3. Without laws Development of a chaotic economy Economic degradation of rural areas Without an urban plan...52 ANNEX 1...

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2 Table of contents I. INTRODUCTION... 4 II. EXECUTIVE SUMMARY... 4 III. RECOMMENDATIONS... 6 IV. THE LEGAL BASE FOR THE FUNCTIONING OF THE LOCAL GOVERNMENT IN KOSOVA A. Responsibilities of the Municipalities based on Regulation 2000/ B. Decentralization of the local government local offices (Bashkësia lokale)...12 C. Limitation of the responsibilities of municipalities by the applicable regulations...13 D. Competencies of the municipalities in managing public utility enterprises...14 E. Legal infrastructure regarding public services...14 F. Municipal elections in Kosova...14 V. PUBLIC ADMINISTRATION IN THE MUNICIPALITY OF PRISHTINA. 17 A. Municipal Departments...17 B. Municipality Committees...18 C. In search of efficiency...19 D.LOCAL OFFICES WITHOUT OFFICES The responsibilities and competencies of the Local Offices Local Offices dependant on volunteers From the Local Offices to the Municipality Services offered by the Local Offices Examples of the functioning of Local Offices Local Office VI (Bregu i Diellit district) Local Office XXI (Keqekolla) Local Office XXIII (Dushkajë) The exception, Graçanica Possible future roles of the Local Offices...26 E. Decentralization, this is the question What do we learn from the past UNMIK s approach In the service of the citizen...30 VI. PUBLIC Utilities A. The parking places and the final status Higjiena Teknika: the Waste and the Revolution Trafiku Urban/Urban Traffic: Love from Taiwan Water Supply and Sewage: Where the payment is low and improper usage is high Hortikultura: Green spots Termokos: Nothing like the sun Public Housing Enterprise: A chronicle of misuse foretold...37 VII. THE MUNICIPALITY, ECONOMY AND THE professor A. How is the budget of the Municipality of Prishtina spent...39 B. Where it can be helpful, the municipality hinders...45 C. The role of municipal government in economic development and alleviation of unemployment Prishtina, from hope to dissapointment Economic development or economic degradation

3 3. Without laws Development of a chaotic economy Economic degradation of rural areas Without an urban plan...52 ANNEX A summary of the main results from the quantitative survey conducted for the purposes of this report by index kosova, partner of bbss gallup international...54 ANNEX A. Map of Kosova...62 B. Map of the Municipality of Prishtina...63 ANNEX About KIDS...64 Logical Solutions Group - LOGO...65 ANNEX Authors of the report

4 I. INTRODUCTION This report examines local administration in Kosova by making a case study of Prishtina municipality. The aim of the report is firstly to give a picture of the legal base on which the local administration in Kosova functions, and then to focus on three fields - local municipal administration, public services and policies for economic development. The aim is to analyze the working environment of the local administration and make practical recommendations for solving the problems that burden this level of governance in Kosova. This report is intended to help decisionmakers at this level, national and international officials as well as citizens of Kosova to understand better how this level of government functions how to influence and improve it. Prishtina was chosen as a case study since it is the largest municipality in Kosova; it has at least a quarter of the population of Kosova; and developments there have always had an influence in the whole of Kosova. The report first explains and analyses the legal basis on which the municipality functions, and looks at possible conflicts between laws, which hinder the necessary functioning of local administration in Kosova. The report also analyses the municipal administration and its functioning by concentrating on the sub-municipal level, and the structure and work of the Local Offices (bashkësia lokale). Next, the report analyses basic public services offered by the municipality of Prishtina, the way these are provided and how to improve them. Finally the report briefly analyses the financial condition of the municipality of Prishtina and the possibilities the municipality has to help economic development. This report is based on both quantitative and qualitative analysis, carried out with the aid of experts in local governance, national and international officials, focus group discussions and field observations. In addition, a quantitative study was commissioned for this report, in the form of a survey involving 500 residents of Prishtina, conducted by Index Kosova, a partner of BBSS Gallup International. A summary of the main findings of this survey is attached to this report. Why clean stairways? In the first day that the new President of the municipality of Prishtina, Ismet Beqiri, came into office, he asked a cleaning lady at the municipality to go out and clean the stairways in front of the building because they had become muddy. This symbolized the commitment of the new President to start improving things. The aim of this report is also to help make improvements. On the threshold of the local administration reforms in Kosova that will be proposed by the Council of Europe in the form of the decentralization process, we think that a proper analysis of the functioning of the local government is very necessary. This report was financially supported by the Foundation for Democratic Initiatives and East-West Management Institute through the grant from United States Agency for International Development; Friedrich Ebert Stiftung and International Peace Research Institute, Oslo, through the grant from the Norwegian Ministry of Foreign Affairs. This report and the recommendations herein do not reflect the view of any of the financial donors to this report. II. EXECUTIVE SUMMARY The municipality is the level of government where the biggest number of 4

5 everyday issues of citizens should be addressed and where most of the requests and interests of the citizens should be fulfilled. The responsibilities of the municipal authorities range from providing basic utilities and administrative services to citizens, to offering elementary conditions for sustainable economic development. Legally, municipal administration is based on a series of regulations starting from Regulation 2000/45 on Local Self- Government and up to the Statute of the Municipality of Prishtina. Based on these documents there is room also for submunicipal units. The Local Offices (bashkësia lokale) are one of the ways in which the functioning of the submunicipal units is regulated in Kosova. This is a system of organization inherited from the Tito times of the former- Yugoslavia; it still functions in some of Kosova smunicipalities. The Local Offices are supposed to make the citizens life easier and to fulfill many of their needs. Local Offices are the intermediary between the citizen and the municipality of Prishtina and as such should be a powerful voice for the realization of the needs of citizens in the places they live. Only a few services are currently offered to the citizens by the Local Offices. Citizens can address Local Offices in order to receive documents proving they are inhabitants of a certain quarter, explaining the socio-economic situation of the family. Local Offices can also play a role in taking care of poor families and environmental protection. Local Offices take care of the infrastructure and other issues of interest for the inhabitants, but have no budgetary or legal powers to act independently. In rural areas, the Local Offices are also engaged in identifying the citizens needs for education and health. In Graçanica, the settlement with the largest Serbian population in the municipality of Prishtina, the Local Office does not function as such. Instead, there is a Municipal Community Office, which operates under the Department of the Community Office, and resembles more a mini-municipality. This Office functions as a department in itself, established by a decision of the Municipal Assembly of Prishtina. In the short term it is best to offer Serbs residents of Prishtina and other municipalities some assurance that their needs are respected and looked after. In the long-term, however, we find the idea of ethnic separation in local government highly problematic and counterproductive. The way in which public services and public administration tasks are going to be realized in municipalities will be heavily influenced by the decentralization process in Kosova. There is no doubt that the aim of decentralization should be to bring the government closer to the citizens and in this way improve their lives, but, if we want this process to be successful then it should focus on this aspect and not in any way become a new ethnic division in Kosova. Past experience teaches us that decentralization on ethnical basis in Kosova is detrimental for the stability of the region, causes conflicts and at the end fails. Any kind of ethnically based approach to the decentralization process would be in contradiction with the engagement of the international community in Kosova and would contradict the principles of co-existence in Kosova, which are set in the relevant documents governing Kosova. Though, the immediate concerns of the minorities should be taken into account for the short-term arrangements. Based on an opinion survey, the Public Services in the municipality of Prishtina are rated with an average grade of 3,5 (out of a scale of 1 to 10) for the quality of offered services. There is no doubt in the poor quality of the services that these 5

6 enterprises provide is partly a result of the period The unprofessional management, lack of investments for over a decade and the over use of the existing infrastructure, have left consequences from which the institutions providing public services have still not recovered. With the aim of overcoming this difficult situation, these enterprises, after the end of the war in 1999, were helped by international governmental and nongovernmental organizations such as DFID, USAID, GTZ, KFOR, OXFAM, ABD, etc. These donors have helped with concrete projects, equipment and logistics. The municipality of Prishtina is considered to be the main economic center, with a large number of public, socially owned and private enterprises, where one quarter of Kosova s population lives, about 500,000 inhabitants. As such, planning, management and support for economic development not only carry a great weight for the city of Prishtina itself, but also influence developments in the whole of Kosova. Here the municipality could play a vital role in creating basic conditions for sustainable economic development, which is also emphasized in its Statute, based on Regulation 2000/45. Based on this analysis it can be noticed that the municipality does not sufficiently use its own sources of revenue. The Municipal Assembly of Prishtina has competences and responsibilities to help the private businesses in its territory. But private enterprises do not actually have the support of the Municipality of Prishtina. A Kosovan or foreign enterprise at present is not encouraged to make private investments there. The municipality does not have a clear strategy on how to encourage and help the private sector. One of the responsibilities of the municipality is to create the basic conditions for the development of local economy. The citizens of Prishtina believe that the local authorities can solve their problems. And, amongst these problems, the ones that deal with their economic position are the most important: 45% in the survey mentioned unemployment and 22% mentioned economic rebuilding and infrastructure. After the war, eventhough this was a period of rebuilding and establishment of the basis for a future administration, there was an economic vitalization, but no sustainable economic development. After the first free elections in October 2001 there were hopes for the creation of conditions for a rapid and sustainable economic development. But a lot remains to be wished for. III. RECOMMENDATIONS The legal base for the functioning of the local government in Kosova 1. The municipalities in Kosova need a different electoral geography. The present system stimulates voting for political parties as such and local elections do not concentrate on relevant issues for municipalities; with the present system of closed party lists, the voters elect a party rather than a candidate from their own area who would be more familiar with the local concerns and interests. The separation of bigger municipalities into several election units (constituencies) that would correspond to the specifics of the zones, most certainly offers a better representation of interests of the different groups. The new constituencies, within the municipality, would increase the level of the accountability of elected officials. Voting with open lists also offers better solution and would help to increase the transparency, accountability and democracy. 6

7 2. Starting from the fact that the lack of an urban plan for Prishtina has become an unsurpassable obstacle for new potential investments in the sphere of construction of residential areas or new buildings suitable for the development of business, in order to be able to conduct long-term planning of economic and demographic development trends, it is recommended that urgent measures be taken for debating, drafting, and publishing the urban plan for Prishtina. 3. Municipalities should become more engaged in planning of suitable zones for the development of the business and residential infrastructure. We recommend that this be done through intensive communication with UNMIK and especially the KTA, by proposing ideas on the commercial destination of public assets. Public Administration In The Municipality Of Prishtina 4. With the aim of making the administrative services offered to the citizens of Prishtina easier and more effective, we recommend: - in order to shorten the queues in the municipality and reduce the everyday inconvenience, a numbered system should be introduced for everybody approaching the municipality. - publishing a web-page of the municipality of Prishtina that would enable easy access to all the information and relevant forms. Local Offices Without Offices 5. The competences that are enjoyed today by the Local Offices are minute and are not in accordance with European standards. At the same time, there is an overload of work in the main municipal building. Based on the principle of subsidiarity (or delegating responsibilities to the lowest possible level of government), which is one of the main principles of the Charter for Local Self-Government of the Council of Europe and which will also be the basis for decentralization in Kosova we recommend that more powers should be delegated to the sub-municipal level, including the registrar service, inspections as well as the public services that are sustainable at this level. 6. Citizens hardly turn to the Local Offices at all because they are not sufficiently informed even for the Offices very limited powers. That is why we recommend that the powers of the Local Offices as well as the procedures for realization of citizens rights through the Local Offices should be clarified and published for the citizens. 7. Since some Local Offices serve a large number of people, we recommend the re-separation of Local Offices, so that we could reach a proper level of representation of people in this level. Decentralization, this is the question 8. The process of decentralization in Kosova should help towards easing of life of the citizens by bringing the government closer to them. Any other approach towards decentralization, especially those based on separation on ethnic lines, is wrong and contrary to the engagement of the international community in Kosova and would contradict the principle of coexistence in Kosova. Though, the immediate concerns of the minorities should be taken into account for the short-term arrangements. 7

8 9. One possible form of decentralization in the future is to give to the sub-municipal units powers that lie between the current competencies of the Local Offices and those of the Municipal Community Office. These units should be separated along territorial lines and not ethnical lines. Public Utilities 10. Based on the experience from the countries of the region 1 and the specifics of the municipal public utility enterprises in the municipality of Prishtina, we recommend defining the municipal public utility enterprises as commercial enterprises, and making a clear division between them and the local administration. 11. Based on the immediate need for improved management of public utilities; our group recommends stopping the practice of using political criteria to make appointments in leading and managing positions in the municipal public utilities enterprises. 12. With the aim of avoiding conflicts between the central and the local government and so as to offer better services, we recommend a clearer legal distinction between the powers of local and central government in management of the municipal public utilities. 13. Since European integration is a long term goal of Kosovan institutions, we recommend the creation of conditions for free competition in this field and more transparency to prepare for the future transformation of the public utilities sector. 1 The Slovenian example: Decentralization: Experiments and Reforms, p Taking into consideration the difficulties that most of the municipal public enterprises have in being paid for their services, we recommend (a) that present regulations about payment and penalties are enforced; and (b) with the aim of improving the services, we recommend the approval and implementation of a law for consumer protection. The Municipality, Economy and The Professor 15. The practice of spending most of the budget in the last two-three months of the financial year shows the weaknesses in the budgetary planning and spending. We recommend that the municipality of Prishtina adopts a clear financial plan for the whole year and operates consistently through the year on the basis of the plan, so that the spending becomes more rational and balanced. 16. Taking into consideration the big needs that the municipality of Prishtina has, a budget surplus of 20% is not reasonable. We recommend that the municipality makes concrete plans for investments so that the resources available to it do not remain unspent. 17. Currently, most of the income of the municipality of Prishtina comes from traffic fines, which are non-tax revenues and thus unsustainable. We recommend that the municipality of Prishtina starts to collect more revenues through rent on municipal property and taxes - in other words, sustainable revenues. 18. Taking into consideration the fact that currently the economy in the municipality of Prishtina is focused mainly on trade and services, we recommend that the municipality favors productive enterprises, 8

9 especially when it comes to issuing construction permits, in order to create more production facilities and thus more local products. 19. The municipality should create a clear plan for economic development of Prishtina, which should be public and have a guidance role for entrepreneurs. 20. We recommend that the municipality of Prishtina creates a working group that would deal with market research and would offer a consulting service for interested investors. 21. In order to improve the economic situation in rural areas of the municipality of Prishtina and to slow down rural de-population, the municipality of Prishtina should improve the road infrastructure, stimulate tourism, simplify the administrative procedures and offer professional advice for businessmen that could invest in the development of agriculture and light food industry with products such as honey, mushrooms, milk and dairy products, fruits and vegetables. 9

