RECOMMENDATIONS

ECONOMIC SYSTEM AND INSTITUTIONAL STRUCTURE FOR REALIZATION OF TRANSITION AND ENTREPRENEURSHIP DEVELOPMENT

PHASE I: 1998 AND UP TO 6 MONTHS AFTER ACTIVATION OF LEGAL AUTHORITIES AND INSTITUTIONS IN KOSOVA

PHASE II: 3-5 YEARS

AREA CONTENT PHASE I PHASE II ADDRESSING
TRANSITION Transition program and projects: economic system, economic recovery, privatization program, integrations, social engineering, technical assistance) - Program elaboration and project approval

- Technical assistance (personnel training)

- Project teams

Building up of new economic system structure - open market economy, projects implementation Government
MACROECONOMIC POLICY -Monetary policy Conception of institutions - Independence of Central Bank

- real interest

- aggregate control; convertibility; monetary balance;

Central Bank
  -Budget policy - balance from real sources,

- deficit overcoming and control

- Deficit reduction under 10% Government/ Ministry
  Fiscal policy - Implementation of fiscal ins-truments of market economy; - Harmonizing with fiscal structure of OECD countries Government/ Ministry
AREA CONTENT PHASE I PHASE II ADDRESSING
  International relationships - Conception and approval of export encouraging policy and positive balance of payments; conception of projects for cooperation with international financial institutions ; - reduction of limitations and liberalization; reprogramming of debts; export stimulation and supporting of joint ventures; creation of arrangements with international financial organizations; attending associations and integrations; Government/ Ministry
  Price policy Conception of liberalization and free competition; antimonopoly regulation - Consolidation of open market and liberalization Government
  Social policy Emergency programs - Labor market; employment and training programs Government
PUBLIC ECONOMY - Infrastructure

- Traffic

- Hidroeconomy

- Municipal economy

Managing concept; rehabilitation; Development strategy; privatization; - Government
 

INSTITUTIONAL

STRUCTURE

- Institutions of legislative, executive and juridical authority; Governmental institutional network; Non-governmental institutional network Concept of structure and normative regulation;

Program of Assistance for Personnel Training;

Technical assistance in building up new institutional structure

-Rationality and effectiveness

-Informatization

-Transparency and control

- Assembly organs

- Government

JURIDICAL

REGULATION

The system of laws as in point 5.3. - Creation of experts’ teams for preparing of laws;

- Technical assistance

Application of laws and principles of legal state;

Juridical protection;

Assembly Bodies

Government

NGO

 
AREA CONTENT PHASE I PHASE II ADDRESSING
PRIVATIZATION - Privatization model

- Methods and techniques

- Normative regulation

-Privatization strategy and programming of activities;

-Approval of Privatization Law

-Implementing of privatization program and restructuring of state-owned enterprises Assembly Organs

Ministries

Non-governmental organizations

  - Institutional infrastructure of privatization Concept of network and its operation:

- Privatization Council in the Assembly;

- Government Commission for Privatization

- Privatization Fund

- Investment Funds

- Technical assistance

- Privatization of large companies;

- Financial market

Assembly

Government

Governmental organizations

  Transparency and public control Concept of transparency; Institutions for control and revision;

Definition of procedure of public auction and competition; Concept of public information and control

Public information sources; affirmation of public control and auditing institutions Assembly

Government

Institution for audit

Media

 

RECOMMENDATIONS FOR DEVELOPMENT STRATEGY AND THE GENERATION OF SME

AREA CONTENT PHASE I PHASE II ADDRESSING
Strategic objectives -Independent economic development within integrati-ons; High employment rate through dynamic development;

-Mobilization of development potentials through open economy, entrepreneurship and free initiative; incorporation in technological development and globalization.

-Rehabilitation program for the state and public economy according to economic effects;

-To formulate the policy and strategy of overcoming of obstacles for establishing of open market economy ( balance of payments, macroeconomic stabilization)

-Private enterprises stimulation

-Consolidation of existing rentable enterprises their restruc turing and privatization

-Opening of development processes with priority in sectors of agricomplex and exports

-activating of infrastructure for generation of SME

-rehabilitation of infrastructure objects

  • Government
  • Banks
  • Scientific and professional institutions
Consolidation and reconstruction of exporting economy agricomplex Metals , electric energy, food industry, textile and leather, horticulture industry, metal processing, rubber products, industrial batteries services - Financial resources research and assurance, discussion of possible arrangements;

- programming of activities for privatization;

- Stabilization of anagement teams

- Consolidation of production and technological regeneration

- Creation of trade arrangements and joint investments with international partners

