An EU founded project managed by European Commission Liaison Office

West Kosovo Working Together for a Better Future

RReeggiioonnaall DDeevveellooppmmeenntt SSttrraatteeggyy 22001100 ‐‐ 22001133

EU Support to Regional Economic Development

Foreword

This document sets out a strategy to move towards the vision of West Kosovo as an inclusive and innovative area where people will want to live, work, relax and invest for the future.

Our regional stakeholders have worked together with the team from the Regional Development Agency and its Technical Assistance support from the EURED Project, funded by the European Commission Liaison Office in Kosovo, to produce this strategy as the first step in the coordinated regeneration of the six municipalities which make up this region. The team continues to work on an Implementation Plan for the period 2011 to 2013 based on this Strategy which will be completed by the end of 2010.

As Mayor of Peja Municipality and Chairman of the Managing Board of the Agency I would like to thank all those who have contributed to this effort and wish them even more success in the future.

The Regional Development Agency came into being in July 2009 with the signing of an inter-municipal agreement between five of the six municipalities of West Kosovo. The Agency team has worked with stakeholders from all six municipalities to develop the strategy which acts as the foundation for a coherent Implementation proposal for the period 2011-2013 to be developed later this year. As Executive Director of the West Kosovo RDA I would like to thank personally all our partners who have worked so hard to ensure that this document reflects a balanced and sustainable view of the regeneration needs of West Kosovo. I look forward to moving forward to effective implementation over the period from 2011 to 2013. Building on this in the future Kosovo will be able to align itself with the EU Programming Cycle and begin the development of a National Reference Framework and Development Plan for the period 2014 to 2020 as part of its move towards EU Integration.

Contents 1. Executive Summary ...... 1 2. Background ...... 4 2.1. How Regional Policy Works in the EU ...... 4 2.2. European Regional Policy an approach for Countries outside the EU - Applying the principles, sharing the lessons, exchanging experience ...... 5 2.3. The Approach Taken in West Region of Kosovo ...... 7 2.4. The Document Structure ...... 9 2.5. Recommendation ...... 10 3. Socio-Economic Information for West Kosovo ...... 11 3.1. The Regional Profile ...... 11 3.1.1. GEOGRAPHIC LOCATION OF THE REGION AND ITS NATURAL RESOURSES ...... 12 3.1.2. CLIMATE ...... 15 3.1.3. DEMOGRAPHY ...... 16 3.1.4. POPULATION, HUMAN RESOURCES AND LABOUR MARKET ...... 17 3.1.5. EDUCATION ...... 18 3.1.6. HEALTH SERVICES ...... 18 3.1.7. ECONOMY and CONDITIONS FOR BUSINESS ...... 19 3.2. Analysis of the West Kosovo Socio-Economic Information ...... 26 3.2.1. The Strategic Issues ...... 26 3.2.2. Strengths, Weaknesses Opportunities and Threats ...... 29 4. The Strategy for Sustainable Economic Development of West Kosovo ...... 42 4.1. Introduction ...... 42 4.2. The Vision of West Kosovo...... 42 4.3. Strategy Overview ...... 43 4.4. The Strategic Priorities for West Kosovo ...... 45 4.5. The Operational Priorities for West Kosovo ...... 45 4.6. Conclusion ...... 46 5. West Kosovo Development Priorities 2011 to 2013 ...... 47 5.1. Summary ...... 47 5.2. Data Sheet – Priority 1 Creating the Conditions for Sustainable Economic Growth ...... 50 5.3. Data Sheet – Priority 2 - Creating Wealth and Employment ...... 53 5.4. Data Sheet – Priority 3 - Creating an Employable Workforce ...... 55 5.5. Data Sheet – Priority 4 - Encouraging Community Based Development ...... 57 5.6. Data Sheet – Priority 5 - Technical Assistance ...... 59 6. The Next Stage - Implementation Planning ...... 66 ANNEXES ...... 68

