The USAID/Kosovo Economic Governance Activity is a five-year initiative to support Kosovo in implementing significant reforms that will improve the efficiency of government operations, strengthen public financial management, and ensure the placement of self-reliant and inclusive governance capacities and systems for future reforms.  The activity will achieve this through:

Improved business enabling environment

The activity will focus on improving the business environment by reducing opportunities for abuse of power and corruption.  It will reduce informality and increase the transparency and efficiency of interactions both within the public sector and between the public and private sector.  Furthermore, this activity will help the Government of Kosovo involve the private sector and civil society in strengthening institutional policy development and intergovernmental coordination.  It will further strengthen the transparency, efficiency, accountability, and implementation of the regulatory requirements applied to businesses at both national and sub-national levels.  

Strengthened public financial management

Kosovo Economic Governance Activity will support relevant institutions to improve the transparency of tax policy and administration processes, strengthen control systems for more efficient spending of public money, as well as enhance predictability and private sector engagement in fiscal policymaking.  Such improvements will increase citizens’ trust in government, increase incentives to pay taxes, reduce informality, and as a result improve citizens’ perception of government performance.  In addition, through assistance to the Ministry of Finance and other public institutions, and with involvement from civil society and the public, this activity will seek to expand the advances Kosovo has made in budgeting and public financial management practices by strengthening the Government of Kosovo’s ability to self-reliantly manage its operations.

Enhanced strategic communication

Open communication between government institutions and the public ensures that all parties are informed and engaged in identifying and implementing reforms that respond to priority issues.  The activity will integrate strategic communications in the process of policymaking and implementation of reforms to further ensure that the Government’s reform agenda is done in a coordinated and transparent manner, with other national and local public institutions and with broad support from the public.  The activity will engage the private sector, civil society, and citizens in all phases of reform implementation to build honest and trusted communication between government institutions and the public.  This will contribute to gaining traction and support for implementing significant reforms and maximize the effects of such reforms, and thus improve the governance of public institutions.  

Expected progress toward self-reliance

• Proven working process and systems for the legalization of unpermitted constructions in selected municipalities;
• Ministry of Finance’s self-reliant capacities established for macro-fiscal analysis and budgeting;
• More efficient procedures for construction permitting at the central and local levels;
• Improved business registration and corporate governance legal framework;
• Clearly defined mandate and inspection objectives for market surveillance and construction, with improved processes and procedures;
• Improved public-private engagement and dialogue on economic development issues, policy-design, and implementation;
• Increased use of objective data in measuring the effectiveness of regulatory services, improved decision-making, and monitoring;
• Progress on key World Bank Doing Business Index indicators that measure the effectiveness and efficiency of the construction permitting process and tax regime; and,
• Strategic communication enhanced throughout the policy-reform cycle.

Partner:                         Chemonics Inc.

Project Duration:      March 26, 2019 – March 25, 2024                                  

Contact:                        Dardane Peja