Respective ministries

Professional teams

Scientific and professional institutions

Small and medium enterprises- SME Development concept - Definition of instruments for stimulation of SME and family businesses

Identification of programs for SME generating in different sectors

Implementation of institutional environment for permanent growth of SME and entrepreneurship development Ministry of Economy and Finances; Ministry of Agriculture ;

Government

ABK and regional centers

Scientific and professional nstitutions

AREA CONTENT PHASE I PHASE II ADDRESSING
Infrastructure of SME supporting Promotion network in the level of Kosova -To establish the Agency for Development of Entreprneur-ship and schedule promoti-onal activities; Technical assistance in training of agencies’ personnel on state and regional level - Implementing of stable instruments for SME encouraging; connection between local and regional initiatives with central ones;

- Lobbying of SME sector

- Promotion of SME on national and international level;

Government

Chamber of Commerce and Industry

ABK

  Promotion network in local and regional level Establishing of regional/local centers for entrepreneurship with functions of: promotion, consulting, financial support (guarantee/ investment fund) and business education (regio-nal centers of training) Creation and promotion of regional and local coalitions for SME development Local authorities, ABK and other associations of business, banks, NGO, for consulting organizations, labor bureaus, experts, media;
  Financing on the level of Kosova Establishing of the Fund for SME development; Encouraging its generating activities by funds from budget , privatization and donors; Financing on grant principles of projects; -Enabling of promotion network

-Easing of capital approach and stimulation of financial resources mobilizing ; guarantees;

-Financing of business education

-Scientific research

-Launching of projects with generating importance ( incubators, entrepreneurship centers, technological parks)

Government / Ministry of Labor and the Ministry of Labor and Social Issues
AREA CONTENT PHASE I PHASE II ADDRESSING
  Investing and guaranteeing founds at the regional and local level - Signing of agreements for establishing of guarantee and investment funds;

- Organizational-technical and preparations for establishing of funds in capital city and regions; Animation of subjects for creation of the founding capital; Technical Assistance for Personnel Training

- Identification of SME projects;

- Technical assistance and supervision in application of projects;

- microcredits;

- bank guarantees;

- interest subventions;

- support of cooperation with international partners

- Entrepreneurship centers

- ABK

- Banks

- Foreign donors

- Corporations

- Entrepreneurs

  Founds for Emigrants Reintegration - Elaboration of organizational and functional structure of reintegrating funds

- Contacting with governments of Germany, Switzerland, Sweden etc. and animation of interest; Integration of the fund in state, regional and local net-work of financing and gene-rating of SME and job creation

- Mobilization of financial resources from Diaspora and emigrating countries for development of SME

- Stimulation of joint investments in SME

Creation of financial arrangements between funds and banks of emigrating countries and banks from Kosova

-Ministry of economic cooperation with foreign countries;

-Ministry of finances

- Entrepreneurship centers

- Banks

POLICY OF SUPPORTING SME IN OTHER FIELDS Policy of urbanization - Actualization of urbanization plans and creation of spaces for entrepreneurship;

- Concept of urbanization marketing in the function of SME development

- Rationalization of communal and urbanization costs;

- Creation of linkages between urbanization institutions and centers for entrepreneurship

Local authorities and regional centers for entrepreneurship
 
AREA CONTENT PHASE I PHASE II ADDRESSING
  Tax policy - Definition of fiscal stimuli connected with higher employment and reinvestment of capital in food manufacturing and export projects - Joint ventures stimulation Government / Ministry of finances
NETWORKING Information network- ABKnet -Actualization and promotion of existing project

-Animation of subjects for cooperation in realizing and financing and integration of the project in the concept of centers for entrepreneurship;

Training of personnel

-Installation of equipment and Intranet- ABK-network and linkage to regional and local centers;

-Linkage with ABKnet and Internet

- Transformation of ABKnet in a provider of Kosova

ABK;

Fund for development of entrepreneurship

Agency for development of entrepreneurship

Regional centers of entrepreneurship

Foreign partners /donors

ASSOCIATIONS AND NON-GOVERNMENTAL ORGANIZATIONS Association of Businessmen of Kosova

- ABK

-Organizational-technical and financial consolidation;

-Creation of local and regional coalitions for SME develop-ment;

-Technical assistance in enabling of the ABK personnel;

-Organization according to the interest/ activities within ABK members;

-Elaborating of lobbyng strategies for SME

Technical and financial assistance and organizational consolidation

-Growth of the number of members

-Enhancing of personnel fund

-Stabilization of budget from membership and services

- Membership in regional, European and world associations

-Assembly of ABK

-Governing Council

-Regional/local centers of ABK

 
AREA CONTENT PHASE I PHASE II ADDRESSING
 

 