10 IV. THE LEGAL BASE FOR THE FUNCTIONING OF THE LOCAL GOVERNMENT IN KOSOVA The municipality is the basic territorial unit in Kosova, which exercises all the powers not reserved for the Central Government. Regulation 2000/45 on selfgovernment of municipalities in Kosova, proclaimed on August 11 th 2000 by the former Special Representative of the Secretary General (SRSG) Bernard Kouchner, is the first document to create a legal base for the functioning of many aspects of the local government in Kosova. Later, on August 19 th of the same year, the UNMIK Regulation 2000/49 on the Establishment of the Administrative Department for Municipal Public Services was proclaimed. These two documents created space for comments and speculations on possible mutual interferences in the field of public services because of limitations of proposed powers for municipal bodies. 2 2 Report from the expert round table on reforms of local government Identifying issues, developing options, organized by OSCE and KIPRED, December The mayor of a Kosovar municipality and the President of the Association of Municipalities of Kosova (Lutfi Haziri) presented these conflicts of regulations: Conflict of regulation 2000/45 regarding a number of 23 issues: urban and rural planning, license of buildings and other development programs, local environment protection The most conflicting regulations: Not transferred competencies to the municipality yet: public services and municipal property management... The municipality does not have control over Socially Owned Enterprises (SOEs)... The municipalities have not had any competences regarding ensuring In the end, with the proclamation of the regulation on the establishment of the Kosova Trust Agency, on June 13 th 2002, UNMIK regulation 2002/12, the possibilities of the municipal assemblies for influencing socially owned enterprises 3, which they created them selves, were limited considerably. A. Responsibilities of the Municipalities based on Regulation 2000/45 The responsibilities of the local government, amongst others, include: a. Offering basic local conditions for a sustainable economic development; b. Urban and rural planning and use of land; c. Issuing licenses for construction and other developments. 4 Based on point (a), the municipality has an important role in creating basic conditions for economic development. Such a thing can be achieved with a creative management of the responsibilities that belong to the municipality. conditions for substantive economic development... Making clear what are the rights of the international administrator... Except regarding finances/budgeting and some other emergency services, municipalities do not have administrative regulations or by-laws that define the implementation of these duties 3 A Socially Owned Enterprise, based on Regulation 2002/12 on the establishment of the Kosova Trust Agency, article 1, paragraph 3, is an enterprise which was established as a socially owned enterprise by the Province of Kosova, by a Municipality or other socio-political organization within the Province of Kosova, Republic of Serbia or Federal Republic of Yugoslavia, or a socio-political organization of the Republic of Serbia or Federal Republic of Yugoslavia, under the condition that any eventual change on the creation of such an enterprise will be subject to articles 5.3 and UNMIK/REG/2000/45, Article 3.1, a, b, c. 10

11 Point (b) mentioned above, allows the municipal government to allocate suitable locations for business development and issue proper licenses. The lack of a new urban plan, which would fulfill the new needs of the municipality of Prishtina 5, has become an insurmountable obstacle for potential new investment in constructing residential areas or buildings suitable for the development of productive enterprises. Despite the big movement of population into Prishtina, which, according to unofficial data, has doubled the city s population, the residential infrastructure has remained almost the same as ten years ago (excluding the thousands of private residential facilities built without a license and on property with undefined ownership). The discrepancy between supply and demand has made the prices of apartments and business facilities higher than in the neighboring countries 6. A planned construction and enlargement of residential areas and business complexes in Prishtina would create employment for a large number of people. The manager of Ramiz Sadiku Construction and Industrial Enterprise said: although this company was once the pride of the city, today it has no work even for its own employees 7. The case of the industrial zone in the Prishtina-Fushë Kosova road, where the territorial border between these two municipalities has still not been 5 The existing Urban plan for Prishtina, compiled in 1988, has expired in But, since a new urban plan is still not compiled, the old one remains in power source: Directorate for urban planning, MA Prishtina 6 The average price of a square meter for apartments in Prishtina goes around 1000 Euro (Real-estate agency Immobilia, Prishtina), while the average price for a square meter of apartments in Tirana goes for USD (Daily Shekulli, Tirana, January 27, 2002). 7 Focus-group discussion with managers of public and private enterprises in Prishtina, conducted by Index Kosova, March-April determined, is a typical example of insufficient use of their powers by municipal officials. This zone, which is called the gray zone by many, has a suitable terrain for business development. However, this cannot be done without an economic development strategy for Prishtina. This would be the basis for certificating businesses that wanted to operate here. Unfortunately, a plan for optimal use of this space has yet to be published. Again, the major obstacle comes to surface the lack of an urban plan. In a focus group discussion with managers of public and private enterprises in Prishtina, organized by Index Kosova for the purposes of this report, several interesting conclusions come out. Seven managers discussed current topics for the city, including the public services, enterprise management, spatial planning and local offices (bashkësia lokale). One of the participants made an interesting connection between the management of socially owned enterprises and the urban plan for Prishtina by taking the example of the 20 hectares complex in central Prishtina, immediately behind the Media Building, property of Ramiz Sadiku enterprise. According to him, this property could be sold and used for other more profitable purposes. Of course, the issue of selling this property is not wthin the powers of either the municipality of Prishtina or the enterprise itself, but exclusively of the KTA (Kosova Trust Agency); nevertheless there are many institutional channels of communication between the municipality and the KTA, through which municipal officials could promote their projects (if such exist) on planning suitable zones for development of infrastructure and could propose ideas on the commercial purpose of the public assets during the privatization process. If an urban plan for Prishtina were approved, with licenses issued for construction and business registration, 11

12 based on the competences granted by point (c) of Article 3.1 of the Regulation 2000/45, combined with setting the priorities on stimulating certain fields of economy, this area could become a real industrial zone with a considerable number of mini-factories and productive enterprises. These enterprises, except for family members, which is an unavoidable practice in Kosova, would also employ a considerable number of people from Prishtina and surrounding villages. A manager of an enterprise in the municipality of Prishtina thinks that our political elite is catastrophic. It is unprepared for the current challenges and problems. There is a need for reforms, but people that govern Prishtina and Kosova do not have the courage for reforms. They are scared of their position and function. 8 The inert answer of the municipal officials that there is no urban plan, therefore there is no development of infrastructure in itself poses the hypothetical question: why is there no plan and who should draft it and approve it? In the same article of this regulation 9 the following responsibilities are foreseen: a. Issuing licenses for services and equipment, including entertainment, food, markets, on the street sales, local public transport and taxi service, hunting, fishing, restaurants and hotels; b. Trade fairs c. Markets The municipality of Prishtina can also undertake steps in its territory for the promotion of tourism. The highlands of Prishtina (Gallap) have good conditions for the development of tourism, but the very weak infrastructure disables this. 8 Focus-group discussion with managers of public and private enterprises in Prishtina, Index Kosova, March-April Article 3.1, UNMIK/REG/2000/45 This area is also suitable for the development of a light food industry with mountain products (honey, mushrooms, milk and dairy products, fruits and vegetables). This would create conditions for stopping the further de-population of this part of Kosova and the return of many people from Prishtina to their villages. These people currently live in terrible conditions, without work and without any prospect to integrate into this new environment for them. According to article 22.1 of regulation 2000/45, the municipalities, through the Committee for Policy and Finance, are responsible also for researching and drafting their future strategic direction. This includes the strategic direction for economic development and creation of possibilities for new working places. One of the limitations that hinder the long-term strategic planning for economic development is the fact that the municipality does not have the right to sell municipal land or facilities and may only lease them for up to ten years. Sale or lease for a longer period than that has to be approved by the central government (UNMIK) 10. But, on the other hand, the deputy UNMIK representative at the municipality of Prishtina, Mr. Dmitry Pozhidaev says that there are many cases when the Central Government has approved leasing of land for a longer time period, and nobody forbids the representatives of the local government to turn to UNMIK with concrete and argued proposals. 11 B. Decentralization of the local government local offices (Bashkësia lokale) According to article 5, paragraph 5.1, of the general provisions of regulation 2000/45, every municipality, within its 10 Article UNMIK/REG/2000/45 11 Interview with Dmitry Pozhidaev, Prishtina, April 24 th,

13 own territory, makes agreements with villages, rural settlements and urban districts in order to ensure the fulfillment of the needs for all the citizens of the municipality. Furthermore, paragraph 5.2 of the same article says that with the approval of the municipality, villages, settlements and urban districts, on their own or as groups, can exercise activities that are the responsibility and competence of the municipality. In this case, the villages, settlements and urban districts receive appropriate funds from the municipality If the municipality responds negatively to such a request by the smaller territorial units under its administration, the latter have a legal right to request the approval from the Central Government (in the definitions for explaining this regulation, UNMIK is referred to as the Central Government) 12. After the war in Kosova, the Interim Government of Kosova (QPK) made some efforts to activate the local offices (bashkësia lokale), but their field of activity was very limited because of there was no legal basis for establishing their activity. The regulations for the local government in Kosova also enable the establishment of smaller administrative units with the aim of improving services. In the municipality of Prishtina, despite the general conviction that municipal services are poor 13, there are no positive signs that show that something has been done in decentralizing a part of these services and in delegating responsibilities to lower units of local government. All the services are centralized and as a result of this the time it takes to process citizens' requests is much longer than it should be. Local offices were inherited from the former system and still exist in the municipality of Prishtina. The statute of the municipality of Prishtina, drafted in 12 Article 5.2. UNMIK/REG/2000/45 13 Quantitative survey with the citizens of Prishtina, Index Kosova, March-April harmony with Regulation 2000/45, legitimizes their existence. In an interview, Ivo Sanc, former international administrator of the municipality of Prishtina, now an advisor to the Council of Europe mission for decentralization in Kosova, said that some powers should be passed down to smaller administrative units than the municipality, because this would improve the quality and speed of the services. He mentions the registrar services as an example of the services that could be transferred easily. C. Limitation of the responsibilities of municipalities by the applicable regulations The Special Representative of the Secretary-General who is head of UNMIK can annul any decision of any municipality that he considers is in conflict with UN Security Council Resolution 1244, UNMIK regulations or other applicable laws. He can also annul decisions that he considers do not sufficiently take into consideration the rights and interests of the communities that live in the territory of this municipality. 14 In addition, the municipal administrator, nominated by the SRSG, has the right to suspend and bring to the attention of the SRSG any decision that is considered in contradiction with the above-mentioned documents. 15 Besides this, decisions to approve and change the budget do not go into force if they are not co-signed by the municipal administrator. 16 Another very important reserved competence for the municipal administrator is the responsibility for administering the property within the municipality if the property right is not defined by law Article 47.2, UNMIK/REG/2000/45 15 Article 48.3, UNMIK/REG/2000/45 16 Article 48.13, UNMIK/REG/2000/45 17 Article 48.14, UNMIK/REG/2000/45 13

14 Based on an internal memorandum, issued by the deputy SRSG at the beginning of April 2003, instead of the title Municipal Administrator, the international administrator will be called the Municipal Representatives of UNMIK. Apart from this, there has been no other change in the regulations that set the responsibilities and tasks of the UNMIK representatives in the municipal government, (UNMIK/REG/2000/45). It is still not known what changes there will be in their powers D. Competencies of the municipalities in managing public utility enterprises Despite the plans of Kosovan political parties to use socially owned enterprises at the local level 18 as a support for their policies of economic development and alleviation of high unemployment 19, the management of these enterprises, control of their development policies and the transfer of ownership have always been responsibilities of the central government, more exactly, UNMIK. In other words, the municipality has also been legally denied the possibility of intervening. From June 13 th last year, the privatization process of these enterprises established by the municipality and other socially owned enterprises has been regulated by law, with the creation of the Kosova Trust Agency 20. This has full powers to administer the socially owned and public enterprises that are registered or are active in Kosova as well as their assets in Kosova 21. According to the regulation on 18 Political party programs and speeches of high official from the election campaigns for the local elections in Kosova 19 Only 37% of the 500 respondents surveyed by Index Kosova in the city of Prishtina declare them selves as employed, Quantitative survey conducted in March-April UNMIK/REG/2002/12 21 Article 5.1, UNMIK/REG/2002/12 the establishment of this Agency an enterprise or branch thereof shall be deemed to be operating in the territory of Kosova if its actual management control is in Kosova and assets of an enterprise shall be deemed to be located the territory of Kosova if such assets are located in Kosova and have since June 10 th 1999 been administered or managed independently of its assets outside of Kosova, or if such assets are otherwise subject to the authority of UNMIK. E. Legal infrastructure regarding public services No contradictions between the powers of local and central government are visible in regulations 2000/45 and 2000/49. However, many responsibilities connected to municipal public services are reserved for the Administrative Department of Municipal Public Services, which was established by the SRSG on August 19 th It is responsible for the management, oversight and regulation of matters relating to public utilities in Kosova, including energy, water supply and sewage, solid waste collection and treatment, and the enterprises that provide these services. 22 The functions of this department are set in articles 2.1, point (a) to (e), and 2.2 from point (a) to (l), of UNMIK/REG/2000/49. The municipality is very limited in exercising its powers in all of these points. In article 6 of the regulation 2000/49 of UNMIK it is also emphasized that this regulation substitutes every provision in the applicable law, which might be in conflict with it. F. Municipal elections in Kosova The last elections for the Municipal Assemblies in Prishtina were based on 22 Article 1.2, UNMIK/REG/2000/49 14

15 regulation 2002/11 on municipal elections in Kosova. This regulation legalized the proportional system of elections with closed lists, even though the two biggest parties (LDK and PDK) had opposed it. Officials of UNMIK and the Organization for Security and Cooperation in Europe (OSCE) generally argued that this election system is more democratic because it includes a wider spectrum of political alternatives in the elected municipal assemblies, and enables the inclusion of representatives of the minority communities in the municipalities where their percentage in the population is too small for guaranteeing them representation (less than 1% of the municipal electorate). Article 5 of regulation 2002/11 amongst others says that each municipality shall be considered a single, multi-member electoral district and that members of a municipal assembly shall be elected based on the system of proportional representation... Article 6 of this regulation provides that a voter shall have the option of voting for one of the following certified political entities: a) political party, b) coalition of political parties, c) citizens initiative or d) independent candidate. Prishtina, based on unofficial data, has over 500,000 inhabitants with a very heterogeneous territorial distribution of the population and great social diversity. A citizen of Prishtina, regardless of whether s/he lives Ulpiana (a Prishtina district close to the center of the city) or Dabishec (a mountainous village in the territory of the municipality of Prishtina close to the border with Serbia), was faced with a ballot listing political entities or independent alternatives and could use his/her citizens right to elect by choosing one of them. The resident of Ulpiana may be concerned because of the lack of green surfaces in the district s/he lives in, but most certainly this is not the preoccupation of the resident of Dabishec. The municipalities in Kosova, Prishtina especially, need a different electoral geography. The separation of bigger municipalities into several election units, which would correspond to the specifics of the zones, most certainly offers a better representation of interests of the different groups. The present system stimulates voting for political parties as such, based on the sympathies or trust created for its senior leadership. This means that the local elections do not concentrate on relevant issues for that constituency. Instead, the focus is on the approach of the political parties on issues beyond local competence, such as the final status of Kosova. The popularity of a political party leader in a particular constituency proves to be more determinant than the program of that political party offered for that village or neighborhood. Under the present system of closed party lists, the voters elect a party rather than a candidate from their own area who would be more familiar with the local concerns and interests. This removes a direct link between the voter and the elected official, thus also removing the accountability of the elected official towards the voters in a particular municipality. The new constituencies, formed taking into account the specifics of different zones within the municipality, would increase the level of the accountability of elected officials. They will not be able to count on the votes of a specific constituency if they have been neglecting their concerns and interest. In the present system they would be able to cover the votes lost in one part of the municipality with votes from the other part. Voting with open lists offers better solution. Even in a proportional system, open lists enable the citizens to choose within a political party or alliance the individuals they consider will represent them better. Thus, a proportional system 15

16 with open lists would increase the transparency, accountability and democracy. Another option would be to change the system to a mix of majoritarian and proportional system for each newly created constituency. A special consideration should be given to representation of the minority communities. Giving them a sense that their immediate concerns will not be neglected and they themselves will make decisions about their everyday life, through voting for they own people, should be taken seriously in to consideration. One way of achieving this, in short term run, is by set aside seats in each municipal assembly. 16

