Press Release

European Commission / World Bank

Kosovo ¹ - Three Years after the Conflict Donors Praise Progress, Discuss Economic Priorities

Brussels, November 5, 2002 --- Today donors from 34 countries and 13 international organisations met to take stock of Kosovo's achievements during the past three years of post-conflict reconstruction and economic recovery, and discuss its medium-term economic prospects and priorities.

The meeting was co-chaired by Reinhard Priebe, Director Western Balkans, European Commission (EC) and Christiaan Poortman, Country Director and Regional Coordinator for Southeast Europe of the World Bank. The delegation from Kosovo included Messrs. Michael Steiner, Special Representative of the Secretary General (SRSG), Bajram Rexhepi, Prime Minister of the Provisional Institutions of Self Government, Andy Bearpark, Deputy SRSG, Ali Sadriu, Minister of Finance and Economy, and Milorad Todorovic, Interministerial Coordinator for Returns.

The meeting confirmed that donors have fulfilled the promises made to the people of Kosovo after the conflict. By the end of 2002, € 2 billion is expected to be disbursed of the € 2.3 billion commitments made since 1999. This level is well in line with the medium-term Reconstruction and Recovery Programme agreed in November 1999. Moreover, the impact of these funds has been significant - improving the lives of the people of Kosovo: over 40,000 houses have been rehabilitated or rebuilt; the numbers of enrolled school and university students has significantly increased; 80% of all rural health clinics have been rebuilt and equipped; 500km of road have been repaired, generating growth and employment, especially in agriculture, - wheat production rose from meeting about 38% of local needs in 1999 to 66% in 2000/01, and strengthening essential public institutions - including the judiciary and police force.

Donors welcomed the fact that double-digit growth rates, increasing employment, slowing inflation and a robust increase in domestic revenues have characterised the past three years of Kosovo's development

This meeting was also a first opportunity for donors to discuss with representatives of the Kosovo authorities, the new Government's economic programme, including the medium-term macro-economic framework and public investment priorities over the next few years. Participants endorsed its key priorities - to foster economic development and growth, and increase employment; enhance quality and access to health and education; ensure efficient and transparent public administration and provide equal opportunities for all citizens.

Speaking at the end of the Conference, the EC's Director for the Western Balkans, Rienhard Priebe said: "Since 1999, the European Community and its Member States have been the largest donor to Kosovo, and we have broken all records for the speed of our delivery. Now, thanks in no small part to our efforts, Kosovo is emerging from emergency, to a more stable condition in which it can start to build for a more peaceful and prosperous future. The EU will continue to support Kosovo in this new chapter of its development with assistance that matches the highest levels anywhere in the world per capita. We do this because, whatever the future holds for Kosovo, we are sure its destiny lies with us in Europe."

Chrik Poortman, World Bank Regional Coordinator for South East Europe stressed: "At the end of the day, what matters is that the people of Kosovo have a better life. Only high levels of economic growth can create jobs and pull many of the poor out of poverty. The Government's programme sets out the right priorities for Kosovo's delayed transition to a market economy and its implementation will be key to Kosovo's future prosperity and improved stability in the region."

See Chairmen's Conclusions

Press Release and Chairmen's Conclusions are also available in printer friendly PDF format (135 KB).

¹ Kosovo (Federal Republic of Yugoslavia) UNSCR 1244