Statement of U.S. Delegation

I would like to thank the World Bank and the European Commission for organizing this meeting. It is a very valuable opportunity for us all to work together for a strong international effort in Kosovo. As we have heard, there is more to be done, and much progress to preserve. We must maintain the momentum.

On behalf of the U.S. Government, I would like to acknowledge the achievements and progress that have been recorded by the Kosovars, the United Nations and international donors. It is truly impressive. We are encouraged to see the emergence of a political culture of respect and tolerance in Kosovo. We urge all Kosovars to respect the rights of internally displaced persons who want to return to their homes in Kosovo to work for a better future for their families and for Kosovo as well.

The U.S. has been a strong and active supporter of these efforts, having pledged over $350 million for Kosovo's reconstruction and development since July 1999. Specifically, in 2003, U.S. assistance will train and equip the Kosovo Police Service and Kosovo Protection Corps; support economic reforms through technical assistance and employment generation programs; strengthen political institutions, civil society and community development; and support the return of the displaced and refugees. We also will continue to provide a sizeable contingent to the UNMIK police.

As in past years, the size of our program depends on the magnitude of assistance committed by other donors. Our Congress again will likely stipulate that this year's program should not exceed 15% of resources pledged by other donors by March 31, 2003. We must be able to demonstrate to the American people that our program is one part of a strong continued international effort.

We take this opportunity to urge donors to remain committed to activities that strengthen civil security and rule of law and help to create conditions that allow for successful returns and for the development of minority communities. We ask the donor community to join us in promoting improvements in Kosovo's regulatory environment, fiscal policy planning, and administration to encourage investment that is vital to continued economic growth. We should uniformly press for an expeditious and transparent privatization process to promote the private sector. Bolstering regional trade links is vital. Recognizing this, the U.S. strongly supports Kosovo's participation in the Stability Pact Trade Working Group and other efforts to bolster regional trade links. We urge the donors to promote policies and practices that integrate Kosovo into Southeastern Europe rather than isolate it from the region.

On other matters, the U.S. will welcome the shut-down of the CFA and the effective merger of its functions with the Ministry of Finance: In addition; the U.S. believes that regular engagement by the IMF is beneficial for economic policy makers in Kosovo, for us as donors, and for potential investors. Therefore, the U.S. would encourage the IMF to work with Kosovar authorities to develop a macroeconomic framework that could be observed by IMF staff and reported to donors. We also strongly support a more active role for the EBRD and the IFC in Kosovo, both in private enterprises and the public sector, especially in infrastructure. Improvement in Kosovo's regulatory environment would help facilitate such lending, and we urge expeditious action in this area.

We look forward to working with Kosovars and with our international partners to achieve our mutual goals in Kosovo. Together we have invested substantial resources in Kosovo and have made substantial progress. Our commitment needs to remain strong now - to preserve these gains, press onward, and maintain peace and stability in a fragile region.

Thank you.