17 V. PUBLIC ADMINISTRATION IN THE MUNICIPALITY OF PRISHTINA As a continuation to Regulation 2000/45 the Administrative Direction 2000/28 was issued on implementation of this regulation with the aim of establishing procedures for consultation, publication and approval of the Statute and Rules of Procedure by the Municipal Assemblies. With the interim provisions of this Directive, which came into force on November 10 th 2000, it was decided that pending the adoption by the Municipal Assembly of its Statute and Rules of Procedure, the model Statute and Rules of Procedure issued by the Central Authority, as revised from time to time, shall apply provisionally. 23 Based on Regulation 2000/45 and in accordance with Section 1 of the Administrative Direction 2000/28, 24 the Statute and Rules of Procedure of the Municipality of Prishtina 25 were approved, establishing all the functions of the bodies of the municipal administration. Based on the Statute, the Municipal Bodies are: Municipal Assembly, The President of the Municipal Assembly, Deputy President, Committees, The Chief Executive Officer, Board of Directors, Municipal Departments and any person or 23 Administrative Direction 2000/28 on the implementation of Regulation 2000/45 on local self-government of municipalities in Kosova, Section Statute and Rules of Procedure approved by each Municipal Assembly in accordance with sections 11.1 and 11.2 of UNMIK Regulation 2000/45, shall be in conformity with the models issued from time to time by the Central Authority referred to in the Regulation. 25 The Statute and Rules of Procedure of the Municipality of Prishtina entered into force on March 16 th, 2001 organization acting with their authorization (of Municipal Bodies). The executive government of the municipality of Prishtina is organized in the form of a Board of Directors headed by the Chief Executive Officer. The Board of Directors is nominated by the Municipal Assembly on the proposal of the President of the Municipal Assembly, which is based on the results of interviews by the recruiting panel. A. Municipal Departments The municipality of Prishtina has 12 departments: 1. Department of General Administration 2. Department of Economy 3. Department of Finance and Property 4. Department of Health, Social Welfare and Housing 5. Department of Education and Science 6. Department of Culture, Youth, Sport and Gender 7. Department of Planning, Urbanism and Construction 8. Department of Inspection 9. Department of Rural Development 10. Department of Cadastre and Geodesy 11. Department of Public Services, Transport and Environment protection 12. Department for Civil Protection and Emergencies 13. Department for the Community Office The executive of the municipality of Prishtina remained unstructured for several months after the municipal elections at the end of October On April 9 th and 10 th 2003, the recruiting panel, comprised of 3 members from the LDK, 1 from the PDK, 3 independent experts and one representative of the minorities, interviewed 46 candidates for 15 positions (deputy-chief executive 17

18 officer, 13 directors of departments and the public advocate). In the report issued by OSCE, which monitored the process, it is stated that political affiliation has dominated over professional preferences of the interviewees. 26 In this report is also said that the Democratization Department of the OSCE still remains concerned on the politicization of senior civil officials and for the fact that 8 of the names of the candidates, before they were chosen by the panel, were named by Koha Ditore, on March , as candidates close to be elected. For several director positions there was a low number of applicants, 1 to 2, and this happened because of the lack of trust in a fair recruitment process based on merits. 27 Finally, the panel decided to repeat the process for three director positions. 28 UNMIK deputy-representative in the municipality of Prishtina, Dmitry Pozhidaev says that UNMIK had similar concerns to those of OSCE on this process. 29 According to him the recruiting process was catastrophic in many aspects. Above all, the interviewing panel was dominated by the LDK, there was no female or minority candidate, and, as a coincidence, all the interviewees were members of the LDK 30. He also said that he is very concerned with the level of professional incompetence of municipal officials OSCE Report on the interviewing of candidates for deputy-chief executive officer, 13 directors of departments and the public advocate for the Municipality of Prishtina, signed by Mr. Antti Haikio (senior democratization officer) and Ms. Karin Maandi (Democratization officer), Prishtina, April Ibid, the opinion of the interview panel. 28 Ibid 29 LOGO, Interview with Mr. Dmitry Pozhidaev, Deputy UNMIK representative in the Municipality of Prishtina, Prishtina, April 24 th Ibid 31 Ibid B. Municipality Committees Committees of the municipality of Prishtina are among the municipal bodies set with the Statute of the municipality of Prishtina. 32 The Committees are nominated by the Municipal Assembly. Based on these provisions, the Municipal Assembly of Prishtina has set up a Policy and Finance Committee, a Communities Committee and a Mediation Committee. 33 The Policy and Finance Committee is chaired by the President of the municipality and is responsible for proposing the budget, drafting and researching the strategic direction of the municipality in the future. The two other Committees, together with the Communities Office, have the task of improving and protecting the rights of the communities, ensuring their adequate representation in the civil service, and ensuring equal public services at the municipal level. The Communities Committee and the Mediation Committee in the municipality of Prishtina have not functioned until now because of the boycott by the Serbs. 34 The Municipal Assembly also has the right to create other committees and to decide on the their competencies and duties. 35 Based on this, besides the compulsory committees, in the municipality of Prishtina the following committees were created as well: - Health Committee - Rural Development Committee - Education and Science Committee - Culture, Youth and Sports Committee - Urban Planning and Construction Committee 32 Article 36, Statute of the Municipality of Prishtina, adopted March 16 th, Article 21.1, UNMIK Regulation 2000/45 34 Municipal Report for 2002, Municipality of Prishtina 35 Ibid 18

19 - Property Committee (with the task of supervising the Municipal property) - Complaints and Petitions Committee 36 Even with the high number of optional committees created by the municipality, not much has been done to make them functional and to exercise their duties. The Committees have not established their role as leading political structures in the municipality. Many decisions, which from their nature are political, have been taken by the Chief Executive Officer without consultations with the relevant committees. The Committees and the Municipal Assembly have often served only as a rubber-stamp for decisions initiated and prepared by the administration. The Committees have tolerated this situation and have attempted to make changes only on rare occasions. The Committees have not been actively engaged in the municipal problems. Although most of them have met regularly, the lack of professionalism and political will have often hindered them from going into the core of the issues. 37 C. In search of efficiency The project of the Head Office, with the aim of easing access to municipal services can be considered a positive step in public administration. But the municipality report for 2002 emphasizes that even though the renovation of the Registrar Office has improved considerably the organization and flow of work, the rising number of requests for birth, marital and death certificates, as well as other documents, requires more space and additional personnel. The decentralization of the registrar service and the opening of municipal offices in ten villages of Prishtina is currently under discussion. For the moment, the 36 Ibid 37 Ibid queues for a document at the registrar office in Prishtina remain very long. It would be good to at least use a numbered system 38, which has proved efficient in many countries with a developed system of public administrative services. Besides this, the efficiency of the civil service undoubtedly would be improved by the publication of a web page on the internet of the municipality of Prishtina. This would enable easy access to all the information and relevant forms. In March 2002, in Graçanica, a suboffice was opened with the aim of providing easy access to the civil registrar and other connected services for the Serbian population of the municipality of Prishtina. Whilst the activity at the beginning was limited to registering and issuing of identification cards, residents there have also started to apply for the Interim UNMIK Travel Documents. 39 A survey conducted by the municipality of Prishtina with citizens of Prishtina in February 2002, gives a very low assessment of the efficiency of the municipal administration in Prishtina. Only 17% of the surveyed people rated the municipal services as good or very good. Most of those surveyed (over 53%) believe that the municipal administration functions poorly or very poorly. 38 Every citizen can be given an application number so that the citizens can leave the long queues and would check from time to time if their number has come up on the monitor, which should be put on a visible spot 39 Municipal Report for 2002, Municipality of Prishtina 19

20 UNMIK: Exercises administrative supervision - Progressively transfers administrative responsibilities to municipalities Directs and coordinates financial affairs of Municipality Supervises activities of other Committees Presents proposals as necessary to Assembly and other Committees MUNICIPAL ASSEMBLY Members Elects the President and Deputy President/s Adopts Statute and rules of procedure Appoints the Chief Executive Officer PRESIDENT Carries out acts entrusted by Assembly Presides over sessions Organizes work of Assembly Chairs Policy and Finance Comittee Supervises the Chief Executive Officer CHIEF EXECUTIVE OFFICER Menaxhimi administrativ BOARD OF DIRECTORS Directors appointed by President and confirmed by Municipal Assembly Head of the Community Office, where established, will be ex-officio member of the Board DIRECTORS OF MUNICIPAL DEPARTMENTS Source: UNMIK Administration ADMINISTRATION POLITICAL LEVEL 20

21 D.LOCAL OFFICES WITHOUT OFFICES 40 Local Offices - LOs (Bashkësia Lokale) - are one of the ways in which the functioning of the sub-municipal level of government is organized in Kosova. This is a system inherited from Tito s Yugoslavia. The LOs are supposed to make the life easier for the citizens and should fulfill many of their needs. LOs are supposed to be an intermediary between the citizen and the municipality of Prishtina and as such should be a powerful voice in meeting citizens needs in the place where they live. The legal base for the LOs comes first from Regulation 2000/45 41 as well as from the Statute of the Municipality of Prishtina. Since Regulation 2000/45 does not set a particular form of sub-municipal organization, it is up to the municipalities to regulate this through their statute, so today in Kosova we have several examples of sub-municipal organization. Prishtina has kept the old organization through the Local Offices and today has 36 LOs - 20 in the city and 16 in rural areas 42. The function, structure, 40 The local office (Bashkësia Lokale) number II in central Prishtina has no offices since they have been occupied for the last four years. 41 Each municipality shall make arrangements with villages, settlements and urban quarters within its territory to ensure that the needs of all inhabitants in the municipality are met. And With the approval of the municipality, villages, settlements and urban quarters, singly or in combination, may carry out activities that are within the responsibilities and powers of the municipality. In this event, the villages, settlements and urban quarters shall receive commensurate resources from the municipality., Articles 5.1 and 5.2, Regulation 2000/ In the Regulation for Organizing, Structure and Functioning of the LOs in the Territory of the Municipality of Prishtina, the number of LOs is shown inaccurately. In the Article 2 it is said: The territory of the Municipality of Prishtina has in total 36 LOs, from which 20 are in urban areas of the city of Prishtina, while 15 LOs have the status of villages. (15+20=35)?! competencies and responsibilities are set in the Regulation for organization, structure and functioning of Local Offices in the territory of the municipality of Prishtina. 43 Taking into consideration the vast territory of the municipality of Prishtina nowadays, as well as the process of decentralization now under way, it seems clear that it very important to bring government closer to the people, whether with this or any other similar form of organization of sub-municipal levels of government. 1. The responsibilities and competencies of the Local Offices LOs function under the Department of General Administration, the LO sector. A Local Office includes a secretary that is employed by the municipality and the LO Council and the LO President, elected by the residents. The functioning of LOs is set by the Statute of the Municipality of Prishtina where it is said that Municipal Assembly, depending on the provisions of the Rules and Statute, can delegate activities connected to the provisions of municipal services in villages, settlements, urban quarters by itself or through the Local Offices 44 In the statute it is also set that the Policy and Finance Committee plays a very important role in how the Local Offices should function. Getting to a right policy should be done through the cooperation with representatives of LOs. The Policy and Finance Committee shall, in close cooperation with representatives of villages, settlements and urban quarters, develop a system for 43 Regulation for Organizing, Structure and Functioning of the LOs in the Territory of the Municipality of Prishtina, approved by the Municipal Assembly of Prishtina on July 30 th, Article 8, Statute of Municipality of Prishtina, March 16 th

22 decentralized municipal services provision and of citizens participation. The Policy and Finance Committee shall also review and propose to the Municipal Assembly the number of special functions that will be exercised by the Local Offices. 45 Article 5 of the Statute in a general way regulates these issues; that is why the provision of more competences to the LOs depends on the Policy and Finance Committee, respectively, at the end, by the Municipal Assembly of Prishtina. 2. Local Offices dependant on volunteers Every LO in the municipality of Prishtina has the same structure of organization, consisting of the secretary, who is an administrative employee of the municipality, and of the Council of the LO with the President, which are volunteer bodies. The LO Council and President have a four year mandate and are elected by the Local Office Assembly, which consists of representatives from House Councils. The House Councils are the lowest level that consists of inhabitants of a building or a number of houses who delegate a member to the LO Assembly. The elections for LOs are declared by the Department of General Administration every four years and are organized by the LOs. A problem that occurs in this form of organizing is connected to the discrepancy in the size of LOs. There are have LOs such as the LO in Bregu i Diellit, a quarter of Prishtina, with around 40,000 inhabitants, and on the other hand the Dabishec LO with 600 inhabitants. While in the first case the representation, citizens engagement and contact with local officials are small, all are much more direct in the second case. The first case results in a lack of 45 Article 8, Statute of Municipality of Prishtina, March 16 th information and decrease of interest of citizens in these larger LOs, which leads to their lower engagement in improving living conditions there. Moreover, the engagement of the LO Councils is not at the right level, because they are voluntary and the participants are not paid for their work. At the same time, they do not play an important role and have no effect in changing things From the Local Offices to the Municipality How is the contact between the citizen and the municipality realized through the LO? The citizens turns to the LO with a request, e.g. a request for an intervention in the infrastructure or some other kind of a request. This request is received by the LO, and recorded in the Municipal Archive. From there it is sent to the appropriate department in the municipality where it is looked at. The respective department reviews the request with the relevant committees and if the expenditure is such that it is foreseen in the budget, then this request should be realized. If the request is larger and surpasses the budget, it is discussed in the Municipal Assembly and the Policy and Finance Committee. The municipality is obliged to give an answer to the request. In the municipality of Prishtina, the efficiency in reviewing the requests depends on the respective department and very often there are differences between the different departments. 47 Citizens initiatives that are not urgent are first discussed in the LO Council and then the President presents them in the regular monthly meeting of the Presidents of the LOs in the municipality. These meetings at present are separate for rural and urban LOs, because of the differences in the nature of their needs 46 Interview with Mr. Hilmi Uka, President of the LO in Keqekolla 47 Interview with Mr. Hilmi Uka, President of the LO in Keqekolla 22

23 and requests as well as in the number of population. Besides the chief of the LO sector and the director of the Department for General Administration, directors of other departments are also present, depending on what requests being discussed. 4. Services offered by the Local Offices Only a few services are offered to the citizens by the Local Offices. Citizens can turn to them in order to receive documents certifying their place of residence, and socio-economic status. Also, Local Offices can play an important role in caring for poor families and environmental protection. Local Offices take care of the infrastructure and other issues of interest to the citizens, but should follow the procedure explained above. In the rural areas the Local Offices are also engaged in identifying the inhabitants needs for education and healthcare. At the moment, Local Offices do not carry out any registrar duties such as issuing of birth, death, marital certificates. However, because there are so many requests for these documents, there is a big overload in the municipality building. This causes a lot of problems for the citizens and the municipality officials and results in an inefficient service. One improvement would be to give more responsibilities to the Local Offices. Here, the Local Offices could play a large role in relieving the municipal building from the overload as well as in offering citizens fast and efficient services. Local Office officials also think that more responsibilities can be taken on at this level, such as issuing construction licenses, license for putting up kiosks, and registration of the population. 48 Subject to legal and practical limitations, such a solution could offer fast services for the citizens, efficient work and a drastic reduction of the overload in the central offices of the municipality. It would also contribute to creating a better system of control, thus ensuring that the right decisions are taken. 5. Examples of the functioning of Local Offices For this report, several case studies were conducted on the functioning of Local Offices in the municipality of Prishtina during March Local Office VI (Bregu i Diellit district) Covering an area with 35,000-40,000 residents, the Local Office in Bregu i Diellit is the second largest Local Office in the municipality of Prishtina. The secretary, Sinan Sopi, is paid from the municipal budget while the President, Rezmi Syla, is a volunteer. The work of the Local Office is headed by the 15 member LO Council with the President. The last elections in the Local Office in Bregu i Diellit were held near the end of As in other large Local Offices, participation in the elections was low. The Assembly of the Local Office, which elects the LO Council and President is constituted by the representatives of the approximately 600 House Councils in Bregu i Diellit: less than 50 of them were present at the election meeting. 49 This fact brings into great doubt the real representation of the residents through the LO Council and shows the lack of popular interest and engagement in this level of politics that is very important for everyday life. This alienation can be attributed both to the size of the Local Office and to the very limited responsibilities that the Local Offices have at present. 48 Interview with Hilmi Uka, President of the Local Office in Keqekolla. 49 Interview with Sinan Sopi, secretary at the Local Office no. VI Bregu i Diellit 23

