration of the United Nations Mission in Kosovo (UNMIK), most of whose roles were assumed by the European Union Rule of Law Mission in Kosovo (EULEX) in December 2008.[8] In February 2008 individual members of the Assembly of Kosovo (acting in personal capacity and not binding the Assembly itself) declared Kosovo's independence as the Republic of Kosovo. Its independence is recognised by 75 UN member states and the Republic of China (Taiwan). On 8 October 2008, upon request of Serbia, the UN General Assembly adopted a resolution asking the International Court of Justice for an advisory opinion on the issue of Kosovo's declaration of independence.[9] On 22 July 2010, the ICJ ruled that Kosovo's declaration of independence did not violate international law, which its president said contains no "prohibitions on declarations of independence".[10]

The Republic of Kosovo is member of the International Monetary Fund and the World Bank Group.

Contents

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History

Kosovo (Serbian: Косово) is the Serbian neuter possessive adjective of kos (кос) "blackbird",[11] an ellipsis for Kosovo Polje "field of the blackbirds", the site of the 1389 Battle of Kosovo Field. The name of the field was applied to an Ottoman province created in 1864.

Kosovo's current status is the result of the turmoil of the disintegration of Yugoslavia, particularly the Kosovo War of 1998 to 1999.

Disintegration of Yugoslavia

Bridge over the Ibar, connecting the Serbian north and Albanian south of the city of Kosovska Mitrovica.

Inter-ethnic tensions continued to worsen in Kosovo throughout the 1980s. The 1986 Memorandum of the Serbian Academy warned that Yugoslavia was suffering from ethnic strife and the disintegration of the Yugoslav economy into separate economic sectors and territories, which was transforming the federal state into a loose confederation.[12]

On June 28, 1989, Slobodan Milošević delivered the Gazimestan speech in front of a large number of Serb citizens at the main celebration marking the 600th anniversary of the Battle of Kosovo at the Gazimestan. Many think that this speech helped Milošević consolidate his authority in Serbia.[13] In 1989, Milošević, employing a mix of intimidation and political manoeuvring, drastically reduced Kosovo's special autonomous status within Serbia and started cultural oppression of the ethnic Albanian population.[14] Kosovo Albanians responded with a non-violent separatist movement, employing widespread civil disobedience and creation of parallel structures in education, medical care, and taxation, with the ultimate goal of achieving the independence of Kosovo.[15]

On July 2, 1990, the self declared Kosovo parliament declared Kosovo an independent country, the Republic of Kosova. In May 1992, Ibrahim Rugova was elected president.[16] During its lifetime, the Republic of Kosova was only officially recognised by Albania; it was formally disbanded in 2000, after the Kosovo War, when its institutions were replaced by the Joint Interim Administrative Structure established by the United Nations Interim Administration Mission in Kosovo (UNMIK).

Kosovo War

In 1995 the Dayton Agreement ended the Bosnian War, drawing considerable international attention. However, despite the hopes of Kosovar Albanians, the situation in Kosovo remained largely un-addressed by the international community, and by 1996 the Kosovo Liberation Army (KLA), an ethnic Albanian guerilla group, had prevailed over the non-violent resistance movement and had started offering armed resistance to Serbian and Yugoslav security forces, resulting in early stages of the Kosovo War.[14][17]

By 1998, as the violence had worsened and displaced scores of Albanians, Western interest had increased. The Serbian authorities were compelled to sign a ceasefire and partial retreat, monitored by OSCE observers according to an agreement negotiated by Richard Holbrooke. However, the ceasefire did not hold and fighting resumed in December 1998. The Račak massacre in January 1999 in particular brought new international attention to the conflict.[14] Within weeks, a multilateral international conference was convened and by March had prepared a draft agreement known as the Rambouillet Accords, calling for restoration of Kosovo's autonomy and deployment of NATO peacekeeping forces. The Serbian party found the terms unacceptable and refused to sign the draft.

