Kosovo Human Development Report 2010 - UNDP Kosovo - United ...
Kosovo Human Development Report 2010 - UNDP Kosovo - United ...
Kosovo Human Development Report 2010 - UNDP Kosovo - United ...
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lower access to services than urban<br />
families. Regional variations also apply<br />
(see figures 2.13 and 2.14).<br />
2.4<br />
Promoting inclusive<br />
economic growth -<br />
policy recommendations<br />
FIGURe<br />
<strong>Kosovo</strong>’s economic weaknesses<br />
2.14<br />
have policy and structural roots,<br />
many of which <strong>Kosovo</strong> shares with<br />
other early transitional contexts. For<br />
example, a modern education system<br />
for an educated workforce cannot be<br />
built overnight. In addition, <strong>Kosovo</strong> still<br />
continues to suffer from some poststatus<br />
political barriers hindering both<br />
exports and investments.<br />
However, analysis of the complex<br />
linkages between factor market exclusion<br />
(limited economic participation)<br />
and exclusion from basic goods and<br />
services (equated with poverty) suggests<br />
that <strong>Kosovo</strong>’s current economic<br />
trajectory needs a change in course.<br />
Economic exclusion – of which poverty<br />
is merely a subset – affects a surprisingly<br />
large proportion of Kosovans and<br />
deeply undermines their human development<br />
potential. <strong>Kosovo</strong>’s broader<br />
economic outlook is similarly affected.<br />
A macro-economy dependent on aid,<br />
remittances and imports cannot open<br />
factor markets to those currently excluded<br />
– irrespective of the impact on<br />
GDP. Translating economic growth into<br />
higher employment levels and wider<br />
economic participation requires sensitive<br />
economic and social policies, and<br />
a sincere collective effort to integrate<br />
Exclusion from utility services across different settlement sites<br />
40%<br />
35%<br />
30%<br />
25%<br />
20%<br />
15%<br />
10%<br />
5%<br />
0%<br />
Village<br />
City/Town<br />
Source: Calculated from <strong>UNDP</strong>s <strong>Kosovo</strong> Mosaic Survey<br />
13.6%<br />
6.9%<br />
31.4%<br />
11.7%<br />
2.1%<br />
7.8%<br />
Prishtinë/Priština<br />
the excluded into a stronger society.<br />
1.9%<br />
Critical policy recommendations towards<br />
this goal are:<br />
(i) Re-orient economic growth towards<br />
sustainable strengthening of<br />
the labour market<br />
• Reforming the energy and mining<br />
sectors is essential to expanding a<br />
sustainable labour market: in particular,<br />
the mining sector needs urgent<br />
reform, including privatization,<br />
and the establishment of sound and<br />
transparent legal and institutional<br />
frameworks to encourage private<br />
sector investment. A reliable energy<br />
supply is a fundamental precursor<br />
to major industrial operation.<br />
• Investment climate reform must<br />
accelerate: although considerable<br />
work has been undertaken at the<br />
central level in <strong>Kosovo</strong> to establish<br />
0.0%<br />
0.0%<br />
No sanitation<br />
No tapped water<br />
Neither tapped water<br />
nor sanitation<br />
ECONOMIC AND LABOUR MARKET EXCLUSION | 47