24 At present the Local Office of Bregu i Diellit deals with the concerns and suggestions of the citizens such as the sewage system, cleaning, sometimes infrastructure, by receiving requests from the citizens and passing them on to the municipality as described above. According to Sinan Sopi, the response and measures by the municipality in relation to these requests are very low. He also emphasized the need for more responsibilities for the Local Offices, which would increase the efficiency of their work and would also offer more efficient services to the citizens. 5.2 Local Office XXI (Keqekolla) The Local Office in Keqekolla lies northeast of Prishtina. It covers the territory of four villages, that of Keqekolla, Prapashtica, Nishec and Ballaban. The Council has 11 members, the President and the secretary. The members of the LO Council were appointed by the villages which they represent and their number is proportionate to the size of each village. Keqekolla is represented by 4 members, Prapashtica by 3, Nishec by 2 and Ballaban by 2 members. The LO Council usually meets once a month. The issues that are discussed are then presented by the LO President in the monthly meeting of the Presidents of Local Offices with the Director of General Administration in the municipality. The work of the Council is voluntary, while the President receives a per-diem to cover his travel expenses to Prishtina once a month for the meeting of Local Offices. The Local Office in Keqekolla deals with issues such as education, infrastructure, supply, and religious facilities. It represents the concerns of its inhabitants in the municipality as requests and as projects. To date, from 100 requests made to the municipality by the LO in Keqekolla, 15 projects have been approved and realized. 50 Other services that are offered at present in this Local Office are issuance of documents on the socio-economic status and residence, and receiving citizens complaints. At present the Local Office does not offer any registrar services, so residents have to travel all the way to Prishtina to receive birth, death and marriage certificates. This, according to Mr. Hilmi Uka, President of the LO in Keqekolla, will soon change, since the municipality has decided to transfer the registrar services to the Local Offices level. This, though, will only be valid for rural Local Offices and not the urban ones. The LO covers a population of 1,314. This number is drastically smaller than the number of inhabitants before the war, which used to be 3, Because of property destruction during the war and bad living conditions afterwards, most residents have migrated to the city of Prishtina. According to Mr. Uka, many of them would come back to the villages if they were offered satisfactory living conditions there. In the territory of Local Office in Keqekolla there are 6 elementary schools - 2 in Keqekolla (125 pupils), 2 in Prapashtica (65 pupils), 1 in Ballaban (36 pupils) and 1 in Nishec (which has been closed because of a very low number of pupils, since out of 28 families in the village, only 7 have remained). In the territory of this Local Office there are an Ambulanta (primary health-care unit) as well as several associations, amongst them a women s association Gallabëria, Farmers Association, Beekeepers Association, etc. Although there are sufficient economic possibilities, the economic activity is low. There is an inactive mushroom and fruit-processing factory awaiting privatization by the KTA. There is also a 50 Interview with Hilmi Uka, President of the Local Office in Keqekolla. 51 Interview with Hilmi Uka, President of the Local Office in Keqekolla. 24

25 dairy factory; but because of the damage caused to animal husbandry by the war, local milk production is almost unnoticeable, and the factory has to import milk from other areas of Kosova. 52 The possibilities for animal husbandry in this zone are great and strengthening this sector here is an issue that deserves a lot of attention. The milk factory today employs only 13 people. The population in general, even if it works in animal husbandry, does this only for personal needs and there is no mutual cooperation. Beekeeping and honey production are quite widespread economic activities in this area and there is a local quarry that employs 14 people. 5.3 Local Office XXIII (Dushkajë) The Local Office in Dushkajë is located right on the border with Serbia; it includes three villages: Dushkajë (Dabishec), Murrizajë (Gllogovica) and Gjelbrishtë (Hajkobillë) with a combined population of about The Local Office Council has 5 members. Its working methods are the same as in other Local Offices and the local economic situation is very similar to that of LO Keqekolla. There is no major economic activity. The families mainly deal with farming. The families usually have several heads of live stock for their own personal needs. local population is declining: from 33 pupils in the class in Gjelbrishtë in 2002, there are only 25 pupils this year. 5.4 The exception, Graçanica The Local Office in Graçanica is one of the largest settlements with a majority Serbian population in the municipality of Prishtina. But there is no Local Office as 52 Interview with Hilmi Uka, President of the Local Office in Keqekolla and Zylfije Osmani, business woman and president of Gallabëria association 53 Interview with Mr. Sabri Murati, director of three parallel classes of the school in Dushkaja and a former president of the LO. such. Instead there is a Municipal Community Office, which more resembles a mini-municipality, and functions under the Department of Community Office. This office works under the municipality of Prishtina, as a department on its own, established by the decision of the Municipal Assembly of Prishtina. 54 According to Viktor Djokic, head of the Municipal Community Office (MCO), there is no need for a Local Office there since the inhabitants can receive the services in the Office that he heads. The Municipal Community Office covers 7 villages with a majority Serbian population in the municipality of Prishtina. In some of these villages there are Local Offices with two people employed in each, who if a need arises do not address these needs to municipality of Prishtina through the Local Offices sector, but rather do this through the MCO, which is an exception from the ordinary procedure as far as the equal access and cooperation of communities living in the municipality of Prishtina is concerned. Such offices exist in the villages of Slivova, Laplasello, lower Bërnica, etc. These offices direct their requests and issues to the MCO, which then passes them on to the municipality, which is a longer way, and thus offers slower services to the inhabitants in these villages. The Local Community Office has an annual budget of 165,427 Euro 55, which enables it to function with a Municipal Community Office in Graçanica, that includes the departments and 32 employed out of 35 employment positions. This office offers the following services to the citizens of Graçanica and other villages with a majority Serbian 54 Interview with Viktor Djokic, Head of the Municipal Community Office in Graçanica, April 24, Budget for Local Community Office, source Ministry of Finance and Economy 25

26 population in the municipality of Prishtina: - Public Services - General administration and finances - Education, health and social welfare Most of these services are offered by people employed in Graçanica. The cleaning services are done by an office (group) of employees that work under the name of Higjieno-Teknika in Graçanica. The other public services, are organised in a similar way. For administrative services, all the inhabitants of Serbian villages in the municipality of Prishtina turn to the MCO in Graçanica, which processes and passes the cases on to Prishtina, where they are reviewed. Now the MCO has an authorized municipal stamp to stamp the necessary documents. The head of the Municipal Community Office has a seat in the Board of Directors of the municipality of Prishtina, where he presents the needs of the MCO through the department of the Community Office. According to Mr. Djokic, the cooperation and communication goes directly through the Chief Executive Officer. He says that there are no problems and until now the cooperation has been fine. 56 In case of a disagreement the international administrator (now UNMIK representative in the municipality) intervenes. With this way of organizing within the Department of Community Office there is virtually a separate, ethnic, minimunicipality, which gathers under itself all the villages with a majority Serbian population. Such a division of the municipality of Prishtina could have negative consequences on the integration process of communities, though Mr. 56 Interview with Viktor Djokic, Head of MCO in Graçanica, April 24, Djokic argues that the work of this office is positive and leads towards integration. 57 In the short term, Mr Djokic may be right that it is best to offer Serbs residents of Prishtina and other municipalities some assurance that their needs are respected and looked after. They face difficult living conditions and restricted possibilities for self-betterment and have many fears about their place in Kosova s future. In the long-term, however, we find the idea of ethnic separation in local government highly problematic and counter-productive. The challenge for the municipality, the Kosovan leadership, and the internationals and far from a simple challenge is how to make a transition from short-term arrangements that may be pragmatically necessary to long-term arrangements that reflect the principles of a pluralist and democratic society. Discussing and planning that transition should start now, even if implementation must await more propitious circumstances. 6. Possible future roles of the Local Offices The Local Office, even though it is foreseen to be the first and most important link between the citizens and the municipality, hardly functions like that at all. A lot remains to be wished for in order to overcome the many deficiencies we have identified. Based on the survey conducted for this report 58, the Local Offices are the least frequented municipal services by the citizens. They rate the frequency of visits to the Local Offices at 77 (minus seventy-seven) r.p. 59 (see the table below). This means the Local Office is the municipal office most rarely visited by 57 Interview with Viktor Djokic, Head of MCO in Graçanica, April 24, Quantitative survey with 500 respondents, citizens of Prishtina, conducted by Index Kosova during March-April Rating points on a scale of: (-100) to (+100) 26

27 Frequency of visits in... (averages in the scale of -100 to +100) Health house Telephone Hospital KEK Municipality Main Offices posatl office Local Office citizens. The customer care for the citizens by the Local Offices personnel is valued the least of all the services, with only 38%. 60 A request by the citizens expressed in our focus-group discussion is that the Local Offices should be led by professionals, should be de-politicized, should be less bureaucratic and more efficient. Also there should be more contacts between the Local Offices and citizens. 61 One of the basic principles of the European Charter of Local Self- Government of the Council of Europe is that of subsidiarity, meaning delegation of responsibilities to the lowest possible level of government. This is in order to bring the government as close to the people as possible. Local Offices have very limited powers and responsibilities today. Some Local Offices serve a large population and cannot adequately address their needs. This seriously diminishes the level of representation of the citizens at this level, which is supposed to be the closest and 60 Quantitative survey with 500 respondents, citizens of Prishtina, conducted by Index Kosova during March-April Focus-group discussions with citizens of Prishtina, conducted in March April 2003, by Index Kosova. the most direct for the citizens. In discussions with citizens 62 and officials, the idea of increasing the number of Local Offices is very often mentioned. Also the competences of the Local Offices, the rights of the citizens and the procedures for realizing those rights through the Local Offices should be made clearer and should be explained to the citizens. This would raise the interest of citizens to turn to this level of government, which, as a consequence, would also decrease the overload in the main offices of the municipality. Services that could be transferred to Local Offices are: Administrative services, like the registrar; inspection, issuing of construction licenses and usage of space; a larger role in economic development, health care and education; social aspects like registration, database of the inhabitants, social welfare and possibly in environment protection. 62 Focus-group discussions with citizens of Prishtina, conducted in March-April 2003, by Index Kosova 27

28 Some of these proposals, like the transfer of the competencies for the registrar service or the inspection services are being taken into consideration by the municipality, but for the moment only in a limited way since these changes are going to apply only to the Local Offices in rural areas. The process of registration of the inhabitants is also underway, with data that includes age, gender and profession. The results of the registration are expected later this year. 63 To take on these additional responsibilities, the number of personnel in the Local Offices should be increased; this could be done by engaging additional administrative personnel or perhaps by a higher and a paid engagement of the Local Office Councils. This could be done through setting aside a budget for every local Office, which would cover these expenses. Another element of the relationship between the citizen and the municipality is the possibility of meeting directly with municipal officials. Official accessibility helps engage citizens in their local affairs and provides officials with more information, which makes their work easier.. These meetings could be organized by the Local Offices on a regular basis, oriented towards fulfilling citizens needs. In general, there is a hesitation, almost a fear, in the municipality about delegating more responsibilities to the Local Office level, even though it would benefit the municipality and the citizens. The Local Offices should do more themselves in order to push forward the realization of their needs and requests, and should therefore play a more active role in lobbying and advocacy on issues of interest to them. 63 Interview with Qazim Qunaku, head of the Local Office (Bashkësia Lokale) sector in the municipality of Prishtina. E. Decentralization, this is the question The way public services are delivered and the duties of the public administration preformed in the municipalities will surely be influenced greatly by the process of decentralization, which is underway in Kosova. This process started with the international administration in 2000, through the regulation on local self-government in Kosova, UNMIK 2000/45, and then amended with the regulations that followed it, like 2000/49, the regulation on the establishment of the Kosova Trust Agency (KTA), Regulation 2002/12, as well as many other administrative directives. It is largely motivated by concern about the way public services were provided to citizens. There is no doubt that the process of decentralization should bring government closer to the citizens and thus improve their living, but if we want this process to be successful, then it has to be focused in this aspect and not allow it in any way to bring to a new ethnic division in Kosova. This transfer and delegation of responsibilities towards the local level is happening for the first time in the history of post-war Kosova, and perhaps genuinely for the first time in its history. This process should delegate governance to a lower level, which is closer to the people, but, this has to be done in the most efficient, and functional way, in order not to cause new conflicts and divisions in the already divided Kosovan society. 1. What do we learn from the past Past experience teaches us that decentralization on an ethnic basis in Kosova is detrimental for the stability of the region, creates ethnic conflicts and in the end fails 64. An example from history 64 Isa Blumi Kosova s Past experience with decentralization: From Ottoman Chaos to Yugoslav Tyranny, presented in the conference 28

29 on this issue is the reforms of 1903, when under pressure from Russia and some western countries, the Ottoman Empire undertook some reforms in the administration of the vilayet of Kosova which could be portrayed as territorial divisions on ethnic/religious basis. In fact, under the pressure from these countries at the time and based on the demands from the non-albanian population, the issue of territorial division was brought up in Kosova, allegedly for the reasons of security for the Christian population. This later resulted in the creation of Serb and Bulgarian enclaves which were exempt from Ottoman state taxes and had a wider administrative autonomy. These had their paramilitary formations which were also supported by some European countries. 65 On the other side, Albanians, who were mostly Muslims, were put through a different set of reforms led by the Young Turks, which removed many of their freedoms for autonomous administration of their territories. This discriminatory approach which was completely different towards the Albanian and non-albanian population in Kosova, as well as the territorial aspiration of the non-albanian population, which were fed by their favorable position and the support they had found in the powers of the time, resulted in a huge conflict between the ethnic groups in this area, which in the end contributed to onset of the Balkan wars and formed part of the regional background to the build-up to the First World War 66. In short, the result of these reforms was a failure, which destroyed the harmony that was present for centuries between the people that lived in Kosova. Decentralization in Kosova: Identification of issues, development of opcions, held in Prishtina on December 15-17, Ibid 66 Ibid 2. UNMIK s approach It is interesting how much the past resembles the present. Not only are the local actors the same, but also the world powers engaged in this process are almost the same. Even the approach UNMIK took in the beginning with the proposal of the SRSG, Michael Steiner, does not differ much. History, in this case, tells us that such an approach is not only unproductive, but in fact makes the situation even worse for all the ethnicities and is a cause of continuous conflict and instability. Moreover, reflecting a factor that was not present in 1903, this approach today is also in contradiction with the values and aims of the United Nations Mission in Kosova, which is building an open and multiethnic society. The reasons why this process was started at the end of 2002 by Mr. Steiner are very clear and have to do with encouraging the Serb population to participate in the local elections. The SRSG offered Serbs a carrot by telling them that participating in the elections will enable the start of the decentralization process, which would offer them the possibility to realize their aspirations for the formation of administrative units on ethnic basis, which would enjoy more independence from the center. However, on the contrary, instead of convincing them to participate in the elections the failure to do this was obvious from the participation results in the elections it achieved the opposite and made the Serbs believe that through a process of decentralization they could aim to create their mono-ethnic territories which would latter make an attempt to separate from Kosova. This was also unfolded in the strategy of the government of Serbia through the declarations of the late 29

