KOSOVO
PROFILE
Geography
Area:
10,887 square kilometers (4,203 square miles), slightly smaller than
Connecticut.
Capital:
Pristina.
Terrain:
Varied.
Climate:
Temperate.
People
Nationality:
Adjective--Kosovo national.
Population
(April 2011 census): 1.7 million.
Ethnic
groups: 88% ethnic Albanians, 7% ethnic Serbs, 5% other (Bosniak, Gorani, Roma,
Ashkali, Egyptian, Turk).
Religion:
The majority ethnic Albanian population, as well as the Bosniak, Gorani, and
Turkish communities, and some of the Roma/Ashkalia/Egyptian communities are
adherents of Islam. The ethnic Serb population is largely Serb Orthodox.
Approximately 3% of ethnic Albanians are Roman Catholic.
Languages:
Albanian (official), Serbian (official), Bosnian and Turkish (official only in
municipalities of Prizren, Pec, Dragas, Pristina, and Gnjilane where
significant numbers of these minorities reside).
Education:
Adult literacy rates (2007 est.)--91.9% (men 96.6%, women 87.5%). Enrollment
(2003 est.)--96% of children ages 7-15 enrolled in primary school.
Health:
Infant mortality rate--23.7/1,000. Total fertility rate, births per woman (2003
est.)--2.9. Life expectancy (2003 est.)--75 years.
Government
Type:
Republic.
Constitution:
The Kosovo Assembly approved the constitution on April 9, 2008. It came into
force on June 15, 2008.
Branches:
Executive--president (head of state); prime minister (head of government).
Legislative--unicameral Assembly (120 seats, 4-year terms; 100 seats generally
elected, 10 seats reserved for ethnic Serbs, 10 seats reserved for other ethnic
minorities). Judicial--Supreme Court.
Subdivisions:
38 municipalities.
Political
parties: Albanian Christian Democratic Party of Kosovo (PShDK) [Marjan DEMAJ];
New Kosovo Alliance (AKR) [Behgjet PACOLLI]; Alliance for the Future of Kosovo
(AAK) [Ramush HARADINAJ]; Alliance of Independent Social Democrats of Kosovo
and Metohija (SDSKIM) [Ljubisa ZIVIC]; Bosniak Vakat Coalition (DSV) [Sadik
IDRIZI]; Citizens' Initiative of Gora (GIG) [Murselj HALJILJI]; Democratic
Action Party (SDA) [Numan BALIC]; Democratic League of Dardania (LDD) [Nexhat
DACI]; Democratic League of Kosovo (LDK) [Isa MUSTAFA]; Democratic Party of
Ashkali of Kosovo (PDAK) [Berat QERIMI]; Democratic Party of Bosniaks [Dzezair
MURATI]; Democratic Party of Kosovo (PDK) [Hashim THACI]; Independent Liberal
Party (SLS) [Slobadan PETROVIC]; Kosovo Democratic Turkish Party (KDTP) [Mahir
YAGCILAR]; New Democratic Initiative of Kosovo (IRDK) [Xhevdet NEZIRAJ]; New
Democratic Party (ND) [Predrag JOVIC]; Serb National Party (SNS) [Mihailo
SCEPANOVIC]; Serbian Democratic Party of Kosovo and Metohija (SDS KiM) [Slavisa
PETKOVIC]; Serbian Kosovo and Metohija Party (SKMS) [Dragisa MIRIC]; Serbian
National Council of Northern Kosovo and Metohija (SNV) [Milan IVANOVIC]; Social
Democratic Party of Kosovo (PSDK) [Agim CEKU]; Socialist Party of Kosovo (PSK)
[Ilaz KADOLLI]; United Roma Party of Kosovo (PREBK) [Haxhi Zylfi MERXHA];
Movement for Self-Determination (Vetevendosje) [Albin KURTI].
Suffrage:
Universal at age 18.
Elections:
Last parliamentary elections were held on December 12, 2010; municipal-level
elections were held in November 2009 and June 2010.
Economy
GDP
(International Monetary Fund (IMF), 2011 estimate): $6.5 billion.
GDP
(Kosovo Ministry of Economy and Finance (MEF), 2010 estimate): $7.5 billion.
Per
capita GDP (IMF, 2010 estimate): $2,750.
Per
capita GDP (Kosovo MEF, 2010 estimate): $3,750.
GDP
growth rate (IMF, 2011 projection): 5.5%.
GDP
growth rate (Kosovo MEF, 2010 projection): 4.8%.
CPI
inflation rate (Statistical Office of Kosovo, 2011): 4.8%.
Inflation
rate (IMF, 2011 projection): 8.2%.
Investment
(2010): 35% of GDP.
GDP
composition by sector (2009 est.): Agriculture 13%, industry 22%, services 65%.
Agriculture:
Products--fruits and vegetables (potatoes, berries), wheat, corn, wine, beef.
Industry:
Mineral mining, energy, telecommunications, forestry, agriculture, metal
processing, construction materials, base metals, leather, machinery,
appliances.
Income
and employment (2010): 45% of the Kosovo labor force is unemployed; 30% of
Kosovo's citizens live below the poverty line, and 13% live in extreme poverty.
HISTORY
Kosovo
has been inhabited since the Neolithic Era. During the medieval period, Kosovo
was the center of the Serbian empire and saw the construction of many important
Serb religious sites, including many architecturally significant Serbian
Orthodox monasteries. It was the site of a 14th-century battle in which
invading Ottoman Turks defeated an army led by Serbian Prince Lazar.
The
Ottomans ruled Kosovo for more than 4 centuries, until Serbia reacquired the
territory during the First Balkan War in 1912-13. First partitioned in 1913
between Serbia and Montenegro, Kosovo was then incorporated into the Kingdom of
the Serbs, Croats, and Slovenes (later named Yugoslavia) after World War I.
During World War II, parts of Kosovo were absorbed into Italian-occupied
Albania. After the Italian capitulation, Nazi Germany assumed control over
Kosovo until Tito's Yugoslav Partisans entered at the end of the war.
After
World War II, Kosovo became an autonomous province of Serbia in the Socialist
Federal Republic of Yugoslavia (S.F.R.Y.). The 1974 Yugoslav Constitution gave
Kosovo (along with Vojvodina) the status of a Socialist Autonomous Province
within Serbia. As such, it possessed rights nearly equal to the six constituent
Socialist Republics of the S.F.R.Y. In 1981, riots broke out and were violently
suppressed after Kosovo Albanians demonstrated to demand that Kosovo be granted
full Republic status.
The
Kosovo Conflict and NATO Intervention
In
the late 1980s, Slobodan Milosevic propelled himself to power in Belgrade by
exploiting Serbian nationalism and the question of Kosovo. In 1989, he
eliminated Kosovo's autonomy and imposed direct rule from Belgrade. Belgrade ordered
the firing of most ethnic Albanian state employees, whose jobs were then
assumed by Serbs.
In
response, Kosovo Albanian leaders began a peaceful resistance movement in the
early 1990s, led by Ibrahim Rugova. They established a parallel government funded
mainly by the Albanian diaspora. When this movement failed to yield results, an
armed resistance emerged in 1997 in the form of the Kosovo Liberation Army
(KLA). The KLA's main goal was to secure the independence of Kosovo.
In
late 1998, Milosevic unleashed a brutal police and military campaign against
the KLA, which included widespread atrocities against civilians. As Milosevic's
ethnic cleansing campaign progressed, over 800,000 ethnic Albanians were forced
from their homes in Kosovo. Intense international mediation efforts led to the
Rambouillet Accords, which called for Kosovo autonomy and the involvement of
NATO troops to preserve the peace. Milosevic's failure to agree to the
Rambouillet Accords triggered a NATO military campaign to halt the violence in
Kosovo. This campaign consisted primarily of aerial bombing of the Federal
Republic of Yugoslavia (F.R.Y.), including Belgrade, and continued from March
through June 1999. After 78 days, Milosevic capitulated. Shortly thereafter,
the UN Security Council adopted Resolution 1244 (1999), which suspended
Belgrade's governance over Kosovo, established the United Nations Interim
Administration Mission in Kosovo (UNMIK), and authorized a NATO peacekeeping
force. Resolution 1244 also envisioned a political process designed to
determine Kosovo's future status.