Between March 24 and June 10, 1999, NATO intervened by bombing Yugoslavia aimed to force Milošević to withdraw his forces from Kosovo.[18] This military action was not authorised by the Security Council of the United Nations and was therefore contrary to the provisions of the United Nations Charter. Combined with continued skirmishes between Albanian guerrillas and Yugoslav forces the conflict resulted in a further massive displacement of population in Kosovo.[19]

During the conflict, roughly a million ethnic Albanians fled or were forcefully driven from Kosovo. Altogether, more than 11,000 deaths have been reported to Carla Del Ponte by her prosecutors.[20] Some 3,000 people are still missing, of which 2,500 are Albanian, 400 Serbs and 100 Roma.[21] Ultimately by June, Milošević had agreed to a foreign military presence within Kosovo and withdrawal of his troops.

Since May 1999, the International Criminal Tribunal for the former Yugoslavia has prosecuted crimes committed during the Kosovo War. Nine Serbian and Yugoslavian commanders have been indicted so far for crimes against humanity and violations of the laws or customs of war in Kosovo in 1999: Yugoslavian President Slobodan Milošević, Serbian President Milan Milutinović, Yugoslavian Deputy Prime Minister Nikola Šainović, Yugoslavian Chief of the General Staff Gen. Dragoljub Ojdanić, Serbian Interior Minister Vlajko Stojiljković, Gen. Nebojša Pavković, Gen. Vladimir Lazarević, Deputy Interior Minister of Serbia Vlastimir Đorđević and Chief of the Interior for Kosovo Sreten Lukić. Stojiljković killed himself while at large in 2002 and Milošević died in custody during the trial in 2006. No final judgement concerning the other defendants has been produced so far. The indictment against the nine has alleged that they directed, encouraged or supported a campaign of terror and violence directed at Kosovo Albanian civilians and aimed at the expulsion of a substantial portion of them from Kosovo. It has been alleged that about 800,000 Albanians were expelled as a result. In particular, in the last indictment as of June 2006, the accused were charged with murder of 919 identified Kosovo Albanian civilians aged from one to 93, both male and female.[22][23][24][25]

Six KLA commanders were indicted in two cases: Fatmir Limaj, Isak Musliu and Haradin Bala,[26] as well as Ramush Haradinaj, Idriz Balaj and Lahi Brahimaj. They were charged with crimes against humanity and violations of the laws and customs of war in Kosovo in 1998, consisting in persecutions, cruel treatment, torture, murders and rape of several dozens of the local Serbs, Albanians and other civilians perceived un-loyal to the KLA. In particular, Limaj, Musliu and Bala were accused of murder of 22 identified detainees at or near the Lapušnik Prison Camp. In 2005 Limaj and Musliu were found not guilty on all charges, Bala was found guilty of persecutions, cruel treatment, murders and rape and sentenced to 13 years. The appeal chamber affirmed the judgements in 2007. In 2008 Ramush Haradinaj and Idriz Balaj were acquitted, whereas Lahi Brahimaj was found guilty of cruel treatment and torture and sentenced to six years. Notices of appeal are currently being considered.[27][28][29]

UN administration period

National Public Library in Pristina.

On June 10, 1999, the UN Security Council passed UN Security Council Resolution 1244, which placed Kosovo under transitional UN administration (UNMIK) and authorised KFOR, a NATO-led peacekeeping force. Resolution 1244 provided that Kosovo would have autonomy within the Federal Republic of Yugoslavia, and affirmed the territorial integrity of Yugoslavia, which has been legally succeeded by the Republic of Serbia.[30]

Some 200,000-280,000, representing the majority of the Serb population, left when the Serbian forces left. There was also some looting of Serb properties and even violence against some of those Serbs and Roma who remained.[31] The current number of internally displaced persons is disputed,[32][33][34][35] with estimates ranging from 65,000[36] to 250,000.[37][38][39] Many displaced Serbs are afraid to return to their homes, even with UNMIK protection. Around 120,000-150,000 Serbs remain in Kosovo, but are subject to ongoing harassment and discrimination due to physical threats for their safety.[40]