30 Serbian Prime-Minister, Zoran Djindjic 67. On the other side, this approach created the impression among the majority Albanian population in Kosova that decentralization will act contrary to the interests of Kosova. It has made them see decentralization not as a process that brings the government closer to the people, but in contrary, as a process towards the separation of Kosova 68. Surely, such an impression which has been created with the majority population will pose obstacles in the process of decentralization regardless of the fact if the approach is not on ethnic basis. 3. In the service of the citizen The process of decentralization in Kosova should be in the service of the population, making their life easier, and has to do with bringing the government closer to the people. Other aims of the 67, Probably the next turning point should be discussions on some sort of a Cyprus model for Kosmet, with a civilized territorial population exchange... After all, Serbs and Albanians in Kosovo and Metohija never lived together. They lived beside each other. The multiethnic society in Kosovo that is a big illusion. That never existed. That was a society of ethnic co-existence. And we are not talking about that happening again. I would like Kosovo to become a federation and for Serbia to have an asymmetrical relation to that federation with the Serb entity deeper connections, and with the Albanian entity connections that are in the interest of Albanians so looser ties. Serbia could bare that kind of relations to Kosmet., Interview with Zoran Djindjic, newspaper Novosti, Belgrade March 6, Discussions in the conference organized by OCSE and KIPRED on decentralization, called: Identifying issues, developing possibilities. Some of the fears expressed by the Kosovar leaders who participated in the discussion, including the president of the Parliament of Kosova, were: a) the fear that this process was started with the aim of motivating Serbs to participate in the elections and if it is directed towards fulfillment of the requests of the Serb leadership; b) the fear that new divisions in Kosova will be created and that it will legitimize the existing divisions. decentralization process are bringing services and decision-making closer to citizens, offering possibilities to the population to influence and adapt these services and also offer a more effective and accountable management in the local level. In short, the aim of decentralization is to improve both democracy and efficiency. However, in the current conditions, it would be better if this process were called reform of local administration rather than decentralization. Any ethnically based approach to the process of decentralization would be in contradiction with the engagement of the international community in Kosova and would contradict the principles of coexistence in Kosova, which are emphasized in all relevant documents by which Kosova is governed. A deviation from this line towards a separation of Kosova on an ethnic basis would be a very dangerous act and could lead towards further enclavization of Serbs and towards reduced interethnic contacts and dissatisfaction of the majority to this process. This could also lead to another conflict in the future. Although a large scale conflict is not so possible for the moment, the destabilization and crisis that would be generated would undermine the attempts for peace building, reconciliation and regional cooperation. The form of decentralization which could be applied in the future would be something between the competences which the Local Offices have today and the competences enjoyed by the Municipal Community Office, but built on territorial basis and by no means on an ethnic basis. This means that the administrative units produced by decentralization should be based on needs and maybe on the deliberate creation of ethnically mixed zones. Though this would a long-term goal, the immediate concerns of the minorities 30

31 should be taken into account for the short-term arrangements. The reforms in local administration can not be based on ethnicity, but the reality in Kosova demands to provide ethnic communities with some powers, that is why we ask the local authorities to accept the compromise. However, the system will be the same in the whole of Kosova, said Ivo Sanc, advisor to the Council of Europe, Mission for decentralization in Kosova 69. The aim of decentralization in Kosova, thus, should be oriented towards easing the life of citizens and not towards further ethnic separation in Kosova. The mistake made by SRSG Steiner can be amended by the mission of the Council of Europe, which has been given the responsibility for developing recommendations for the process of decentralization in Kosova. 69 Uinterview with Ivo Sanc, KIDS-LOGO, March 31,

32 VI. PUBLIC UTILITIES A. The parking places and the final status Only after we solve the issue of the final status, than we can talk about the issue of the parking places in Prishtina 70 This statement by a high official in the municipality apparently means that, to the list of everyday problems and challenges the public utility enterprises are facing in Prishtina, we have to add the issue of the final status! Public utilities in the municipality of Prishtina are regulated on the basis of the decision for improvement of the city and public utilities, 71 as well as regulations 2000/45 and 2000/49and the regulation on the establishment of the KTA. However, these regulations are a source of conflict between the central authority (in this case the Ministry of Public Services) and the local one (municipality of Prishtina). This claim is also supported by international officials in the municipality 72 and local experts, 73 but was best seen in practice by the citizens of Prishtina during the work of the Public Enterprise Higjiena Teknika. In August 2001, two people claimed to be directors of this Public Enterprise, Abit Aliu (supported by the Ministry of Public Services, at that time still Department of Public Services) and Shefki Gashi (supported by the municipality of Prishtina). As a result, employees refused 70 An opinion of a local official in the Municipal Government about the problem of parking in Prishtina. Interview with Dmitry Pozhidaev, Deputy representative of UNMIK in the Municipality of Prishtina 71 Decision: For improvements in the city and public utilities: Article Interview with Dmitry Pozhidaev, Deputy representative of UNMIK in the Municipality of Prishtina 73 Development of local economy in Kosova RIINVEST, Prishtina to collect the garbage, the city of Prishtina was congested by litter, and to make the situation even more bizarre, the few vehicles (truck and tractors) that had collected the garbage were not allowed to throw the garbage either in the waste dump of the city of Prishtina or in the Fushë-Kosova one. From the position of a humble citizen of Prishtina, all of this has been perceived as another clash of the titans of the Kosovar political scene, LDK and PDK (municipality against Ministry of Public Services). It aggravated the relationship among the staff of the enterprise and produced (literally) a bad odor for Prishtina. Taking into account all of these, this clash could rather be called the clash of short-sighted dwarfs. Public policy of the municipality of Prishtina is not understandable and tangible not even four years after the war, neither for professionals, nor for the common citizens as users of these services. Inert bureaucratic and unprofessional actions of the municipal leadership violate the mood of the citizen and speak of their inability to help build a \democratic society. 74 It seems that even the issue of who is going to clean the streets of Prishtina is a political issue! PE Higjiena-Teknika is one of 6 enterprises that offer public services in the territory of the municipality of Prishtina and which have been chosen as case studies for this report. These are: Higjiena Teknika (Hygiene Maintenance) Trafiku Urban (Urban Traffic) Batllava (Water supply and Sewage) Hortikultura Termokos Ndërmarrja Publike Banesore (Public Housing Corporation) 74 Index Kosova A Study on the Municipality of Prishtina Focus group with managers of public and private enterprises in Prishtina, March/April

33 Based on a public opinion survey, public services in the municipality of Prishtina are graded with an average of 3.5 for the quality of offered services (in a scale of 1 to 10) 75. Without any doubt, the low quality of these services was also influenced by the period Unprofessional management, lack of investment for nearly a decade and overuse of existing infrastructure have left consequences that these enterprises have still not overcome. One of the most illustrative examples is the PE Trafiku Urban, which in 1991, just before the establishment of enforced Serbian administration, had 130 employees and 25 buses. On June 19, 1999, the employees that returned found demolished and looted buildings and only 1 bus in working condition in the auto-park of this enterprise. They restarted their activity in July 1999 with only 3 buses, 2 of which were in partially working condition. 76 In order to overcome the grave post war situation, these enterprises were helped by international governmental and nongovernmental organizations, like DFID, USAID, GTZ, KFOR, OXFAM, ABD, etc 77. These donors have helped in different ways: with concrete projects, equipment and logistics. In the period immediately after the war, UNMIK administration prohibited, for a while, these organizations from collecting revenues or fees from citizens for their services. Because of their grave financial condition, the Consolidated Budget of Kosova for 2002 allocated 9.4 million Euros to subsidize public utilities Index Kosova A Study on the Municipality of Prishtina Focus group with managers of public and private enterprises in Prishtina, March/April Interview with Latif Xhemajli, director Public Enterprise Trafiku Urban, April 04, Development of local economy in Kosova RIINVEST, Prishtina Ibid 1. Higjiena Teknika: the Waste and the Revolution If the streets of Paris were covered in waste like in Prishtina there would surely be a revolution! 79 PE Higjiena Teknika, was established by the municipality of Prishtina on January 1, 1957 with 78 employees; today it numbers employees and offers the following services for the city which has approximately inhabitants (as estimated in the Annual report of the municipality of Prishtina, 2002): Transport and disposal of waste. Road cleaning, removal of snow and throwing of salt during the winter season Management of the Waste dump. Funeral services. Water supply (upon request). Removal of stray cats and dogs (upon request). Cleaning of septic tanks (In the official leaflet of this enterprise it is written Skeptical tank!) 81 Besides Prishtina and Fushë Kosova, PE Higjiena-Teknika also covers Kastriot, Drenas, Lipjan, Besiana and their surrounding as the area of their responsibility as part of the regional reorganization of this enterprise 82. This public enterprise has a 5 member Supervisory Board Comments of SRSG Bernard Kouchner, during an action for cleaning the city of Prishtina, Public Enterprise Higjiena Teknika possesses the following capacities: 55 vehicles, 1300 containers of the capacity 1/1m3 and 200 containers of the capacity 7m3 distributed in the city, waste dump of the area of 10 ha. Average capacity of collection of garbage is 300 m 3. Zijadin Brahimi director of PE H-T, April 07, Leaflet of PE Higjiena-Teknika, 2002, Prishtina. 82 Ibid. 83 In the board, one member represents KTA, one EAR and three others the municipality of Prishtina. since the enterprise is in the phase of 33

34 It is financed through the revenues it receives from consumers. Although it is the sole enterprise that does garbage collection, only 40% to 50% of the consumers pay for its services 84. Poor functioning of the garbage collection service is the fourth on the list of problems for citizens of Prishtina. The first three ones are unemployment, electrical energy and reconstruction of economy and infrastructure 85. As for the dirtiness of the city, a large part of the blame falls on citizens themselves. Throwing waste in inadequate places, in wild waste dumps as well as too-symbolic participation of citizens in actions to clean the city are the best indicators of this problem. Lack of a legal infrastructure against non-payment of services and dumping garbage at improper places is one of the problems PE Higjiena-Teknika faces. As well as dissatisfied citizens and poor public relations, PE Higjiena-Teknika is also facing frozen relations with the Municipal Assembly of Prishtina after they have refused to accept Shefki Gashi (appointed by the municipality) as the director of the enterprise. 86 This undoubtedly has an impact on the quality of the services offered by the enterprise. This enterprise also has the responsibility for the maintenance of roads in the city as well as keeping them clean from snow in winter. Its degree of success in this work last winter is shown by fact that on January 13, 2003 (when there was more regional reorganization, it is expected this board to enlarge with a member from each of the representatives of the municipalities of Kastriot, Drenas, Lipjan and Besiana. Source Mr. Zijadin Brahimi, director of PE H-T, April 07, Source: Zijadin Brahimi, director of PE H-T, April 07, Index Kosova A study on the Municipality of Prishtina Quantitative research with citizens of Prishtina March/April Statement of Bajram Mjeku, information official in the Municipality of Prishtina, Koha Ditore April 01, frequent snowfall) within one day there were 25 cases received in the Orthopedic Clinic of the University Clinical Center (UCC) with fractures as a result of slipping on the snow 87, a number two times higher than usual. According to the doctors at the UCC, it had happened because of icy roads. Stray dogs pose a threat to the citizens, especially during the winter season, and although it is one of the problems this enterprise should be dealing with, this service was till now carried out by KFOR troops. It took a tragedy, a young 7 year old to be bitten to death by dogs, in order for action to be taken for their extermination 88. Since 1999, this enterprise is facing competition. Two private Kosovan enterprises, Zahiri and Beni and Toifor, with a mixed German- Macedonian capital, are providing services in the same field as Higjiena- Teknika. According to the officials at Higjiena-Teknika this is un-fair competition, since none of these companies has a license for providing these services and are throwing the waste in areas which are not dedicated for waste Trafiku Urban/Urban Traffic: Love from Taiwan In 2000, the Taiwanese government donated 30 buses to public transport enterprises throughout Kosova. Amongst these, one was given to the Public Utility Enterprise Trafiku Urban in Prishtina. Maybe quantity-wise the Taiwanese donation is not worth mentioning at all, since in the PUE Trafiku Urban there 87 Twenty-five victims of ice and snow in the streets of Prishtina, only on Monday afternoon, Koha Ditore, January 14, More than 800 stray dogs were exterminated in Prishtina by the Swedish battalion SWEBAT, Zëri April 12, Source: Zijadin Brahimi, director of PE H-T, April 07,

35 were more important donations and of greater amounts than this. But the Taiwanese example is a typical example of the creativity of management public means (in this case the money of the people of Taiwan), which is something that is lacking in the municipality of Prishtina and Kosova in general. From their fund of aid to Kosova, the Taiwanese officials have decided to buy all of the buses (30 in total) in the Bus Factory in Skopje (SANOS). So, with that sum of money they have helped Kosova but at the same time the bus purchase in Macedonia was perceived as economic aid to this neighboring country. As an old proverb would say two birds with one stone. PUE Trafiku Urban was established in April 04, 1976 by the city working unit which was an active part of the bus company Kosovatrans. With this decision, the PUE became independent from Kosovatrans while the founder (the municipality) kept the right of supervision of the enterprise and its subsidization in case of losses as a result of lower fares for vulnerable social groups 90. Not even 4 years after the war has this status been confirmed by the Department for Public Services. There was financing from the municipality only in July 2001, in the sum of DM, which was used to pay for the transport of buses donated by the city of Lyon, France. Today this enterprise has 42 buses in good condition with which it could successfully maintain the passenger transport lines in all urban lines 91. Trafiku Urban has 186 employed personnel and owns an area of 8.76 ha land, in a very attractive location, close to the Industrial Zone in Prishtina 92. Apart from the revenues it gets from 90 Interview with Latif Xhemajli, director of PUE Trafiku Ubran, Prishtina April 04, Interview with Latif Xhemajli, director of PUE Trafiku Ubran, Prishtina April 04, Leaflet PUE Trafiku Urban, Presentation of the Company, Prishtina. fares, a part of the revenues are also generated from the money this enterprise gets from the space it leases to other organizations for office space and parking. The main problem that Trafiku Urban is facing is competition with mini-buses, which are reducing the company s revenues by 50-70%, depending on the line and the season 93. Trafiku Urban also faces problems in the form of the old auto-park and the lack of spare parts for its vehicles. In the list of public services citizens are most satisfied with, Public transport is second, immediately after the Fire Fighters Water Supply and Sewage: Where the payment is low and improper usage is high 95 The city of Prishtina is largely supplied with drinking water from two artificial lakes (Batllava and Badovc) and underground water resources (wells) in Kroni-Kuzmin and Obiliq. Total production of water is l/s, compared to needs of to l/s 96. The regional water supply company Batllava is responsible for the management of these lakes and the distribution network, which also provides water for Fushë Kosova, Obiliq, Podujeva and Shtime. During the last decade ( ) there were no investments made to increase the water capacities of the artificial lakes, the production capacities, or the maintenance of the equipment for purification and filtering. After 1999 the regional water supplier Batllava has had donations in 93 Ibid 94 Index Kosova Study on the Municipality of Prishtina Quantitative research with the citizens of Prishtina, March/April Statement of Skender Bublaku, Director for Maintenance and Distribution, Regional Water- Supply Batllava April 28, Statement of Skender Bublaku, Director for Maintenance and Distribution, Regional Water- Supply Batllava April 28,

36 the form of technical equipment, spare parts, installations of water distribution and sewage network, water measurement units, reconstruction of two existing buildings (water pump stations, galleries, pipes, chlorinators). The list of donors includes governmental and nongovernmental organizations like EAR, DIFID, KFW, the Norwegian government and CDF. According to estimates of the officials from the water supply enterprise, the loss of water is around 30-35%. But this category includes mostly water usage within the buildings and other facilities, as well as irrational usage, while losses in the supply network can be estimated at around 10-15%. 97 By way of comparison, it is estimated that in the city of London 33% of the water is lost before it reaches the consumer 98. Estimates are that about 80% of residents of Prishtina are connected to the sewage system. The list of problems of the Regional Water Supply Enterprise includes: old water network; existing production capacities are lower than needs; low level of payment by consumers; connection without the agreement of the water supplier; and endangering of the water supply by citizens who connect in illegally 99. The legal regulation that would address all of these issues is still not in place but work is being done in that direction. Until these laws are approved for Kosova as a whole, it is up to Batllava to fight 97. Statement of Skender Bublaku, Director for Maintenance and Distribution, Regional Water- Supply Batllava April 28, BBC News: A third of the water goes down the drain before it ever reaches the tape Sarah Harris, April 08, Statement of Skender Bublaku, Director for Maintenance and Distribution, Regional Water- Supply Batllava April 28, these problems by relying on a number of internal regulations. Sewage and water supply take the 4 th and the 5 th position in the list of public services, which according to the citizens need urgent attention from the municipality 100. While the average grade for water supply and sewage services (on a scale of 1 to 10) is Hortikultura: Green spots According to international standards, there has to be 19,5 to 22 square meters of green space per capita. Prishtina, with 3,5 square meters before the war, and 1,7 square meters of green space per capita after the war, does not get even one ninth of the way towards meeting this standard 102. Hortikultura is a Public Utilities Enterprise whose the duty is to care for green spaces and to plan and create new green spaces. In the city of Prishtina there are no areas that could be called parks. They could rather be considered green spots than genuine green areas where people could enjoy recreational activities. The only space that could, to a certain degree, be called a park, is situated in one of the hills of the city, and not so accessible for most of the citizens. Thanks to a donation from the Italian Government, this space was saved in 2001 from the ill fate the citizens of Prishtina had planned for it, to turn it into another wild waste dump. But, the greatest green space managed by Hortikultura is situated in the outskirts of Prishtina. This is the park of Gërmia, an area of 1,126 Ha of land covered with trees. But even in the lungs of Prishtina, as this park is also called by 100 Index Kosova Study on the Municipality of Prishtina Quantitative research with the citizens of Prishtina, March/April Index Kosova Study on the Municipality of Prishtina Focus group of managers of public and private enterprises in Prishtina, March/April An official of the PUE Hortikultura 36