As
ethnic Albanians returned to their homes, elements of the KLA conducted
reprisal killings and abductions of ethnic Serbs, Roma, and, to a limited
extent, other minorities in Kosovo. Thousands of ethnic Serbs, Roma, and other
minorities fled from their homes during the latter half of 1999, and many
remain displaced.
Kosovo
Under UN Administration
The
UN established the UN Interim Administration Mission in Kosovo (UNMIK), under
the control of a Special Representative of the Secretary General (SRSG). In
2001, UNMIK promulgated a constitutional framework that provided for the
establishment of Provisional Institutions of Self-Government (PISG).
Under
UNMIK's guidance, Kosovo established new institutions (both at the municipal
and central levels), held free elections, and established a multi-ethnic Kosovo
Police Service (KPS). The KLA was demobilized, with many of its members
incorporated into the Kosovo Protection Corps (KPC), a civilian emergency services
organization. UNMIK gradually turned over more governing competencies to local
authorities.
In
March 2004, Kosovo experienced its worst inter-ethnic violence since the Kosovo
war. The unrest in 2004 was sparked by a series of minor events that soon cascaded
into large-scale riots. Kosovo Serb communities and Serbian Orthodox churches
were targeted in the violence.
In
October 2004, Kosovo held elections for the second 3-year term of the Kosovo
Assembly. For the first time, Kosovo's own Central Election Commission
administered these elections, under Organization for Security and Cooperation
in Europe (OSCE) guidance. The main ethnic Albanian political parties were the
same as in the 2001 elections, but with the addition of the new party ORA, led
by Veton Surroi, and two new Kosovo Serb parties: the Serbian List for Kosovo
and Metohija (SLKM) led by Oliver Ivanovic, and the Citizens Initiative of
Serbia led by Slavisa Petkovic. In contrast to the previous Kosovo Government,
this election produced a "narrow" coalition of two parties, the LDK
and AAK. The December 3, 2004 inaugural session of the Kosovo Assembly
re-elected Ibrahim Rugova as President and Ramush Haradinaj as Prime Minister.
In
March 2005, Haradinaj resigned as Prime Minister after being indicted for war
crimes by the International Criminal Tribunal for the former Yugoslavia (ICTY);
Haradinaj voluntarily surrendered to authorities and traveled to The Hague to
face charges. (Haradinaj was acquitted of all charges on April 3, 2008, but
ICTY's Office of the Prosecutor successfully appealed the acquittal and the
ICTY ordered a partial re-trial that started August 18, 2011 and continues.
Haradinaj is in custody in The Hague.) The Kosovo Assembly subsequently elected
Bajram Kosumi (AAK) as Prime Minister; Kosumi's resignation in March 2006 led
to his replacement by Agim Ceku. After President Rugova's death in January
2006, he was succeeded by Fatmir Sejdiu.
Kosovo's
Status Process
After
6 years of international administration, Kosovo Albanian authorities continued
to press the international community to begin a process to define Kosovo's
future status.
In
2005, a UN envoy, Norwegian diplomat Kai Eide, was appointed to review progress
in Kosovo. Eide reported that there was no advantage to be gained by further
delaying a future status process.
In
November 2005, the Contact Group (France, Germany, Italy, Russia, the United
Kingdom, and the United States) produced a set of "Guiding
Principles" for the resolution of Kosovo's future status. Key principles agreed
by the Contact Group included: no return to the situation prior to 1999, no
changes in Kosovo's borders, and no partition or union of Kosovo with a
neighboring state. The Contact Group later said that Kosovo's future status had
to be acceptable to the people of Kosovo.
The
Ahtisaari Process
In
November 2005, United Nations Secretary General Kofi Annan appointed Martti
Ahtisaari, former president of Finland, to lead a future status process.
Special Envoy Ahtisaari's diplomatic efforts addressed a broad range of issues
important to Kosovo's future, including decentralizing local government,
protecting cultural and religious heritage in Kosovo, economic issues, and
safeguarding the rights of minorities. Over the course of 2006 and early 2007,
Ahtisaari brought together officials from Belgrade and Pristina to discuss
these practical issues and the question of status itself.
Ahtisaari
subsequently developed a comprehensive proposal for Kosovo's future status,
which set forth a series of recommendations on Kosovo's democratic governance
and substantial protections for minorities. Ahtisaari also recommended that
Kosovo become independent, subject to a period of international supervision. He
proposed that a new International Civilian Office (ICO) be established to
supervise Kosovo's implementation of its obligations under the Ahtisaari Plan.
A European Union (EU)-led rule of law mission (subsequently named EULEX) would
also be deployed to focus on the police and justice sector, while a NATO-led
stabilization force would continue to provide for a safe and secure
environment. Pristina accepted the Ahtisaari recommendations, but Belgrade
rejected them.
On
April 3, 2007, Ahtisaari presented his plan to the UN Security Council. Due to
Russian opposition, the Security Council could not reach agreement on a new
Security Council resolution that would pave the way for the implementation of
the Ahtisaari recommendations.
After
several months of inconclusive discussions in the Security Council, the Contact
Group agreed to support a new period of intensive engagement to try to find an
agreement between Belgrade and Pristina on Kosovo's status. A
"Troika" of representatives from the European Union, the Russian
Federation, and the United States began this effort in August 2007. UN
Secretary General Ban Ki-moon asked them to report on their efforts no later
than December 10, 2007. The German ambassador to the United Kingdom, Wolfgang
Ischinger, represented the EU; Alexander Botsan-Kharchenko represented the
Russian Federation; and Ambassador Frank Wisner represented the United States.
After
an intense series of Troika-led negotiations, including a high-level conference
in Baden, Austria, the Troika's mandate ended in December 2007 without an
agreement between the parties. In its final report, the Troika stated that it
had explored with the parties every realistic option for an agreement, but that
it was not possible to find a mutually acceptable outcome.
Independence
Kosovo
declared its independence from Serbia on February 17, 2008. In its declaration
of independence, Kosovo committed to fulfilling its obligations under the
Ahtisaari Plan and embraced multi-ethnicity as a fundamental principle of good
governance, welcoming a period of international supervision.
The
United States formally recognized Kosovo as a sovereign and independent state
on February 18, 2008. As of October 2011, over 80 countries had recognized
Kosovo's independence, including 22 of 27 EU member states, all of its
neighbors (except Serbia), and other states from the Americas, Africa, and
Asia.
Shortly
after independence, a number of states established an International Steering
Group (ISG) for Kosovo that appointed Dutch diplomat Pieter Feith as
International Civilian Representative (ICR) and head of the International
Civilian Office (ICO), charged with ensuring Kosovo’s implementation of the
Ahtisaari Plan and supporting Kosovo’s European integration.
As
part of its commitment to the Ahtisaari Plan, the Kosovo Government rapidly
enacted after independence laws on minority protection, decentralization,
special protection zones for Serb cultural and religious sites, local
self-government, and municipal boundaries.
The
Kosovo Assembly approved a constitution in April 2008, which entered into force
on June 15, 2008. ICR Feith certified that the constitution was in accordance
with the Ahtisaari Plan. At the time of certification, ICR Feith also
congratulated Kosovo on a modern constitution that "provides comprehensive
rights for members of communities as well as effective guarantees for the
protection of the national, linguistic and religious identity of all
communities." More information on the role of the ICO in Kosovo can be
found at: http://www.ico-kos.org/.
Post-Independence
In
2008, the North Atlantic Council authorized NATO’s Kosovo Force (KFOR) to
initiate Ahtisaari-recommended tasks to supervise the dissolution of the Kosovo
Protection Corps (KPC) and to supervise and support the stand-up of a
multi-ethnic, civilian-controlled Kosovo Security Force (KSF). KFOR coordinates
with EULEX and the Kosovo Police as third responder to security events as well
as with other international institutions to support the development of a
stable, democratic, multi-ethnic, and secure Kosovo. U.S. KFOR’s area of
responsibility encompasses a number of significant Kosovo Serb enclaves in
Kosovo. It has made a concerted effort to build confidence in local
communities, supporting local infrastructure improvements such as building a
new community center and reaching out to local leaders in person and on Serb
radio and TV.