International negotiations began in 2006 to determine the final status of Kosovo, as envisaged under UN Security Council Resolution 1244. The UN-backed talks, led by UN Special Envoy Martti Ahtisaari, began in February 2006. Whilst progress was made on technical matters, both parties remained diametrically opposed on the question of status itself.[41]

In February 2007, Ahtisaari delivered a draft status settlement proposal to leaders in Belgrade and Pristina, the basis for a draft UN Security Council Resolution which proposes 'supervised independence' for the province. A draft resolution, backed by the United States, the United Kingdom and other European members of the Security Council, was presented and rewritten four times to try to accommodate Russian concerns that such a resolution would undermine the principle of state sovereignty.[42]

Russia, which holds a veto in the Security Council as one of five permanent members, had stated that it would not support any resolution which was not acceptable to both Belgrade and Kosovo Albanians.[43] Whilst most observers had, at the beginning of the talks, anticipated independence as the most likely outcome, others have suggested that a rapid resolution might not be preferable.[44]

After many weeks of discussions at the UN, the United States, United Kingdom and other European members of the Security Council formally 'discarded' a draft resolution backing Ahtisaari's proposal on 20 July 2007, having failed to secure Russian backing. Beginning in August, a "Troika" consisting of negotiators from the European Union (Wolfgang Ischinger), the United States (Frank_G._Wisner) and Russia (Alexander Botsan-Kharchenko) launched a new effort to reach a status outcome acceptable to both Belgrade and Pristina. Despite Russian disapproval, the U.S., the United Kingdom, and France appeared likely to recognise Kosovar independence.[45] A declaration of independence by Kosovar Albanian leaders was postponed until the end of the Serbian presidential elections (4 February 2008). Most EU members and the US had feared that a premature declaration could boost support in Serbia for the ultra-nationalist candidate, Tomislav Nikolić.[46]

UN administration 1999–present

On June 10, 1999, the UN Security Council passed UN Security Council Resolution 1244, which placed Kosovo under transitional UN administration (UNMIK) and authorised KFOR, a NATO-led peacekeeping force. Resolution 1244 provided that Kosovo would have autonomy within the Federal Republic of Yugoslavia, and affirmed the territorial integrity of Yugoslavia, which has been legally succeeded by the Republic of Serbia.[30]

According to the Constitutional Framework, Kosovo shall have a 120-member Kosovo Assembly. The Assembly includes twenty reserved seats: ten for Kosovo Serbs and ten for non-Serb minorities (Bosniaks, Roma, etc.). The Kosovo Assembly is responsible for electing a President and Prime Minister of Kosovo.

Provisional Institutions of Self-Government

In November 2001, the OSCE supervised the first elections for the Kosovo Assembly.[47] After that election, Kosovo's political parties formed an all-party unity coalition and elected Ibrahim Rugova as President and Bajram Rexhepi (PDK) as Prime Minister.[48] After Kosovo-wide elections in October 2004, the LDK and AAK formed a new governing coalition that did not include PDK and Ora. This coalition agreement resulted in Ramush Haradinaj (AAK) becoming Prime Minister, while Ibrahim Rugova retained the position of President. PDK and Ora were critical of the coalition agreement and have since frequently accused the current government of corruption.[49]

Parliamentary elections were held on 17 November 2007. After early results, Hashim Thaçi who was on course to gain 35 per cent of the vote, claimed victory for PDK, the Democratic Party of Kosovo, and stated his intention to declare independence. Thaçi formed a coalition with current President Fatmir Sejdiu's Democratic League which was in second place with 22 percent of the vote.[50] The turnout at the election was particularly low. Most members of the Serb minority refused to vote.[51]

However, since 1999, the Serb-inhabited areas of Kosovo, such as North Kosovo have remained de facto independent from the Albanian-dominated government in Pristina. Local politics in the Serb areas are dominated by the Serbian List for Kosovo and Metohija. The Serbian List is led by Oliver Ivanović, an engineer from Mitrovica. Within Serbia, Kosovo is the concern of the Ministry for Kosovo and Metohija, currently led by minister Goran Bogdanović.[52]

Declaration of independence

The "NEWBORN" monument unveiled at the celebration of the 2008 Kosovo declaration of independence proclaimed earlier that day, 17 February 2008, Pristina.
States (green) that recognise Kosovo as an independent country.