 

Handicrafts associations - Improving of program orientation and personnel training Integration in centers for entrepreneurship development Agency for Entrepreneurship

Fund for Entrepreneurship

Regional centers of entrepreneurship

NON-GOVERNMENTAL ORGANIZATIONS Association of Entrepreneur Women and Businesswomen -Creation of initiating Council and conception of tasks

-Activities program

-Assistance from international associations

Organizational and programming consolidation on the Kosova and regional level; Integration in coalitions for development of entrepreneurship Women’s Union of Kosova

ABK

Agencies and centers of entrepreneurship

  Association of farmers -Projecting of association and its role in development of agribusiness and family economies in village

- Creation of initiating Councils the Kosova and regional level

Integration in the infrastructure of SME supporting Organizational consolidation on central, regional and local level -Ministry of Agriculture and food industry

-Association of Engineers and agricultural technicians;

Regional and local centers of entrepreneurship

  Association of young entrepreneurs Elaboration of program orientations Organizational consolidation on central and regional level Youth organizations

Development centers of entrepreneurship

  Association of organizations and institutions for development and consulting of SME -Establishing of Initiating Council and elaboration of program orientations; -Establishing of an association on Kosova’s level;

Integration in the infrastructure for entre-preneurship development

ABK

-Riinvest

-Entrepreneurship centers

 

RECOMMENDATIONS ON BUSINESS EDUCATION DEVELOPMENT

AREA CONTENT PHASE I PHASE II ADDRESSING
BUSINESS EDUCATION NETWORK Training of personnel in secondary schools - Identification of subjects and curricula in secondary schools that deal with business education and entrepreneurship; Establishing of an association of respective teachers; -Organization of workshops teachers once a year with regard to improve curriculums and teaching methods ;

-Improvement of textbook contents and methodology

Ministry of education

Pedagogical Institution

Agency for Entrepreneurship

Regional centers for Entrepreneurship

  Training of personnel in high education ( faculties: economy, law, agriculture, technical) -Elaboration of programs with intention of their innovation according to the market economy demands and experiences of other countries;

-Critical analysis of textbooks and their contents

Organization of workshops with assistance of foreign experts for implementing innovations in the programs (once a year)

-Translation and application of international textbooks and publishing for students;

-Consolidation of post-graduate programs for education for management/ business and entrepreneurship

Ministry of Education

University

Faculties

  Training of personnel for business education network -Selection of personnel for training;

-Training of 15 –20 experts in foreign countries ( 2-3 months) for private institutes

-Training of 80-100 experts for training in regional centers for entrepreneurship and ABK ( at least 4 groups –one month each)

Development of private initiative

-Establishing of training sectors in entrepreneurship centers;

-Establishing of private schools, academies, private colleges of business and entrepreneurship;

-Development of special programs for managers, entrepreneurs, family business;

- Joint ventures and franchise with international partners

Found and Agency for SME;

ABK

Riinvest

Association of Organizations for Consulting and Business Education

AREA CONTENT PHASE I PHASE II ADDRESSING
LEARNING PROGRAMS

AND CURRICU-LUMS

Faculty of Economy -Analysis of results in reformation of the program;

-Easing of the program from repetitions and past inertia;

-More optional courses (subjects);

-Reinforcement of basic subjects –Economics and microeconomics

-Entrepreneurship and SME

Establishing of partnership relations with foreign universities and faculties and realization of joint projects Faculty of Economy
  Faculty of Law
  • Reinforcement of programs with contents from the domain of international right, international relations and international economic organizations; juridical aspects of integration; international commercial and financial right;
Development of joint programs of MBA with Faculty of Economy and foreign partners; Faculty of Law
  Faculty of Agriculture -Increasing of the number of students;

- Updating of programs for agribusiness and farmer economies

Development of joint programs of MBA with Faculty of Economy and foreign partners; Faculty of Agriculture
  Technical faculties - Enrichment of programs with contents from the domain of basic economy and project management Enrichment of post-graduate courses Perspective faculties
  The most important domains (fields)in curriculums for business/ management education -Management ( principles), financial management , project management, human resource management, operations mana-gement; strategic management); Marketing; Finance; Entrepreneurship ( business plan, creation and development of business)

-Accounting

-Business informatics

-New forms and new technologies of business education, network learning, learning from the distance, implementation ICT technologies

- Learning of managerial and entrepreneurial skills.