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The Regional Profile is data-poor and lacks any real trend information. As a consequence West Kosovo’s Needs Analysis 1. Executive Summary required strengthening and this has been achieved by synthesising The West Kosovo RDA was given the specific remit, supported by and distilling information from the six Municipal Plans to identify EU Regional Economic Development Technical Assistance (EURED), and refine further Strengths, Weaknesses, Opportunities, and to produce the first Strategy for the West Kosovo Economic Zone Threats. (the six municipalities of Gjakova, Junik, Decane, Peja, Istog and Kline) by June 2010 as the basis for a focused Implementation Plan This has had the added advantage that it has enabled the RDA to by the end of 2010 in order to begin the EU Regional Policy process demonstrate that the considerable work which had gone into these in Kosovo. Municipal Plans could be adapted to the benefit of West Kosovo as a whole and so secure greater ownership of the process by the The Purpose of this strategy and plan was to give better focus to EU regional stakeholders. development investment in the future and so generate greater impact. It could not - and indeed must not - seek to replace the A clear vision for the future has emerged for West Kosovo as a democratic mandate of the Kosovo government or indeed to place to live, work, relax and invest. This important shift in image is subsume that of the municipalities and their individual Municipal based on two key elements: Development Plans. 1. Maximising the utilisation of the region’s assets but also The second section of this document looks at the background to ensuring that they are protected and where possible the strategy development and in particular sets out how EU enhanced for the future Regional Policy is expected to operate inside the EU and how it 2. Building on the gateway location and a tradition of mutually might apply outside the EU. It then goes on to set out that beneficial interaction, trade and cooperation with approach has been adapted to the West Kosovo context including neighbours the mainstreaming of the Social and Environmental ‘Horizontal’ In addition to Social Inclusion (Equality of Opportunity for All) and themes and the consequent structuring of the document into two Environmental Sustainability issues which are required to be further sections and two Annexes. mainstreamed into all future activity it emerged that there should be three Strategic Objectives and two Operational Objectives (five

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Regional Priorities). The operational priorities are essentially Agri-Business (Fruit, Vegetables, Processing) support-mechanisms to secure effective roll-out of the Strategic Mountain and Heritage Tourism and Leisure Priorities within the timeframe of the overall plan. 2.2. Encouraging Investment in areas of need particularly The areas identified as those offering the best potential for success Environmental Businesses over the period 2011-2012, and so the foundation of the future Waste Management & Recycling, implementation plan are, considered as ‘Areas for Intervention’ (or Renewable Energy, ‘Measures’). These have been selected by the regional Eco-transport etc. Stakeholders as offering the best balance between the needs and opportunities of West Kosovo. In summary these are as follows: 3. Developing West Kosovo’s Human Capital (Public/Private Strategic Priorities and proposed ‘Areas for Intervention’ management of the Labour Market) 1. Creating the Conditions for Sustainable Economic Growth 3.1. Education linked to business (Public Sector Primary Role) 3.2. Vocational Training

1.1. Protecting the Environment through a coordinated and Accreditation of Prior Learning coherent spatial approach to the region’s economic development infrastructure Customised Training (Training for Jobs) 1.2. Addressing Pollution and encouraging sustainable Waste Training and Retraining into the Growth Sectors Management 1.3. Image Enhancement - Restoring the Region’s Heritage and Operational Priorities and proposed ‘Areas for Intervention’ social infrastructure to encourage investment and 4. Community based Development - the LEADER Approach improving QoL (Helping people help themselves) 2. Creation of Wealth and Employment (Private Sector Primary 4.1. Encouraging the ‘LEADER’ approach in Rural and Urban Role) Communities to: 2.1. Developing more Competitive Businesses by Marketing and Creating the Conditions for Growth Branding and building on the region’s strengths in: Creating Wealth and Employment

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Developing Human Capital o Waste management 4.2. Promoting understanding of the Urban-Rural interdependence Section 4 of the document draws out the detail of these Encouraging Innovative small-scale pilot projects to Regional Priorities and proposes a focus in the future of ‘Areas improve Quality of Life (QoL) including provision of of Intervention’ identified as those most likely to have the services and development of community-based greatest impact in terms of West Kosovo’s economic businesses development and on these ‘Measures’ on which the future Implementation Plan will focus. 5. Technical Assistance – Operational Management and Research It is felt that there is now a solid and sustainable platform on 5.1. West Kosovo Skills and Knowledge Audit – engagement which the Implementation Plan for the period 2011 to 2013 with National Census can be built in the full expectation that Kosovo will, by 2013 5.2. Focused Sector Strategies for West Kosovo have proposals relating to development activity and Regional o Tourism & Marketing Policy in place for the 2014-2020 period. A mid-term review of the strategy should be carried out at the end of 2012 and o Regional Transport & Environment – an updated Implementation Plan for 2014-2017, based on the Including feasibility studies national framework, should be considered at that time. o Agriculture including processing & branding

