Major challenges

DFID: Working to reduce poverty in Kosovo

Making aid effective | Governance | European integration | Conflict prevention Economic growth

DFID was one of the first donors present in Kosovo after the conflict in 1999. Our programme has changed with the changing needs of Kosovo, moving away from emergency aid and infrastructure provision to strengthening the ability of the Government of Kosovo (GoK) to address the needs of the population.

The main issues we are focussing on are:

• promoting higher levels of economic growth and employment, for example through improving the investment climate in Kosovo
• working to prevent conflict – which includes establishing Ministries of Interior and Justice, preparing for the demobilisation of the Kosovo Protection Corps, and helping to identify those who died and to bring those who fled back home
• helping the Government decide how best to organise its civil service so its ministries and departments are fit-for-purpose
• linking the challenges of development and European integration
• and improving the effectiveness of international assistance to Kosovo.

In the financial year 2008/9 DFID expect to provide £5 million in Kosovo. A further £3.5 million for conflict prevention is available through the Conflict Prevention Pool fund managed jointly by the FCO, DFID and Ministry of Defence.

Making aid effective

A large part of our work involves aid coordination and development policy in Kosovo as well as working with other donors in order to engender a coherent approach to development work in Kosovo. DFID was strongly supportive of the July 2008 Donor Conference for Kosovo which was an important step towards more coordinated government – donor dialogue. DFID was instrumental in supporting the GoK’s emerging Kosovo Development Strategy and Plan (KDSP) which has become the strategic backdrop for Kosovo’s medium-term expenditure framework which in turn guides the annual budget. We encourage other donors to support GoK-identified priorities, using its plans and financial systems wherever possible.

Governance

DFID helps to improve the way the centre of Government works. We provide support to the Office of the Prime Minister (OPM) to strengthen the Government’s ability for making, implementing and monitoring major economic and social policies, and to ensure coordination between Ministries. This is done through supporting the Cabinet’s weekly meetings, helping Ministers to have all necessary information and analysis; supporting forums where Ministers can resolve their differences; tracking the implementation of the GoK’s decisions; and improving communication with citizens.

DFID has also helped the GoK develop its strategy for reform of Public Administration. Following the war Kosovo’s administration was rebuilt in an ad-hoc way. Ministries were created in several waves as the United Nations Mission in Kosovo gradually transferred responsibilities to the Kosovo Government. The resulting structure lacks coherence, has overlap and functions are not well matched to structures. DFID has responded to a Government request to deal with this and is now helping develop a process which will soon lead to revised ministry structures better matched to their function.

Supporting European Integration

DFID is helping to enable the GoK to take forward the European Integration process. Our support has equipped the GoK to produce its own strategies rather than donors doing it for them through helping Kosovo establish an Agency for European Integration. With support from this agency, the Government of Kosovo has developed an Action Plan setting out how it will meet European standards in political, economic and social fields, including the Standards for the treatment of minorities that are a central part of the Ahtisaari proposals. The Agency also helps Ministries integrate these commitments into their day-to-day work and to report progress. In April 2008 the Government of Kosovo adopted an EU Integration Plan 2008-2010.

Conflict prevention

Our activities in this sector are funded from the Conflict Prevention Pool (around £3 million in 2007/8, and £3.5 in 2008/9) which is managed jointly by DFID, the FCO and the British Ministry of Defence). Current interventions include:

• helping refugees return to their homes
• supporting the Kosovo Property Agency in identifying who actually are the owners of properties and land, and helping these people claim their legal rights
• support for the Office on Missing Persons and Forensics, support for the demobilisation process of the Kosovo Protection Corp and funding of ECMI to support the set up of the Community Consultative Council.

DFID supported the Internal Security Sector Review for Kosovo organised by UNDP. We have supported the establishment of the new Ministries of Justice and Internal Affairs. We are now working on supporting the Government in strengthening the rule of law sector in Kosovo.

Economic growth

In addition to supporting central strategic planning, we have been working alongside other donors to help the GoK improve the management of public expenditure. DFID has funded a Public Expenditure and Financial Accountability assessment for Kosovo. This has shown that, while financial systems are reasonably healthy, important areas still need work. We are working with the GoK to put in place a plan to make further improvements.

DFID has also undertaken an initial growth diagnostic study. This sets the direction for future support for inclusive economic growth – the key to reducing unemployment and hence tackling poverty and instability alike.
The GoK wishes to join the Extractive Industries Transparency Initiative (EITI).

The EITI was set up to make sure that countries are transparent about what they earn from mineral exploitation, and how revenues from these sources are used. Their membership application shows that the GoK wants to be open with its citizens and potential investors regarding these assets. DFID support helped the GoK use an independent evaluation to understand the benefits of this scheme. We are ready to help with implementation.