Agriculture development did not meet the population needs in food. Therefore, the food deficit is very high and complex, because it is ompletely provided by imports.
The main obstacles of agriculture development in Kosova are:
Among the favorable conditions in order to implement new programs in Kosova are the natural resources, the young age population, and in particular the increased demand for food products in the market, which is obviously poorly supplied by producers of Kosova. It is estimated that in order to import the food and agriculture products, an amount of annual 490 mill. DM is spent.
The actual market of food and agriculture products is characterized by a lack in organization and infrastructure. A separate problem represents the low level of marketing development and difficulties in the organizing farmers (producers) in trading with agriculture products. This situation is making the problem of population supply much more complicated. By the growth of population, the demand for food is permanently increased in both quantity and quality.
From the balance analysis of the main food and agriculture products, it results that the deficit is present almost in all main food and agriculture products (Tab.17). The situation is worse if the trade balance of such products is analyzed, together with the balance of season market supply. It is a fact that a big part of agriculture production has a natural character, and there is an absence of organized collection of the surplus in agriculture products.
On the other hand, there is a lack of these products in the market, in particular during the winter season, which in order to meet the customer needs in the market are basically imported. Regarding the regional agri-ecology specifics, a wide range of agriculture products could be provided in Kosova, depending on market demands. In order to meet the needs in food and agriculture products, the production should intensify and changes in production structure as well.
In order to induce the agribusiness in Kosova, the following is important:
(1) Strengthen the organization-managerial level of businessmen
(2) An institutional support in agribusiness development.
In the present circumstances and even in the development prospects, some kind of a problem solution could be made in affirmation of the farmers and agriculture farms as beneficiaries of agribusiness and agriculture market production. The farmer should be affirmative both like a cultivator and manager. The development of the farming agriculture in Kosova is a solution, which regarding a long tradition of the family economy, with new organization and institutional support, could carry out the agribusiness as proven in many countries of the world.
The farm business is farmer's economic activity, regardless whether his production is dedicated to the market or for family consumption. The business is linked with production, buying and selling of products. Specialized farms should be encouraged. This would considerably depend on the market (price), natural conditions, and farmer's skills. Because of a small agriculture land surfaces in Kosova, an intensive business in small farms should be encouraged, cultivating intensive plants and livestock production.
A contemporary agriculture development cannot be reached by farmer's efforts only, but also by an impetus of external factors, such as inputs, knowledge and financial funds, etc.
The appropriate professional institutions together with farmers should concrete their development programs. The priority production programs, according to the market demands could be those of vegetable production in green-houses, early fruits, which now are imported in large quantities and at a very high price.
In Kosova there is a lack specialized production of nearly all kinds of meat, milk, fruits and vegetables. The production programs of the ecology agriculture products would have a good prospect in particular in the foreign market, where the demand and prices are in a permanent increase.
The collection and cultivation of medical plants would also be e business of benefit. In the framework of packaging, agriculture products processing, and collection and trading could be implemented into successful programs. By affirmation of joined ventures in particular with foreign partners, providing investment funds would be more efficient. The program investment, depending on the capacity and production technology vary from 15.000 to 200.000 DM, while the internal rate of return is very high (over 30%).
The possible (feasible) programs:
6.3.2. INDUSTRY
Figures on the processing industry development in Kosova, and their comparison to respective figures of the most developed countries indicate that Kosova is characterized by a very low level of the processing industries.