The
KPC was deactivated on January 20, 2009, and officially dissolved on June 14,
2009. The KSF was activated on January 21, 2009, with Lt. General Sylejman
Selimi as the commander and the selection of 1,400 KPC members to join the KSF.
KFOR began the process of organizing, training, and equipping the new force, as
well as recruiting multi-ethnic personnel to join the KSF. The KSF and its
ministry reached initial operating capability in September 2009.
On
December 9, 2008, the EU rule of law mission, EULEX, reached initial operating
capability by deploying more than 1,000 police, judges, prosecutors, and
customs officers throughout Kosovo. As EULEX ramped up, UNMIK ended its police
role in Kosovo and scaled back its presence drastically, as directed by UN
Secretary General Ban Ki-Moon. EULEX reached full operational capability in
April 2009.
In
2009, NATO decided to begin downsizing KFOR, through a conditions-based
assessments of an improved security and political situation in Kosovo. KFOR
completed the first phase of downsizing in early 2010, bringing troop levels to
approximately 10,000. Based on the improving security situation in Kosovo, in
March 2011 KFOR completed the second phase of downsizing, bringing troop levels
to approximately 6,200, plus a temporarily-deployed operational reserve force
In
October 2008, Serbia requested an International Court of Justice (ICJ) advisory
opinion on the legality of Kosovo’s declaration of independence. Written briefs
were presented by 36 countries in April 2009 and by 14 countries in July 2009,
with oral statements offered in December 2009. The ICJ released the advisory
opinion on July 22, 2010, affirming that Kosovo’s declaration of independence
did not violate general principles of international law, UN Security Council
Resolution 1244, or the Constitutive Framework. The opinion was closely
tailored to Kosovo’s unique history and circumstances.
In
March 2011, the EU launched a facilitated dialogue between Kosovo and Serbia
with the declared goals of promoting cooperation and good neighborly relations,
achieving progress on the path to Europe, and improving the lives of the
people. As of December 2011, agreements had been reached on issues including
customs stamps, university diplomas, civil registries, land records, and
cross-border freedom of movement. The parties also reached an agreement on
integrated border management, whose implementation awaits conclusion of a
technical protocol.
GOVERNMENT
AND POLITICAL CONDITIONS
On
June 15, 2008, Kosovo's constitution came into force. Under the constitution,
the President of Kosovo is the head of state and serves a term of 5 years with
the right to one re-election. The Prime Minister is the head of government and
is elected by the Kosovo Assembly.
The
unicameral Kosovo Assembly consists of 120 seats, 10 of which are reserved for
ethnic Serbs, and 10 for other minorities (4 seats for the Roma, Ashkali, and
Egyptian communities [RAE], 3 seats for the Bosniak community, 2 seats for the
Turkish community, and 1 seat for the Gorani community). Three of the remaining
100 seats are also held by minority members (for a total of 13). All members
serve 4-year terms. Jakup Krasniqi (PDK) is Speaker of the Assembly.
The
main political parties in Kosovo include the Democratic League of Kosovo (LDK),
formerly led by Ibrahim Rugova and now led by Pristina Mayor Isa Mustafa;
Democratic Party of Kosovo (PDK), led by Kosovo Prime Minister Hashim Thaci;
the Alliance for the Future of Kosovo (AAK), led by former Prime Minister
Ramush Haradinaj; New Kosovo Alliance (AKR), led by Behgjet Pacolli; and
Vetevendosje (“Self Determination”), led by Albin Kurti.
Kosovo
under UNMIK administration held its first parliamentary elections in November
2001. After significant political wrangling, politicians agreed to establish a
coalition government in March 2002, with Bajram Rexhepi (PDK) as Prime Minister
and Ibrahim Rugova (LDK) as President. In the same year, the Kosovo Assembly
began to function and pass its first laws. Beginning in 2003, UNMIK began
transferring governing competencies to these ministries.
On
November 17, 2007, Kosovo held parliamentary and municipal elections. These
elections were deemed free and fair by international observers. The PDK won 34.3%
of the vote, the LDK won 22.6%, the New Kosovo Alliance won 12.3%, the
Democratic League of Dardania won 10%, and the AAK won 9.6%. Smaller minority
parties also made some small gains. These elections led to a coalition between
the LDK and the PDK and to the nomination of Hashim Thaci as Prime Minister of
Kosovo. Under pressure from Belgrade, most Kosovo Serbs boycotted the vote.
In
June 2008, UN Secretary General Ban decided to "reconfigure" UNMIK
and reduce the size of the UN presence in Kosovo, effectively ending the UN's
role as administrator of Kosovo and welcoming EU deployment of its rule of law
mission (EULEX). As Ban stated in his report to the Security Council,
"UNMIK will no longer be able to perform effectively the vast majority of
its tasks as an international administration." The EU assumed
responsibilities in the areas of policing, justice, and customs throughout
Kosovo.
The
Kosovo judicial system started adapting to the new legal charter on June 15,
2008. Supreme Court judges and prosecutors, district court judges, and
municipal courts judges already appointed by the SRSG will continue to serve in
their posts until the expiry of their appointment. Following the December 2008
transfer of rule of law functions to the Government of Kosovo, the Kosovo
Judicial Council (KJC) has proposed to the President of Kosovo candidates for
appointment or reappointment as judges and prosecutors.
Kosovo
administered its first elections since independence on November 15, 2009. These
local elections were held in 36 municipalities, including one expanded and
three new Serb-majority municipalities established under the decentralization
process of the Ahtisaari plan. International observers from the EU,
non-governmental organizations (NGOs), and the ICO agreed the elections were
conducted largely in accordance with international standards and that the
irregularities that took place were insufficient to affect the outcome of the
poll. Voter turnout was the highest since 2002, including in majority
ethnic-Serb communities south of the River Ibar. However, voter participation
in northern Kosovo was extremely low, with Kosovo Serb communities boycotting
the elections. For the first time, Kosovo authorities in the Central Election
Commission certified the election results, rather than the pre-independence
practice whereby UNMIK certified results. In June 2010, the municipality of
Partesh held its first mayoral election, which drew more than 65% of eligible
Kosovo Serb voters. There is one remaining Serb-majority municipality to be
established through the decentralization process--North Mitrovica. The North
Mitrovica Municipal Preparation Team is currently working under the supervision
of the ICO to prepare the municipality for elections and formal establishment.
2010
National Elections and Election of President Jahjaga
On
September 22, 2010, the Kosovo Constitutional Court ruled that President Sejdiu
had violated the constitution by simultaneously holding the position of
president and president of his political party, the Democratic League of Kosovo
(LDK). On September 27, Sejdiu resigned as President of the Republic, retaining
his post as head of the LDK party until he was unseated in the November 2010
internal party elections. Speaker of the Assembly Jakup Krasniqi became acting
President, in accordance with the constitution. On October 16, in response to
deteriorating coalition relations following Sejdiu’s resignation, LDK and its
ministers pulled out of the governing coalition, leaving Prime Minister Thaci
and his party heading a minority government and leading to calls for early
parliamentary elections. On November 2, the Kosovo Assembly approved a
no-confidence motion against Prime Minister Thaci, and Kosovo held
extraordinary elections on December 12, 2010. International observers called
the elections relatively efficient and effective. However, there were serious
irregularities in some municipalities, where the Central Election Commission
ordered re-votes in January 2011. Final results were certified February 7, 2011,
with PDK maintaining its plurality at 32% of the vote. LDK won 24.7% of the
vote, Vetevendosje won 12.7%, AAK won 11%, and AKR won 7.3%. Following 2 weeks
of negotiations, Hashim Thaci formed a government with AKR, the sole elected
deputy of “Rugova’s List,” and the ethnic minority political parties. Per a
coalition agreement, the Assembly elected Behgjet Pacolli as the new president
and approved a new coalition government, led by Prime Minister Hashim Thaci, on
February 22, 2011. However, a March 30 Constitutional Court decision held the
Assembly’s election of the president unconstitutional on procedural grounds.
Pacolli resigned, and on April 7, 2011, the Assembly elected Atifete Jahjaga,
the first female to hold the office of President of the Republic.
