Economic and Social Reforms for Peace and Reconciliation

Prepared by the World Bank

February 1, 2001

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This report was prepared by a team headed by Saumya Mitra, also the principal author of Volume 1 of the report. The final chapter of that volume draws on the detailed sector chapters of Volume 2 of the report. The principal authors of the chapters of Volume 2 are: Alma Kanani (budget and fiscal structures); Bartek Kaminski (trade and customs); Michael Borish and Steve Gilbert (banking sector); Gerardo Corrochano, Robert Gourley and Onno Ruhl (private enterprise development); James Stevens (education); Laura Rose (health); and Phillip O’Keefe, Hjalte Sederlof and Michael Whippman (social protection). The team is grateful for extensive comments received on earlier drafts from colleagues in the Bank, the IMF and the European Commission.

This report has been prepared on the basis of Bank missions to Pristina and a number of municipalities of Kosovo in the period June to November 2000. The missions are thankful to the staff of the United Nations Interim Mission in Kosovo (UNMIK) for the generous assistance accorded to its work, in particular to the staff of the reconstruction and development pillar of UNMIK headed initially by Joly Dixon and subsequently by Andy Bearpark.

The report draws on the work of IMF teams on fiscal and budget systems (headed by Robert Corker and Steve Symansky) and on the payments system (headed by Warren Coats and Ake Lonnberg). Contributions from David Bevan and Graeme Hunter (consultants) and editorial and processing assistance from William Mayville, Erlinda Inglis and Armanda Çarçani are acknowledged.