Kosovo declared independence on 17 February 2008[53] and over the following days, a number of states (the United States, Turkey, Albania, Austria, Croatia, Germany, Italy, France, the United Kingdom, the Republic of China (Taiwan),[54] Australia, Poland and others) announced their recognition, despite protests by Russia and others in the UN.[55] Currently, 75 UN states recognise the independence of Kosovo and it has become a member country of the IMF and World Bank as the Republic of Kosovo.[56][57]

The UN Security Council remains divided on the question (as of 4 July 2008 (2008 -07-04)). Of the five members with veto power, USA, UK, and France recognised the declaration of independence, and the People's Republic of China has expressed concern, while Russia considers it illegal. As of May 2010, no member-country of CIS, CSTO or SCO has recognised Kosovo as independent. Kosovo has not made a formal application for UN membership yet in view of a possible veto from Russia and China.[citation needed]

The European Union has no official position towards Kosovo's status, but has decided to deploy the European Union Rule of Law Mission in Kosovo to ensure a continuation of international civil presence in Kosovo. As of April 2008, most of the member-countries of NATO, EU, WEU and OECD have recognised Kosovo as independent.[58]

As of 9 October 2008 (2008 -10-09), all of Kosovo's immediate neighbour states except Serbia have recognised the declaration of independence. Montenegro and Macedonia announced their recognition of Kosovo on 9 October 2008.[59] Albania, Croatia, Bulgaria and Hungary have also recognised the independence of Kosovo.[60]

The Serb minority of Kosovo, which largely opposes the declaration of independence, has formed the Community Assembly of Kosovo and Metohija in response. The creation of the assembly was condemned by Kosovo's president Fatmir Sejdiu, while UNMIK has said the assembly is not a serious issue because it will not have an operative role.[61]

On 8 October 2008, the UN General Assembly resolved to request the International Court of Justice to render an advisory opinion on the legality of Kosovo's declaration of independence from Serbia.[62] The advisory opinion, which is legally non-binding but had been expected to carry "moral" weight,[63] was rendered on 22 July 2010, holding that Kosovo's declaration of independence was not in violation of international law.[64][65]

Government and politics

Government

Republic of Kosovo Government Building in Pristina

The government of the Republic of Kosovo is defined under the 2008 Constitution of Kosovo as a multi-party parliamentary representative democratic republic. Legislative power is vested in both the Assembly of Kosovo and the ministers within their competencies. The President of Kosovo is the head of state and represents the "unity of the people". The Executive of Kosovo exercises the executive power and is composed of the Prime Minister of Kosovo as the head of government, the deputy prime ministers, and the ministers of the various ministries. The legal system is composed of an independent judiciary composed of the Supreme Court and subordinate courts, a Constitutional Court, and an independent prosecutorial institution. There also exist multiple independent institutions defined by the Constitution and law, as well as local governments.

International civil and security presences are currently operating under auspices of the United Nations Security Council Resolution 1244. Previously this included only the United Nations Interim Administration Mission in Kosovo (UNMIK), but has since expanded to include the European Union Rule of Law Mission in Kosovo (EULEX). In December 2008, EULEX was deployed throughout the territory of Kosovo, assuming responsibilities in the areas of police, customs and the judiciary.[66]

A Kosovo Police force was established in 1999 and remains subordinated to the UNMIK Police.[citation needed]

EULEX

Skyline of Pristina

The European Union Rule of Law Mission in Kosovo, also known as EULEX Kosovo or EULEX, is a deployment of European Union (EU) police and civilian resources to Kosovo. This Common Security and Defence Policy mission is the international civil presence in Kosovo operating under the umbrella of the United Nations Interim Administration Mission in Kosovo (UNMIK) established by United Nations Security Council Resolution 1244.