Principal
Government Officials
President--Atifete
Jahjaga
Prime
Minister--Hashim Thaci
First
Deputy Prime Minister--Behgjet Pacolli
Deputy
Prime Minister for Foreign Affairs and National Security--Edita Tahiri
Deputy
Prime Minister for Legal and Public Administration Reform and Justice
Minister--Hajredin Kuci
Deputy
Prime Minister for Economic Development and Reform and Minister of Trade and
Industry--Mimoza Kusari-Lila
Deputy
Prime Minister and Minister for Local Government and Social Affairs--Slobodan
Petrovic
Deputy
Prime Minister--Bujar Bukoshi
Foreign
Minister--Enver Hoxhaj
Minister
for European Integration--Vlora Citaku
Minister
of Economic Development--Besim Beqaj
Minister
of Finance--Bedri Hamza
Minister
of Kosovo Security Force--Agim Ceku
Ambassador
to United States--Avni Spahiu
Consul
General--Arta Rama
ECONOMY
Kosovo's
economy has shown significant progress since the conflict of the 1990s; it is,
however, still dependent on the international community and the diaspora for
financial and technical assistance. Remittances from the diaspora, located
mainly in Germany, Switzerland, and the Nordic countries, account for about
13%-15% of GDP and donor-financed activities and aid for another 7.5% of GDP.
The economy is driven by the government sector and mostly small-scale retail
businesses on the private sector side. Lack of reliable, affordable electricity
hampers economic development.
Kosovo's
citizens are the poorest in Europe, with an average annual per capita income of
approximately $3,300. With roughly 45% of the population unemployed, according
to official figures, migration and black market activity are key concerns. Most
of Kosovo's population lives in rural towns outside of the capital, Pristina.
Inefficient, near-subsistence farming is common, the result of small plots,
limited mechanization, and lack of technical expertise.
With
international assistance, the privatization of Kosovo’s socially-owned
enterprises (SOEs) has generated around U.S. $834 million since 2004. Kosovo's
two largest exporters are privatized companies: Ferronikeli (nickel) and M
& Sillosi LLC (flour). Technical assistance to the Kosovo Energy
Corporation (KEK) has helped improve procedures for billings and collections,
increased revenues, strengthened internal accounting procedures and controls,
and rationalized budgeting and investment planning. The installation of bulk
meters at the sub-station level is facilitating greater accountability for
collection performance at the district level. The U.S. Government is
cooperating with the Ministry for Economic Development, the World Bank, and
other donors to prepare a commercial tender for a new generation and mining
project, to include construction of a new power plant ("New Kosovo"),
decommissioning of one existing power plant, rehabilitation of the other, and
development of a coal mine for the New Kosovo plant. Privatization of the
distribution and supply division of KEK is also planned.
On
July 11, 2008, representatives from 37 countries and 16 international
organizations met in Brussels for a donors conference, pledging approximately
$1.9 billion (including $400 million from the United States), in support of the
socio-economic reform priorities Kosovo has expressed through its Medium-Term
Expenditure Framework for 2008-11.
On
June 29, 2009, Kosovo formally joined the global financial system when
then-President Sejdiu and Prime Minister Thaci signed the articles of agreement
for entry into the World Bank and International Monetary Fund (IMF). A total of
109 states supported Kosovo’s membership. Since that time Kosovo has begun
servicing its share of the former Yugoslavia’s World Bank and IMF debt.
The
official currency of Kosovo is the Euro, but the Serbian dinar is also used in
northern Kosovo and other areas where ethnic Serbs predominate. Kosovo's use of
the Euro has helped keep inflation low. Kosovo has been working with the IMF to
increase revenues, increase revenue collection and prioritize spending. The
government runs a small deficit that is covered by foreign and domestic
financing and is budgeting to increase domestic savings annually.
Trade
and Industry
Kosovo
has been laying the foundations of a market-oriented economy but is still
struggling to develop viable and productive domestic industries. Kosovo has one
of the lowest export/import rates in the region. In 2010, Kosovo imported $3
billion in goods and services and exported only $400 million, resulting in a
trade deficit of approximately 45% of Kosovo's GDP. This deficit is largely
financed through foreign assistance and remittances from Kosovo's diaspora.
Kosovo's leading industries are mining, energy, and telecommunications.
In
order to help integrate Kosovo into regional economic structures, UNMIK signed
(on behalf of Kosovo) its accession to the Central Europe Free Trade Area
(CEFTA) in 2006. In December 2008, Kosovo was designated as a beneficiary
country under the Generalized System of Preferences (GSP) program. Under this
program, a wide range of products Kosovo might seek to export are eligible for
duty-free entry to the United States. Current Kosovo exports that are eligible
for GSP benefits include wood products, charcoal, and dried fruits. Other main
exports include mineral products, base metals, leather products, machinery, and
appliances. Kosovo’s main export partners are Italy, Albania, Macedonia, and
Germany. Imports include live animals and animal products, fruits and
vegetables and related products, minerals, base materials, machinery,
appliances and electrical equipment, textiles and related products, wood and
wood products, stone, ceramic and glass products, and chemical products. The
country’s main import partners are the EU, Macedonia, Germany, Serbia, Turkey,
and Albania. Kosovo also receives similar duty-free benefits for exports to the
EU.
In
July 2011, Kosovo imposed reciprocal trade restrictions on products from Serbia
and Bosnia after Serbia failed to reach an agreement in the EU-facilitated
Pristina-Belgrade dialogue on accepting UNMIK-certified customs stamps
agreements. On July 25, Kosovo Special Police Units moved to assert Government
of Kosovo control over two northern border gates with Serbia where the trade
restrictions were not being enforced; one Kosovo police officer was killed and
Serb demonstrators attacked the border crossing facilities, burning one of
them. In September 2011, under the EU-facilitated dialogue, Serbia agreed to
accept the UNMIK-certified Kosovo customs stamp and both countries agreed to
resume two-way trade. Two-way trade eventually resumed at border points outside
of northern Kosovo. Serb demonstrators in northern Kosovo, however, erected
roadblocks at the crossings and throughout northern Kosovo to protest the
presence of Kosovo customs officers. While trade continues at other crossing
points, barricades inhibit freedom of movement through northern Kosovo and have
stopped trade via two main border crossings between northern Kosovo and Serbia.
Agriculture
Agricultural
land comprises 53% of Kosovo's total land area and forests 41%. According to
data from the Food and Agriculture Organization, 741,316 acres of land are
under cultivation and 444,789 acres are upland pasture. The majority of
agricultural land is privately owned (80%), providing subsistence farming for
individual households. Although Kosovo's agricultural sector is generally
characterized by small farms, low productivity, and the absence of advisory
services, agriculture contributes around 13% of Kosovo's overall GDP.
Agriculture is the largest employment sector in Kosovo, providing jobs for
approximately 16.5% of the population, primarily on an informal basis. The
agricultural sector also accounts for 16% of total export value and remains an
important creator of national wealth, although Kosovo is still an importer of
many agricultural products, which accounted for 24.4% of overall imports
($537.5 million) in 2007. Forestry in Kosovo is minimal; wood-processing and
wood products (flooring and furniture) are industry contributors, although not
yet in significant numbers.
FOREIGN
RELATIONS
In
October 2008, Kosovo opened an embassy in Washington, DC. Kosovo has 21
diplomatic missions and 13 consular posts worldwide. In June 2009, Kosovo
joined the International Monetary Fund and World Bank.
U.S.-KOSOVO
RELATIONS
The
United States and Kosovo established diplomatic relations on February 18, 2008.
Christopher W. Dell arrived in Pristina in August 2009 as the second U.S.
Ambassador to Kosovo. President Barack Obama received the letter of credence
for Kosovo's first ambassador to the United States, Avni Spahiu, in November
2009.
The
United States continues to contribute troops to the Kosovo Force (KFOR) and
staff to the ICO and EULEX missions. The United States remains committed to
working with the Government of Kosovo and our international partners to
strengthen Kosovo’s institutions, rule of law, and economy and build a
democratic, law-abiding, multi-ethnic, tolerant, and prosperous country.
