Cooperation strategy Kosovo 2009-2012 - Deza

COOPERATION 

STRATEGY 

KOSOVO 2009-2012

Editors and Publishers 

Federal Department of Foreign Affairs 

Swiss Agency for Development and Cooperation (SDC) 

Freiburgstrasse 130 

3003 Bern 

www.deza.admin.ch 

Federal Department of Economic Affairs 

State Secretariat for Economic Affairs (SECO) 

Ef� ngerstrasse 1 

3003 Bern 

www.seco-cooperation.admin.ch 

Swiss Cooperation Of� ce Pristina 

Adrian Krasniqi 11 

10060 Pristina 

www.swiss-cooperation.admin.ch/kosovo 

Layout 

Rrota, www.rrota.com 

Pictures 



Valentin Küng 

Available at 



Swiss Cooperation Of� ce Pristina 

An electronic version of the Strategy is available via Internet 

Organizational Units in Charge 


Cooperation with Eastern Europe 

Western Balkans Division 


Economic Cooperation and Development Department 

Division of Infrastructure Financing 

© SDC/SECO 2009

INTRODUCTION 

The Swiss Agency for Development and Cooperation (SDC) and the Swiss State Secretariat for Economic Affairs 

(SECO) have jointly elaborated the Swiss Cooperation Strategy 2009-2012 for Kosovo in hand with development 

partners in Kosovo and with different Swiss Governmental actors involved. The new strategy stands 

for the Swiss commitment to support the transition and building of the newly-born-state of Kosovo towards a 

functioning democratic state and a social, sustainable market economy. 

The Swiss Cooperation Strategy has been prepared in line with the national development priorities set in the 

Medium-Term Expenditure Framework 2009-2011 complemented by the Millennium Development Goals for 

Kosovo. The document is further based on the experiences made and lessons learnt by the Swiss actors in the 

past in the Western Balkans. 

The present strategy sets the frame and the strategic orientations for the Swiss Cooperation in Kosovo from 

2009 to 2012, and it includes a monitoring system to assess the Swiss contribution to the development of 

Kosovo. Switzerland has been providing support to Kosovo since 1998. The initial focus on humanitarian aid 

has gradually been replaced by support to transition and development. 

The present Strategy contains three main parts. The � rst is concerned with context development and the current 

situation; the second focuses on the assessment of the past experiences; and, in the third part, the strategic 

orientation is outlined. 

While both SECO and SDC will work closely together in the implementation of the Strategy, each institution 

ful� ls its respective role and remains responsible for the � nancing and the execution of its part of the Strategy 

and for the achievement of the corresponding objectives and results. 

The Cooperation Strategy 2009-2012 for Kosovo was approved in July 2009. 

Swiss Agency for Development State Secretariat for Economic 

and Cooperation (SDC) Affairs (SECO) 

Martin Dahinden Jean-Daniel Gerber 

Director-General State Secretary

4 

ABBREVIATIONS 

CIS Commonwealth of Independent States 

DDPS (Swiss) Federal Department of Defence, Civil Protection and Sport 

EFSE European Fund for Southeast Europe 

EU European Union 

EULEX European Union Rule of Law Mission 

FOM Federal Of� ce for Migration 

GDP Gross Domestic Product 

ICO International Civilian Of� ce 

IFI International Financial Institutions 

ILR Interdepartementale Leitungsgruppe Rückkehrhilfe (Interdepartmental Steering Group on 

Return Assistance) 

IMF International Monetary Fund 

KCA Kosovo Cadastre Agency 

KFOR Kosovo Force 

KPA Kosovo Property Agency 

LOGOS Local Governance and Decentralisation Support South-Eastern Kosovo 

MARRI Migration, Asylum, Refugees Regional Initiative 

MERV Monitoring entwicklungsrelevanter Veränderungen (Monitoring of development relevant 

changes) 

MESP Ministry of Environment and Spatial Planning 

NALAS Network of Associations of Local Authorities in South-East Europe 

NGO Non-Governmental Organization 

OECD Organisation for Economic Co-operation and Development 

OSEC Organization for Promotion of Exports, Imports and Investments 

PD I Political Affairs Division I 

PD IV Political Affairs Division IV 

PEP-SEI Private Enterprise Partnership for Southeast Europe Infrastructure Programme 

PIDG Private Infrastructure Donor Group 

RWC Regional Water Company 

SDC Swiss Agency for Development and Cooperation 

SECO State Secretariat for Economic Affairs 

SEDPP Sustainable Employment Development Policy Programme 

SEED Southeast Europe Enterprise Development Fund 

SETAA Southeast Europe Police Chiefs Association 

SIPPO Swiss Import Promotion Programme 

SNSF Swiss National Science Foundation 

SWAp Sector Wide Approach 

UN United Nations 

UNMIK United Nations Interim Administration Mission in Kosovo 

VET Vocational Education and Training

CONTENTS 

Introduction 

Abbreviations 

Executive Summary 

1. Context ........................................................................................................ 7 

1.1 Political Development .............................................................................................................. 7 

1.2 Economic Development .......................................................................................................... 8 

1.3 Social Development ................................................................................................................ 8 

1.4 Development strategies and main challenges ............................................................................ 9 

1.5 Donor Landscape ................................................................................................................... 9 

1.6 Kosovo and Switzerland – a special relationship ....................................................................... 9 

1.7 Scenarios for future Developments ..........................................................................................10 

2. Review of Swiss Cooperation 2007 to 2009 .............................................. 11 

2.1 Swiss Assistance to Kosovo ................................................................................................... 11 

2.2 Achievements of the Programme 2007 to 2009 ...................................................................... 11 

2.3 Conclusions ......................................................................................................................... 12 

3. Strategic Orientation 2009-2012 ............................................................. 13 

3.1 Strategic Framework ............................................................................................................ 13 

3.2 Overall Goal and Orientation ............................................................................................... 14 

3.3 Economy and Employment Domain ........................................................................................ 15 

3.4 Rule of Law and Democracy Domain ..................................................................................... 15 

3.5 Public Infrastructure Domain ................................................................................................. 16 

3.6 Special Issue Migration ......................................................................................................... 17 

3.7 Transversal Themes ............................................................................................................... 18 

3.8 Regional Programme and Swiss NGO activities ...................................................................... 18 

4. Implementing Modalities ......................................................................... 19 

5. Monitoring ................................................................................................ 20 

6. Programme Management, Human and Financial Resources .................. 21 

6.1 Programme Management and Human Resources .................................................................... 21 

6.2 Financial Resources .............................................................................................................. 21 

ANNEX 

Annex 1: Strategy at a Glance ......................................................................................................... 22 

Annex 2: Financial Planning ............................................................................................................ 23 

Annex 3: Monitoring System ............................................................................................................ 24 

Annex 4: Aid Modalities .................................................................................................................. 27 

Annex 5: Kosovo at a Glance .......................................................................................................... 28 

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SWISS COOPERATION 

Executive Summary 

Kosovo is the youngest state in Europe. On 17 February 

2008, the Kosovo government unilaterally declared 

independence from Serbia. Based on UN Resolution 

1244, the newly-born state of Kosovo has to face many 

challenges such as building a new administration, � ghting 

against corruption, dealing with the settlement of 

the North-Mitrovica question and the integration of the 

Serb community enclaves south of the Ibar river; implementing 

the decentralization reforms; ensuring minority 

rights and numerous pending political issues and harsh 

socio-economic conditions, especially youth unemployment 

(43.6% in 2007), poverty and migration issues. 

Kosovo’s economy is built on foreign direct investments, 

foreign assistance (9% of GDP), and on remittances 

(13% of GDP). Despite improvements such as new labour 

laws and a modest tax burden, overall economic 

development is still seriously constrained by factors such 

as limited access to � nance, weak infrastructure, poor 

governance and a poorly skilled workforce. 

The Medium-Term Expenditure Framework (MTEF) 

2009-2011 - the strategic framework of the Kosovo 

government - � xes its priorities as follows: (1) economic 

growth (infrastructure, rule of law, education, agriculture 

and � scal policies); (2) implementation of status 

settlement (decentralisation, minorities); (3) good governance 

(public administrative reform, public � nancial 

management, � ght against corruption); and (4) poverty 

alleviation and social stability (social transfers, health). 