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2. Background Strategic guidelines on cohesion policy outline a number of 2.1. How Regional Policy Works in the EU important issues. Programmes should continue to make a Partnerships throughout all regions of the European Union, significant contribution to the Lisbon priorities by: planning and good governance are the key elements for ensuring Investing in areas of high growth potential. High returns are that regional development remains as dynamic and as effective as available on investments in regions with the potential to catch possible. up rapidly with the rest of the EU, but where domestic funds European regional policy, its instruments and programmes, are may be insufficient to pursue all available opportunities. largely managed in a decentralised way by the national and Investing in the drivers of growth and employment. Cohesion regional governments concerned. Within a common framework set policy is focused on investments in human and physical capital by the EU, the Member States and regions choose the priority that are critical to growth and employment potential, including objectives in their territories that will benefit from EU funds. physical and ICT infrastructure, research capacity and However, each programme is developed in a collective process innovation, education and training and adaptability of workers. involving authorities at European, regional and local level, social

partners and organisations from civil society. The process ensures Supporting the implementation of coherent strategies over that each partner has ownership of the development programmes the medium to longer term. Cohesion policy is the only policy and that they are best adapted to each particular region. to provide a stable seven-year framework of investment. Committees involving these partners in the design, management Developing synergies and complementarities with other and monitoring of each programme accompany EU interventions. Community policies. Cohesion policy acts as a powerful lever The EU requires that for the 2007-13 period, Member States and for the implementation of other Community policies. For regions must prepare ‘National Strategic Reference Frameworks’ example, Trans European Network projects are financed and national and regional ‘Operational Programmes’. directly by the Cohesion Fund in the cohesion countries, leading to substantial gains in accessibility to the rest of Europe; EU regulations and ‘Community Strategic Guidelines on Cohesion’ compliance with the environmental acquis and with the lay down common rules and set common standards for the funds’ broader aims of sustainable development is strongly supported management, while taking into account the overarching priorities by cohesion policy; RTD policy and its concerns with, in of the EU’s Growth and Jobs Agenda – to become a zone of high particular, research infrastructures and the development of growth, creating new and better jobs.

4 human resources in research is also supported by cohesion the Lisbon agenda, the following section sets out the key policy, as are Community innovation and SME policies. aspects of the new framework for cohesion policy, 2007-2013. Mobilising additional resources. Activities co-financed by 2.2. European Regional Policy an approach for Countries cohesion policy secure a high degree of additionality for EU outside the EU - Applying the principles, sharing the lessons, funds, in particular by shifting resources for investment to areas exchanging experience1 where expenditure can have the greatest impact and added value. They leverage additional national resources, both public Sharing solutions to global challenges benefits both the EU and its and private, for use in coherent national and regional neighbours. The European Union’s Regional Policy has developed development strategies. Each euro spent at the EU level by and been refined over recent decades to meet a wide range of cohesion policy leads to further expenditure, averaging 0.9 goals. This section gives a brief insight into how this experience euros, in less developed regions (current Objective 1) and 3 might be transferred to Kosovo. euros in regions undergoing restructuring (previously Objective It is not easy to draw conclusions from the European experience 2). which could be directly applicable in Kosovo. However, some Improving governance. The unique delivery system for aspects of the experience could be a source of inspiration. Even the cohesion programmes favours improvements in institutional lagging regions of Europe, thanks to in part the single market, tend capabilities in policy design and implementation; the to be more integrated into the global economy. Disparities in some dissemination of an evaluation culture; public–private of the emerging economies of underdeveloped countries differ partnership arrangements; transparency; regional and cross- considerably but nevertheless the principles underlining the lessons border cooperation; and the exchange of best practices. It also learned remain relevant. contributes to better governance at all levels by improving Regional Policy requires a long-term strategic vision of what needs responsibility and ownership of the Lisbon strategy at sub- to be achieved. This may be the development of key sectors, such national level. as transport, or geographical areas, such as the priority given to the Promoting an integrated approach to territorial cohesion. less developed areas in EU policy. In the EU, programmes have Cohesion policy can help to create sustainable communities, by featured both the sectoral and geographical approaches. ensuring that economic, social and environmental issues are 1 tackled through integrated strategies for renewal, regeneration KN-30-09-120-EN-C Publications Office, European Commission, Directorate- and development in both urban and rural areas In the light of General for Regional Policy, Unit B.1 - Communication, Information and Relations with Third Countries, Raphaël Goulet, Avenue de Tervuren 41, B-1040 Brussels the different ways in which cohesion policy can contribute to Internet: http://ec.europa.eu/regional_policy/index_en.htm