KOSOVO
PROFILE
Geography
Area:
10,887 square kilometers (4,203 square miles), slightly smaller than
Connecticut.
Capital:
Pristina.
Terrain:
Varied.
Climate:
Temperate.
People
Nationality:
Adjective--Kosovo national.
Population
(April 2011 census): 1.7 million.
Ethnic
groups: 88% ethnic Albanians, 7% ethnic Serbs, 5% other (Bosniak, Gorani, Roma,
Ashkali, Egyptian, Turk).
Religion:
The majority ethnic Albanian population, as well as the Bosniak, Gorani, and
Turkish communities, and some of the Roma/Ashkalia/Egyptian communities are
adherents of Islam. The ethnic Serb population is largely Serb Orthodox.
Approximately 3% of ethnic Albanians are Roman Catholic.
Languages:
Albanian (official), Serbian (official), Bosnian and Turkish (official only in
municipalities of Prizren, Pec, Dragas, Pristina, and Gnjilane where
significant numbers of these minorities reside).
Education:
Adult literacy rates (2007 est.)--91.9% (men 96.6%, women 87.5%). Enrollment
(2003 est.)--96% of children ages 7-15 enrolled in primary school.
Health:
Infant mortality rate--23.7/1,000. Total fertility rate, births per woman (2003
est.)--2.9. Life expectancy (2003 est.)--75 years.
Government
Type:
Republic.
Constitution:
The Kosovo Assembly approved the constitution on April 9, 2008. It came into
force on June 15, 2008.
Branches:
Executive--president (head of state); prime minister (head of government).
Legislative--unicameral Assembly (120 seats, 4-year terms; 100 seats generally
elected, 10 seats reserved for ethnic Serbs, 10 seats reserved for other ethnic
minorities). Judicial--Supreme Court.
Subdivisions:
38 municipalities.
Political
parties: Albanian Christian Democratic Party of Kosovo (PShDK) [Marjan DEMAJ];
New Kosovo Alliance (AKR) [Behgjet PACOLLI]; Alliance for the Future of Kosovo
(AAK) [Ramush HARADINAJ]; Alliance of Independent Social Democrats of Kosovo
and Metohija (SDSKIM) [Ljubisa ZIVIC]; Bosniak Vakat Coalition (DSV) [Sadik
IDRIZI]; Citizens' Initiative of Gora (GIG) [Murselj HALJILJI]; Democratic
Action Party (SDA) [Numan BALIC]; Democratic League of Dardania (LDD) [Nexhat
DACI]; Democratic League of Kosovo (LDK) [Isa MUSTAFA]; Democratic Party of
Ashkali of Kosovo (PDAK) [Berat QERIMI]; Democratic Party of Bosniaks [Dzezair
MURATI]; Democratic Party of Kosovo (PDK) [Hashim THACI]; Independent Liberal
Party (SLS) [Slobadan PETROVIC]; Kosovo Democratic Turkish Party (KDTP) [Mahir
YAGCILAR]; New Democratic Initiative of Kosovo (IRDK) [Xhevdet NEZIRAJ]; New
Democratic Party (ND) [Predrag JOVIC]; Serb National Party (SNS) [Mihailo
SCEPANOVIC]; Serbian Democratic Party of Kosovo and Metohija (SDS KiM) [Slavisa
PETKOVIC]; Serbian Kosovo and Metohija Party (SKMS) [Dragisa MIRIC]; Serbian
National Council of Northern Kosovo and Metohija (SNV) [Milan IVANOVIC]; Social
Democratic Party of Kosovo (PSDK) [Agim CEKU]; Socialist Party of Kosovo (PSK)
[Ilaz KADOLLI]; United Roma Party of Kosovo (PREBK) [Haxhi Zylfi MERXHA];
Movement for Self-Determination (Vetevendosje) [Albin KURTI].
Suffrage:
Universal at age 18.
Elections:
Last parliamentary elections were held on December 12, 2010; municipal-level
elections were held in November 2009 and June 2010.
Economy
GDP
(International Monetary Fund (IMF), 2011 estimate): $6.5 billion.
GDP
(Kosovo Ministry of Economy and Finance (MEF), 2010 estimate): $7.5 billion.
Per
capita GDP (IMF, 2010 estimate): $2,750.
Per
capita GDP (Kosovo MEF, 2010 estimate): $3,750.
GDP
growth rate (IMF, 2011 projection): 5.5%.
GDP
growth rate (Kosovo MEF, 2010 projection): 4.8%.
CPI
inflation rate (Statistical Office of Kosovo, 2011): 4.8%.
Inflation
rate (IMF, 2011 projection): 8.2%.
Investment
(2010): 35% of GDP.
GDP
composition by sector (2009 est.): Agriculture 13%, industry 22%, services 65%.
Agriculture:
Products--fruits and vegetables (potatoes, berries), wheat, corn, wine, beef.
Industry:
Mineral mining, energy, telecommunications, forestry, agriculture, metal
processing, construction materials, base metals, leather, machinery,
appliances.
Income
and employment (2010): 45% of the Kosovo labor force is unemployed; 30% of
Kosovo's citizens live below the poverty line, and 13% live in extreme poverty.
HISTORY
Kosovo
has been inhabited since the Neolithic Era. During the medieval period, Kosovo
was the center of the Serbian empire and saw the construction of many important
Serb religious sites, including many architecturally significant Serbian
Orthodox monasteries. It was the site of a 14th-century battle in which
invading Ottoman Turks defeated an army led by Serbian Prince Lazar.
The
Ottomans ruled Kosovo for more than 4 centuries, until Serbia reacquired the
territory during the First Balkan War in 1912-13. First partitioned in 1913
between Serbia and Montenegro, Kosovo was then incorporated into the Kingdom of
the Serbs, Croats, and Slovenes (later named Yugoslavia) after World War I.
During World War II, parts of Kosovo were absorbed into Italian-occupied
Albania. After the Italian capitulation, Nazi Germany assumed control over
Kosovo until Tito's Yugoslav Partisans entered at the end of the war.
After
World War II, Kosovo became an autonomous province of Serbia in the Socialist
Federal Republic of Yugoslavia (S.F.R.Y.). The 1974 Yugoslav Constitution gave
Kosovo (along with Vojvodina) the status of a Socialist Autonomous Province
within Serbia. As such, it possessed rights nearly equal to the six constituent
Socialist Republics of the S.F.R.Y. In 1981, riots broke out and were violently
suppressed after Kosovo Albanians demonstrated to demand that Kosovo be granted
full Republic status.
The
Kosovo Conflict and NATO Intervention
In
the late 1980s, Slobodan Milosevic propelled himself to power in Belgrade by
exploiting Serbian nationalism and the question of Kosovo. In 1989, he
eliminated Kosovo's autonomy and imposed direct rule from Belgrade. Belgrade ordered
the firing of most ethnic Albanian state employees, whose jobs were then
assumed by Serbs.
In
response, Kosovo Albanian leaders began a peaceful resistance movement in the
early 1990s, led by Ibrahim Rugova. They established a parallel government funded
mainly by the Albanian diaspora. When this movement failed to yield results, an
armed resistance emerged in 1997 in the form of the Kosovo Liberation Army
(KLA). The KLA's main goal was to secure the independence of Kosovo.
In
late 1998, Milosevic unleashed a brutal police and military campaign against
the KLA, which included widespread atrocities against civilians. As Milosevic's
ethnic cleansing campaign progressed, over 800,000 ethnic Albanians were forced
from their homes in Kosovo. Intense international mediation efforts led to the
Rambouillet Accords, which called for Kosovo autonomy and the involvement of
NATO troops to preserve the peace. Milosevic's failure to agree to the
Rambouillet Accords triggered a NATO military campaign to halt the violence in
Kosovo. This campaign consisted primarily of aerial bombing of the Federal
Republic of Yugoslavia (F.R.Y.), including Belgrade, and continued from March
through June 1999. After 78 days, Milosevic capitulated. Shortly thereafter,
the UN Security Council adopted Resolution 1244 (1999), which suspended
Belgrade's governance over Kosovo, established the United Nations Interim
Administration Mission in Kosovo (UNMIK), and authorized a NATO peacekeeping
force. Resolution 1244 also envisioned a political process designed to
determine Kosovo's future status.