The MTEF re� ects a wide consensus of international donors 

on the main challenges Kosovo is facing. 

Switzerland has been providing support to Kosovo 

since 1998 focussing initially on humanitarian aid, reconstruction 

and return aid to refugees. Since 2000, 

the program gradually shifted to transition process support. 

The important Diaspora of Kosovars living in Switzerland 

constitutes a special element of Swiss-Kosovo 

relations. Next to SDC and SECO, the Federal Of� ce 

for Migration, the Political Divisions I and IV, as well as 

the Swiss Army play an important role in Kosovo. These 

multifaceted engagements require the Swiss Cooperation 

with Kosovo to be implemented under a “whole of 

government” perspective and a close ongoing coordination. 

The Swiss Cooperation Strategy Kosovo 2009-2012 

is well aligned with the priorities of the Kosovo government 

as well as with the Millennium Development 

Goals. It has been designed to capitalise on 

acquired sector and country expertise and related 

networks as well as to pro� t from past investments 

made and strategic assets accumulated. It also, 

however, opens up promising venues. The overall 

goal of the SDC and SECO Cooperation Strategy is 

to support Kosovo in its transition and state building 

process by contributing to improve (1) economic 

growth and sustainable employment; (2) central 

and local governance, rule of law and democratic 

processes; and (3) access to basic infrastructures. 

The cooperation strategy encompasses three domains 

and related sub-domains: 

� Economy and Employment, implemented by SDC 

and SECO, with the sub-domains: economic 

framework conditions, private sector development, 

vocational education and youth employability. 

� Rule of Law and Democracy, implemented by 

SDC, with the sub-domains: local governance 

and decentralisation, state building and democratic 

society. 

� Public Infrastructures, implemented by SECO and 

SDC, with the sub-domains: water and energy. 

Special activities are carried out in the frame of the 

Swiss-Kosovo Migration Partnership, with the FOM 

and SDC supporting capacity building in migration 

management and prevention of irregular migration. 

Gender and Governance are transversal themes for 

all projects and programmes. Regional cooperation 

is an essential element of the Strategy, supporting 

Kosovo to overcome isolation and improve regional 

integration. The Strategy adheres to the principles of 

alignment to government strategies, complementarity 

with EU programmes, as well as harmonisation with 

other donor activities, emphasising, at the same time, 

the added value and visibility of Swiss Cooperation. 

The � nancial volume of the Swiss Cooperation programme 

for Kosovo for the period 2009-2012 is 

around CHF 63.7 million.

KOSOVO 2009 – 2012 

1. Context 

1.1 Political Development 

Kosovo is the youngest state in Europe. On 17 th 

February, 2008, the Kosovo government unilaterally 

declared independence from Serbia. This move 

followed decades of tensions, the abolition of the 

province’s autonomy status in 1989, systematic discrimination 

of the Albanian majority population, 

armed uprising against the Serbian forces, NATO 

intervention in 1999, a United Nations protectorate 

government and years of international status negotiations. 

Contrary to widespread fears, the declaration 

of independence was not followed by major new 

violence or population displacements. 

While most of the EU member states, the USA, Japan 

and a host of other countries including Switzerland, 

Turkey, and most of Kosovo’s neighbours have recognized 

Kosovo’s independence (July 2009), a majority 

of UN member states, including Serbia and veto-vested 

Russia do not (yet) support the declaration, leaving 

Kosovo’s status contested. The United Nations Interim 

Administration Mission in Kosovo (UNMIK), based on 

UN Resolution 1244, continues its mandate, albeit on 

a much reduced scale. The determination of the Kosovo 

authorities to implement the Comprehensive Status 

Settlement (Ahtisaari Plan) proposed by the UN- 

Secretary General’s special envoy Martti Ahtisaari increasingly 

questions UNMIK’s role. After some initial 

problems, the two organisations foreseen to supersede 

UNMIK, the International Civilian Of� ce (ICO) with 

the task to supervise and ensure the implementation 

of the Ahtisaari Plan and the European Union Rule of 

Law Mission (EULEX), are quite � rmly in place, except 

in the North. There the reach of ICO is restricted due 

to the lack of a Security Council mandate, Serbia’s 

refusal, and the missing consensus within the EU on 

the issue of Kosovo’s independence. In 2009, KFOR, 

the NATO Kosovo Force, still guarantees the military 

security of Kosovo with 16,000 troops from different 

countries, including the SWISSCOY with about 200 

Swiss troops. Provided further progress towards stabilization 

is made in the region, the down-sizing of the 

KFOR in the coming years seems likely. 

The rule of the Government of Kosovo is still limited by 

lack of full international recognition of its status and by 

the situation in the North of the country where one part 

of the divided town of Mitrovica and several municipalities 

with a majority of Serbian population continue to 

be under � rm control of parallel Serb authorities which 

report directly to Belgrade. The settlement of the dispute 

in the North of the country and the integration of the 

Serb community enclaves south of the Ibar River constitute 

major challenges. However, among the Serbs in 

the South, a pragmatic participation in the Kosovo state 

structures seems to be gradually emerging. The implementation 

of decentralization which will provide a high 

degree of autonomy to communities is a key factor for 

assuring the continued support of the Kosovo state by 

the international community. 

Pejë/Pec 

Deqan/ 

Decani 

Junik 

Istog/Istok 

Zubin Potok/ 

Zubin Potok 

Klinë/Klina 

Skenderaj/ 

Srbica 

Prizren/Prizren 

Dragash/ 

Dragas 

Leposaviq/ 

Leposavic 

Zveçan/ 

Zvecane 

Malisheva/ 

Malisevo 

Mitrovica 

Gllogovc/ 

Glogovac 

Rahovec/ 

Gjakove/ Orahovac 

Djakovica 

Suhareke/ 

Suvareka 

Mamusha 

Albanians 

Serbs 

Turks 

Bosniaks 

Gorani 

Roma 

others 

Ethnic composition 

of Kosovo 

Mitrovicë 

Vushtrri/ 

Vucitrn 

Lipjan/Lipljane 

Shtime/ 

Stimlje 

Shterpca/ 

Strpce 

Podujevë/ 

Podujevo 

Obiliq/ 

Obilic 

Fushë Kosova/ 

Kosovo Polje 

Graqanica 

Prishtinë/ 

Pristina 

Ferizaj/ 

Urosevac 

Novobërdë/ 

Novo Brdo 

Gjilan/ 

Gnjilane 

Viti/Vitina 

Kaçanik/ 

Kacanik 

Hani i 

Elezit 

Kllokot 

Percentage of 

minority 

populations 

Partesh 

Kamenicë/ 

Kamenica 

Ranilluk 

33 - 49 % 

15 - 29 % 

5 - 14 % 

> 0 - 4 % 

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While the new constitution came into force in 2008 

and important laws are being promulgated, their implementation 

is lagging behind. The capacity of the 

relatively young administration is still rather weak and 

� ghting corruption continues to be a great challenge. 

While the preparation of independence created a 

broad sense of unity and strengthened the coalition 

of the two major parties in government, the reality, 

with numerous pending issues on the political agenda 

and dif� cult socio-economic conditions, may threaten 

political stability. Strong independent civil society organizations 

which can voice the citizen’s concerns in 

the political process still need to evolve. 

1.2 Economic Development 

Kosovo is facing enormous challenges in its economic 

development. It has the lowest gross domestic product 

(GDP: €1’573 per capita in 2007) and is the slowest 

growing economy in Southeast Europe (5.4 % 

in 2008). The massive trade de� cit (41% of GDP in 

2007) re� ects the weak export capacity. Economic 

growth highly depends on foreign direct investments 

(privatization in the telecommunications and banking 

sector), foreign assistance (9% of GDP), and remittances 

(13% of GDP in 2007).The unemployment 

rate is the highest in the region, approximately 45% 

in 2007 and even worse for persons aged 25 and 

below (75%). Current growth rates are insuf� cient to 

absorb the new entrants into the labour market (an 

estimated 30,000 per year). The agricultural sector is 

the biggest employer in terms of numbers, but remains 

predominantly subsistence oriented. The private sector 

that evolved after 1999 consists mainly of small-scale 

and low-capital-intensive ventures in trade and construction. 