37 the citizens, apart from trees, some illegal constructions have started to take rootin the form of houses, hotels, restaurants and mobile kiosks. In order to be able to use this space, every motorized citizen will have to pay a fee of 1 Euro, from which, at the end of the month, the municipality collects around 3,000 Euros, though it is not very clear how they will be spent. We presume the money will be used to empty the garbage bins that are placed in the park 103. According to Municipal officials, Hortikultura does not offer high quality services. What is more, according to them, it is a catastrophic enterprise which is mostly financed by the municipality. On the other, Hotikultura officials defend themselves by referring to the lack of funds: of 300,000 Euros requested for 2002 the municipality approved only 100, Termokos: Nothing like the sun A large number of citizens of Prishtina that are connected to the network of the central heating system and have experience of survival in cold winter days know that sometimes the only hope for heating their apartments is the weather forecast predicting increased temperatures. The city s heating system dates back to 1978 and possesses a network of 58 km of pipes. The distribution network is the main problem that affects the low quality of the services of this enterprise. In the moment that Termokos supplies with a pressure beyond 13 atmospheres, then there are huge leaks in the system because of the aged pipes 105. As a result, neighborhoods that are situated in the highest parts of the city (e.g. Bregu i Diellit) have had a modest level of heating or did not enjoy this 103 Mines have saved and burned down Gërmina, Koha Ditore March 31, Ibid 105 Statement of Osman Hajdinit, KTA official, to the newspaper Koha Ditore, February 03, comfort at all. It was said several times by officials of this enterprise, that the only alternative for this neighborhood is the construction of a sub-station. Despite the investment of about 10 million Euros in the last 4 years 106, it seems that Termokos will need additional investment in order to smoke sufficiently to satisfy the citizens. This enterprise is also under the management of the KTA and according to international officials, if the full competences were to be passed on to the municipality of Prishtina, as some local high local officials insist, the municipality would end up with a black hole in its budget 107. Apart for the problems with the infrastructure, this enterprise is confronted with a very low payment of services by the citizens (there are no exact data on this) 6. Public Housing Enterprise: A chronicle of misuse foretold A few days after the appointment of the director of PHE, one of the members of the selection panel expressed his dissatisfaction with the chosen candidate saying: I am sure that there were 2-3 better qualified candidates for this position 108. More than a year and a half after this statement was made, on November 30 th 2002, the UNMIK police in cooperation with the KTA made the decision to close this enterprise, which was suspected of corruption. Meanwhile, the director appointed in June 2001, Nexhbedin Sherifi, was put under investigation. This enterprise manages around 16,000 apartments, which are a property of the 106 Not even 10 million Euro could fill in the all holes in the network of Termokos, Koha Ditore, February 03, Interview with Dmitry Pozhidaev, Deputy representative of UNMIK in the Municipality of Prishtina. 108 Different officials have taken apartments and shops through Public Housing Corporation, Koha Ditore, January 20,

38 municipality and a large number of business spaces (shops) spread around the city of Prishtina. From all of the revenues from these facilities, only a small amount ended up in the municipality. According to the accusations, most revenues ended up in one of the commercial banks. Although there was misuse and damage inflicted to the funds of the municipality, this did not pose an obstacle for the Municipal officials for issuing construction licenses to this enterprise, or purchasing of private apartments by it 109. The center where all bad things come from can be described in two words: incapability and irresponsibility 110. This sentence by a manager of a private enterprise and a citizen of Prishtina best describes what has happened to PHE. With the potential the PHE has it could become a gold mine for the whole of the municipality of Prishtina if it is managed adequately. 109 Ibid 110 Index Kosova Study on the Municipality of Prishtina Focus group of managers of public and private enterprises in Prishtina, March/April

39 VII. THE MUNICIPALITY, ECONOMY AND THE PROFESSOR 111 The municipality of Prishtina is the main economic center of Kosova, with a large number of public, social and private enterprises, and about a quarter of the population - around 500,000 residents 112. As such, the planning, management and support for the development of economy is of immense importance not only for Prishtina itself, but also has an impact in the developments throughout Kosova. The municipality could play an important role in the creation of basic conditions for sustainable economic development, which is emphasized in its statute based on regulation 2000/45. A. How is the budget of the Municipality of Prishtina spent According to data from the Ministry of Finance and Economy, the municipality of Prishtina, as the largest municipality in Kosova, had a government grant from that Ministry of 11,531,768 for the fiscal year In addition, 151,634 were transferred from the municipal budget of 2001 to Apart from this, the forecast revenues for the municipality for 2002 were a total of 3,447,229, of this, 2,964,638 were own source revenues forecast to come from general administration, and 482,591 were own source revenues from educational institutions. Finally, the municipality of Prishtina transferred funds generated 111 While some smaller towns in Kosova have a 2-3 years strategy for economic development, Prishtina as the capital, which was led for more than two years by a professor of economy does not have such a strategy! - Interview with Dmitry Pozhidaev, deputy representative of UNMIK in the Municipality, LOGO, April 24, Municipal Report for Prishtina, Municipality of Prishtina from own source revenues from 2001 to 2002 at the total amount of 1,260,457. Thus, the overall budget available to the municipality of Prishtina for 2002 was 16,391,088. According to data from the report of the municipality of Prishtina for 2002, by November it had generated the following own source revenues: 69% from planned revenues for 2002 from traffic fines; 19,48% planned fees for 2002 for business permits; 59,21% planned revenues from leases for 2002; and 53,3 % of revenues anticipated from advertisement display on municipal property. Thus, at the end of November 2002 the municipality of Prishtina had generated 67% of revenues anticipated for 2002, which is below the satisfactory level. This fact makes it very hard to make financial predictions for Based on our analysis, it is clear that the municipality is not succeeding in a rational approach to generating revenue. It owns large amounts of land and other real-estate, some of it in very attractive locations, from which it could generate a large portion of its revenues. The fact that 40% of the own source revenues for the municipality come from traffic fines shows the inconsistency of its financial planning. These traffic fines are brought to the municipality by the police, which means that the municipality is not using any of its resources. The money in the Prishtina budget is the money that comes from papers and documents that the municipality issues to residents or from geodesic services. If this is not a bad financial management, then what is? Interview with, deputy representative of UNMIK in the Municipality, LOGO, April 24,

40 Low collection of own source revenues and unhealthy structure of own source revenues is a serious issue of concern. The table below presents the level of utilization of financial means from the budget of the municipality of Prishtina. We can see from the table that the municipality of Prishtina has spent 80% Kosova. However, there is space for further improvement of. The table below gives a detailed description of budgetary resources based on respective departments and the year. The municipality of Prishtina has four main departments which are separate expenditure units: Budget of municipality of Prishtina in the beginning of ,391, Spent until the end of December ,048, Unpaid commitment and obligations until the end of ,423, The budget in the end of 2002 remaining uncommitted and without 919, obligations Source: Ministry of Finance and Economy of the initial budget during % of the budget has remained unspent, but has been allocated in the form of commitments and obligations towards contractors. In the end, 5% of the budget has remained unused. According to the best budgetary practices, the utilization of financial means by the municipality of Prishtina from the consolidated budget of Kosova during 2002 is above average level compared to the expenditures of other municipalities and institutions spending funds from the consolidated budget of The Budget of the Municipality of Prishtina 2002 Department of General Administration; Department of Community Office; Department of Education; and Department of Health. All revenues and grants transferred from 2001 come from the Department of General Administration, while, in 2002, the revenues come from that department and the Department of Education. The general government grant for 2002 is divided proportionately, education (41%), administration (31%), health (26%) and community office (2%). Grant of general administration from , Department of general administration 3,623, Department of community office 165, Department of education 4,774, Department of health 2,968, Overall government grant in ,531, Revenues from the department of general administration 2,964, Revenues from the department of education 482, Revenues of the municipality in ,447, Revenues of the department of general administration from ,260, OVERALL BUDGET ,391, Source: The Ministry of Finance and Economy 40

41 If we analyze separately all the departments in the municipality of Prishtina, we can identify some common budgetary practices. The table below presents the budget of the Department of General Administration. The budget for salaries is used to the maximum during 2002, to an amount of 99.5%, while the budget for goods and services is used less, 82.7%, and the budgetary means transferred from 2001 to 2002 continue to be unused and 47% has again to be transferred to As to the rationality of expenditure, a trend of increasing expenditure can be noticed. Most expenditure on goods and services occurred in December 2002 and the expenses in the last quarter of the year exceed the amounts of the three previous quarters. As an example, in the table below we see that from Euro budget for January only Euro were spent, which is not even 10% of the budgeted amount, while for the same budget-line for October of the same year with same allocation of Euro, spending was Euro, which is 368% of the monthly budget. This can indicate that budget-planning and spending has not been done rationally. Municipality of Prishtina Department of general administration Financial review 2002 (Budget vs. actual Expenditure) Wages Goods Revenues All figures in EUR and Salaries and Services Budget Actual Budget Actual Budget Actual January 86,446 92, ,509 20, ,053 2,092 February 86,446 88, , , ,053 23,293 March 86,446 93, ,509 55, ,053 32,660 Total for the first quarter 259, , , , ,159 58,045 April 86,446 86, , , ,053 19,544 May 86,446 85, ,509 90, ,053 21,538 June 86,446 81, , , , ,271 Total for the second quarter 259, , , , , ,353 July 86,446 81, ,509 60, , ,341 August 86,446 84, , , ,053 27,322 September 86,446 86, ,509 62, ,053 63,920 Total for the third quarter 259, , , , , ,582 October 86,446 62, , , ,053 76,583 November 86,446 93, , , , ,073 December 86,446 95, , , , ,444 Total for the fourth quarter 259, , ,527 1,167, , ,099 Total from ,037,352 1,032,319 2,586,108 2,113,183 2,964,636 1,266,079 Total of revenues in , ,309 1,260, ,355 Total ,037,352 1,032,319 2,737,741 2,264,492 4,225,093 2,238,434 Difference in percentage 99.5% 82.7% 53.0% Total - Department of general administration Municipality of Prishtina ,535,245 Source: Ministry of Finance and Economy 41

42 The table below presents the actual expenditure of the Department of Community Office. This department has used 87.9% of the allocation for salaries but only 35.4% of the allocation on goods and services. Nevertheless, the expenditure in this department seems to be more rational and well distributed throughout the year although there are months in the beginning of the year where there were no expenses recorded whatsoever. Municipality of Prishtina - Department of community office Financial review 2002 (Budget vs. actual Expenditure) Goods Revenues All figures in EUR Wages and Salaries and Services Budget Actual Budget Actual Budget Actual January 4,995-8, February 4,995 4,182 8, March 4,995 3,950 8,790 1, Total for the first quarter 14,985 8,132 26,370 1, April 4,995 4,136 8, May 4,995-8, June 4,995 4,043 8, Total for the second quarter 14,985 8,179 26,370 1, July 4,995 6,026 8,790 10, August 4,995 6,230 8, September 4,995 6,230 8, Total for the third quarter 14,985 18,485 26,370 10, October 4,995 5,998 8,790 5, November 4,995 6,230 8,790 4, December 4,995 5,642 8,790 14, Total for the fourth quarter 14,985 17,869 26,370 23, Total from ,940 52, ,480 37, Total of revenues in Total ,940 52, ,480 37, Difference in percentage 87.9% 35.4% 0.0% Total - Department of community office Municipality of Prishtina ,038 Source: Ministry of Finance and Economy The following table presents the expenditure of the Department of Education. The same phenomena can be noticed again. The budget for salaries is used to the maximum, 99.3%, while 82.6% of the budget for goods and services is used. In this department as well, expenditure concentrates in the last months of the year - expenses in the last quarter of 2002 are three times higher than in the third quarter. 42

43 Municipality of Prishtina - Department of education Financial review 2002 (Budget vs. actual Expenditure) Goods Revenues All figures in EUR Wages and Salaries and Services Budget Actual Budget Budget Actual Budget January 336,332 86,319 61,524-40,216 - February 336,332 86,625 61,524-40,216 - March 336,332 87,494 61,524 50,275 40,216 - Total for the first quarter 1,008, , ,572 50, ,648 - April 336,332 85,448 61,524 30,803 40,216 - May 336,332 84,346 61,524 24,443 40,216 37,126 June 336,332 85,982 61,524 46,720 40,216 22,301 Total for the second quarter 1,008, , , , ,648 59,428 July 336, ,369 61,524 65,549 40,216 25,036 August 336, ,770 61,524 15,960 40,216 - September 336, ,233 61,524 25,226 40,216 15,617 Total for the third quarter 1,008,996 1,393, , , ,648 40,653 October 336, ,431 61,524 29,363 40,216 38,263 November 336, ,753 61,524 26,779 40,216 27,954 December 336,332 1,134,084 61, ,513 40, ,437 Total for the fourth quarter 1,008,996 2,099, , , , ,653 Total from ,035,984 4,008, , , , ,734 Total of revenues in Total ,035,984 4,008, , , , ,734 Difference in percentage 99.3% 82.6% 61.3% Total - Department of education Municipality of Prishtina ,914,219 Source: Ministry of Finance and Economy The last table presents the expenditure for the Department of Health. This department has also used all the budget for salaries while less than 60% of the budget for goods and services has been used. Like in all other departments, here too there was a drastic increase in expenditure in the last months of

44 Municipality of Prishtina - Department of health Financial review 2002 (Budget vs. actual Expenditure) Goods Revenues All figures in EUR Wages and Salaries and Services Budget Actual Budget Budget Actual Budget January 162, ,788 85, February 162, ,075 85, March 162, ,231 85, Total for the first quarter 486, , , April 162, ,729 85,231 17, May 162, ,807 85,231 8, June 162, ,174 85,231 3, Total for the second quarter 486, , ,693 29, July 162, ,588 85,231 17, August 162, ,402 85,231 99, September 162, ,189 85,231 4, Total for the third quarter 486, , , , October 162, ,667 85,231 38, November 162, ,807 85,231 18, December 162, ,387 85, , Total for the fourth quarter 486, , , , Total from ,945,836 1,932,844 1,022, , Total of revenues in Total ,945,836 1,932,844 1,022, , Difference in percentage 99.3% 56.3% 0.0% Total - Department of health Municipality of Prishtina ,509,065 Source: Ministry of Finance and Economy From the overall budget planned for the municipality of Prishtina, at the end of the year, 20.4% - amounting to 3,342,520 Euro remained unused. On the other hand, the needs, requests and complaints of the citizens of Prishtina are immense. To leave so much money unspent shows a poor and irrational management of financial means in the fiscal year. The municipality of Prishtina should have an external and internal auditing based on regulations in force in Kosova. The internal audit is carried out by the institution of the General Auditor of Kosova, an institution that is currently being set-up, while the external audit is carried out by independent auditors. The last audit carried out in the municipality of Prishtina was the external audit preformed by the well-known company Deloitte Touche Tohmatsu. Based on the audit preformed in the second part of 2002, the municipality of Prishtina has been certified as a municipality that has fulfilled the preconditions of the independent auditor. Since certification, the municipality of Prishtina, like the other municipalities as well, has moved to the following 44