Serbia and a number of countries had initially strictly objected to the mission and supported UNMIK, demanding approval by the United Nations Security Council, which was rendered in late 2008.[citation needed] After signing a 5-point plan between Serbia and the UN, the UN SC approved the addition of the EULEX as an assistance mission subjected to the UNMIK, rather than outright replacing it, which would be technical in essence and not address the Kosovo status question, also rejected the Ahtisaari plan which the EULEX had originally supported.

The mission includes around 3,200 police and judicial personnel (1,950 international, 1,250 local)[67], and began a four month deployment process on 16 February 2008.[68][69] The mission intends to remain in Kosovo until at least June 2012.[70] The head of the mission is Yves de Kermabon.[71]

Constitutional status

A new constitution for the Republic of Kosovo was approved by the Parliament of the Republic of Kosovo, coming to force on June 15, 2008.[72][73][74] Kosovo is under de facto governance of the Republic of Kosovo except for North Kosovo, which remains under de facto governance of Serbia.[dubious ] The Republic of Kosovo is governed by legislative, executive and judicial institutions that derive from, and are set-up in, accordance with the Constitution of Kosovo. In November 2001, the OSCE supervised the first elections for the Kosovo Assembly.[75] The last parliamentary elections were held in 2007. Last local elections were held in November 2009, the first elections since Kosovo declared independence on February 17, 2008.United Nations Interim Administration Mission in Kosovo has undergone a significant reconfiguration, and no longer possesses the capacity, having handed over its few responsibilities to EULEX, to govern in any meaningful fashion. It will, its head claims, function as a facilitator of contact between Kosovo and those states or organisations which do not recognise it yet.[76]

North or Northern Kosovo is a region in the northern part of Kosovo with an ethnic Serb majority that functions largely autonomously from the remainder of Kosovo.[77][78] Ibarian Kolashin, a toponym that pre-dates the political partition, is also used to refer to the area. North Kosovo is by far the largest of the Serb-dominated areas within Kosovo, and unlike the others, directly borders Central Serbia. This has facilitated its ability to govern itself almost completely independently of the Kosovo institutions in a de facto state of partition. Although the Kosovo status process had repeatedly ruled out formalising this partition as a permanent solution, it has been increasingly mooted amidst continued deadlock.[79][80]

Politics

The largest political parties in Kosovo are the centre-right Democratic League of Kosovo (LDK), which has its origins in the 1990s non-violent resistance movement to Miloševic's rule and was led by Ibrahim Rugova until his death in 2006,[81] and two parties having their roots in the Kosovo Liberation Army (KLA): the centre-left Democratic Party of Kosovo (PDK) led by former KLA leader Hashim Thaçi and the centre-right Alliance for the Future of Kosovo (AAK) led by former KLA commander Ramush Haradinaj.[81] Kosovo publisher Veton Surroi in 2004 formed the centre-left Reformist Party ORA. Kosovo Serbs formed the Serbian List for Kosovo and Metohija (SLKM) in 2004 and won several seats, but have boycotted Republic of Kosovo's institutions and never taken their seats in the Kosovo Assembly.[81] In 2006 Swiss-Kosovar businessman Behgjet Pacolli, reputed to be the richest living Albanian, founded the New Kosovo Alliance (AKR), which came third in the 2007 elections.

Local politics in the Serb areas are dominated by the Serbian List for Kosovo and Metohija. The Serbian List is led by Oliver Ivanović, an engineer from Kosovska Mitrovica.

In February 2007 the Union of Serbian Districts and District Units of Kosovo and Metohija transformed into the Serbian Assembly of Kosovo and Metohija, presided by Marko Jakšić, a hard-line nationalist residing in the northern part of the divided city of Mitrovica.[82] It has demanded unity of the Serb people in Kosovo, boycotted EULEX, and announced massive protests in support of Serbia's sovereignty over Kosovo. On 18 February 2008, day after Kosovo's unilateral declaration of independence, the Assembly declared it "null and void".