Apart from building materials, some furniture 

production and a small food-processing sector, 

there is little domestic manufacturing. Improvements 

such as new labour laws and modest corporate taxes 

are commendable, but manifold urgent issues remain 

to be resolved, such as education of the workforce, 

improvements of basic infrastructure from electricity 

to water and sanitation, access to � nance, a reliable 

legal framework and implementation of rule of law. 

The development of the potentially most important sectors 

– mining, energy and agriculture – requires very 

substantial medium and long-term efforts. 

With the Euro as legal tender, there is no independent 

monetary policy. Therefore, the only tool for macro-economic 

management is the � scal policy which 

so far re� ects weak budget planning and implementation. 

In 2006 and 2007, an unexpectedly high � scal 

surplus resulted from a strong revenue growth, 

signi� cant under-execution of the capital budget and 

� nancing certain social programmes below sustainable 

levels. The need to balance the budget in view 

of the low revenue base led to an inadequate level 

of public services. Therefore, the challenge will be 

to maintain a modest de� cit and thus a sustainable 

macro-economic framework while satisfying a range 

of needs in social services. 

1.3 Social Development 

Kosovo has a very young, fast growing and – as polls 

repeatedly showed – very optimistic population. It is 

estimated that 50% of the population is under the age 

of 25 and 40% under the age of 18. At the same 

time, Kosovo is the poorest society in the region, with 

45% of the population living in relative - and a third 

of these (15% of the total) living in extreme - poverty.


In this situation remittances from the Diaspora play 

an important role not only in � lling a major gap in 

the balance of payment, but also in providing an informal 

social safety net for poor households, making 

up for the absence of essential social services. The 

lowest human development indicators in Southeast 

Europe point at the urgency of re-establishing these 

services, namely in education and health. However, 

in the short-run the Government is unable to mobilize 

the required resources. At the same time, the capacity 

and the motivation (or open-handedness) of the Diaspora 

for sending remittances are weakening in the 

context of the global � nancial crisis. The high poverty 

and unemployment rates continue to make migration 

an attractive option, in particular for young people. 

Surveys indicate that about 50% of the youth – with 

a similar share across all ethnic groups – would emigrate 

if they could. 

1.4 Development Strategies 

and Main Challenges 

Between the Government of Kosovo and the donors, 

there is a wide consensus that Kosovo has to develop 

and improve strategies to face the following 

main challenges: 

� Promote economic development and 

growth as key for employment generation; improve 

the investment climate; reduce trade de� cit. 

� Implement the Comprehensive Status Settlement 

(Ahtisaari Plan) with particular emphasis 

on integrating minorities and establishing the 

planned Serb-majority municipalities. 

� Continue to establish and enforce the rule of 

law. 

� Improve modernization of the public administration 

and public � nancial management. 

� Improve public infrastructure in transport, 

energy, and water supply and sanitation. 

� Develop infrastructure, teaching capacity and 

new learning approaches in education at all 

levels; improve vocational training in order to develop 

adequate skilled manpower. 

� Re-establish adequate social services, namely 

in the health sector and the pension system. 

� Strengthen civil society for assuming advocacy 

role and public eye functions. 

1.5 Donor Assistance 

At the Kosovo donor conference of July 2008 in 

Brussels, the donors pledged €1.2 billion for the 

development of Kosovo in the years 2008-2011, 

and thus recon� rmed the international commitment 

to further support the building of state institutions 

based on international standards of rule of law and 

democracy, the development of key public services, 

and the promotion of a market economy. Major donors 

are the European Union and the United States 

along with multilateral organizations. Switzerland is 

one of the leading bi-lateral donors. Coordination 

among donors and alignment with government policies 

in general are still weak. The Government has 

developed a Medium-Term Expenditure Framework 

2009-2011 and recently established the Agency for 

Coordination of Development and European Integration. 

These instruments are prerequisites for improving 

donor coordination and alignment with government 

policies in the years to come. 

1.6 Kosovo and Switzerland – 

a Special Relationship 

The about 160,000 Kosovars living in Switzerland 

correspond to roughly 8% of the entire population 

of Kosovo. The Kosovars in Switzerland are by far 

the biggest Diaspora group of any Swiss cooperation 

country. This has multiple implications. Most Kosovars 

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have relatives or friends in Switzerland or have stayed 

there themselves for some time. Remittances, close 

family relations and frequent travelling between the 

two countries reinforce the links between Kosovo and 

Switzerland. This creates a general goodwill towards 

Switzerland and Swiss cooperation, also based on 

the gratitude many Kosovars express for the Swiss 

support in sheltering high numbers of refugees during 

the con� ict of 1999 and for launching important 

return aid and reconstruction programmes after the 

con� ict. 

Switzerland, jointly with other European countries, 

recognized Kosovo’s independence at an early stage. 

For Switzerland, Kosovo is linked with important issues 

of migration and integration policy. The participation 

of the Swiss Army in the NATO-KFOR peace-keeping 

mission is currently the biggest deployment abroad. 

In addition to the SECO and SDC programmes, the 

Political Divisions I and IV have seconded staff to ICO 

and EULEX. Switzerland is a member of the Steering 

Group of the ICO. The Political Division IV and the 

Federal Of� ce for Migration are active with their own 

programmes in Kosovo (partly implemented by SDC). 

These multifaceted relations require Swiss Cooperation 

with Kosovo to be considered under a “whole of 

government” perspective. 

1.7 Scenarios for Future 

Developments 

The fact that Kosovo is a very young state evolving in 

a still unstable political and socio-economic environment 

suggests that different scenarios are considered 

in the design of the Cooperation Strategy. 

Most likely Scenario: The process of recognition 

of Kosovo’s independence is slow, but the image of 

Kosovo gradually improves. Besides membership 

in the International Monetary Fund (IMF) and the 

World Bank, Kosovo is able to join other regional 

and international bodies. The relationships (or dealings) 

between Serbia and Kosovo remain highly dif- 

� cult, but stop short of a full-� edged crisis. Essential 

infrastructure is improved and provides the basis 

for economic development. The impact of the global 

� nancial crisis is moderate, mainly affecting the 

purchasing power and the already low exports. Unemployment, 

the situation in the North, integration of 

minorities and the performance of the Government 

remain key concerns. 

Pessimistic Scenario: Only a few additional 

countries recognize Kosovo. Kosovo might even lose 

its seat (“under UN resolution 1244”) in regional 

bodies. The International Court of Justice sides with 

Serbia on the issue of the legality of Kosovo’s independence 

(legally not binding). This is an additional 

impediment to the further process of recognition. The 

economy is affected by the unresolved trade row with 

Serbia and Bosnia and Herzegovina. Delays in the 

construction of a new power plant and serious economic 

setbacks lead to a prolonged economic crisis. 

Growing social unrest and heightened political disputes 

make the country hard to govern. Corruption 

and organized crime expand. The missions of EULEX 

and ICO are increasingly questioned. 

Optimistic Scenario: Recognition by a big 

number of countries allows Kosovo to attain membership 

in important international and regional organizations. 

The in� uence of the European Union 

and political changes in Serbia result in a more 

� exible position towards Kosovo and a pragmatic 

arrangement that is acceptable to all parties, even 

though not a recognition. The Government makes 

good progress in establishing the rule of law, implementing 

decentralization and accommodating Serb 

and other non-majority communities. Acute energy 

problems are solved and general frame conditions 

for investments improved. The social and political 

climate remains stable. The EU stabilization and association 

process is progressing. 

The new Swiss Cooperation Strategy is built around 

the most likely scenario. The changes in the situation 

will be continuously assessed through the MERV 

instrument and contacts with relevant partners. The 

Swiss Cooperation Of� ce will report to Headquarters 

bi-annually to allow programme adjustment as and 

when needed.


