An Overview of the Privatisation Process in Republic of Kosova
Nowadays, elements of privatisation and free-market orientation can be seen in almost every economy in the world. In Central and Eastern Europe after the collapse of the socialist system in 1989-1990, the privatisation has been seen as the panacea for economic problems. The most important economic goals of post-communist privatisation have been the improvement of corporate governance. Kosova was an autonomous province in the former Yugoslavia which had a centralized economic system. In 1999 Kosova became a separate territory under United Nations administration, and, in 2008, it declared independence. Additionally, starting from mid-2002 the legal framework of the privatisation process in Kosova has been prepared by UNMIK and the process was exercised by the Kosova Trust Agency. This Trust aimed to preserve or enhance the value, viability, and corporate governance of socially owned and public enterprises in Kosova. The paper reviews the privatisation process in the Republic of Kosova from the very early start until today. The main goal of this paper is to investigate the effects of the privatisation process on the economy of Kosova. To achieve the set goal, we have used the integrative review method. The results show that the privatisation process did not yield positive results as expected. The process did not reduce the unemployment rate, which today is among the highest in the region. Also, it was characterized by many problems discussed in the paper. It is hoped that this study will provide a summary of the key points and will shed light on the effects of privatisation on the economy of Kosova. Moreover, it pinpoints the importance of SMEs for the country’s economic development since they represent the largest business sector in any world economy.
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