Public education institutions

Private institutions

Centers of Entrepreneurship

 

RECOMMENDATIONS FOR THE INTERNATIONAL FACTOR

AREA CONTENT PHASE I PHASE II ADDRESSING
ESTABLISHING OF PEACE - Imposing an urgent cease of the conflict and making of peace Stopping a humanitarian catastrophe;

Implementing and monitoring a transitory phase

Establishment of legal democratic institutions of Kosova , market economy institutions under the international guarantee and monitoring;

- Assistance in recovering economic activities

Application of the Program for elimination of the war consequences;

Creation of possibilities for a democratic solution of Kosova’s status through free declaring of population and creation of a new climate of cooperation in the region;

-Assistance in mobilization of potentials and development resources and in implementation of the concept of open market economy, free initiative, entrepreneurship philosophy;

Contact group

NATO

International organizations and institutions

CHANGES IN THE BALKANS RELATION: KOSOVA’S ISSUE AND REGIONAL PROBLEMS

CREATION OF CONDITIONS FOR LONG-TERM PEACE AND STABILITY IN THE REGION

-Definition of issues that prevent democratic transformations and globali-zation processes in the region

-Real definition of Kosova’s issue and its reflections

-Analysis of chances for success of given initiatives in concrete conditions in the region: European initiative and SECI. Elaboration of the necessity for their reinforcing with more direct elements;

-Stimulation of independent economic systems, based on open market economy;

- Stimulation of regional initiatives for economic cooperation, incorporation of the region in integrated processes;

- Discouraging of tendencies for domination among the nations and countries in the region;

International community

USA

European Union

 

OBJECTIVES CONTENT RECIPIENT
-Personnel training for economic system institutional infrastructure -Projecting and implementing a new democratic structure of new open market economy system; Training for managing, monitoring and implementation of transition Program

33 person months

Government of Kosova, Team for planning and monitoring of transition program and projects
Training of personnel for planning and implementing of monetary policy and establishing of monetary system institutions and banks -Normative-legal regulation of monetary domain;

-Management and organization of banking system ( Central Bank, business banks, financial market and stocks and shares market);

-Monetary policy ( projection and implementation)

50 person months

Ministry of Finance

Banks

Stock market

Training of personnel for projecting and implementing of fiscal and budgetary policy -Law on taxes; Projection and application of fiscal instruments; Fiscal system of market economy countries and problems concerning transition; Organization of fiscal operative; Organization of customs operative; management of budget.

32 person months

Ministry of Finance
Training of personnel for developing economic relationships with foreign countries Application of liberalization, foreign trade regime,

Export encouraging and promotion policy; joint
ventures and international partnership; economic integrations;

20 person months

Ministry for International Economic Cooperation
Training of personnel for cooperation with international financial institutions Introduction with organizational structure, work style, communication and cooperation with IMF, World Bank, European Bank, UNIDO, UNDP, PHARE, USAID etc.

35 person months

Ministry of finances, Banks and Ministry of Economy/ Development
OBJECTIVES CONTENT RECIPIENT
Training of personnel for monitoring, state control and independent audition Introduction with content, organization and application of audit; audit and control principles and procedures according to the methodology of audit in market economy

24 person months

Ministry of Finances
Training of personnel for creation and implementation of the public sector policy Management of public sectors ( electroeconomy, PTT, railway, roads, telecommunications, irrigation system, public non-economic activities–education, culture, social work etc.)

35 person months

Ministry of Economy

Ministry of Education and Culture

Training of personnel of institutional network for privatization Assistance in compiling and application of Law on Privatization; Establishing and management of the Fund for Privatization; creation and functioning of intermediary investing funds; evaluation of state capital; techniques, instruments and procedure of privatization; transparence and control;

21 person months

Fund for Privatization

Ministry of Economy

Training of personnel for macroeconomic policy and regulation -Consistent planning and application of macroeconomic policies; macroeconomic regulation; Macroeconomic analysis and prognosis; Sectorial analyses;

50 person months

Ministry of Economy/Development and Ministry of Finance
Enabling of the network for support of SME and entrepreneurship development Training of key persons for Entrepreneurship Development Fund, Agency for Entrepreneurship and centers for entrepreneurship promotion, for lobbyng of business community interests, encouraging of business investments and generation of SME, functioning of investment funds and investment guarantees;

45 person months

Fund for Development of Entrepreneurship

Agency of Etrepreneurship

Regional centers for Entrepreneurship

ABK

Training of personnel of business education network Training of key persons for generation and realization of business education programs according to the Business Education Program ( part 7)

125 person moths

Regional centers for entrepreneurship; ABK and Riinvest