Establishing a sustainable economy in Kosova.
The recent transition in Kosova from a totalitarian regime into a democratic one saw a change in the economic system as well. Kosova had suffered for five decades from economic stagnation because of the failed communist planned economy, mismanagement and war. The newly deployed international authorities, namely the European Union Pillar of UNMIK Administration, have been trying to lay the foundations of a sound market economy in Kosova. While there has been a constant flow of financial and humanitarian aid from different donor countries, the living standard in Kosova remains at a very low level. This has forced many families in Kosova to find alternative ways to earn money and even make their children quit school or miss classes in order to sell cigarettes, telephone scratch cards and food items. .
Moreover, the lack of a viable macroeconomic environment and of an effective and enforceable tax system has led to large scale smuggling and tax evasion. People engaged in informal economy i.e. doing illegal business and evading taxes have been operating in Kosova with almost complete impunity in the last four years. In this way, they are doing a huge damage to the Kosova Consolidated Budget (KCB) and especially to the public sector. Public employees in Kosova receive very low salaries. The teachers have recently engaged in a Kosova-wide strike forcing the Government to give them a pay raise. More protests and social unrests can be expected in the future if the budget share for the public sector is not increased. .
There is hardly any foreign investment because of the uncertainty over Kosova's legal and political status. UNMIK and the Kosova Assembly have managed to enact a few pieces of legislation in the field of finance, foreign investment and business organizations. Both legal and physical security is a necessary condition for Kosova to be able to attract foreign capital and enhance its formal economy.
Why Shouldn't the U.S. intervene in Kosova? ... Under Tito's Yugoslavia, Kosova was autonomous. Autonomy was granted to Kosova. ... The West does not want to recognize Kosova as an independent republic so we have only one hope - the Kosova Liberation Army. ... I thought the United Nations was established so that a disaster like the one Hitler and the Nazi party made could be prevented. ...
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