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Kosovo's biggest security threat? Its 'sick economy'
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A Kosovar Bosnian walks in front of ruined house in the village of Brod, Kosovo. REUTERS\Damir Sagolj
Negotiations over the final status of Kosovo have started and the media has been abuzz with talk of possible interethnic violence if the talks reach a dead-end as expected. But it's Kosovo's disastrous economy that may prove to be a greater security threat and a bigger challenge than its political status, according to the Wall Street Journal. This is not just what the pundits are saying; people in the province have similar worries. In fact, nearly half of the ethnic Albanian population think problems such as unemployment, poverty and poor electricity supply are greater security threats than interethnic violence, according to a 2006 U.N.-sponsored review cited by the paper. Only 5 percent named interethnic violence as a threat to security in the region. "When you've got an economy as sick as this, that's a security threat," the paper quotes Michael Page of the U.N. Development Programme as saying. Unemployment in Kosovo has reached a staggering 40 percent. But not even 3 percent growth in 2006 and the prospect of similar growth this year is enough to cut unemployment, as 25,000 to 30,000 young people are added to the job market each year, says The Financial Times. The territory has the highest birth rates in Europe, so the numbers are unlikely to change in favour of economy any time soon. Some people survive on foreign aid, which amounts to 20 percent of the region's gross domestic product. Some live on money sent by the relatives working abroad, with remittances making up around 15 percent of GDP. And in the capital Pristina, some get by selling phone cards, cigarettes and fake CDs on the streets. Infrastructure is poor and a quarter of the population lack piped water. Power outages are still a regular occurrence, so gas generators are a common sight. Agriculture, which many people depend on, is running at half capacity. It is not surprising, then, that in 2006 the province imported twice as much as it exported. Smuggling and organised crime - both activities that don't bring any revenues to the government - are widespread. Alcohol, cigarettes, vehicles, weapons, drugs, people and even cows from Serbia regularly cross Kosovo's leaky borders. Organised crime in Kosovo has been a consequence of a dysfunctional political system, according to Veton Surroi, politician and former newspaper editor, who is quoted by the Journal. "Once you have duality of governments," he says, referring to the region's supervising U.N. Mission and its own provisional government, "you don't actually have a government." Because Kosovo is riddled with corruption and has an uncertain future, many big companies are bypassing the province. Lack of new businesses means no new employment opportunities for the jobless. "We're not going to solve unemployment in the next five, 10 or 15 years," Surroi says. "This is a generational change." Even credit from the likes of the International Monetary Fund or the World Bank has been hard to come by because of Kosovo's unsettled status. International donors should be providing up to 1 billion euros ($1.4 billion), but only after Kosovo's final status has been finally decided.
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2 responses to “Kosovo's biggest security threat? Its 'sick economy'”
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14 Sep 2007 07:20:59 GMT
Although much of the above article is convincing and well presented, the portrayal of "organised crime" and "corruption" are problematic. The implication is that if it weren't for Serbia and the international administration governing Kosovo, these problems would not exist. This flies in the face of substantial evidence implicating Kosovar Albanians in the narcotics trade and drug smuggling even during the 1980s (see WSJ article "The Balkan Connection"), and similarly high levels of corruption even during the period of 1974 - 1989, during which Kosovo's ethnic Albanian majority enjoyed broad political autonomy. This is not to downplay Serbian ties to the crime, or the international administration's inability to govern effectively, but the above arguments (by Brenjo and his source, Surroi) only continue an increasingly illegitimate strain in the Balkan discourse that portrays the Kosovar Albanians purely as victims rather than res! ponsible parties in what are some of the province's most critical problems. As has been all too common in mass media stories about this problematic corner of Europe in the past 10 years, a consultation of the history prior to 1989 is critical, but missing.
05 Dec 2007 12:40:10 GMT
I agree with the headline that the economy is not stable in Kosova not Kosovo as the name Kosovo is not correct. The economy has been run in a bad way since serbian invasion almost one hundred years rule,and left us long term suffering.I am only 21,but I heard many times people commenting of what it used to be in 70s,80s and early 90s when all the economy in Kosova was runn by serbs invaders,cruel to the people of Kosova,interrogating them, and the profits all went to belgrade for the serbian purposes.There was 0% invested in Kosova.So we are much better all ready of all time before.Anything better is good for Kosova.Getting back to the subject,the current running oo Kosova admin is a bit problematic because the responsibility is not only to Leaders of Kosova but mainly to the UN mission which mission to my opinion didnt do well enough to the economy, but still thankfull of their help.I think Kosova independent would be a very srto! ng country in economy and people would be less frustrated of going concern what next, are we going to war again or are we going to enjoy the freedom and get on with our work and life. corruption and crime exists everywhere, maybe in a smaller scale,but if people in Kosova enjoyed their freedom (the right to all people),then it will be complete different story,in a good way indeed.For example compare to Serbia a country which its population is old,no stable economy,poor country to live in and also very corrupted to and biggest crime organisers.On this case Kosova just after the was is in much better state than serbia already. Now compare Kosova with Rumania and Bulgaria or Macedonia or Albania and see what is difference here,which country has less corruption less crime, and you will see very clear picture. For Kosova and its economy we need independece first so people will engage in business and their jobs and Kosova in a very near future will be the best country to live in.