Assessment of the Implementation of the Anti-Corruption Strategy and Action Plan 2013-2017

Given that sustainable development and combating corruption is of crucial importance for a well-functioning democracy, this Policy Report aims to monitor the implementation of Kosovo’s Anti-Corruption Strategy and Action Plan 2013-2017. The Report highlights the progress of the Kosovo institutions in the political and rule of law sectors and assesses their efforts towards adequately implementing measures/actions set out in the Strategy. This Report also identifies the institutional failures, achievements, and challenges associated with the full implementation of the Strategy, and reflects on the preparedness of Kosovo institutions to combat corruption and promote anti-corruption actions. The following sections of this study are organized as follows: Section 2 provides an overview of the drafting, assessment and challenges of the Anti-Corruption Strategy and (Revised) Action Plan. Section 3 details the methodology utilized for this study. The achievements, challenges and failures that materialized during the monitoring process are presented in a matrix in Section 4. Section 5 interprets the overall institutional achievements vis-a-vis the implementation of the Strategy, focusing specifically on the political and rule of law sectors. The last section offers a conclusion and policy recommendations that can further enhance Kosovo’s capacity in the fight against corruption. To access the Policy Report, please click here.

How ‘friendly’ is Kosovo for Foreign Direct Investments: A Policy Review of Gaps from a Regional Market Perspective

Foreign direct investment (FDI) is widely recognized for its positive impacts on economic growth and transformation. It is also considered an important channel for the development and accumulation of human capital and the diffusion of new ideas and business skills across national borders. Foreign investment inflows can positively influence employment and may represent an important source of technological advancement in the host country. Global trends show that competition for attracting FDI is especially strong among developing countries, as it represents an important source of foreign capital and can have positive spillover effects on the host economy. This policy paper is organized as following: Section 2 provides a brief theoretical discussion of the main factors that affect investors’ decisions and potential Foreign Direct Investments (FDI) effects on the host-country, followed by a discussion of the importance of FDI for Kosovo and the current legislative framework. Section 3 highlights Kosovo’s FDI profile in general and by sector, as well as its position compared to other SEE countries. Section 4 discusses Kosovo’s potential for attracting investments and its investment climate and scrutinizes the key deterrents for FDI in Kosovo. Section 5 examines the main types of investment incentives and compares Kosovo’s incentive schemes with SEE countries. Section 6 considers the perceptions of EU and EFTA foreign investors operating in Kosovo. The last section offers a set of policy recommendations and solutions that would further enhance Kosovo’s investment climate and its overall performance with regard to attracting FDI. To access the report, please click here.

Policy Report on the Race for Public Sector Employment in Kosovo and Albania: What lies behind it?

This Policy Report investigates public-private wage differentials in Kosovo and Albania using data from Kosovo Household Budget Survey 2011 and Albanian Living Standard Measurement Survey 2012. The Oaxaca-Blinder Decomposition technique is employed to determine whether the wage gap is attributable to differences in employees’ characteristics or to differences in remuneration endowments. The empirical methodology follows a three-stage approach in order to address the double sample selection problem arising from non-random selection of labour market participants and employment into public/private sector. Separate wage regressions are estimated for men and women in each country, including selection-correction terms. In order to complement findings along the entire distribution of wages, decomposition technique of quantile and distribution regression-based estimators is utilized. In general, the results suggest that higher wages in the public sector are explained by better characteristics of public employees in both countries, while there is evidence of significant differences in returns only for the lower wage quantiles. To access the Policy Report, please click here.

Rule of Law Conditionality in the Stabilisation and Association Agreement between Kosovo and the EU

This Policy Report attempts to offer a thorough analysis of the rule of law requirements in the Kosovo Stabilisation and Association Agreement (SAA) and their implications. First, we begin by offering an account of stabilisation and association agreements in general, including their role in the EU enlargement agenda and afterwards refer to the previous SAAs concluded with the other enlargement countries. Third, we proceed to outlining the main provisions in the agreement signed between the EU and Kosovo which concern the rule of law sector; they will be analysed in the context of the equivalent provisions in previous SAAs, the recommendations contained in other EU documents and instruments (such as the Visa Liberalisation Roadmap, the EC Annual Country Reports and, there applicable, the SAP Dialogue), as well as by reference to the situation in other enlargement countries. Fourth, the Report attempts to anticipate the main issues which may constitute obstacles for Kosovo in applying these provisions and the instruments made available by the EU to facilitate the implementation process. The Report then refers to the mechanisms that will ensure the monitoring of the SAA before proceedings with a set of recommendations for the government of Kosovo. To access the report, please click here.

Promising Early Years: The Transformative Role of the Constitutional Court of Kosovo

In this Working Paper we analyse whether and, if yes, how, the Constitutional Court of Kosovo has influenced and guarded the essentials of the nascent democracy. While we strive to assess the Constitutional Court’s role in the democratic transition of Kosovo, various external factors, such as political influence and the legitimacy of the Court, will necessarily be part of the equation. The first section of this paper briefly reviews the role of constitutional courts in transitional democracies, and identifies the common denominators which explain their endeavors to influence democratic developments. The second section focuses on the jurisdiction, functioning and organisation of the Court, and its relationship with public opinion. The third section analyses internationalized constitutionalism and its impact on the legitimacy and integrity of the Court in Kosovo. The fourth and fifth sections assess specific indicators, including the perceived level of confidence in the Court by political actors and the public at large, the role of international actors, and the perceived outside pressure on judges, doing so through analyses of the most notable cases and their impact upon societal and political life in the country. The final section provides a brief conclusion. To access the report, please click here.

This Working Paper is delivered with the support of the Regional Research Promotion Programme in the Western Balkans (RRPP).The RRPP is coordinated and operated by the Interfaculty Institute for Central and Eastern Europe (IICEE) at the University of Fribourg (Switzerland). The programme is fully funded by the Swiss Agency for Development and Cooperation (SDC), Federal Department of Foreign Affairs.

Kosovar Citizens’ Satisfaction with the Rule of Law – An Empirical Study

The aim of this Policy Report is to analyze Kosovar citizens’ perception and satisfaction with the Rule of Law institutions, more precisely, the Police, Courts, Prosecution, EULEX, and the Government of the Republic of Kosovo. The survey results can provide necessary and meaningful insights into the attitudes of Kosovar citizens towards the functionality as well as the lacks of those institutions. It therefore measures the respondents’ satisfaction, the perceived effectiveness, the accountability of these institutions and their ability to guarantee for equality. While the next section presents the data collection process and methodology of the study, the fourth section discusses the findings of the survey and the fifth section concludes the most important findings and results. The second part of this study finally tries to find factors that contribute to citizens’ satisfaction with the Rule of Law institutions and asks if there are differences among specific socio-economic groups when assessing the functionality of the respective institutions. To access the Report, please click here.