ECONOMIC GROWTH

Kosovo, with the support of USAID, has made significant progress in building key ministries and government bodies that now have well-established and strong foundations.  However, in spite of the advances, Kosovo still remains the poorest economy in the region and struggles with high levels of poverty, massive unemployment, and an overdependence on imports.

USAID is helping Kosovo address these issues by working on programs the promote diversification of the economy and increasing the private sector contribution to growth.   Kosovo decision-makers increasingly understand that “governments don’t create growth; they create the environment for growth” and that a diversified economy in tandem with a changing equation of private to public sector contribution will enable faster and more sustainable economic growth.  This provides an opportunity for USAID to promote and support programs that increase the capacity for sound governance across the economic landscape, not only through better implementation of reforms but also by improving public financial management, increasing access to credit, attracting foreign investment, and increasing private sector participation in building public infrastructure and providing public services.

USAID’s direct support to the private sector will target key sectors that have the greatest potential for job creation and increased sales and exports.  Since Kosovo’s population is mainly farm-based (60%), USAID will continue its engagement in the agriculture sector, focusing on increasing the volume and the productivity of high-value crops.