Foreign relations

Currently 19 countries maintain embassies in the Republic of Kosovo. As of May 2011, 75 countries recognise Republic of Kosovo as independent. Enver Hoxhaj is Foreign Minister of the Republic of Kosovo.[83]

Military

A 2,500-strong Kosovo Security Force (KSF) was trained by NATO instructors and became operational on September 2009.[84] The KSF did not replace the Kosovo Protection Corps (KPC) which was disbanded several months later. Agim Çeku is the current Minister of Security Forces of the Republic of Kosovo.[85]

Economy

Kosovo lignite reserves compared to the world
The "Palace of Youth".

The economic policy of the Republic of Kosovo aims toward a free trade system. In this context, it has drafted a legal framework that ensures the fulfilment of European standards of competitiveness.[86]

Kosovo is classified a developing country by US intelligence, with a per capital income estimated at 2,100 (2008).[87] As Kosovo has Europe's second largest coal reserves, also had the largest exporting company (Trepča) in the Federal Republic of Yugoslavia[88][89] Yet Kosovo was the poorest province of Yugoslavia and received substantial development subsidies from all Yugoslav republics.[90] Additionally, over the course of the 1990s a blend of poor economic policies, international sanctions, poor external commerce and ethnic conflict severely damaged the economy.[91]

After a jump in 2000 and 2001, growth in Gross Domestic Product (GDP) was negative in 2002 and 2003 and was expected to be around 3 percent in 2004–2005, with domestic sources of growth unable to compensate for the declining foreign assistance. Inflation is low, while the budget posted a deficit for the first time in 2004. Kosovo has high external deficits. In 2004, the deficit of the balance of goods and services was close to 70 percent of GDP. Remittances from Kosovars living abroad accounts for an estimated 13 percent of GDP, and foreign assistance for around 34 percent of GDP.

Most economic development since 1999 has taken place in the trade, retail and the construction sectors. The private sector that has emerged since 1999 is mainly small-scale. The industrial sector remains weak and the electric power supply remains unreliable, acting as a key constraint. Unemployment remains pervasive, at around 40–50% of the labor force.[92]

UNMIK introduced an external trade regime and customs administration on September 3, 1999 when it set customs border controls in Kosovo. All goods imported in Kosovo face a flat 10% customs duty fee.[93] These taxes are collected from all Tax Collection Points installed at the borders of Kosovo, including those between Kosovo and Serbia.[94] UNMIK and Kosovo institutions have signed Free Trade Agreements with Croatia,[95] Bosnia and Herzegovina,[96] Albania and Macedonia.[93]

The Euro is the official currency of Republic of Kosovo and is used by UNMIK and the government bodies.[97] Initially, Kosovo adopted the German mark in 1999 to replace the Yugoslav dinar,[98] and consequently switched to the Euro when the German mark was replaced by it. However, the Serbian dinar is still used in Serbian-populated areas.[87]

The chief means of entry, apart from the main highway leading to the south to Skopje, Macedonia, is Pristina International Airport.

Trade and investment

Free trade: Customs-free access to the EU market based on the EU Autonomous Trade Preference (ATP) Regime, Central European Free Trade Area–CEFTA[99]

Kosovo currently enjoys a free trade within Central European Free Trade Agreement–CEFTA, agreed with UNMIK, enabling its producers to access the regional market comprising of 28 million consumers, free of any customs duties. According to the Business Registry data for 2007, there are 2,012 companies of foreign and mixed ownership that have already used the opportunity to invest in Kosovo.[citation needed]

The Multilateral Investment Guarantee Agency MIGA (a member of the World Bank Group) guarantees investments in Kosovo in the value of 20 million Euro.[citation needed] The US Overseas Private Investment Corporation (OPIC) also provides political risk insurance for foreign investors in Kosovo.[100]

The economy is hindered by Kosovo's still-unresolved international status, which has made it difficult to attract investment and loans.[101] The province's economic weakness has produced a thriving black economy in which smuggled petrol, cigarettes and cement are major commodities. The prevalence of official corruption and the pervasive influence of organised crime gangs has caused serious concern internationally. The United Nations has made the fight against corruption and organised crime a high priority, pledging a "zero tolerance" approach.[102]

Kosovo has a reported foreign debt of 1,264 billion USD that is currently serviced by Republic of Serbia.[103]

According to ECIKS[104] from 2001 to 2004 Kosovo received $3,2 billion of foreign aid. International donor conference is to be held in Switzerland in June or July 2008. Until now EU pledged €2 billion, $350 mil by USA. Serbia also pledged €120 million to Serb's enclaves in Kosovo.