The development level of some branches in processing industries in Kosova a indicates this table:
Industrial activity Development
level
01 Chemicals (including petrol-chemicals) +
02 Medicines and pharmaceutical raw materials +
03 Explosions and pyrotechnic products -
04 Oil and lubricant production + +
05 Fertilizers and agri-chemicals + + +
06 Food and beverage production + + +
07 Fermentation and finalization of leather + +
08 Lime and cement + + +
09 Chemical fabrics +
10 Metallurgical and metal products + + +
11 Paints, pigments, lacquer and similar products +
12 Oil refine production and wood processing -
13 Plastic materials -
14 Rubber production + +
15 Production of soap, glycerin, articles of hygiene and
other products -
16 Lime, glass and ceramics + +
17 Wood, cellulose and cardboard + +
18 Other products on chemical process bases +
Evidently, almost no processing industry branch in Kosova reached that level of development which could be compared with respective development levels of the countries with a long industrial tradition. According to this table, it could be concluded that a higher production at least could be reached to produce more fertilizers, alcoholic and non-alcoholic beverages, cement, some metallurgic products, as well as rubber products, although a part of such products were exported. A wide range of products which are used daily, were not produced at all, such as certain products of the chemical industry, plastic materials, several products of food industries, etc. Initially, the processing industry was outlined and developed mainly as an industry of large capacities. But, due to structural changes in the world economy, and technical and technological progress which took place recently, the processing industry became an industry of small and medium capacities as well. There are several arguments of technical-technological and economic nature, which lead to a design and construction of small and medium capacities. By an optimal solution of production capacities, the technical-technological and economic priorities are enabled.
The above-mentioned features are sufficient in order to induce an organized approach in Kosova, in creating an appropriate policy of processing industries development by SME generating to complete a vacuum in the general economic relations in Kosova.
The development strategy in the field of metal processing, should be based on the stimulation of small and medium enterprise, using comparative advantages in providing raw materials, and accumulated long term experience and qualifications in this field. The reserves of lead and zinc minerals are estimated to be sufficient for the next 35 years, with an annual production capacity of 1989, while the reserves of nickel are estimated to be sufficient for the next 14 years, with an annual production capacity of 1991.
According to these indicators, Kosova can become a real producer of these annual metal quantities as follows:
Lead 60. 000 ton
Zinc 35. 000 ton
Silver 65. 000 ton
Gold 300 kg
Cadmium 20. 000 kg
Bismuth 50. 000 kg
Feronickel 4.500 ton
With some additional investments, production of rare metals could be provided such as follows:
Selenium
Thelur
Indium
Gallium
Such a production represents a solid basis for an intensive development of the processing industry, based on their primary and secondary processing, as well as of other metals produced and offered in the surrounding Kosova market.
The best way to find production space for finalized products or semi products by these metals should be searched in meeting the needs of large Western producers in the form of cooperation production, but also for ordinary market production.
Lead has a very narrow range of use. It is used for the following:
Zinc mainly is used in industry in the form of its chemical components:
Silver is a metal with a long distinctive processing tradition in our region for many years. Besides the possibilities of use in making of filigree things, having the features of an electricity carrier, it offers a wide range of application in the micro electronic industry, still deficitary in the world.
Gold was also for many years and centuries processed in our region, and there is a tradition in this field among people who dealt with this job, highly appreciated in professional framework.
Besides this fact, gold, the same as silver, is used more and more in the micro electronic industry.
Cadmium is used for these purposes:
Bismuth is basically used in the pharmaceutical industry
Nickel: its use in the world is expanded, and has a significant increase in products used very often in the households - rostfrei.
The elementary comparative priority would be the constructed industrial infrastructure, in order to produce such metals in Kosova. The possible and real basis for the organization of such a production in the framework of small and medium enterprise, remains in using these metals in the production of semi-products and final products which needs a low level of investments.
An elementary condition which should be met for an initial production of lead, zinc, bismuth, and cadmium is the installment of a small electric inductive furnace (up to 20 Kwh), of course having in mind the pollution issue and environmental requirements and criteria. Other production elements require a detailed specification, depending on the production program.
The research regarding potential buyers of such products should not be limited and narrowed within a region. This fact makes us realize that buyers should be searched in Europe and even elsewhere, wherever there is a strong processing industry, claiming the space for cooperation work in the framework of such industries. There is an exception of this business for the activities based in the processing of different ornaments made by gold and silver, usually made for consumption.
The specific role of the chemical industry in the economic development strength, is represented first of all by a significant participation of the chemical products in the development of other branches of the economy.
The fast development of chemical industry in the world is a result of changes and discoveries of new chemical products, launched every day in the market. The chemical industry is characterized with a massive production in very large companies with a high level of fixed expenditures in the price structure. The chemical industry is among the main suppliers, but at the same time, it is a buyer of its products. The buyers of the chemical products are also agriculture, food processing industry, textile industry, cellulose industry, rubber, paper etc.