As
ethnic Albanians returned to their homes, elements of the KLA conducted
reprisal killings and abductions of ethnic Serbs, Roma, and, to a limited
extent, other minorities in Kosovo. Thousands of ethnic Serbs, Roma, and other
minorities fled from their homes during the latter half of 1999, and many
remain displaced.
Kosovo
Under UN Administration
The
UN established the UN Interim Administration Mission in Kosovo (UNMIK), under
the control of a Special Representative of the Secretary General (SRSG). In
2001, UNMIK promulgated a constitutional framework that provided for the
establishment of Provisional Institutions of Self-Government (PISG).
Under
UNMIK's guidance, Kosovo established new institutions (both at the municipal
and central levels), held free elections, and established a multi-ethnic Kosovo
Police Service (KPS). The KLA was demobilized, with many of its members
incorporated into the Kosovo Protection Corps (KPC), a civilian emergency services
organization. UNMIK gradually turned over more governing competencies to local
authorities.
In
March 2004, Kosovo experienced its worst inter-ethnic violence since the Kosovo
war. The unrest in 2004 was sparked by a series of minor events that soon cascaded
into large-scale riots. Kosovo Serb communities and Serbian Orthodox churches
were targeted in the violence.
In
October 2004, Kosovo held elections for the second 3-year term of the Kosovo
Assembly. For the first time, Kosovo's own Central Election Commission
administered these elections, under Organization for Security and Cooperation
in Europe (OSCE) guidance. The main ethnic Albanian political parties were the
same as in the 2001 elections, but with the addition of the new party ORA, led
by Veton Surroi, and two new Kosovo Serb parties: the Serbian List for Kosovo
and Metohija (SLKM) led by Oliver Ivanovic, and the Citizens Initiative of
Serbia led by Slavisa Petkovic. In contrast to the previous Kosovo Government,
this election produced a "narrow" coalition of two parties, the LDK
and AAK. The December 3, 2004 inaugural session of the Kosovo Assembly
re-elected Ibrahim Rugova as President and Ramush Haradinaj as Prime Minister.
In
March 2005, Haradinaj resigned as Prime Minister after being indicted for war
crimes by the International Criminal Tribunal for the former Yugoslavia (ICTY);
Haradinaj voluntarily surrendered to authorities and traveled to The Hague to
face charges. (Haradinaj was acquitted of all charges on April 3, 2008, but
ICTY's Office of the Prosecutor successfully appealed the acquittal and the
ICTY ordered a partial re-trial that started August 18, 2011 and continues.
Haradinaj is in custody in The Hague.) The Kosovo Assembly subsequently elected
Bajram Kosumi (AAK) as Prime Minister; Kosumi's resignation in March 2006 led
to his replacement by Agim Ceku. After President Rugova's death in January
2006, he was succeeded by Fatmir Sejdiu.
Kosovo's
Status Process
After
6 years of international administration, Kosovo Albanian authorities continued
to press the international community to begin a process to define Kosovo's
future status.
In
2005, a UN envoy, Norwegian diplomat Kai Eide, was appointed to review progress
in Kosovo. Eide reported that there was no advantage to be gained by further
delaying a future status process.
In
November 2005, the Contact Group (France, Germany, Italy, Russia, the United
Kingdom, and the United States) produced a set of "Guiding
Principles" for the resolution of Kosovo's future status. Key principles agreed
by the Contact Group included: no return to the situation prior to 1999, no
changes in Kosovo's borders, and no partition or union of Kosovo with a
neighboring state. The Contact Group later said that Kosovo's future status had
to be acceptable to the people of Kosovo.
The
Ahtisaari Process
In
November 2005, United Nations Secretary General Kofi Annan appointed Martti
Ahtisaari, former president of Finland, to lead a future status process.
Special Envoy Ahtisaari's diplomatic efforts addressed a broad range of issues
important to Kosovo's future, including decentralizing local government,
protecting cultural and religious heritage in Kosovo, economic issues, and
safeguarding the rights of minorities. Over the course of 2006 and early 2007,
Ahtisaari brought together officials from Belgrade and Pristina to discuss
these practical issues and the question of status itself.
Ahtisaari
subsequently developed a comprehensive proposal for Kosovo's future status,
which set forth a series of recommendations on Kosovo's democratic governance
and substantial protections for minorities. Ahtisaari also recommended that
Kosovo become independent, subject to a period of international supervision. He
proposed that a new International Civilian Office (ICO) be established to
supervise Kosovo's implementation of its obligations under the Ahtisaari Plan.
A European Union (EU)-led rule of law mission (subsequently named EULEX) would
also be deployed to focus on the police and justice sector, while a NATO-led
stabilization force would continue to provide for a safe and secure
environment. Pristina accepted the Ahtisaari recommendations, but Belgrade
rejected them.
On
April 3, 2007, Ahtisaari presented his plan to the UN Security Council. Due to
Russian opposition, the Security Council could not reach agreement on a new
Security Council resolution that would pave the way for the implementation of
the Ahtisaari recommendations.
After
several months of inconclusive discussions in the Security Council, the Contact
Group agreed to support a new period of intensive engagement to try to find an
agreement between Belgrade and Pristina on Kosovo's status. A
"Troika" of representatives from the European Union, the Russian
Federation, and the United States began this effort in August 2007. UN
Secretary General Ban Ki-moon asked them to report on their efforts no later
than December 10, 2007. The German ambassador to the United Kingdom, Wolfgang
Ischinger, represented the EU; Alexander Botsan-Kharchenko represented the
Russian Federation; and Ambassador Frank Wisner represented the United States.
After
an intense series of Troika-led negotiations, including a high-level conference
in Baden, Austria, the Troika's mandate ended in December 2007 without an
agreement between the parties. In its final report, the Troika stated that it
had explored with the parties every realistic option for an agreement, but that
it was not possible to find a mutually acceptable outcome.
Independence
Kosovo
declared its independence from Serbia on February 17, 2008. In its declaration
of independence, Kosovo committed to fulfilling its obligations under the
Ahtisaari Plan and embraced multi-ethnicity as a fundamental principle of good
governance, welcoming a period of international supervision.
The
United States formally recognized Kosovo as a sovereign and independent state
on February 18, 2008. As of October 2011, over 80 countries had recognized
Kosovo's independence, including 22 of 27 EU member states, all of its
neighbors (except Serbia), and other states from the Americas, Africa, and
Asia.
Shortly
after independence, a number of states established an International Steering
Group (ISG) for Kosovo that appointed Dutch diplomat Pieter Feith as
International Civilian Representative (ICR) and head of the International
Civilian Office (ICO), charged with ensuring Kosovo’s implementation of the
Ahtisaari Plan and supporting Kosovo’s European integration.
As
part of its commitment to the Ahtisaari Plan, the Kosovo Government rapidly
enacted after independence laws on minority protection, decentralization,
special protection zones for Serb cultural and religious sites, local
self-government, and municipal boundaries.
The
Kosovo Assembly approved a constitution in April 2008, which entered into force
on June 15, 2008. ICR Feith certified that the constitution was in accordance
with the Ahtisaari Plan. At the time of certification, ICR Feith also
congratulated Kosovo on a modern constitution that "provides comprehensive
rights for members of communities as well as effective guarantees for the
protection of the national, linguistic and religious identity of all
communities." More information on the role of the ICO in Kosovo can be
found at: http://www.ico-kos.org/.
Post-Independence
In
2008, the North Atlantic Council authorized NATO’s Kosovo Force (KFOR) to
initiate Ahtisaari-recommended tasks to supervise the dissolution of the Kosovo
Protection Corps (KPC) and to supervise and support the stand-up of a
multi-ethnic, civilian-controlled Kosovo Security Force (KSF). KFOR coordinates
with EULEX and the Kosovo Police as third responder to security events as well
as with other international institutions to support the development of a
stable, democratic, multi-ethnic, and secure Kosovo. U.S. KFOR’s area of
responsibility encompasses a number of significant Kosovo Serb enclaves in
Kosovo. It has made a concerted effort to build confidence in local
communities, supporting local infrastructure improvements such as building a
new community center and reaching out to local leaders in person and on Serb
radio and TV.