45 organizational scheme for the fields of treasury, budget and finances. Chief Executive Officer Chief Financial Officer Head of Department of Finances (Approving Officer) Treasury Department (Authorization Officer) Budgeting Department Certifying Officer Account Processing Staff B. Where it can be helpful, the municipality hinders In Prishtina there is a concentration of the biggest public, social and private enterprises. It is worth mentioning some of the big ones, like KEK, PTK, Higjienoteknika, Public Housing Corporation, Hotel Enterprise Kosova, etc. PTK, for example, which is the postal and telecommunications service, is the only public enterprise which has been exclusively established by a special regulation of UNMIK. It uses both the pre-existing public infrastructure and infrastructure newly built since June While the postal service is currently operating with losses, the land line and mobile telephone services are generating profits which partially compensate for losses in the postal service, so there are some funds for renovating and developing the telecommunication networks. Although the PTK falls under the list of public enterprises of the municipality of Prishtina, it is not administered by the municipality. Similarly, the municipality does not administer the other social enterprises that are in its territory, since with the establishment of the Kosova Trust Agency (KTA) by UNMIK the KTA has taken the responsibility of administering all public and social enterprises until their privatization. Therefore, Prishtina authorities are not, and cannot be held, responsible for successes or failures of social enterprises in the territory under its jurisdiction. But, the Municipal Assembly of Prishtina has the competences and the responsibility to help private businesses. Private enterprises in the municipality of Prishtina do not have the support of the municipality. A Kosovar or an international enterprise these days is not encouraged to make investments in Prishtina. The reasons lie in the high level risk for such investments because of the lack of adequate laws for protection and security of investments. There is also no clear strategy from the municipality on the incentives the municipality can offer to the private sector. The municipality of Prishtina is in a good position to lease land and buildings in its possession, which are ideal for private businesses. The municipality should favor manufacturing and value-adding services which are crucial to a modern economy. Prishtina does not need more huge import warehouses, but it needs production 45

46 facilities, centers for the service industry and business centers operating at European and American standards. Besides this transformation, which will eventually happen, there has to be another transformation from trade to production and services, without which Kosova will not be able to improve its status in the region. The municipality can do more to help private entrepreneurs in this respect. On the other hand, the municipality of Prishtina can use another of its components in stimulating production and the service industry. This is the issue of construction permits. The influence of the municipality here would be to turn the outskirts of Prishtina into an industrial zone. In Veterniku neighborhood, for example, 90% of new construction is of warehouses for longer under special circumstances with a permit from the Central Authority. Capital investment in manufacturing and service industries should be considered special cases. Ramazan Hajdini, an American-Albanian who had come to invest in Prishtina after 30 years in Chicago, USA, where he had a number of restaurants and had built financial capital that he wanted to invest in Kosova, has now returned to the USA, disappointed at having been hindered from investing in Kosova. In Prishtina they did not even come back with an answer to my request for land where I wanted to build a factory. In Burim I was threatened only because I made a bid for the restaurant Trofta. Under these circumstances it is not worth investing the capital that I had earned through 30 years of labor, he said. 114 Code Activity Number of registered enterprises A Agriculture, hunting and forestry 19 B Fishing 2 C Mines and mining 12 D Production 461 E Electrical energy, gas and aqueduct 3 F Construction 260 G Wholesale and retail, repair of motor 2687 vehicles, bikes and home appliances H Hotels and restaurants 528 I Transport, deposits and communication 1197 J Financial intermediaries 22 K Real-estate, leasing and business activities 175 L Public administration and protection, 6 obligatory social insurance M Education 48 N Health and social work 70 O+P+Q Other activities 230 Total number of enterprises in municipality of 5720 Prishtina Source: Statistical Office of Kosova, information of December 2000 imported goods, which is a step in the wrong direction. Again, the municipality should have a more thought through strategy for leasing land. It can usually lease land up to 10 years period, and for Kosova has 47,400 registered private enterprises while the municipality of Prishtina has more than 4,000 private 114 Koha ditore, April 3, 2003, page 7. 46

47 businesses. The majority of these are small family shops with less than 10 employees. According to the data from the Statistical Office of Kosova, at the end of 2002, in the municipality of Prishtina, there was a total of 5,720 registered businesses which are presented according to the respective activities in the table below: Based on the data from the municipality of Prishtina, by the end of 2002 more than 13,000 businesses had been registered since registration started in There is a tendency towards a decrease in the number of new businesses being registered. More than 80% of all companies were registered in Kosova during , while during 2002 only 2,406 registered. Another matter of serious concern is the unbalanced structure of the municipal economy with the market shifting towards the trade and services sector, but without any noticeable growth in the production sector. Until the beginning of 2003, the municipality of Prishtina had held the responsibility for registration of new businesses. From the beginning of 2003, this responsibility has been transferred to the Ministry of Trade and Industry. With this, the registration of enterprises is no longer provisional. Registration of a private enterprise in the municipality of Prishtina is very easy. The Kosovar Register of Business Organizations and Trading Names, which was founded in October 2002, regularly receives applications for permanent registration of enterprises. However, the municipality of Prishtina has continued to do provisional registration of enterprises until February 2003 because of the non-completion of the abovementioned office of Register. C. The role of municipal government in economic development and alleviation of unemployment 1. Prishtina, from hope to dissapointment During the 1960s and 1970s in the former SFRY, municipalities were given a lot of governing power, including management of budget and economic planning. 115 It is the time when there was an overall progress in the municipality of Prishtina, including an accelerated economic development and transformation of Prishtina from a town to the largest urban center of Kosova. During the 1980s Prishtina had 854 square kilometers and 289,000 residents. 116 Now Prishtina has 572 square kilometers. 117 Although Prishtina was not damaged greatly during the war, the pre-war and war periods caused considerable economic damage. During the 1990s, the majority Albanian population, was completely stripped of every kind of power. The municipal government, dominated by the Serb minority under the direction of Milosevic s regime, did not create conditions for new economic development and economic structure that the post communist period and the market economy needed. Belgrade destroyed the constitutional system of Kosova and invaded municipal government in Kosova, appointing Serb presidents who were professionally unprepared, imposing a state of emergency in municipalities, stripping many of the responsibilities of the 115 Local Economic Development in Kosova, RIINVEST, April 16, 2002, page Ibid. 117 Municipal Assembly of Prishtina, Directorate for Rural Development, The curricula for rural development for 2003, February 17,

48 municipalities, etc.). 118 Prishtina underwent the worst possible degradation, including economically. At that time the economic development of Prishtina favored the creation of an economic structure that could survive only by corrupting the officials of the Milosevic regime. The people turned to trade and service activities. Economic activities followed a pattern of initially successful investment in various activities, followed by too large expansion in the same line of business, killing profits. This trend was visible with mini-markets, food warehouses, boutiques, cafes, restaurants, etc. Big socially owned enterprises, from which Albanians were expelled, worked only for the needs of the Milosevic regime or were completely depreciated. There was no investment by the municipality in infrastructure and no stimulation for private investment. Although there were businessmen who had progressed even at this time, the majority worked only to survive and had great problems from the municipal government of that time. After the war the Interim Government of Kosova was established in municipalities and UNMIK took over the real authority. Lack of legal infrastructure but also lack of definition of responsibilities gave space for grave misuse of municipal property at the time. In this period of reconstruction and laying the foundations for a future administration, there was an economic boom, but no sustainable economic development. After the first free elections in October 2001, there was hope that there would be conditions for rapid and sustainable economic development. But a lot remains to be wished for. The government elected in 2001 did not manage to change the situation fundamentally. Many of the problems arising at this time were with the internationals because they were the 118 Local Economic Development in Kosova, RIINVEST, April 16, 2002, page 57. ones who directed and controlled the financial power. Only now, at the beginning of 2003, the financial responsibilities were given to the of local government bodies in the municipality of Prishtina, as well as in most other municipalities of Kosova. 119 The situation has not improved much even after the second municipal elections. The directors of municipal departments were only appointed six months after the elections so the municipal budget for this year has not started to be used yet. The municipal elections were held in October Prishtina continues to face huge problems on all sides, and problems seem to be equally grave in most of Kosova. So the conclusions of the RIINVEST study on the development of local economy seem right, stating that, local government in post-war Kosova is facing great challenges, the war damages to the housing fund are still not completely eliminated, the road, water and electric power infrastructure in the town are quite outdated and not rehabilitated and extremely overloaded Economic development or economic degradation One of the responsibilities of the municipality of Prishtina is creating the conditions for the development of the local economy. In the regulation 2000/45, article 3, among others is stated that the municipality has the responsibility for creating basic conditions for sustainable local economic development 121 This issue is regulated similarly in the Statute of the Municipality of Prishtina. 122 In the survey conducted for the purpose of this 119 Municipalities administer their budget Koha ditore, December 18, 2002, page 6, 120 Local Economic Development in Kosova, RIINVEST, April 16, 2002, page Regulation 2000/45, Article 3, page The Statute of the Municipality of Prishtina, Article 19, page 7 48

49 study by Index Kosova, more than 69% laws are incomplete and cannot deal with of respondents stated that Employment local many status of the problems accumulated for authorities can solve their problems. years. The new legislation should be Among these problems, the most extremely precise in defining relations 40% 37% important ones are those dealing with between the central and local authorities. their economic 35% situation: 45% The periodic conflicts between these two unemployment 30% and 22% economic authorities (especially when dealing with reconstruction and infrastructure. 23% 123 Also, responsibilities towards public municipal 25% according to focus-group discussions enterprises) 125 cannot be regarded as an conducted 20% 16% by Index Kosova, 14% unimportant explanation of the economic unemployment 15% is one of the problems stagnation in Prishtina. 7% they are mostly preoccupied with. They The present condition of these enterprises 10% also think that the municipality should be is that according to 4% Regulations more careful 5% when licensing businesses 2000/ and most of all according to so there 0% will be no more cases of 2002/ the municipality of Prishtina employees not being Employed paid Housewife for their work Student has Pensioner very few Unemployed legal Unemployed powers over these for 2-3 months. 124 handicapped looking for not looking for enterprises. That work is why work the specific It is clear that the role of the municipality importance of Prishtina has to be taken is truly important if not essential in into consideration since it is the capital of economic development and alleviation of unemployment. Kosova, where all the main institutions of Kosova are situated and where many What characterizes economic different economic and political interests development in Prishtina in the post-war years is: Lack of an adequate and inclusive legal framework clash. The conflict, which at times is latent and at times open, that has lately surfaced between the internationals and the locals Development of a chaotic on the issue of responsibilities has a economy prime role in this respect. On many Lack of effectiveness of issues that pertain directly or indirectly to municipal administration in economic development, such as property, provision of better services to privatization and the judicial system, the citizens who wish to engage in central and municipal institutions of entrepreneurship Kosova either have no responsibilities or Poor management of municipal the responsibilities they have are lame. budget The Assembly of Kosova has still not Lack of effectiveness in adopted the law on property, which is an municipal revenue collection imperative in the process of privatization, Economic degradation of rural and which would create conditions for areas economic development and the creation of new jobs. Lack of an urban plan. 3. Without laws 4. Development of a chaotic economy Economic development cannot be The fact that there was a lack of a vision imagined without a modern and inclusive for the economic development of the legal apparatus. Current regulations and 125 Local Economic Development in Kosova, RIINVEST, April 16, 2002, page Articles 1.2 and 2.2 (b and f), Regulation 123 Research on local authorities and public services in Prishtina, Index Kosova, April A study on Municipality of Prishtina, Focus group with citizens residents of Prishtina, Index Kosova, March/April / Article 5 (5.1 and 5.5) as well as article 6, Regulation 2002/12 49

50 municipality of Prishtina after the war has made it possible for a chaotic economy to bloom. Mini-markets, restaurants, cafes, boutiques, petrol stations, and illegal kiosks became the main economic activity in post-war Prishtina. This economic structure has started to produce its first consequences, because it is unable to meet the economic needs of the citizens of Prishtina. In the majority of cases, because there are so many such enterprises, they are not profitable any more. One of its results is that unemployment has now started to be felt badly as well as disappointment and despair about the possibilities of making a profit from any of these businesses. On the other hand, the lack of stimulus for production (as we said above,local producers are discouraged in Prishtina, and this is true for Kosova as a whole) and the obstacles in the privatization of large and medium socially owned enterprises have made production fall to very low levels. According to our focusgroups with residents of Prishtina, economic development of the city at this moment should be moving in the direction of establishment small enterprises of employees as well as development of tourism (Gërmia). 128 Although in a very bad situation, the municipality of Prishtina has not taken any serious steps to change this situation and create conditions for the change of economic structure of the capital city. Under the circumstances, it is an imperative that the municipality has a clear plan for the economic development of Prishtina. This plan should have a timeframe and phases. It should be presented and approved in the Municipal Assembly, but has also to be presented to the public so that the municipal government becomes accountable for the plan s realization or failure, not only in 128 A study on the Municipality of Prishtina, Focus group with citizens residents of Prishtina, Index Kosova, March/April front of the Municipal Assembly, but also in front of public opinion. According to officials of the Department for Economy, only now, three years after the first free municipal elections, is an office for planning and analysis being established within this department, to handle the problems of economic development of Prishtina in the future. 5. Economic degradation of rural areas Of 572 square km in the municipality of Prishtina, around 43 square km are urban areas and around 528 square km are rural areas. 129 The Director of the Department for Rural Development, Mr. Feim Saliu, claims that only about 30,000 inhabitants live in the highlands of Gallap (Malësia e Gallapit), which takes up around 50% of the territory of the municipality of Prishtina. 130 Thus, the city of Prishtina after the war is suffering from overpopulation. The influx of population from the suburbs and from other areas of Kosova has hampered the economic position of the city, which was not ready in any way to take such an increase of population. The influx of population has also impoverished the whole population of the municipality for the other side of the process is depopulation in areas around Prishtina, leaving whole villages nearly uninhabited as their residents moved to Prishtina hoping for a better life than they could find in villages destroyed by the war. Consequently the agricultural products Prishtina was getting from its surrounding area are now less available and most food is imported. Migration to the city has not solved the problems of what used to be the rural population; on the contrary, in most of the cases they live worse than they did in villages. 129 The curricula for rural development for 2003, Municipal Assembly of Prishtina, Directorate for Rural Development, February 17, Interview with Feim Saliu, Director of the Directorate for Rural Development of the Municipality of Prishtina, April 16,