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There should be an objective, or “non-political”, method for There is the issue of reliance on grants, or on a combination of raising and allocating resources. That is to say, it should be clear grants and repayable forms of support. EU policy has increasingly how money is raised and allocated to programmes or regions. This been moving in the direction of involving more repayable forms of exercise needs to be supported by statistical indicators and assistance in an effort to increase the level of resources available, implementing Regional Policy therefore pre-supposes the existence to create additional incentives towards efficiency on the part of of and investment in, a statistical service. beneficiaries and to bring additional expertise to bear from the A system combining co-financing and partnership enhances banking and financial services sector. ownership. Managing authorities bringing together a wide range of It is now recognised in the EU that having adequate formal and interests must also find between 15 and 50% of the costs of specific informal institutional capacities is crucial in the successful projects from local (public or private) sources. There is no sense in management of the programmes. This includes capacities in areas projects being imposed from higher authorities, instead projects such as financial management and control, economic development should truly belong to the community that benefits from them. planning, and in the identification and motivation of suitable partners. The question of institutional capacities is a particularly It is important to dissociate the legal framework setting out the broad rules governing the implementation of the policy from important issue for the successful implementation of cross-border individual project decisions. In the EU this results from an programmes, which bring together administrative structures that institutional architecture whereby the political level, the Member may have limited experience in cooperative actions. States and the European Parliament, decide the legal basis, while The monitoring and evaluation of actions is necessary in order to the selection of projects is devolved to managing authorities at be able to demonstrate the added value to beneficiaries and to national and regional level, separate and distinct from the taxpayers alike. This requires the inclusion of a technical capacity European institutional level. within the administration of programmes, although some of the The decision needs to be taken as to whether to opt for support for specialist tasks such as macro-economic modelling can be integrated programmes (supporting complementary actions in contracted out to research institutions or universities. fields such as infrastructure, human resources and business The issue of the conditionality attaching to programmes has been development) or support for individual projects. The EU currently important in the EU. The principle conditions attaching to the does both, through different funds. It could be said that integrated receipt of EU support include the need for: respect for open programmes require rather more in the way of institutional markets across the Union (competition rules on state aid, open capacities in the regions. Accordingly, where the latter are public procurement rules); respect for environmental policies and considered weak, it may be advisable to start from a project rules; respect for the principle of equality of opportunity; an approach. approach based on partnership and participative democracy.

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Transparency in policy and programme implementation is Developing an improving quality of life for all (helping Communities considered an essential component of good governance in the 21st help themselves) century. Accordingly, effective communications and information This approach has been adopted to give guidance in the absence of a systems should be included in the administration of the national framework. This framework has been utilised to facilitate programmes, for example, indicating the projects that have been stakeholders’ strategic thinking whilst retaining sufficient flexibility assisted, the results of the monitoring and evaluation exercises, to allow adjustment to national policy as it emerges. and explaining how to obtain public aid to prospective beneficiaries 2.3. The Approach Taken in West Region of Kosovo The approach taken by the RDA in developing the regional development strategy for the stakeholders of West Kosovo is based on incorporating as much of the fundamental guidance summarised in the first two sections of this introductory chapter as was practically possible. Where this has not been possible due to constraints on time or resources all efforts have been made to built corrective action into the strategy itself – in particular in proposing a Structural Funds Programme style ‘Technical Assistance’ Priority as an integral ‘operational’ element of the strategy. European Union Regional Policy requires a partnership-based bottom up approach. This is normally developed within a nationally defined policy or guidance framework. In Kosovo no such national framework currently exists. In West Kosovo, in addition to the cross-cutting ‘sustainability’ objectives of ‘Equality of Opportunity for All’ and ‘Securing a sustainable Regional Environment’ a generic structure of Economic ‘Themes’ or ‘Objectives ‘ was adopted as a start point: Creating the conditions for sustainable growth Supporting an innovative and productive business environment Building the human capital of the economic area

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Table 1 - Summary of Strategic Objectives and Regional Focus Areas

