Support the Government of Kosovo in Growth and Fiscal Stability Initiatives

According to the Government’s Economic Development, Vision and Action Plan (EDVAP), economic development and sustainable economic growth are the key goals and strategic priorities of the Republic of Kosovo. The vision for a prosperous and dignified European society for all citizens of Kosovo as well as the Economic Development Priorities within the EDVAP document, approved by the Cabinet on April 18, 2011 represent a clear direction for implementation of reforms and economic development of the country in the medium term.

In addition to reforms in fiscal policies, the Government is committed to implementing policies that have a direct impact on improving the business environment in order to achieve macro-fiscal sustainability. Through this the government aims to strengthen the private sector; revitalize the agriculture sector; restructure and privatize public assets; continue investment in infrastructure development by various financing alternatives. These policies will be particularly dedicated to exploring possibilities to use the private capital; creating conditions for reducing the informal economy; developing financial markets; inclusion in the international financial institutions etc.

The EDVAP describes the economic development planning framework and proactive commitment of the Government to economic growth and development of the country. The plan contains concrete activities based on the achievements to date and is part of the planning framework within the key mid-term strategic documents, including the Government Program 2011-2014, Mid-Term Expenditure Framework 2012-2014 (MTEF), the European Partnership Action Plan (EPAP), and other sectorial and inter-sectorial Government documents.

Strategic priorities in this document are structured in the following five sectorial pillars:

• Maintaining Macro-Fiscal Sustainability;
• Investments, Investment Environment, and Private Sector Support;
• Development of Public Infrastructure;
• Revitalization of Agriculture sector;
• Human Capital Development.

The government of Kosovo recognizes the urgent need to improve the conditions to enable the private sector to be the driver of economic growth.

Deloitte Consulting is the Prime Contractor of USAID for Growth and Fiscal Stability Initiative Program subcontracted PMCG to assist the Government of Kosovo in achieving EDVAP goals.

Objectives:

PMCG’s objective was to provide direct assistance to the Deputy Prime Minister, Economic and through her role as Chair Person of the Economic Ministers group, and other economic ministers, in the implementation of EDVAP initiatives. The advisor was positioned alongside, and provided direct assistance to, the Deputy Prime Minister/Minister for Trade and Industry.

PMCG facilitated the improvement of Kosovo’s position in the World Bank Doing Business rankings. Kosovo has an ambitious target to achieve a top 40 ranking in the annual Doing Business survey by 2014.

The scope of work included:

• Providing direct assistance to the Deputy Prime Minister, Economic and individual Economic Ministers in the implementation of EDVAP initiatives.
• Working closely with other USAID projects, such as the BEEP initiative in their work to assist the Kosovo government in reforms aimed at improving Kosovo’s ‘Doing Business’ rankings.
• Working with the Deputy Prime Minister, Economic and the Policy Coordinating Unit of the Office of Prime Minister; devise a reporting template to track the implementation of EDVAP initiatives.
• Assisting in the compilation of monthly reporting, analysis and advice to the Economic Ministers on the implementation of EDVAP.
• Providing other advice and assistance in the economic reform arena as required.