Economic Governance Activity

Economic Governance Activity supports the Government of Kosovo to implement significant reforms to improve the efficiency of government operations, strengthen public financial management, and ensure self-reliant and inclusive governance capacities and systems for future reforms. By doing so, this activity contributes to USAID’s overall goal of better serving citizens’ needs through accountable and effective governance.

Activities

• Improve the business environment by reducing opportunities for corruption and increasing the transparency and efficiency of interactions within the public sector and between the public and private sectors.
• Strengthen institutional policy development and intergovernmental coordination by helping the Government of Kosovo involve the private sector and civil society in policy reforms.
• Strengthen the Government of Kosovo’s public financial management practices to improve the transparency of tax policy and administration processes; strengthen control systems for more efficient spending of public money; and encourage private sector engagement in fiscal policy making.
• Enhance strategic communications in policy making and implementation of reforms to ensure the government’s agenda is transparent, has broad public support, and is well-coordinated with other national and local public institutions.
• Support the formalization process of unpermitted buildings by providing training to municipal officials, engaging in public outreach and updating the guidelines on the legalization of unpermitted construction.

Key Results to Date

• 796 million euros in estimated market value of buildings that were legalized/formalized in ten partner municipalities - securing citizen’s property rights, improving access to finance, and fueling economic growth.
• 724 million euros tax revenue collections by the Tax Administration of Kosovo in 2022, a 58% increase from 457 million euros in 2018, significantly boosting domestic revenues.
• 70 million euros in total tax reimbursements released to the private sector by the Tax Administration of Kosovo in 2022, a 35% increase from 52 million euros released in 2018, resulting in improved liquidity in the private sector.
• 45 governance reforms were supported, including legal acts, operational improvements and administrative processes.
• 23 e-governance interventions implemented to support the legalization of unpermitted constructions, construction permitting process, tax administration and public financial management at the central and local level.
• 17 civil society and private sector organizations voluntarily engaged to support activities to motivate citizens to apply for building legalization.

Additional Information

Project Funding

U.S. Agency for International Development (USAID/Kosovo)

Project Duration

March 2019 – March 2024

Implementing Partner

Chemonics Inc

Total Funding

$11,262,728

Key Counterparts

• Tax Administration of Kosovo (TAK), Ministry of Finance, Labor and Transfers (MFLT), Ministry of Environment, Spatial Planning and Infrastructure (MESPI), Ministry of Industry, Entrepreneurship and Trade (MIET)
• 10 partner municipalities (Fushe Kosovo, Gracanica, Istog, Mitrovica, Obiliq, Peja, Pristina, Prizren, Suhareka, Viti).

Where We Work

Nationwide

Contact

Dardane Peja, Project Management Specialist, USAID/Kosovo