2. Review of Swiss Cooperation 2007 to 2009 

2.1 Swiss Assistance to Kosovo 

In 1998, Swiss cooperation with Kosovo started with 

a humanitarian aid programme. In early 1999, during 

the armed con� ict, it was brie� y suspended and 

then re-launched as an extensive programme comprising 

humanitarian aid, reconstruction and support for 

returnees. During this period the Federal Of� ce for 

Migration was the main funding agency. After 2000, 

the programme was gradually transformed into a development, 

respectively transition-support programme, 

with the overall goal of promoting political stability and 

economic and social development, strengthening local 

authorities and civil society, and encouraging regional 

integration. The Swiss programme consolidated its interventions 

in the period 2006-2009 resulting in a clear 

focus on the three domains described here-below. 

2.2 Achievements 2007 to 2009 

Economy and Employment 

Support was concentrated on two sub-domains. The 

focus within the Vocational Education System 

was on quality of teaching, orientation on practical job 

requirements, sustainable � nancing of schools and the 

establishment of a National Quali� cation Framework. 

Important results on the different levels were the consolidation 

of a 3-year cycle for the delivery of courses 

with on-the-job training; the establishment of an ITbased 

virtual company approach as a new teaching 

method at business schools, and the construction of 

workshops in several technical schools and of one 

greenhouse. A total of 1,000 – 1,200 graduates per 

year bene� ted from the Swiss support, of whom 37% 

found a job compared to the country average of 25%. 

The revitalization of the Horticulture sector was 

supported because of its high potential for income and 

employment generation and for import substitution. As 

a result of the support, some of the value chains (crops) 

are already self-sustainable and their share in the local 

market increased remarkably, for example for strawberries 

from zero in 2001 to some 80% in 2008. Until 

the end of 2007, SDC also supported Kosovo’s dairy 

sector, contributing to its market growth of 7% per year. 

In 2008, SDC successfully wound up its support to 

business services, micro� nance and women-led businesses, 

which helped 46 % of the more than 200 unemployed 

women to � nd employment. 

Public Infrastructure 

In the water sector, investments for the rehabilitation 

of infrastructure and for developing new water resources 

were carried out both in urban areas (by SECO) 

and rural areas (by SDC with the co-� nancing of the 

Austrian Development Cooperation), supplemented by 

a number of well targeted institutional-capacity-building 

projects for Regional Water Companies, the Water 

Department at the Ministry of Environment and Spatial 

Planning (MESP), and the Water and Waste Regulatory 

Of� ce. As a result, around 100,000 people in rural 

and 150,000 in urban areas enjoy improved access 

to potable water, and seven Regional Water Companies 

improved their � nancial and operational performance, 

two of them receiving substantial support from 

Swiss Cooperation. Management of water resources in 

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Kosovo has become more systematic, and the Water 

and Waste Regulatory Of� ce now has an effective tool 

for holding Regional Water Companies accountable. 

In the energy sector, in 2008, SECO launched a 

project for the construction of the Gjilan V substation. 

This is an important contribution to the power sector rehabilitation 

plan since it improves the electricity distribution 

system in the rapidly growing Gjilan area and helps 

stabilize the provincial power grid. The present contribution 

is a continuation of the earlier SECO support to the 

Gjilan area that consisted of the rehabilitation of two 

substations and the construction of another two. 

Rule of Law and Democracy 

In this broad domain, Swiss support addressed several 

issues with a clear focus on property rights and local governance, 

supplemented by complementary interventions. 

For solving property rights issues, an extremely 

important issue after the con� ict, technical assistance 

and � nancial contributions were provided to the Kosovo 

Cadastre Agency (KCA) and the Kosovo Property 

Agency (KPA). The KPA has so far collected 40,000 

property claims and come to a decision on 20,000 of 

them. With 90% of the claimants being Kosovo-Serbs, 

this helped to reduce inter-community tension. The 

modernization of cadastre services facilitates property 

transfers. Similar support was provided for the development 

of legislation for the (previously inexistent) notary 

system in Kosovo. The law on the Notary System, 

drafted with support of Swiss experts, was approved 

by Parliament (October 2008) and will contribute to 

the reliability of titles and transactions, property rights 

and the legal system in general. 

In local governance and decentralization, 

major new activities were launched in 2007, aiming 

at the municipal level for strengthening local governance 

capacities and decentralization reforms. The initial 

support for two municipalities and ten villages in 

South-Eastern Kosovo led to increased citizen participation, 

which helped to develop infrastructure (mostly 

in water) in accordance with the priorities of citizen 

groups. It also facilitated increasing knowledge about 

and utilization of public procurement procedures. 

Following the declaration of independence, support was 

extended to a local think tank with the objective of developing 

policy and con� dence building measures 

for improving relations between Kosovo Serbs and the 

Government of Kosovo. Two policy papers published in 

2008 generated great interest and stimulated discussion, 

not only in Kosovo, but also in Brussels and Washington. 

Other interventions included support to the Kosovo 

Correctional Services by establishing (1) a training 

system for management and staff development, and 

(2) training and work possibilities for prison inmates. 

Special Issue Migration 

In 2007, the Interdepartmental Steering Group on Return 

Assistance (ILR) launched its strategy “ILR Contribution 

to Migration Partnerships Switzerland-Western 

Balkans 2007-2010”. Funded by the Federal Of� ce for 

Migration and implemented by SDC, the programme 

contributed to the launching of a regular migration 

policy dialogue and to capacity building acivities 

for the new Kosovo migration authorities. Jointly with 

Swiss NGOs and institutions, community development 

for and social inclusion of people under pressure to 

migrate (e.g. Roma), as well as social services (mental 

health), have been supported. First exploratory studies 

on the impact of Diaspora remittances on Kosovo’s 

development have been launched. 

2.3 Conclusions 

� Switzerland is a major bi-lateral donor with a pragmatic, 

effective, independent, and therefore appreciated, 

approach. This allows playing a role at the 

policy level in spite of the predominance of big donors, 

namely the EU and the USA. 

� The Swiss projects are relevant with regard to priority 

needs of Kosovo. However, the range of projects 

needs to be consolidated into a more concentrated 

and programmatic approach with better linkages 

or synergies between the domains. 

� To further enhance the relevance and effectiveness of 

the Swiss programme sector coordination, harmonisation 

and joint implementation shall be reinforced 

wherever possible – taking into consideration that donor 

coordination is at a very early stage in Kosovo. 

� While it was adequate to engage Swiss implementing 

agencies in the initial stage, it is time to cooperate 

more with national implementers and the Kosovo 

administration in order to enhance ownership 

and self-reliance. 

� Linking investment and institutional capacitybuilding 

is an activity that needs to be continued 

and even reinforced, e.g. in the water sector and 

in local governance.


3. Strategic Orientation 2009 – 2012 

3.1 Strategic Framework 

The Swiss Cooperation Strategy 2009 to 2012 continues 

to focus on the three existing domains, but includes 

new potential areas for SECO and SDC support within 

these domains. It adheres to the policies and strategies 

of the Kosovo government and the Swiss partners, and 

builds on lessons learned and on established networks 

to capitalize on investments made. 

For the stability and regional development in the Western 

Balkans, Kosovo plays an important strategic role. 

The large Diaspora and the related strong linkages 

with Switzerland give Kosovo a rather prominent position 

in Swiss politics. This is re� ected by the fact that in 

addition to SECO and SDC, other Swiss federal agencies 

are active in Kosovo: the Political Affairs Divisions 

IV and I (PD IV; PD I), the Federal Of� ce for Migration 

(FOM), as well as the Federal Department of Defence, 

Civil Protection and Sport (DDPS). 

The Swiss Political Strategy for the Western Balkan 

is the main reference at the strategic level for designing 

and coordinating the programmes of the various Swiss 

actors. The selection of the domains and interventions 

of the Swiss Cooperation Strategy are thus guided by 

the four key objectives: (1) the political objective of supporting 

the stabilisation and reform process and preserving 

Swiss interests as well as increasing visibility; 

(2) the security-related objective of improving regional 

security and stability; (3) the economic objective of 

tapping existing and developing future economic potentials; 

and (4) the migration objective of improving 

preventive and return-related measures as well as international 

cooperation on migration issues. 