Cross- Cutting or ‘Horizontal’ Themes to be mainstream Sustainability Equality of Opportunity for all Supporting a Sustainable Environment Regional Development Strategic Objectives Western Region – Focus Areas 1. Creating the conditions for sustainable growth to create the appropriate Protecting and utilising the natural Environment and Landscape environment which will encourage economic growth in a region and Improving Public Utilities particularly encouraging Renewable Power stimulate development to take place. Production and Environmentally Friendly Waste Management 2. Supporting an innovative and productive business environment to Improving Access to realistic Development Finance for Businesses. increase the levels of commercialisation of innovation and productivity in Support to Environmental Business startup and growth SMEs overall, but focussing on priority sectors identified through the Increasing high value added and competitive horticultural and strategy development and businesses with high growth potential. This will agricultural production (fruits, vegetables, orchards etc.) Tourism Development through diversification of offer create and provide value added products and services. Marketing quality and Branding local quality products (including tourism) 3. Building the human capital of the economic area to enhance and utilise Development of training to create an employable workforce the existing skills and knowledge of the region, identify key areas where Customised training for businesses and investors there are skills shortages and address these in order to unlock the potential Educational development to support vocational route to employment of all those living and working in the economic region now and in the Awareness and embedding of environmental and social inclusion (sustainability) as a route to economic development future.

4. Developing an improving quality of life for all (helping communities help High-profile community-based projects to help stabilise workforces in themselves) to develop a ‘bottom-up’ approach to quality of life issues, development areas related to the above. including the built environment, service provision (including health and education)and embed the ownership of these issues. People identify their Focused ‘Leader’ style mini-programmes in rural and urban communities immediate concerns and propose solutions in which they take part.

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Care has been taken to ensure that the sustainability objectives Based on this the regional strategy was further developed through become mainstreamed in stakeholder thinking as the economic a series of TWG meetings and presented to the CPWG for objectives have been developed by the region’s Core Partnership endorsement and the Regional Forum for adoption in early June Working Group (CPWG) and the Thematic Working Groups (TWG). 2010. Following adoption by the Regional Forum each constituent The Stakeholder Analysis, Partnership Structure can be found at municipality was asked, through the Municipal Assembly, formally to approve this strategy and to support its further development Annex A. into a provisional Implementation Plan for the region by the end of The lack of meaningful data (particularly a lack of trend 2010. information) about the region’s socio-economic situation relative to the rest of Kosovo has required a different approach to assessing 2.4. The Document Structure the region’s needs. It is usual for ‘regional intelligence’ provided by This document is the first stage in the adoption of a European stakeholders to be used to supplement the regional statistical data Regional Policy approach to development in the West Region of and provide information and ‘proxy indicators’ for consequential Kosovo. It consists of five sections, the Executive Summary, the analysis. Given the lack and limited value of the statistical data, the Introduction; the Regional Information and Analyses; The Strategy; attenuated timescale, the embryonic nature of the regional and a preview of possible issues arising from its Implementation. partnership and the need to capture the planning work already It should be noted that the second section, the Regional carried out by the six municipalities which comprise Kosovo’s West Information and Analyses, is a snapshot in time and that it will be a Region (Decane; Gjakova; Istog; Junik; Kline, and Peja) the RDA has key role of the RDA to continue to develop and refine this further, opted to modify this tactic. particularly through the additional information available from the The SWOT Analyses of each of the six Municipal Plans were monitoring of key projects and the establishment of accurate aggregated, refined and revised then discussed with the CPWG to baselines and trends. identify the overall shape of the regional-level SWOT. This had the Consideration should be given to an annual publication by the additional benefit that it enabled the RDA team to maintain Region of the updated data and analyses, including emerging credibility with its partners and regional stakeholders many of trends. This discipline would ensure the continued input of the whom had been involved in the very considerable task of stakeholders and improved quality and responsiveness of strategy developing these Municipal Plans. Based on this work and development in the future. ‘sensitised’ Regional Profile (Section 2.1) meaningful analysis, including the development of a preliminary regional-level SWOT, The strategy description has been divided into two sections, the the framework of a regional strategy was established and adopted first (Section 4) is descriptive strategy and the second (Section 5) by the CPWG. takes the first step towards implementation as follows

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Section 4 - The overall development strategy for the region, the proposals as to the Areas of Intervention (Measures) might be vision of its stakeholders and how they hope to achieve this addressed vision. Section 5, the final section of the document gives a preview of how Section 5 - Information Sheets for each Regional Priority, regional stakeholders see this strategy being developed into a grouped by Strategic Objectives, setting out the rationale for realistic Implementation Plan For the period 2011 to 2013. the Priority, a description of what needs to be done, and

2.5. Recommendation

Implementation of this Strategy should be closely monitored by the RDA and its stakeholders with a full review considered in the latter half of 2012 when data from the 2011 Census will become available to support the development of a forward Plan for the Region 2014-2020 to align with the EU Programme cycle and assist with the development of a realistic National Strategic Framework for that period.