51 In research visits to the Local Offices in Keqelollë and Dabishec, it was observed that the economic situation in the Highlands of Gallap is grave, regardless of the fact that this area has a great potential for farming, beekeeping and fruit growing. 131 The same opinion is held by the Department for Rural Development of the Municipality of Prishtina. In the plan for Rural Development for 2003, this department concluded that with a serious approach in the continuity and new investments in this sphere, the villages of this municipality have a suitable position for intensive development of herbal production and farming. 132 In Keqekollë there is a milk factory that employs 13 people. The irony here is that, although Gallap is a mountainous region with ideal conditions for farming, depopulation, destruction of livestock during the war, and the lack of investment incentives for farmers, the region cannot produce even 20% of the 400 litres of milk that the factory needs each day. The other part of the needs is fulfilled from the region of Peja and other parts of Kosova. With better incentives and loans for local farmers, and with help from the municipality, the milk factory would not only be able to get the necessary supplies from its own area but would also have to increase the production capacities. There is a farmers association in the region, which according to Hilmi Uka, president of the local office of Keqekolla, is thinking of helping the farmers in the region to start their farms and thus increase their livestock fund and the production of milk and meat. They are charging 20 a month for a membership fee, so they can create a basic financial fund and compete for 131 Interview with Hilmi Uka, President of the Local Office (Bashkësia Lokale) of Keqekolla, March The curricula for rural development for 2003, Municipal Assembly of Prishtina, Directorate for Rural Development, February 17, bank loans. According to Mr. Uka, the municipality could also be more active in this regard, by being a kind of guarantor for banks for loans to farmers. Mr. Uka thinks that the mushroom factory and fruit processing plant in this area should also be reactivated and privatized. Mr. Uka thinks that the municipality should be much more active in providing help for the development of agriculture. 133 The situation is the same in the local office of Dabishec. According to Sadri Murati 134, there is no serious economic activity in this area. In the village of Gjelbrishtë (Hajkobillë) there are two small farms and the whole economic activity of the remaining inhabitants is based on family economy (beekeeping, farming a cow or a sheep, etc.). According to Mr. Murati there could be investments, in this region in the wood industry and there are also good conditions for development of farming and beekeeping. According to him, in the region of Gallap there is a beekeepers association, which is also trying to revive this agricultural activity. On the other hand, regardless of the dissatisfaction of the interviewees with the work of the municipal organs, Feim Saliu, director of the Directorate for Rural Development of the Municipality of Prishtina, claims that his department has done some serious work in the reconstruction of the infrastructure of rural areas and he is counting on continuing this way. He concludes that the region of Prishtina cannot develop economically without the rehabilitation of the infrastructure in the rural areas. According to Mr. Saliu, the projects that have been implemented last year in the area of Gallap and in other areas are very serious. Some of the main projects involved road construction and repair, and water-supply. 133 Interview with Hilmi Uka. 134 Former president of the Local Office in Dabishec and the director of the elementary school there. 51

52 The development of infrastructure would have an impact on the development of agriculture in general. According to Mr. Saliu, in the past years only some of the most useful activities were supported by the municipality in the field of agriculture. He mentioned that around 500 greenhouses for 500 families were financed by the municipality and some donations to the municipality of Prishtina. He emphasized that a great success is being achieved in this direction in the villages of Barileva, Bardhosh, Prugoc and Besa where there is intensive development of vegetable production. According to him some important farmers are emerging in this region who in the future will supply Prishtina with fresh vegetables for 8-9 months a year. We have also to mention the work the municipality has done in increasing the cultivation of vegetables through consultation with specialists in the field of vegetable production. He thinks that in the next 2-3 years the municipality of Prishtina will have around 10 Ha of greenhouses. As far as animal husbandry is concerned, he mentioned the creation of two veterinary stations, one in Keqekolla and the other in Bardhosh. Mr Saliu also mentioned that the start of mobile veterinary teams in the municipality of Prishtina is expected soon. As for loans to farmers, Mr. Saliu said that it is not the municipality s responsibility but he emphasized that the municipality is making efforts to manage contacts with micro-financing institutions, and in the future, also with banks, for the farmers interested in investment loans. He said that the Ministry of Agriculture is the most to blame for the standstill in several fields of the agricultural development, in particular in the allocation of larger sums of money from the central government, because it has done very little for agricultural development in Kosova. 135 Mr. Saliu, together with a group of experts will work in compiling a leaflet on the situation of agriculture in the municipality of Prishtina, where the possibilities and the ways of emerging from the existing situation will be outlined as well. With a clear development program this region has the possibility also to develop mountain tourism in the summer season as well as in winter. Holiday camps could be built for children and youth, there could be camps and sport halls for sportsmen, certain areas could be chosen for their natural beauties and could be proclaimed national parks. Mr. Uka proposed that the hospital for respiratory illnesses be placed in one of the villages in the region. All these programs require a developed infrastructure; thus, it is a duty of the municipality to give more thought to these and even create conditions for investments for the interested parties. 6. Without an urban plan. The lack of an urban plan, and as a result, many unlicensed constructions (somewhere around buildings are considered to be without licenses) 136, have given Prishtina many economic problems. Taking into consideration that the authorities of the municipality are limited when considering management of municipal property, because it has the right to lease this property for use only up to 10 years, the problems of construction of new capacities and buildings for different purposes in Prishtina have piled up for years. Regulation 2000/45 defines this issue in the following manner: The municipality 135 Interview with Feim Saliu, Director of the Directorate for Rural Development of the Municipality of Prishtina. 136 Many citizens, this year for the same property will pay taxes twice Koha Ditore, page 27, January 15,

53 cannot sell or lease land or municipal buildings for more than 10 years without the approval from the Central Government. 137 According to municipal officials, this has had a large influence on potential investors not to start construction of residential buildings in Prishtina. 138 Prishtina has an industrial zone where it was planned that all economic activity should be carried out. there has lately been a sharp debate between the municipality of Prishtina and that of Fushë-Kosova, on the ownership of property in this zone, while according to officials from both municipalities the buildings in this zone are unlicensed and do not fulfill the financial obligations to municipalities. 139 The municipality of Prishtina should create easier conditions for businessmen to lease municipal land, in order to stimulate investment. In this direction, it weould ease tings a lot if UNMIK would allow the adoption of the Law on Property by the Assembly of Kosova. The bureaucracy of the municipality often hinders these investments by creating difficulties to businessmen that want to invest. Lacking an urban plan, the only construction in Prishtina is wild and illegal. Even those builders that possess construction permits do not adhere to the criteria set in the previous, outdated, urban plan, and the documentation submitted to the municipality as the construction plan. The municipality should urgently review the problem of issuing construction permits to enterprises that wish to build residential buildings in Prishtina legally. The start of legal construction in Prishtina would have many benefits. The prices of flats would decrease from their current very high level and there would be new employment opportunities in the field of construction as it began to expand. One of the businessmen active in this field says that if the municipality gave him permits for his construction plans he could employ up to 2000 people. 140 The municipal officials themselves believe that this year serious construction projects will start in the neighborhoods of Dardania, Ulpiana and Bregu i Diellit, while the urbanization of neighborhoods of Arbëria, Emshiri and Lagjja e Spitalit is expected Article 44.2, page 21, Regulation 2000/ Prices are expected to decrease, but no lower than 600 euro, Koha ditore, page 6, March 19, Is mafia controlling the industrial zone?, Koha ditore, page 3, January 30, Prices are expected to decrease, but no lower than 600 euro, Koha ditore, page 6, March 19, Ibid. 53

54 ANNEX 1 A summary of the main results from the quantitative survey conducted for the purposes of this report by index kosova, partner of bbss gallup international General information on the research - The filed work was done April Sample: 500 respondents from Prishtina - Representative sample for the urban population of Prishtina, 18 and older - Methodology: Thirty minute one-to-one interviews in the house of the respondent - Control: 15.6% of the interviews were controlled in the field - The training and instructions for the surveyors and supervisors was held on April 1 st Data input: April Preparation of the data and report: April 1-14 Table 1. Developments in Kosova are going in the... Developments in Kosova are going in the Percent Right direction Wrong direction refuses I don't know 54

55 Table 2. Developments in Prishtina are moving are going in the... Developments in Prishtina are moving are going in the Percent Right direction Wrong direction Refuses Don't know Table 3. Most important problems in Kosova today (first mentioned) Most important problems in Kosova today (first mentioned) 49 Percent Unemploymnet Status of Kosova Electricity Economy 5 55

56 Table 4. The most important problems in Kosova today (cumulative of the first two mentioned) The most important problems in Kosova today (cumulative of the first two mentioned) 69 Percent Unemployment Electricity Status of Kosova Economy Table 5. The Most important problems in Prishtina (first one mentioned) The most important problems in Prishtina (the first mentioned) Percent Unemployment Electricity Economy Environmental pollution Garbage collection 56

57 Table 6. The Most important problems in Prishtina (cumulative of the first two mentioned) 45 The most important problems in Prishtina (cumulative of two first mentioned) 45 Percent Unemployment Electricity Economy Environmental Pollution Garbage collection Table 7. How much are you satisfied with the following services How satisfied are you with these services Fire and emergency services Public transport Sport activities Ambulanta Management of schools Environmental protection Local roads Tax payment Pensions Electricity Averages from -100 to

58 Table 8. Evaluation of personnel (average of Yes answers) Evaluation of personnel (average of "Yes" answers) 70% 60% 50% 40% 30% 20% 10% 0% Ambulanta Hospital Telefoni Post service Municipal office KEK office Local Office Table 9. Services that have to be taken under urgent consideration in Prishtina Services that have to be taken into urgent consideration in Prishtina 70% 60% 50% 40% 30% 20% 10% 0% Electricity Garbage collection Road Maintenance Sew age Water supply Primary healthcare 58

59 Table 10. Do you think that the wild or illegal constructions are a problem for the municipality of Prishtina? Do you think that the wild or illegal constructions are a problem for the municipality of Prishtina? No 3% Refuses Don't know 1% Yes 96% Table 11. What should the local authorities of the municipality of Prishtina do with these illegal constructions? What should the local authorities of the municipality of Prishtina do with these illegal constructions? Refuses/Don't know 8% Legalize them Other 1% 31% Bring them down 60% 59

60 Table 12. Frequency of visits in... Frequency of visits in... (averages in the scale of -100 to +100) Health house Telephone Hospital KEK Municipality Main Offices posatl office Local Office Table 13. Which authority should have the main responsibility for functioning and development of these services and activities? Local Municipal Authorities Central Authorities of Kosova UNMIK Public utility enterprises Private enterprises Services Ambulate 53% 25% 6% 6% 2% Hospital 34% 46% 5% 5% 2% Public healthcare 35% 37% 3% 11% 1% Management of primary and secondary schools 39% 43% 4% 5% 1% Garbage collection 61% 7% 2% 19% 5% Water supply 56% 12% 1% 22% 2% Sewage and public hygiene 53% 12% 1% 22% 6% Maintenance of local roads 62% 8% 2% 15% 5% Maintenance of highways 24% 45% 3% 14% 6% Traffic and control/regulation of parking areas 50% 28% 4% 9% 2% Electricity supply 19% 51% 7% 11% 4% Post telecom services 31% 44% 2% 12% 3% Environmental protection 43% 37% 2% 8% 2% Preservation of land, flora and fauna 45% 34% 2% 7% 1% Cultural activities 49% 34% 1% 5% 1% Sports activities 49% 34% 1% 5% 1% Fire and emergency services 55% 22% 2% 11% 1% Urban and rural planning, land use 44% 37% 2% 6% 0% Social services 34% 48% 5% 6% 0% Pensions 20% 61% 8% 4% 0% Tax payment procedures 38% 42% 7% 4% 1% Public transport 59% 20% 2% 10% 2% 60

61 Table 14. The general household income per month (EUR) General household income per month (EUR) 30% 28% 25% 20% 22% 19% 15% 13% 10% 10% 7% 5% 0% (1-100) ( ) ( ) ( ) (601+) refuses Table 15. Employment status (only in urban areas) Employment status 40% 37% 35% 30% 25% 23% 20% 15% 14% 7% 16% 10% 4% 5% 0% Employed Housewife Student Pensioner handicapped Unemployed looking for work Unemployed not looking for work 61

62 ANNEX 2 A. Map of Kosova Burim: Qendra Informative e Komunitetit Kosovar, Prishtinë 62

63 B. Map of the Municipality of Prishtina 63

64 ANNEX 3 About KIDS Kosova Initiative for Democratic Society (KIDS) is a Kosovan NGO established in June 2000 by a group of young Kosovans with the help of the International Peace Research Institute in Oslo (PRIO) and the Nansen Academy in Lillehammer, Norway. KIDS is also a part of the Balkan Dialogue Project, which is a network of NGOs all over the Former Yugoslavia, called the Nansen Network. The NGOs located in different cities, such as KIDS, work on the particular needs of the respective societies, but doing this by using dialogue as a tool for the promotion of democracy, human rights and understanding. All the centers also work very closely with different relevant factors in their respective societies in trying to bring about positive developments. Kosova Initiative for Democratic Society KIDS, works on the particular needs of the Kosovan society and its mission is to provide space for: Building an open and inclusive society through facilitating interethnic dialogue Provide space for civic engagement Promotion of Democracy, Transparency and Civic Society Human Rights Human capacity Building Gender values in the society In 2003 the issues that will certainly dominate the public debate in Kosova are: decentralization process, the issue of final status, integration of minorities and privatisation. Through seminars, trainings and public debates the aim of KIDS will be to offer space for discussion of different ideas and attitudes in connection with these topics. In this way will contribute to debate with in our society as one of the most important elements to building a healthy democratic society. In this approach a high priority in our agenda in the running year will be facilitation of the interethnic dialogue with in Kosova and also facilitating dialogue with the neighboring countries thus contributing not only to reconciliation and minority integration with in our society but also to reconciliation and cooperation in our region. We aim to accomplish this through interethnic dialogue seminars but also through cross border dialogue seminars. Through engagement in research and analysis KIDS will be also providing study reports on different important issues for the Kosovan society. By publishing study papers (reports) that will thoroughly examine a range of issues KIDS will provide an element of Kosovan public debate missing as of yet. It will therefore help the policy makers in the newly formed Kosovar institutions who have a very limited experience in governance and need the support of independent policy input to make betterinformed decisions. It will also help the international community to better understand the developments in Kosova by getting a analysis and recommendations from the local perspective. Also through its other programs, like Public Debates, KIDS will try to fulfill the needs of the Kosovan public and promote the values it stands for, such as democracy, transparency, human rights and so on. 64

65 Logical Solutions Group - LOGO LOGO (Logical Solutions Group) is a project of KIDS started in September The project gathers a team of young and active Kosovans coming from different backgrounds, who will be researching and writing on the main issues facing the Kosovan society. The aim is to start the public debate on these issues based on empirical research and deep analysis. The reasons why the project was started are many. During the post-war years there have been many developments in Kosova. Many things were decided that will effect the life here for a long time in the future. Yet, there are no consistent records coming from the Kosovans that analyze these developments and give the local views on the issues. There has been almost no public debate on many important issues that came up. Perhaps the only records are articles in Kosovan newspapers, which at best came only from time to time from responsible people and at worst (usually the case) came as vague general statements not based on any facts. Another point to this is that these records and analysis are lacking also in the international circles. Many mistakes and wrong approaches taken in Bosnia and Herzegovina were repeated in Kosova as well. This leads to the conclusion that little or no lessons were learned from previous mistakes. Having a local think tank group, such as LOGO, that analyzes the issues and gives a local perspective certainly helps the learning process, which could make the intervention of the international community better, not only in Kosova but elsewhere in the future as well. LOGO does this by publishing study papers (reports) that thoroughly examine a range of issues. LOGO does not take any political stands on these issues but rather opens the debate by bringing up relevant facts and the context and then giving different concrete ideas based on the empirical research and established facts. The papers are short, practical and policy oriented. This work provides an element of Kosovan public debate missing as of yet. It will therefore help the policy makers in the newly formed Kosovar institutions who have a very limited experience in governance and need the support of independent policy input to make better-informed decisions. Publications until now 2003: The Future at Stake A study on the Higher Education in Kosova, November Research papers on Illicit Small Arms based on research with former UCK combatants and School personnel in Kosova - for the Illicit Small Arms Study, a study conducted by the United Nations Development Program (UNDP) and Small Arms Survey (SAS) in cooperation with KIDS as a Kosovan research partner. 65

66 ANNEX 4 Authors of the report Editing team of Clean Stairways : Ardian Arifaj Bersant Disha Artor Sejfija Dritan Gjonbalaj Written by: Ardian Jashari Artor Sejfija Bersant Disha Dritan Gjonbalaj Valon Murati Visar Berisha Blerim Ahmeti Members of the Logical Solutions Group: Ardian Jashari Artor Sejfija Bardh Rugova Bersant Disha Dritan Gjonbalaj Valon Murati Visar Berisha Blerim Ahmeti Contact information: Kosova Initiative for Democratic Society - KIDS Project LOGO Rr. Sylejman Vokshi 2/2 Prishtinë Kosovë Via-Zurich Tel/fax: logo@kids-kosova.org kids_pri@hotmail.com web-site: 66

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