More speci� cally, Swiss activities are guided by the 

Federal Government Message on the Continuation of 

Cooperation with Eastern Europe and the Commonwealth 

of Independent States (CIS) approved in 2007, 

the SDC Western Balkan Concept 2007–2010, and 

the SECO strategy for cooperation with Eastern Europe 

2006, as well as the SECO Country Strategy Note Kosovo. 

The strategic framework of the Government 

of Kosovo at present consists of the Medium-Term 

Expenditure Framework 2009-2011 and the Millennium 

Development Goals for Kosovo. The priorities given 

in the Medium-Term Expenditure Framework are: 

� Economic growth: including infrastructure, rule of 

law, education, agriculture and � scal policies; 

� Implementation of status settlement: including decentralisation 

and minorities; 

� Good governance: including public administrative 

reform, public � nancial management, and the � ght 

against corruption; 

� Poverty alleviation and social stability: including 

pensions, social transfers, and health. 

The Swiss Cooperation Strategy is well aligned both to 

these priorities as well as to four important Millennium 

Development Goals, i.e. eradicating poverty (through 

its domain economy and employment), promoting 

gender equality (transversal theme), reducing child 

mortality (drinking water and sanitation), and developing 

global partnership for development (efforts in 

donor coordination, dialogue with government and 

contribution to budget support). 

Last but not least, the programme will operate according 

to the principles and objectives of the Paris Declaration 

on Aid Effectiveness, the Accra Agenda for Action, 

as well as the EU Stability and Association Process. 

13

14 


3.2 Overall Goal and Orientation 

Within the above-mentioned strategic framework, 

the overall goal of the SDC and SECO programmes 

and projects is to: 

Support Kosovo in its transition and state 

building process, by contributing to improve: 

(1) Economic growth and sustainable employment; 

(2) Governance at central and local levels, 

rule of law and democratic processes; 

(3) Access to basic infrastructures and services. 

To achieve this goal, the programme portfolio concentrates 

on three domains, i.e. Economy & Employment, 

Rule of Law & Democracy and Public 

Infrastructure. This implies continuity of the domains 

while shifting emphasis within the domains and 

with the modalities of cooperation. The sub-domain 

allows specifying the scope of Swiss support more 

precisely. The increase in SDC budget allocation allows 

for an expansion of activities in all domains. 

Given the importance of the migration issue in this 

context, the three domains are supplemented by a 

special programme implemented jointly with the Federal 

Of� ce for Migration. 

Gender and Governance are addressed as 

transversal themes in all domains. 

Although improvements in basic education and 

health services are equally urgent needs, the Swiss 

programme will not include a separate domain of 

social services for reasons of � nancial and operational 

capacity. However, if the pessimistic scenario 

outlined in Chapter 2 should materialise, this decision 

will need to be reconsidered. 

Support Kosovo in its transition and state building process, by contributing to improve: 

(i) economic growth and sustainable employment 

(ii) central and local governance, rule of law and democratic processes 

(iii) access to basic infrastructures 

Economy & 

Employment 

Economic framework 

conditions for growth 

and sustainable employment 

are improved, 

private sector 

is strengthened, 

youth employability 

increased 

Framework 

Conditions 

Private Sector 

Development 

Swiss Cooperation Strategy for Kosovo 2009 to 2012 at a Glance 

Youth 

Employability 

Rule of Law & 

Democracy 

Central & local government 

institutions 

are strengthened, 

accountable and 

provide reliable and 

efficient services to all 

citizens 

Local Governance 

& Decentralization 

State 

Building 

Democratic 

Society 

Public 

Infrastructure 

More people have 

access to clean drinking 

water, sanitation 

and to reliable energy 

supply 

Special Issue: 

Migration 

SDC/SECO SDC SECO/SDC 

FOM/SDC 

Water 

Governance & Gender 

Regional Cooperation 

Energy 

Migration 

Partnership 

Migration & 

Development


3.3 Economy and 

Employment Domain 

The Swiss programme aims at strengthening economic 

growth and contributing to the reduction of the 

huge rate of unemployment, one of the most serious 

problems in Kosovo. A holistic approach is foreseen 

which targets economic framework conditions 

(policy reforms); private sector development 

(labour-demand side) and youth employability 

(labour-supply side). Swiss cooperation will concentrate 

on the three sub-domains described below with 

the following overall objective: 

Economic framework conditions for 

growth and sustainable employment are 

improved, private sector is strengthened, 

youth employability increased. 

Economic Framework Conditions 

Together with ten other donors, SECO and SDC will 

support the Sustainable Employment Development 

Policy Programme (SEDPP) (2009-2011) 

and participate in the related Trust Fund administered 

by the World Bank. The SEDPP is coordinated by the 

Government and intends to establish a coherent policy 

framework to foster an environment conducive to economic 

development and sustainable employment creation. 

Key elements are: (1) maintaining macroeconomic 

stability; (2) strengthening public � nancial management; 

(3) improving the investment climate; (4) improving labour 

policies, regulations, and institutions; (5) providing 

appropriate education, skills, and training; and (6) establishing 

a social protection framework which provides 

protection while encouraging employment. The multidonor 

arrangement of the SEDPP is an excellent opportunity 

to participate in high level donor-government 

dialogue. 

Private Sector Development 

In cooperation with the Danish Ministry of Foreign 

Affairs, Switzerland will continue to support 

the horticultural sector, a sector highly 

relevant for income and employment generation 

and for import substitution and exports. The focus 

will be on potential high growth value chains, 

private entrepreneurship, and on strengthening 

the institutional backbone of the sector. 

International � nancial standards and codes 

and business environment reforms will be promoted 

by SECO as means to increase business competitiveness 

and investments. Swiss-Kosovo economic relations 

shall be fostered by addressing the Kosovo 

Diaspora in Switzerland for foreign direct 

investments, ideally in cooperation with Swiss 

entrepreneurs. 

Youth Employability 

Youth employment is high on the government’s 

agenda. While creating full employment for Kosovo’s 

young people in the short to medium-term will not 

be possible, measures oriented towards raising the 

level of quali� cations and a better linking of vocational 

education and labour market needs can ease 

the situation. 

SDC will strengthen its support to the vocational 

education system by building on past contributions, 

but will shift the focus towards a better consideration 

of (1) the needs of the private sector; (2) 

opportunities for self-employment, in horticulture for 

instance; and (3) contributions at policy level. Provided 

that the capacities of the Ministry of Education, 

Science and Technology and those of the donors allow 

for setting up a Sector-Wide Approach (SWAp) 

in Education, participation by SDC is envisaged with 

a focus on employability. 

3.4 Rule of Law and 

Democracy Domain 

Kosovo as a young state faces a number of challenges. 

State institutions and the rule of law both at central 

and local level need to be (further) strengthened. 

15

16 


Thereby the formation of new Kosovo-Serb majority 

municipalities is a major task. Civil society needs to 

expand its democratic oversight of government institutions. 

Capitalising on past experiences and taking 

into account evident present needs, Swiss cooperation 

will continue to engage in the two existing subdomains, 

but with a changed focus at the state level, 

and it will, in addition, more strongly support civil 

society organisations: 

Central & local government institutions are 

strengthened, accountable and provide reliable 

and efficient services to all citizens 

Local Governance and Decentralisation 

SDC will scale-up its contribution in this sub-domain 

in three areas: (1) providing support to the Association 

of Kosovar Municipalities; (2) exploring the potential 

for conditional on-budget support to municipalities 

linking it to transparent, participatory and 

accountable local governance; and (3) continuing 

to enhance local governments through the existing 

project LOGOS, which is geographically well placed 

to support both Kosovo-Albanian and the planned 

Kosovo-Serb majority municipalities. In local governance, 

SDC will foster the inclusion of Serb and 

other non-majority communities. SDC will continue 

to share its experiences and insights in local governance 

in the policy dialogue at central level. 

State Building 

SDC will continue its engagement at central level by 

addressing crucial issues such as property rights 

and the establishment of a notary system. In spite 

of the multitude of national and international actors 

involved at this level, the Swiss contributions 

are highly appreciated. Therefore, SDC will address 

additional areas at state level where speci� c Swiss 

know-how and competence can make a difference. 

This requires a � exible approach that permits becoming 

active when and where opportunities arise. 