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3. Socio-Economic Information for West Kosovo

3.1. The Regional Profile The following document is the first draft of the Socio-Economic Objectives of Environmental Sustainability and Equality of Needs Analysis (SENA) for the West Region of Kosovo. It should be Opportunity for All. At the same time it is intended that the seen ‘work in progress’ as the available data-sets are very limited Regional Priorities and Areas of Focus will be resolved into a and trend-data almost absent. reduced number of Priorities and Areas of Intervention (Measures). At this stage true regional-level analysis of need is virtually A key task of the TWGs will be to develop SWOT Analyses for each impossible given the lack of consistent and meaningful regional Strategic Objective which are coherent both with the SENA and the information. Nevertheless the RDA team has assembled the Municipal SWOT Analyses and so identify the supporting evidence attached data and is seeking to refine this with the input of the and indicators for the Strategy and establish the ‘Golden Thread’ of region’s stakeholders for the explicit purpose of supporting the logic which will be the foundation for a future Implementation Plan. development of a coherent strategic approach to economic In parallel with the development of the economic ‘Drivers for regeneration of the West Region. Change’ the key Sustainability Axes will be maintained and the sustainability objectives embedded in these to secure the In order to ensure that all available information is utilised and that mainstreaming approach essential to good regional development the main development concerns of the Municipalities are practice. incorporated in this more comprehensive regional approach, the RDA will take as its start-point for the eventual analysis the SWOTs Although a deadline of the middle of June has been set for the found in each of the Municipal plans. These plans are as approved establishment of the regional strategy it is clearly understood that by the Municipal Assemblies of the six constituent Local Authorities the gathering and analysis of the Socio-Economic information is a of the region and although they are of varying quality and continuous process which will not only direct the strategy coherence they do have the advantage of considerable input of development but also facilitate measurement of success and good information and resources and a formal approval by an elected practice cycle-management of the regional development process in body. the West Region of Kosovo. This work has resulted in the emergence of four economic ‘Strategic Objectives’ and some 13 ‘Regional Priorities’ within these Objectives. Regional Thematic Working Groups (TWG) will refine this and mainstream into them the Cross-Cutting ‘Sustainability’

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3.1.1. GEOGRAPHIC LOCATION OF THE REGION AND ITS With a total surface area for Kosovo of 10,887 km² this Region NATURAL RESOURSES covers around 21% of the surface area of Kosovo Drainage

As indicated by its name the region is located in the west of Kosovo. The most important rivers in Kosovo are: Drini i Bardhë, with a It covers six municipalities, Istok, Kline, Peja, Junik, Decan and length of 122 km in Kosovo, Ibri - 42 km, Sitnica - 90 km, Bistrica e Djakova (running from the north to south of the region) and mirrors Pejas - 63 km, Ereniku - 51 km, Lumbardhi i Prizrenit (Bistrica) - 31 the UNMIK/KFOR west zone. This region is the western gateway of km, Morava e Binçit - 60 km, and Lepenci - 53 km. Their waters flow Kosovo with borders with Albania (Gjakova and Junik into the Adriatic Sea, the Black Sea and the Aegean Sea. Municipalities), Montenegro (Decan and Peja Municipalities) and Serbia (Istok Municipality). The Municipality of Kline borders three other Municipalities (Istok, Peja and Gjakova) ,of the region and sits over a crossroads on the main east-west road and rail route from the capital, Pristina.

There are 6 principal towns, one to each municipality and 322 villages included in the region. The height above sea level in large urban centres varies from 357 m to 520 m, with the highest point being Gjeravica Mountain 2,656m, which is also the highest peak in Kosovo.

Region West is covered largely by the Dukagjini Plain that borders the high mountains of Albanian Alps. The surface area of the region is presented in Table No. 1.

Table 1 –Area of West region

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The region is known for the high density of its rivers. Figure 1 – shows the high density of natural drainage channels in the region giving it the highest density of any region in Kosovo, an important character of the region.

The region has several mountain lakes such as the lakes in Gjeravica Mountain (Figure 2)and in Rugova mountains. The artificial Lake of Radoniqi located in Gjakova municipality with a surface area of some 130 km² contains an estimated 113,000,000 m³ of water (esk gj. Mje 06-07) Kosovo has four main drainage basins the chief of which is the source of Drini i Bardhë River, which begins in Radac village of Peja In Decane municipality there is a mineral water spring, and in Istok municipality and covers almost all the region flowing into the municipality there is a thermal spring with therapeutic Adriatic Sea. The remaining rivers of the region flow into Drini i characteristics. The temperature of water in that spring reaches Bardhë River including the Bistrica e Pejas which begins at the foot 48°C. A Medical Centre of Physical Therapy is located in Banja e of Kodra e Plakut, one of the peaks of Albanian Alps at a height of 2 Pejas with several hotels including the 32,000m Hotel Onix. This 1900 m above sea level, and flows into Drini i Bardhë River near centre should have significant capacity for the development of Zajm village some 378m above sea level. health tourism after privatisation.