Kosovo joined the International Monetary Fund and the World Bank on 26 June 2009 as the 186th country to join the two institutions. 95% of Kosovars had previously voted in favour of the move.

The accession follows a 50% tax reduction implemented in 2008 which has helped double investment in the country, setting the economy for an expected growth of "around 4.0 percent to 5.0 percent" in 2010, according to IMF projections.[105]

Natural Resources

Kosovo is rich in natural resources. In Kosovo there are lots of reserves of lead, zinc, silver, nickel, cobalt, copper, iron and bauxite.[106] There is also believed to be around 14,000 billion tonnes of lignite. Canadian company Avrupa Minerals Ltd has achieved the rights to a three year mining programme, which is expected to start in summer 2011.[107] In 2005 the Directorate for Mines and Minerals and the World Bank estimated that Kosovo had €13.5 Billion worth of minerals.[108]

Administrative regions

Kosovo, for administrative reasons, is considered as consisting of seven districts.[109] North Kosovo maintains its own government, infrastructure and institutions by its dominant ethnic Serb population in the District of Kosovska Mitrovica, viz. in the Leposavić, Zvečan and Zubin Potok municipalities and the northern part of Kosovska Mitrovica. In October 2009, Kosovo signed an agreement to re-adjust its border with the Republic of Macedonia by exchanging some lands [110]

Districts

Municipalities and cities

Kosovo is subdivided into 30 municipalities:

Rule of law

Following the Kosovo War, due to the many weapons in the hands of civilians, law enforcement inefficiencies, and widespread devastation, both revenge killings and ethnic violence surged tremendously. The number of reported murders rose 80% from 136 in 2000 to 245 in 2001. The number of reported arsons rose 140% from 218 to 523 over the same period. UNMIK pointed out that the rise in reported incidents might simply correspond to an increased confidence in the police force (i.e., more reports) rather than more actual crime.[111] According to the UNODC, by 2008, murder rates in Kosovo had dropped by 75% in five years.[112][113]

Although the number of noted serious crimes increased between 1999 and 2000, since then it has been "starting to resemble the same patterns of other European cities".[111][114] According to Amnesty International, the aftermath of the war resulted in an increase in the trafficking of women for sexual exploitation.[115][116][117] According to the IOM data, in 2000–2004, Kosovo was consistently ranked fourth or fifth among the countries of Southeastern Europe by number of human trafficking victims, after Albania, Moldova, Romania and sometimes Bulgaria.[118][119]

Residual landmines and other unexploded ordnance remain in Kosovo, although all roads and tracks have been cleared. Caution when travelling in remote areas is advisable.[120]

Kosovo is extremely vulnerable to organised crime and thus to money laundering. In 2000, international agencies estimated that Kosovo was supplying up to 40% of the heroin sold in Europe and North America.[121] Due to the 1997 unrest in Albania and the Kosovo War in 1998–1999 ethnic Albanian traffickers enjoyed a competitive advantage, which has been eroding as the region stabilises.[122] However, according to a 2008 report by the United Nations Office on Drugs and Crime, overall, ethnic Albanians, not only from Kosovo, supply 10 to 20% of the heroin in Western Europe, and the traffic has been declining.[123]

In 2010, a report by Swiss MP Dick Marty claimed to have evidence that a criminal network tied to the Kosovo Liberation Army and the Prime Minister, Hashim Thaci, executed prisoners and harvested their kidneys for organ transplantation. The Kosovo government rejected the allegation.[124] On January 25, 2011, the Council of Europe endorsed the report and called for a full and serious investigation into its contents.[125][126]

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