Given that most of the present assistance will be 

continued at least up to 2010, a priority emphasis 

on property rights will remain. 

Democratic Society 

In building the young state, the strengthening of 

state institutions needs to be supplemented with capacity 

building for civil society (organizations) to 

facilitate a democratic dialogue between state and 

citizens. SDC experiences with modest, well-targeted 

support for innovative think tanks and other 

non-government organizations has shown that this 

can generate strong effects and stimulate public debates. 

SDC will explore and establish instruments 

to support organizations, activities and processes 

that contribute to enhanced democratic control and 

transparency, to foster the integration of the different 

communities, and to mainstream gender issues. 

Priority will be given to topics and areas where 

Swiss cooperation is active. 

3.5 Public Infrastructure Domain 

Adequate power supply and distribution, as well as 

water and sanitation, are top priorities for the government, 

citizens and the private sector. These services 

are indispensable prerequisites for the social wellbeing 

of people, for developing the local economy, 

and ultimately for attracting much needed foreign 

direct investments. On the basis of good experiences 

and the know-how available with SDC and SECO, 

interventions will be continued in two sub-domains 

with the following objective: 

More people have access to clean drinking 

water, sanitation and to reliable energy 

supply. 

Water 

The main purpose is to raise the current level of 

access (i.e. only 58% for water supply and 35 

% for sanitation) substantially. To this end, investments 

in water supply will continue in 

rural (SDC) and in urban (SECO) areas. Considering 

the urgency of waste-water treatment, 

an expansion in this field in rural areas 

is foreseen. In urban areas where related 

solutions are capital-intensive, the same will not 

be possible due to limited resources. To reinforce 

the sustainability of the whole system of water 

(supply) services, investments will be combined 

with institutional capacity building and policy 

development at the central and regional (Water


Companies) level. At policy level, the support to 

the inter-ministerial Water Task Force will underline 

Switzerland’s commitment as the leading 

donor in the sector. Synergies with the support 

to local governance in the domain Rule of Law 

and Democracy will be exploited. 

Energy 

In spite of the undisputed importance of this sector, 

the planned privatization of the public power 

utilities limits the scope of SECO as a government 

agency for supporting this sector. Furthermore, the 

leading development agencies are already contributing 

to the large investment projects typical for 

this sector. Therefore, SECO will phase out from 

the energy sector, which means that the on-going 

intervention for the improvement of the electricity 

distribution in the region of Gjilan will be the last 

one in the sector. 

In the long-term perspective, the leading role of the 

Swiss cooperation in the water sector will have to 

be reconsidered in view of the huge investments expected 

of other donors (the EU, the German Bank for 

Reconstruction, and USAID). 

3.6 Special Issue 

Migration Partnership 

Switzerland’s new concept of migration partnerships 

aims at strengthening international cooperation with 

regard to migration. It builds on an of� cial policy 

dialogue on migration between Switzerland and 

Kosovo which recognizes that both parties have speci� 

c interests and stakes that need to be balanced. 

The dialogue is supplemented by a programme for 

(1) strengthening the capacities of migration management 

authorities; (2) fostering the voluntary and sustainable 

return and reintegration; and (3) preventing 

irregular migration by means of social and economic 

structural aid. The programme “Contribution to Migration 

Partnerships Switzerland – Western Balkans 

2007-2010” of the Interdepartmental Steering 

Group on Return Assistance (ILR) is funded by FOM 

and implemented by SDC in close cooperation with 

the Embassy. 

17

18 


3.7 Transversal Themes 

Governance aims at creating an environment in 

which constitutionality and human rights, an appropriate 

division of power, and macroeconomic 

stability are strengthened. Core principles of good 

governance to be implemented in the programmes 

are accountability, transparency, non-discrimination, 

participation, right to information, and ef� - 

ciency. In Kosovo, participation and non-discrimination 

are key concerns for fostering integration 

and reconciliation among the different communities 

and the (re-)establishment of a pluralistic society. 

Accordingly, participation and integration of different 

communities will be embedded in Swiss cooperation 

activities. In addition, speci� c support for 

the integration of Serbs, Roma, Ashkali, Egyptians, 

and other communities will be part of the domain 

Rule of Law and Democracy. The “Contribution to 

Migration Partnerships Switzerland – Western 

Balkans 2007-2010” also includes an important 

component for the support of the integration of 

Roma, Ashkali, and Egyptians. 

Reducing inequalities between women and men is 

not only a goal in itself, but also a strategy to alleviate 

poverty and achieve sustainable forms of development. 

Gender-related principles therefore aim 

at increasing the potentials and possibilities of both 

women and men to assert their basic rights and be 

able to participate on an equal footing in economic 

and social development. In order to reduce existing 

gender discrepancies in the Kosovo context, women 

shall particularly bene� t from Swiss development 

interventions. This entails that the access of women 

to Swiss interventions be assured and that targeted 

interventions be included as part of the domain Rule 

of Law and Democracy. 

3.8 Regional Programme 

and Swiss NGOs Activities 

Since a number of countries in the region (i.e. Serbia, 

Bosnia and Herzegovina, Greece, Slovakia) do not 

yet recognize Kosovo as a sovereign state, regional 

cooperation, respectively integration on the level of 

governments, will meet with obstacles for the time 

being. Thus regional cooperation through the mechanisms 

established by the international community 

is of speci� c importance for Kosovo. Programmes 

and activities supported by the Cooperation Strategy 

are: 

� Regional private-sector intervention 

supported by SECO: OECD Investment Compact, 

the Southeast Europe Enterprise Development 

Fund (SEED) implemented by the International 

Finance Corporation of the World Bank 

Group, GuarantCo of the Private Infrastructure 

Donor Group (PIDG), and the Private Enterprise 

Partnership for Southeast Europe Infrastructure 

Programme (PEP-SEI), the SECO Start-up Fund 

for Enterprises, and the Swiss engagement in the 

European Fund for Southeast Europe (EFSE). 

� SDC’s Regional Programmes on research 

cooperation, culture and police cooperation, and 

SDC’s contribution to the Roma-Education Fund. 

� SDC and SECO support the Regional Cooperation 

Council including spin-off initiatives of 

the former Stability Pact which are also of particular 

relevance to Kosovo such as the Network 

of Associations of Local Authorities in South-East 

Europe (NALAS) in support of decentralization, 

or the Migration, Asylum, Refugees Regional Initiative 

(MARRI) on migration issues. 

� SDC, by providing co-� nancing, supports the 

programmes of Swiss NGOs engaging 

in civil-society development cooperation in the 

Western Balkans. In the case of Kosovo, these 

NGOs are: Caritas, HEKS, Schweizerisches Arbeiterhilfswerk, 

Terre des Hommes, and Christlicher 

Friedensdienst.


4. Implementation Modalities 

Alignment, Donor Coordination and Complementarity: 

Swiss cooperation will continue its 

strong engagement in coordination with the Agency 

for the Coordination of Development and European 

Integration in the Prime Minister’s Of� ce. Wherever the 

priorities and strategies of the Government of Kosovo 

are soundly based on evidence, alignment will be a 

preferred option. An active role will be played in speci� 

c groups of like-minded donors and in the technical 

meetings of all donors coordinated by the European 

Commission. It is particularly important to coordinate 

well with the EU programmes, to avoid duplication, 

and to identify where Swiss cooperation can provide 

added value. Currently Switzerland has the lead in the 

sectoral donor working group “water”. In addition to 

the existing partnerships with Denmark and Austria, 

Switzerland will look for alliances with other donors in 

order to contribute to the implementation of the Accra 

Agenda for Action. 

Aid modalities and the shift to Kosovar institutions: 

Swiss cooperation will increase its contribution 

to coordinated programmes (multilateral co-� - 

nancing, sector-wide approach) and to multi-donor initiatives. 

New forms of aid modalities such as on-budget 

support will be developed. Swiss cooperation will give 

high priority to direct cooperation with, and support 

to, Kosovar institutions in order to reinforce the sustainability 

of Swiss inputs. Given the strong ties between the 

two countries, partnerships between Kosovar and Swiss 

institutions shall be further encouraged. 