The chemical industry in Kosova is represented as follows:
6.3.3. TRADE
Small and medium enterprises in the field of trade had a dynamic development. But, a large number of these enterprises have been working with a wide range assortment and no specialization.
The trading companies in Kosova, in order to provide an efficient business, should be oriented towards a conjunction and stronger cooperation expressed in establishing of:
In the framework of a vertical trade integration, different level enterprises should cooperate with each other. Such a vertical trade integration in Kosova is induced by the present economic situation. In the framework of this integration, all enterprises would operate as a business system. This integration would work as following: the harmonization of a member's behavior in the system and business, conflicts between them to be eliminated, business (operating costs reduced, the contractual and competition strength to be increased, as well as avoid double business transactions. The vertical integration in Kosova could be of this nature:
During the initial phase of the trade integration of Kosova, as a vertical integration, which can be implemented within a very short period of time would be the contractual integration. Regarding this kind of integration, the relations between members are regulated through a contract. In the contract there are stipulated all rights and commitments of each trading company (enterprise). The horizontal trade integration would mean establishing an association of trading companies of the same level, with an intention of a better use of different business priorities of companies and market. These will be much easier implemented by the use of information technology.
The trading companies in Kosova should make a more efficient market research, in order to increase their competition capabilities, a better settlement of production assortiment, and to create a more efficient managerial information system.
6.3.4. CONSTRUCTION
The strategy of the construction industry development could be evaluated from two sides: the strategy of the operation of construction system and the strategies of the construction companies.
Some positive results regarding these two strategic dimensions could bring the concept which is based on the idea of "Benchmarking" (Drury,1990), making a comparison between the actual situation and the new achievements in the world, which have been applied in the most efficient companies. Taking into consideration the features of our market, the strategic orientations are determined in order to achieve these business levels.
Regarding the establishment of small construction companies in Kosova, they will operate as companies with one member only, as family businesses, and groups of small construction-handicraft operations or services. Three types of medium enterprises (companies) will be established. The first type of such enterprises would be the companies responsible for production of construction materials, trade, design and construction operative. The second type of the medium companies are the private companies dealing with construction which according to their efficiency will increase their capacities. The third type of the medium companies will be established from the present social-public companies through privatization and restructuring.
The activity of the companies dealing with construction could be:
If the a/m nomenclature, which can be applied in the SME, is compared with the situation in Kosova, it seems to be a vacuum. In Kosova only the elementary construction needs are met, even using an old technology. All other issues regarding modern technology, using a lot of different construction materials, construction of facilities with special destination, using modern equipment and machinery, application of consulting methods, research and operation methods have a very low participation in the total company activities.
In order to reach an efficient activity in this field, the management only is not sufficient, but such an activity should also make some marketing research, because of a potential possibility to double capacities. A managerial support in the activity of such companies is also important, because it is one of the conditions to be faced with the competition.
6.3.5. TRAFFIC
The initial interest for the development of traffic and communication in Kosova is the realization of development of all traffic branches as well as its activities (railway traffic, economy and automobile traffic, air traffic, PTT and RTV), as one of preconditions for the realization of an overall development policy and an efficient completion of needs in transport services and rationalization of communication and traffic.
The traffic development strategy requires:
6.3.6. HANDICRAFTS
Handicraft, with products and services, represents a very important segment in the SME development.
The demand in the market for such products and services is permanent and has an increasing tendency, therefore the development strategy of this field should be based in long term periods and should follow this trend.
There are identified about 224 economic activities of handicraft under the nomenclature. An indicator of 1986 is of interest indicating that there are 113 handicraft activities in Kosova, which means that at that time there were only 50% of the nomenclature activities. This shows that there is a significant possibility for establishing new enterprises.
It should be stated that more than a half of independent handicraft activities working in Kosova are basically concentrated in 15 professions only. Certain modern production handicraft activities are missing.
Now it is an imperative to work on creation of indispensable conditions, which would induce the development of personal working activities - personal initiatives. At this stage, starting a working activity is possible with a very modest amount of funds. Thus an improvement of personal work can be achieved by increasing working activity and including activities which are not present.
At this initial phase, it would be very important that competent respective authorities allow using existing free facilities in order to start work.