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Hydroelectric sources – As mentioned earlier, there is sufficient comparative evaluations of landscapes, attractiveness of specific water potential in Region West, but unfortunately it is not utilized natural zones. much as a source of energy, except for a small hydroelectric power station with 7 MW power that is built in Bistrica e Deqanit. There is considerable potential through the creation of a national park in this area to enhance the attraction to visitors for both The geographical location, the fertile soil and climatic conditions, in recreational and tourism purposes. particular in the Dukagjini Plain, are ideal for the development of horticulture, fruit production and apiculture as well as arable and In the massif of Bjeshkët e Nemuna, in addition to Gjeravica Peak livestock (including poultry) farming and. with an altitude of 2,656 m (the highest peak in Kosovo) the following significant peaks can be identified: From the table, it can be seen that the surface area of arable land is around 100 thousand hectares and presents a great potential for Maja e Rupes (Rupa’s Peak) 2,501 m the development of agriculture. It can also be seen from the table Maja e Qenit (Dog’s Peak) 2,405 m that there is a considerable surface area of forests and pasture land that presents a great potential for the development of cattle- Maja e Strellcit (Strellc Peak) 2,377 m breeding. Rrasa e Zogut (Rrasa e Zogut Peak) 2,305 m The territory of Bjeshkët e Nemuna (the Accursed Mountains) Maja e Marjashit (Marjash Peak) 2,530 m presents one of the most important areas in terms of natural landscape and meets all conditions and criteria to be considered for Mirusha – Mirusha region in the south and east of the region is protection as a National Park. The proposed surface area of the among the most beautiful and interesting areas of Kosovo. This is Park is 38,000 ha (GZK11/86). With the establishment of this Park in recorded through the biologic diversity of this region. This region West Region there will be benefits in both economic terms and has a surface area of 63.21 km2. The height above sea level of the social/recreational terms. area varies from 340–1006 m. Mirusha River is one of the most beautiful rivers of Kosovo. In its final part, the stream passes The part of territory of Bjeshkët e Nemuna, which is proposed as through a gorge, which is known as the Canyon of Mirusha River. National Park, is special in terms of its natural characteristics and Natural park of Mirusha is located on both sides of Mirusha River values and as such should be placed under specific care and from the beginning of the canyon to the place where it flows into protection. The natural beauty and ecological values of this Drini i Bardhë River. territory, especially of Rugova Gorge occupy an important place in

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easiest one to visit. The highest waterfall is the one in the middle of pools 8-9, which is 21 m high. The climate of Mirusha region is mild continental influenced by Mediterranean climate.

3.1.2. CLIMATE

Climatic characteristics of Region West are almost the same as in the whole territory of Dukagjini Plain. West Kosovo has a continental climate influenced by the Mediterranean climate.

Relatively high temperatures with an average annual value of more then 11°C, August and July being the hottest months with a temperature of 21.7°C and 21.68°C and January the coldest month with a temperature of 0.5°C.

Average air humidity during a year is 70,2%, in which case an increase of humidity is evidently higher from summer season towards winter season for 17,5% than the decrease of humidity from winter towards summer.

In this region, the annual average of cloudy weather is 58%. During It is located in the territory of municipalities of Klina, Malisheva and the year, the frequency of cloudless days is 60,5 days (16,6%), Rahovec. The height above sea level of the park varies from 340 – whereas the frequency of cloudy days is 119,3 days (32,6%). 600 m. The surface area of the protected territory of the Regional Average elongation of sun occupancy due to orthographic Park of Mirusha is 556 ha. Mirusha River flows through the territory influences is lesser than the average in Kosovo and it is 1.972 hours, of Mirusha Park, creating 13 waterfalls and 16 pools that together out of which 293,6 hours or 72,1% of sun a year in July. create a rare river-scape attractive to visitors (Figure 4). The amount of rainfalls in this region is among the biggest in The biggest pool is the 16th lake (55m x 45 m) with a depth of 5 m. Kosovo. In low parts it is 724.6 lit/m², in mountainous areas of This is the most popular with visitors since it is the nearest and

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Bjeshkët e Nemuna the average amount of rainfall reaches more population was noted, causing human losses or migration to than 1.300 lit/m². Turkey, Albania, European countries and Transoceanic countries.