Whole-of-government approach: The special 

relations between Switzerland and Kosovo and the 

participation of Switzerland in a number of international 

missions in Kosovo (KFOR, EULEX, ICO) result in 

a broad range of Swiss government agencies being active 

in Kosovo. Therefore, a ‘whole-of-government’ approach 

is essential to ensure coherence of Swiss interventions 

and an optimal coordination of Swiss support 

to Kosovo. Ideally, coherence is established at policy 

and strategic levels through institutionalized arrangements 

such as the Kosovo Task Force of SDC, SECO, PD 

I & PD IV, and the Interdepartmental Steering Group on 

Return Assistance (ILR). 

At the level of implementation, systematic mechanisms 

for communication and coordination among the different 

Swiss actors will help to achieve optimal coherence 

and effectiveness of interventions, which in turn should 

increase overall leverage and visibility. The most concrete 

form is the direct cooperation of SDC and SECO 

in the two domains “Public Infrastructure” and “Economy 

and Employment”, and between SDC and FOM in 

the Special Issue “Migration”. 

Project-speci� c cooperation with Swiss staff on deputation 

to ICO, EULEX and the Kosovo government provides 

possibilities for � ne-tuning ‘Swiss’ approaches 

with multilateral approaches. 

19

20 


5. Monitoring 

Based on the “most likely” scenario, the cooperation 

strategy will be monitored on three levels: 

� Country outputs and outcomes in the selected 

� elds where the Swiss cooperation is active; 

� Swiss cooperation portfolio outputs and outcomes 

per domains and sub-domains (Swiss contribution 

to the achievement of the country outputs and 

outcomes); and 

� Management of the Swiss Cooperation Of� ce. 

In addition, a context monitoring (risks assessment) 

will be set up to observe the evolution of the anticipated 

scenario. Criteria will be de� ned which 

indicate when developments in the context require 

switching to another scenario and adjusting the programme 

accordingly. The main tool for steering the 

strategy will be the Annual Reports.


6. Programme Management, 

Human and Financial Resources 

6.1 Programme Management 

and Human Resources 

With the transition from humanitarian aid to development 

cooperation, the number of staff in the Cooperation 

Of� ce has continuously been reduced. Now, the 

human resource capacity needs to be adapted to the 

new Cooperation Strategy. The substantial increase of 

the budget in 2009 and the following years, as well as 

new tasks and requirements such as policy dialogue, 

following-up multi-donor interventions, result monitoring 

and knowledge management, require corresponding 

human resources in the � eld to successfully 

implement the new Cooperation Strategy. 

6.2 Financial Resources 

The three domains will be roughly equal in volume. 

Absorbing the substantial budget increase in 2009 

will be a challenge, since the preparation of new 

projects and programmes requires considerable time 

in the Kosovo context (weak capacity of central and 

local administration). The overall annual budgets of 

the participating agencies’ contributions are tentatively 

planned as follows (all � gures in CHF millions): 

By agency 2009 2010 2011 2012 Total 

SDC 10 10 10 10 40 

SECO 8.1 6.9 5.3 0.3 1 20.6 

FOM 1.5 1.2 0.4 tbd 3.1 

Total Kosovo 19.6 18.1 15.7 10.3 63.7 

1 SECO position towards operational activities will be reviewed in 2011. 

21

22 


Annex 1: Strategy at a Glance 

Support Kosovo in its transition and state building process, by contributing to improve: 

(i) economic growth and sustainable employment 

(ii) central and local governance, rule of law and democratic processes 

(iii) access to basic infrastructures and services 

Economy & 

Employment 



and sustainable employment 

are improved, 

private sector 

is strengthened, 


increased 

Framework 

Conditions 

Private Sector 

Development 

Youth 

Employability 

Swiss Cooperation Strategy for Kosovo 2009 to 2012 

Rule of Law & 

Democracy 

Central & local government 

institutions 

are strengthened, 

accountable and 

provide reliable and 

efficient services to all 

citizens 

Local Governance 

& Decentralization 

State 

Building 

Democratic 

Society 

Public 

Infrastructure 

More people have 

access to clean drinking 

water, sanitation 

and to reliable energy 

supply 

Special Issue: 

Migration 

SDC/SECO SDC SECO/SDC 

FOM/SDC 

Water 

Governance & Gender 


Energy 

Migration 

Partnership 

Migration & 

Development


Annex 2: Financial Planning 

Fig. 1: Budget details for direct bilateral activities in Kosovo 

In addition to the bilateral budget given below, regional projects and programmes of SDC and SECO also 

invest in Kosovo activities. 

(All � gures in CHF millions) 

By Agency and Domain 2009 2010 2011 2012 Total 

SECO Public Infrastructure 5.8 4.7 4.7 0 15.2 

SDC Public Infrastructure 0.7 1.0 1.0 1.0 3.7 

SECO Economy and Employment 2.0 1.9 0.3 0 4.2 

SDC Economy and Employment 4.0 4.0 4.0 4.0 16.0 

SDC Rule of Law and Democracy 4.4 4.0 4.0 4.0 16.4 

SDC Migration 0.1 0.2 0.2 0.2 0.7 

FOM via SDC Migration 1.5 1.2 0.4 tbd 3.1 

SDC SCO and Small Actions 0.8 0.8 0.8 0.8 3.2 

SECO SCO 0.3 0.3 0.3 0.3 1.2 

Total 19.6 18.1 15.7 10.3 63.7 

Fig 2: Annual Bilateral Budgets 

The overall annual budgets of the participating agencies’ contributions are tentatively planned as follows: 

By Agency 2009 2010 2011 2012 Total 

SDC 10 10 10 10 40 

SECO 8.1 6.9 5.3 0.3 2 20.6 

FOM 1.5 1.2 0.4 tbd 3.1 

Total Kosovo 19.6 18.1 15.7 10.3 63.7 

Fig. 3: Bilateral Domain Budgets 

The Domain-wise allocation of the bilateral budgets is planned as follows: 

Domain Public Economy and Rule of Migration SCO and Total 

Infrastructure Employment Law and 

Small 

Agency 

Democracy 

Actions 

SDC 3.7 16.0 16.4 0.7 3.2 40.0 

SECO 15.2 4.2 0 0 1.2 20.6 

FOM via SDC 0 0 0 3.1 0 3.1 

Total 18.9 20.2 16.4 3.8 4.4 63.7 

2 SECO position towards operational activities will be reviewed in 2011. 

23

24 


Annex 3: Monitoring System 

The Cooperation Strategy (CS) is subject to a systematic, 

on-going Monitoring, basically serving a double 

purpose: i. keeping on track the effectiveness and 

relevance of the Swiss programme portfolio (steering); 

ii. accounting for results (reporting), mainly 

between Cooperation Of� ces to HQs, indirectly visà-vis 

external stakeholders as well. 

The applied monitoring concept basically consists of 

three levels of observation. 

a) country outputs and outcomes in � elds relevant 

for the CS; 

b) Swiss Cooperation portfolio outputs and outcomes 

c) portfolio management by the Swiss Cooperation 

Of� ce. 

Additionally an observation of changes in the wider 

development context (MERV) in Kosovo is carried 

out, supporting an ongoing risks assessment for the 

Swiss cooperation. 

SCO 

Portfolio 

Management 

Swiss 

Portfolio 

Outputs & 

Outcomes 

Contribution 

Harmonisation Alignment 

Monitoring of Country outputs and outcomes 

means verifying whether: 

- Kosovo is moving towards the set objectives relevant 

for de� ned components of the CS (country 

level outputs and outcomes); 

- these objectives keep their validity or need to be 

revised (from the donor’s point of view); 

- the observed status of country outputs and outcomes 

provides a basis for a possible correlation 

with the Swiss portfolio outputs and outcomes. 