The
KPC was deactivated on January 20, 2009, and officially dissolved on June 14,
2009. The KSF was activated on January 21, 2009, with Lt. General Sylejman
Selimi as the commander and the selection of 1,400 KPC members to join the KSF.
KFOR began the process of organizing, training, and equipping the new force, as
well as recruiting multi-ethnic personnel to join the KSF. The KSF and its
ministry reached initial operating capability in September 2009.
On
December 9, 2008, the EU rule of law mission, EULEX, reached initial operating
capability by deploying more than 1,000 police, judges, prosecutors, and
customs officers throughout Kosovo. As EULEX ramped up, UNMIK ended its police
role in Kosovo and scaled back its presence drastically, as directed by UN
Secretary General Ban Ki-Moon. EULEX reached full operational capability in
April 2009.
In
2009, NATO decided to begin downsizing KFOR, through a conditions-based
assessments of an improved security and political situation in Kosovo. KFOR
completed the first phase of downsizing in early 2010, bringing troop levels to
approximately 10,000. Based on the improving security situation in Kosovo, in
March 2011 KFOR completed the second phase of downsizing, bringing troop levels
to approximately 6,200, plus a temporarily-deployed operational reserve force
In
October 2008, Serbia requested an International Court of Justice (ICJ) advisory
opinion on the legality of Kosovo’s declaration of independence. Written briefs
were presented by 36 countries in April 2009 and by 14 countries in July 2009,
with oral statements offered in December 2009. The ICJ released the advisory
opinion on July 22, 2010, affirming that Kosovo’s declaration of independence
did not violate general principles of international law, UN Security Council
Resolution 1244, or the Constitutive Framework. The opinion was closely
tailored to Kosovo’s unique history and circumstances.
In
March 2011, the EU launched a facilitated dialogue between Kosovo and Serbia
with the declared goals of promoting cooperation and good neighborly relations,
achieving progress on the path to Europe, and improving the lives of the
people. As of December 2011, agreements had been reached on issues including
customs stamps, university diplomas, civil registries, land records, and
cross-border freedom of movement. The parties also reached an agreement on
integrated border management, whose implementation awaits conclusion of a
technical protocol.
GOVERNMENT
AND POLITICAL CONDITIONS
On
June 15, 2008, Kosovo's constitution came into force. Under the constitution,
the President of Kosovo is the head of state and serves a term of 5 years with
the right to one re-election. The Prime Minister is the head of government and
is elected by the Kosovo Assembly.
The
unicameral Kosovo Assembly consists of 120 seats, 10 of which are reserved for
ethnic Serbs, and 10 for other minorities (4 seats for the Roma, Ashkali, and
Egyptian communities [RAE], 3 seats for the Bosniak community, 2 seats for the
Turkish community, and 1 seat for the Gorani community). Three of the remaining
100 seats are also held by minority members (for a total of 13). All members
serve 4-year terms. Jakup Krasniqi (PDK) is Speaker of the Assembly.
The
main political parties in Kosovo include the Democratic League of Kosovo (LDK),
formerly led by Ibrahim Rugova and now led by Pristina Mayor Isa Mustafa;
Democratic Party of Kosovo (PDK), led by Kosovo Prime Minister Hashim Thaci;
the Alliance for the Future of Kosovo (AAK), led by former Prime Minister
Ramush Haradinaj; New Kosovo Alliance (AKR), led by Behgjet Pacolli; and
Vetevendosje (“Self Determination”), led by Albin Kurti.
Kosovo
under UNMIK administration held its first parliamentary elections in November
2001. After significant political wrangling, politicians agreed to establish a
coalition government in March 2002, with Bajram Rexhepi (PDK) as Prime Minister
and Ibrahim Rugova (LDK) as President. In the same year, the Kosovo Assembly
began to function and pass its first laws. Beginning in 2003, UNMIK began
transferring governing competencies to these ministries.
On
November 17, 2007, Kosovo held parliamentary and municipal elections. These
elections were deemed free and fair by international observers. The PDK won 34.3%
of the vote, the LDK won 22.6%, the New Kosovo Alliance won 12.3%, the
Democratic League of Dardania won 10%, and the AAK won 9.6%. Smaller minority
parties also made some small gains. These elections led to a coalition between
the LDK and the PDK and to the nomination of Hashim Thaci as Prime Minister of
Kosovo. Under pressure from Belgrade, most Kosovo Serbs boycotted the vote.
In
June 2008, UN Secretary General Ban decided to "reconfigure" UNMIK
and reduce the size of the UN presence in Kosovo, effectively ending the UN's
role as administrator of Kosovo and welcoming EU deployment of its rule of law
mission (EULEX). As Ban stated in his report to the Security Council,
"UNMIK will no longer be able to perform effectively the vast majority of
its tasks as an international administration." The EU assumed
responsibilities in the areas of policing, justice, and customs throughout
Kosovo.
The
Kosovo judicial system started adapting to the new legal charter on June 15,
2008. Supreme Court judges and prosecutors, district court judges, and
municipal courts judges already appointed by the SRSG will continue to serve in
their posts until the expiry of their appointment. Following the December 2008
transfer of rule of law functions to the Government of Kosovo, the Kosovo
Judicial Council (KJC) has proposed to the President of Kosovo candidates for
appointment or reappointment as judges and prosecutors.
Kosovo
administered its first elections since independence on November 15, 2009. These
local elections were held in 36 municipalities, including one expanded and
three new Serb-majority municipalities established under the decentralization
process of the Ahtisaari plan. International observers from the EU,
non-governmental organizations (NGOs), and the ICO agreed the elections were
conducted largely in accordance with international standards and that the
irregularities that took place were insufficient to affect the outcome of the
poll. Voter turnout was the highest since 2002, including in majority
ethnic-Serb communities south of the River Ibar. However, voter participation
in northern Kosovo was extremely low, with Kosovo Serb communities boycotting
the elections. For the first time, Kosovo authorities in the Central Election
Commission certified the election results, rather than the pre-independence
practice whereby UNMIK certified results. In June 2010, the municipality of
Partesh held its first mayoral election, which drew more than 65% of eligible
Kosovo Serb voters. There is one remaining Serb-majority municipality to be
established through the decentralization process--North Mitrovica. The North
Mitrovica Municipal Preparation Team is currently working under the supervision
of the ICO to prepare the municipality for elections and formal establishment.
2010
National Elections and Election of President Jahjaga
On
September 22, 2010, the Kosovo Constitutional Court ruled that President Sejdiu
had violated the constitution by simultaneously holding the position of
president and president of his political party, the Democratic League of Kosovo
(LDK). On September 27, Sejdiu resigned as President of the Republic, retaining
his post as head of the LDK party until he was unseated in the November 2010
internal party elections. Speaker of the Assembly Jakup Krasniqi became acting
President, in accordance with the constitution. On October 16, in response to
deteriorating coalition relations following Sejdiu’s resignation, LDK and its
ministers pulled out of the governing coalition, leaving Prime Minister Thaci
and his party heading a minority government and leading to calls for early
parliamentary elections. On November 2, the Kosovo Assembly approved a
no-confidence motion against Prime Minister Thaci, and Kosovo held
extraordinary elections on December 12, 2010. International observers called
the elections relatively efficient and effective. However, there were serious
irregularities in some municipalities, where the Central Election Commission
ordered re-votes in January 2011. Final results were certified February 7, 2011,
with PDK maintaining its plurality at 32% of the vote. LDK won 24.7% of the
vote, Vetevendosje won 12.7%, AAK won 11%, and AKR won 7.3%. Following 2 weeks
of negotiations, Hashim Thaci formed a government with AKR, the sole elected
deputy of “Rugova’s List,” and the ethnic minority political parties. Per a
coalition agreement, the Assembly elected Behgjet Pacolli as the new president
and approved a new coalition government, led by Prime Minister Hashim Thaci, on
February 22, 2011. However, a March 30 Constitutional Court decision held the
Assembly’s election of the president unconstitutional on procedural grounds.
Pacolli resigned, and on April 7, 2011, the Assembly elected Atifete Jahjaga,
the first female to hold the office of President of the Republic.