6.3.7. TOURISM
The natural and culture values of Kosova, represent tourist resources of a high level. There are very attractive conditions for development of tourism in Kosova, winter/mountain tourism, resorts with mineral springs, hunting, sports, fishing and other sports.
A significant natural value in Kosova have the complex of the so-called Cursed Mountains and the Sharri Mountains. According to the figures provided by the Kosova Tourist Office, based on cartographic recordings it is possible to be provided about 900 km of skiing paths, most of them having an altitude up to 1000 m over the sea level, evaluated by professional experts and international skiing organizations.
Several other natural values in Kosova are such as:
The handicraft products and works on some very rare products represent a real attraction for foreign tourists.
The figures provided by the Tourist Office indicate that the accommodation capacities in Kosova are estimated to be about 6.300 beds, out of which 3.500 beds meet the appropriate conditions and can be in use.
In the field of tourism, the basic intentions should be:
6.3.8. CONSULTING
The consulting activities first of all are connected with:
The role of consulting should be treated in the light of:
In this case we have to deal with the production systems with appropriate developed technology and equipment, while production is effected within a company. The consulting services are concentrated mostly at a pre-investment phase of technology imports, especially in collecting of appropriate data regarding the different technology producers. Such services are available to various investors who are interested in the appropriate technologies.
A high efficiency of consulting services is evident even in the field of getting of credits from different international financial institutions, foreign lending institutions, and in the field of joint ventures.
It is evident that the transfer of technology in long terms through imports only, not based on appropriate strategy, which would at the same time provide self-development, will lead to a high dependency on foreign technologies. Finding the appropriate models of consulting engineering organization on a national level, which would provide a real SME development, preparation of appropriate skilled staff, this activity should be in accordance with present low regulations and membership to FIDC (International Federation of the Engineering and Consulting).
In all these activities, there is a space for including the SME connected and integrated with the promotion network of the whole SME sector.
6.3.9. INFORMATICS
SME inclusion in the field of informatics is possible to generate in different areas as: equipment and software marketing, servicing, creation of the business software, network software, creation and maintenance of information network and computer education. Regarding the computer equipment marketing, there are several companies almost in all centers of Kosova, but still having in mind the need of the further computerization of many institutions (education, administration, etc.), and a short amortization period of such equipment, as well as a permanent need of their replacement, there is enough space even for new companies in this field.
An appropriate specific software making for the needs of the a/m segments, as well as the maintenance and staff training for their application, represents also a real possibility establishing of new SME in order to meet these needs. Following the most contemporary software, as well as direct presentation and representation of well-known companies in the field of software enables an engagement for SME.
A design and realization of the specific network INTRANET for the mentioned segments according to client principle will of course be an interesting trend and a time requirement. Beside this, the connection of such network and other users in the global network would claim the engagement of the appropriate SME in this segment.
All this quantity of ICT (Information and Communication Technology), should have an appropriate maintenance, refreshment replaced and modernized. The needs of Kosova, in accordance with mentioned systems will require an expansion of the appropriate servicing network.
A segment of special interest for information is production in its whole spectrum.. From the metal industry, plastics, wood, and textile, to the agribusiness there are intentions for automatization and computerization of the equipment, device and process. Using of information in the process of production and services will be analyzed in two aspects.
(a) By passing from using classical semi-transfer elements system into using of microprocessors system, and realization of the cellular concept. Several preconditions are available for small groups with no investment capabilities to have an approach to the serious projects. Consequently, the possibility of small investments (5.000 to 10.000 US$) to find a market for knowledge in the segments of well paid jobs, is a possibility for the SME for a real break through.
(b) Besides microprocessors and other elements the card for acquisition and digitalization of the signals from process, command organs, step-motors, is reduced. By price reduction, the possibility of their application in the projects which could be made by SME has increased. This possibility is very attractive, because it does not require fundamental investments and does not require a long and specialized training of the personnel. The general globalization of the economy in conditions of an open competition will induce a better organization of production and demand for appropriate software of production companies. Respecting such software prices, in this field a number of SME could be involved. Besides the production, also the maintenance should be considered in the large production systems. The issue of the standardization of spare parts and replacement materials and other articles in trading a set of the software specific should be composed.