Monitoring of the Swiss Cooperation portfolio 

outputs and outcomes means verifying: 

- whether the portfolio is evolving in line with the 

set objectives 

- whether the expected portfolio contributions to 

the country level keep their validity or need to be 

revised 

- if and how observed portfolio outputs and outcomes 

relate to country outputs and outcomes as 

possible contributions 

Graph 1: Levels of observation for CS monitoring 

Country-level outputs 

& outcomes 

(including speci� c 

context elements 

relevant to Swiss 

Portfolio) 

Wider Country 

Context 

(MERV/scenarios)


Monitoring of the Portfolio Management by 

the Swiss Cooperation Of� ce means verifying: 

- whether portfolio management supports result 

achievement in the following dimensions: approaches 

and strategies, including cross-cutting 

issues; relationship management; aid modalities; 

human resources, learning and knowledge management; 

allocation of � nancial resources 

- to what extent portfolio management relates to 

national processes 

- whether portfolio management is sensitive to risks 

and context/scenario development 

Assessing results and Reporting: The monitoring 

process for the CS is tied to the annual reporting 

and planning process and is under the responsibility 

of the SCO. As far as possible country outputs and 

outcomes are assessed jointly with the main stakeholder 

groups of the Swiss Cooperation. Project and 

programme implementing partners are included for 

the assessment of the portfolio outputs and outcomes. 

The monitoring is structured according to the main 

components of the CS. The key product of the monitoring 

process is the result statement, i.e. a critical 

overall assessment both on the extent and how the 

results are achieved with an emphasis on plausible 

“output and outcome” and “portfolio to country level” 

contributions. 

Reporting on CS monitoring, overall assessment of 

performance, and steering decisions is done by the 

means of the Annual Report delivered by the SCO to 

SDC and SECO headquarters. 

The Monitoring of the CS will be done against the 

following Result Framework (in synopsis), more 

detailed result frameworks per component or subcomponent 

of the CS being elaborated separately. 

25

26 


Synopsis Results Framework 

The overall goal of the SDC and SECO Cooperation Strategy is to support Kosovo in its transition 

and state building process by contributing to improve: 

1. economic growth and sustainable employment; 

2. central and local governance, rule of law and democratic processes; 

3. access to basic infrastructures and services. 

Domains 

Economy and 

Employment 

Economic growth and 

employment generation 

through improvement 

of � scal policy and 

regulatory framework, 

educational system, 

infrastructure and 

through promotion of 

sectors with potential 

(e.g. agriculture). 

Poverty alleviation and 

social stability. 

Rule of Law and 

Democracy 

Good governance including 

public administrative 

reforms, public 

� nancial management, 

� ght against corruption. 

Implementation of status 

settlement, including 

decentralisation 

and minorities. 

Country priorities 

Public Infrastructure Migration 

Implementation of a 

comprehensive water 

management plan. 

Provision of a reliable 

and diversi� ed energy 

supply to all citizens at 

competitive prices. 

Improve international 

cooperation on migration. 

Prevent and reduce all 

forms of illegal migration. 

Promote legal and circular 

migration by developing/implementing 

legal and institutional 

mechanisms. 

SDC / SECO portfolio contribution 

SDC / SECO SDC SECO / SDC FOM / SDC 



and sustainable employ 

ment are improved, 

private sector is strengthened, 


increased. 

SDC 16.0 Mio 

SECO 4.2 Mio 


conditions: coherent 

policy framework and 

conducive environ ment 

for sustainable employment 

are established. 

Private sector development: 

import substitution 

and employment 

generation enhanced in 

horticulture and other 

selected sectors. 

Youth employability: 

level of quali� cations 

matching labour market 

needs raised, Vocational 

Education system 

strengthened. 

Central and local government 

institutions 

are strengthened, accountable 

and provide 

reliable and ef� cient 

services to all citizens. 

SDC 16.4 Mio 

Local governance 

and decentralisation: 

local governments/ 

municipal ities’ ability to 

deliver key services and 

satisfy all citizen groups 

is enhanced, Association 

of Municipalities is 

strengthened. 

State building: property 

rights issues addressed, 

notary system established. 

Democratic society: 

Civil Society Organisations 

empowered to 

improve citizen participation 

and democratic 

control in the country. 

More people have access 

to clean drinking 

water, sanitation and to 

reliable energy supply. 

SECO 15.2 Mio 

SDC 3.7 Mio 

Access to water in both 

urban and rural areas 

and to sanitation in 

rural areas improved. 

Unsolved policy issues 

in water sector tackled 

and inter-institutional 

cooperation improved. 

Electricity distribution in 

Gjilan area improved. 

Transversal themes Gender & Governance 


A migration partnership 

between Switzerland 

and Kosovo is established. 

Migration has an 

increased positive impact 

on development. 

FOM 3.1 Mio 

SDC 0.7 Mio 

Capacities of authorities 

in migration management 

strengthened. 

Voluntary and sustainable 

return and reintegration 

fostered. 

Migration pressure 

reduced and irregular 

migration prevented 

through social and economic 

structural aid. 

The positive impact of 

migration on development 

is enhanced.


Annex 4: Aid Modalities 

The Cooperation Strategy will strive to achieve a mix of aid modalities as shown below, carefully assessing, 

however, the real capacity development of partners in Kosovo and adapting accordingly. 

Aid modalities Harmonisation 

potential 

Aligned Programmes 

• SWAPs, Direct Budget Support More 

• Multilateral co-financing, trust 

funds IFIs, UN, EU 

Programme contributions to 

organisations 

(local -, national - or regional/ 

international) 

• Swiss contribution 

• Multidonor contribution 

Bilateral Swiss projects 

(Swiss visibility) 

• Direct SDC/SECO projects 

• Swiss NGOs 

Less 

Programmes 

and projects (%) 

10 - 20 

20 - 30 

Regional 

programmes 

20 

40 

50 - 80 40 

Total 100% 100% 

Aligned programmes include (i) governmental 

support or budget support or sector budget support, 

and (ii) bi- or multi-bilateral co-� nancing arrangements 

and contribution to UN, IFIs or joint EU programmes. 

Programme contributions to organisations 

(local, national or regional or international) include 

a contribution (i) to a multi-bilateral project or programme 

and (ii) to a multi-donor basket funding arrangement. 

Bilateral Swiss projects include mandates to 

local NGOs, government bodies, regional associations, 

Swiss partners (NGOs and privates), all actions 

with visible Swiss identity. 

Basic principles 

� The mix of these aid modalities will be country 

or region speci� c. 

� Harmonised interventions, strategic alliances 

with international and like-minded organisations 

will be promoted, particularly were institutional 

changes and reforms are supported. 

� Improving micro-macro linkages and scaling up 

by bringing � eld expertise to policy dialogue in 

order to increase effectiveness. 

� Projects and programmes are designed in order 

to be managed for tangible and sustainable 

results even after a � rst phase. Programmatic 

approaches will be privileged instead of isolated 

projects. 

� Pro-poor activities and instruments which can 

reduce poverty should be tested and promoted. 

27

28 


Annex 5: Kosovo at a Glance 

Economic Indicators 

(in Mio. €) 

2007 2008 

GDP [1] 3,343 3,739 

GDP per capita [2] 1,573 1,729 

GNDI per capita [3] 1863 2026 

Total exports [4] 51.5 103.5 

Total imports [5] (in % of GDP) 

672.2 856.7 

Foreign aid [6] 9 

Remittances [7] 10-12 

Agriculture [8] 9 

Services to GDP [9] 64 

Industry (Manufacturing) to GDP [10] 27 

Social Indicators 

Population (in Mio) [11] 2.0 – 2.25 

Urban population (in %) [12] 35 

Life expectancy at birth (years) [13] 69 

Infant mortality (per ‘000) [14] 45 

Extreme poverty (< 1 US-$/day and person, in %) [15] 14 

Poverty (< 2 US-$/day and person, in %) [16] 44 

Un-employment (in %) [17] 39 – 43 

Persons with access to water network 

(in %) [18] 

65–70 

Illiteracy men (>15 years in %) [19] 2.3 

Illiteracy women (>15 years in %) [20] 10.2 

Sources 

[1] [2] Central Bank of Kosovo 

[3] [6] [7] World Bank 2009 

[4] [5] Ministry of Economy and Finance 2009 

[8] [9] [10] European Commission Kosovo Progress Report 2007 

[11] [12] [17] International Monetary Fund 2009 

[13] [19] [20] Statistical Of� ce of Kosovo 2004 

[14] [15] [16] [18] Kosovo MDG Report 2008

Cooperation strategy Kosovo 2009-2012 - Deza

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