Principal
Government Officials
President--Atifete
Jahjaga
Prime
Minister--Hashim Thaci
First
Deputy Prime Minister--Behgjet Pacolli
Deputy
Prime Minister for Foreign Affairs and National Security--Edita Tahiri
Deputy
Prime Minister for Legal and Public Administration Reform and Justice
Minister--Hajredin Kuci
Deputy
Prime Minister for Economic Development and Reform and Minister of Trade and
Industry--Mimoza Kusari-Lila
Deputy
Prime Minister and Minister for Local Government and Social Affairs--Slobodan
Petrovic
Deputy
Prime Minister--Bujar Bukoshi
Foreign
Minister--Enver Hoxhaj
Minister
for European Integration--Vlora Citaku
Minister
of Economic Development--Besim Beqaj
Minister
of Finance--Bedri Hamza
Minister
of Kosovo Security Force--Agim Ceku
Ambassador
to United States--Avni Spahiu
Consul
General--Arta Rama
ECONOMY
Kosovo's
economy has shown significant progress since the conflict of the 1990s; it is,
however, still dependent on the international community and the diaspora for
financial and technical assistance. Remittances from the diaspora, located
mainly in Germany, Switzerland, and the Nordic countries, account for about
13%-15% of GDP and donor-financed activities and aid for another 7.5% of GDP.
The economy is driven by the government sector and mostly small-scale retail
businesses on the private sector side. Lack of reliable, affordable electricity
hampers economic development.
Kosovo's
citizens are the poorest in Europe, with an average annual per capita income of
approximately $3,300. With roughly 45% of the population unemployed, according
to official figures, migration and black market activity are key concerns. Most
of Kosovo's population lives in rural towns outside of the capital, Pristina.
Inefficient, near-subsistence farming is common, the result of small plots,
limited mechanization, and lack of technical expertise.
With
international assistance, the privatization of Kosovo’s socially-owned
enterprises (SOEs) has generated around U.S. $834 million since 2004. Kosovo's
two largest exporters are privatized companies: Ferronikeli (nickel) and M
& Sillosi LLC (flour). Technical assistance to the Kosovo Energy
Corporation (KEK) has helped improve procedures for billings and collections,
increased revenues, strengthened internal accounting procedures and controls,
and rationalized budgeting and investment planning. The installation of bulk
meters at the sub-station level is facilitating greater accountability for
collection performance at the district level. The U.S. Government is
cooperating with the Ministry for Economic Development, the World Bank, and
other donors to prepare a commercial tender for a new generation and mining
project, to include construction of a new power plant ("New Kosovo"),
decommissioning of one existing power plant, rehabilitation of the other, and
development of a coal mine for the New Kosovo plant. Privatization of the
distribution and supply division of KEK is also planned.
On
July 11, 2008, representatives from 37 countries and 16 international
organizations met in Brussels for a donors conference, pledging approximately
$1.9 billion (including $400 million from the United States), in support of the
socio-economic reform priorities Kosovo has expressed through its Medium-Term
Expenditure Framework for 2008-11.
On
June 29, 2009, Kosovo formally joined the global financial system when
then-President Sejdiu and Prime Minister Thaci signed the articles of agreement
for entry into the World Bank and International Monetary Fund (IMF). A total of
109 states supported Kosovo’s membership. Since that time Kosovo has begun
servicing its share of the former Yugoslavia’s World Bank and IMF debt.
The
official currency of Kosovo is the Euro, but the Serbian dinar is also used in
northern Kosovo and other areas where ethnic Serbs predominate. Kosovo's use of
the Euro has helped keep inflation low. Kosovo has been working with the IMF to
increase revenues, increase revenue collection and prioritize spending. The
government runs a small deficit that is covered by foreign and domestic
financing and is budgeting to increase domestic savings annually.
Trade
and Industry
Kosovo
has been laying the foundations of a market-oriented economy but is still
struggling to develop viable and productive domestic industries. Kosovo has one
of the lowest export/import rates in the region. In 2010, Kosovo imported $3
billion in goods and services and exported only $400 million, resulting in a
trade deficit of approximately 45% of Kosovo's GDP. This deficit is largely
financed through foreign assistance and remittances from Kosovo's diaspora.
Kosovo's leading industries are mining, energy, and telecommunications.
In
order to help integrate Kosovo into regional economic structures, UNMIK signed
(on behalf of Kosovo) its accession to the Central Europe Free Trade Area
(CEFTA) in 2006. In December 2008, Kosovo was designated as a beneficiary
country under the Generalized System of Preferences (GSP) program. Under this
program, a wide range of products Kosovo might seek to export are eligible for
duty-free entry to the United States. Current Kosovo exports that are eligible
for GSP benefits include wood products, charcoal, and dried fruits. Other main
exports include mineral products, base metals, leather products, machinery, and
appliances. Kosovo’s main export partners are Italy, Albania, Macedonia, and
Germany. Imports include live animals and animal products, fruits and
vegetables and related products, minerals, base materials, machinery,
appliances and electrical equipment, textiles and related products, wood and
wood products, stone, ceramic and glass products, and chemical products. The
country’s main import partners are the EU, Macedonia, Germany, Serbia, Turkey,
and Albania. Kosovo also receives similar duty-free benefits for exports to the
EU.
In
July 2011, Kosovo imposed reciprocal trade restrictions on products from Serbia
and Bosnia after Serbia failed to reach an agreement in the EU-facilitated
Pristina-Belgrade dialogue on accepting UNMIK-certified customs stamps
agreements. On July 25, Kosovo Special Police Units moved to assert Government
of Kosovo control over two northern border gates with Serbia where the trade
restrictions were not being enforced; one Kosovo police officer was killed and
Serb demonstrators attacked the border crossing facilities, burning one of
them. In September 2011, under the EU-facilitated dialogue, Serbia agreed to
accept the UNMIK-certified Kosovo customs stamp and both countries agreed to
resume two-way trade. Two-way trade eventually resumed at border points outside
of northern Kosovo. Serb demonstrators in northern Kosovo, however, erected
roadblocks at the crossings and throughout northern Kosovo to protest the
presence of Kosovo customs officers. While trade continues at other crossing
points, barricades inhibit freedom of movement through northern Kosovo and have
stopped trade via two main border crossings between northern Kosovo and Serbia.
Agriculture
Agricultural
land comprises 53% of Kosovo's total land area and forests 41%. According to
data from the Food and Agriculture Organization, 741,316 acres of land are
under cultivation and 444,789 acres are upland pasture. The majority of
agricultural land is privately owned (80%), providing subsistence farming for
individual households. Although Kosovo's agricultural sector is generally
characterized by small farms, low productivity, and the absence of advisory
services, agriculture contributes around 13% of Kosovo's overall GDP.
Agriculture is the largest employment sector in Kosovo, providing jobs for
approximately 16.5% of the population, primarily on an informal basis. The
agricultural sector also accounts for 16% of total export value and remains an
important creator of national wealth, although Kosovo is still an importer of
many agricultural products, which accounted for 24.4% of overall imports
($537.5 million) in 2007. Forestry in Kosovo is minimal; wood-processing and
wood products (flooring and furniture) are industry contributors, although not
yet in significant numbers.
FOREIGN
RELATIONS
In
October 2008, Kosovo opened an embassy in Washington, DC. Kosovo has 21
diplomatic missions and 13 consular posts worldwide. In June 2009, Kosovo
joined the International Monetary Fund and World Bank.
U.S.-KOSOVO
RELATIONS
The
United States and Kosovo established diplomatic relations on February 18, 2008.
Christopher W. Dell arrived in Pristina in August 2009 as the second U.S.
Ambassador to Kosovo. President Barack Obama received the letter of credence
for Kosovo's first ambassador to the United States, Avni Spahiu, in November
2009.
The
United States continues to contribute troops to the Kosovo Force (KFOR) and
staff to the ICO and EULEX missions. The United States remains committed to
working with the Government of Kosovo and our international partners to
strengthen Kosovo’s institutions, rule of law, and economy and build a
democratic, law-abiding, multi-ethnic, tolerant, and prosperous country.
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