Table 2 -Table of population according to the data provided by The municipalities and GAP Institute frequency of wind is …./ 398 0/00/, whereas the frequency of western (W) and south- western winds (SW) is 122 0/00/ and 113 Number of births in West Kosovo, according to statistics of 2004, is 0/00/ and the lowest frequency is the one of eastern winds /E/ with 6108 newborn children (according to Statistical Institute 2004 pg. 55 0/00/. 22)

3.1.3. DEMOGRAPHY

Each time Kosovo went through peaceful periods of development, it experienced an increase of the number of population, whereas in periods of political crises and wars, a decrease of the number of

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Demography The average life expectancy is 62.4 years. Difference numbers based on original data. It is well known that the last between municipalities is small, with the exception of Klina that has registration of population is conducted by the 1981 census. the lowest average life-expectancy of 59 years (according to Statistical Institute 2004 pg. 48). This difference can be attributed - Inconsistent with different prognoses that are done by many to the state of environment, quality of water and general living institutions, especially in relation to the number of unemployed. standards. But, this does not imply that the existing data is completely 3.1.4. POPULATION, HUMAN RESOURCES AND LABOUR unusable. Despite deficiencies, they provide a basis on which the MARKET Socio-economic Analysis for West Kosovo should be carried out (table 3). Data regarding population, human resources and labour market are of special importance for the Socio-Economic Analysis – SEA. For the needs of analysis of West Kosovo, the original and statistical data should be classified by municipality. In most of the cases, the existing original and statistical data are: Inadequate, since even the existing data are in national level and not in regional level; - Incomprehensive, since they do not provide important information regarding the number of citizens of the region that work and live abroad, that work outside West Kosovo within Kosovo, and do not provide data on how many citizens of other economic regions work in West Kosovo ; - Incomprehensive, because they do not provide information regarding the structure of employed and unemployed persons according to their age and academic or professional qualification, but also according to sectors at Region West level; - Outdated, since whenever there is discussion about the Table 3 Employment statistics in West Kosovo presented in % population, estimated or anticipated numbers are used and not

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3.1.5. EDUCATION 3.1.6. HEALTH SERVICES

A new education system has started to be applied, classified Health-care in Kosovo is free of charge in public health-care according to ISCED 97 (International Standard Classification of institutions for special groups of population. The health-care Education). Primary and secondary education in Kosovo is free and system in Kosovo provides health-care protection on three levels: is financed by the national Budget of Kosovo. Education in Kosovo is Primary, Secondary and Tertiary. Primary health-care/family obligatory for all from the age of 6 until the age of 15. Educational medicine is part of governmental health-care system and is institutions in Kosovo are administrated by the Ministry of regulated in all municipalities of Kosovo. The concept of family Education, Science and Technology MASHT. The system in Kosovo is medicine implies application of preventive measures and public separated into four levels: preschool education, primary education, health care. low secondary education and high secondary education. In addition to public education in Kosovo, private education operates as well. State Education as far as West Kosovo is concerned the table below shows the number of students, the number of schools, (table 4)etc.

Table 4 - Regional education statistics Table 5 - Summary of Health sector Information

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Secondary health-care is provided by hospitals in regional level, the country: VAT 16%, tax on profit for corporations 10%, graduated which are, at the same time, hospitals of the respective towns. taxation in salaries 10% (tax reform in process) Free trade: free Secondary health-care is provided in two regional hospitals in West access to EU market based on preferential trade agreement (ATP), Kosovo in Peja and Gjakova. Tertiary health-care includes free trade in countries of European Union - CEFTA – factors Location: specialized medical services in Clinical University Centre of Kosovo. well educated labour force, competitive, resources (mines, In addition to a high-level of mortality of newborns, health-care agriculture), enviable natural resources (mines, agriculture), low system of Kosovo faces another worrying problem, an increasing taxes and a transparent tax system, purchasing power to purchase trend of appearance of cancer diseases and contagious diseases through remittances (app. 400 million € a year), access to EU market such as tuberculosis, diseases that emerge as a result of inadequate and members of CEFTA of duty-free market. Since December 2008, nutrition. The main criteria to determine the quality of health services or Kosovo is selected as a country that will benefit from GPT – General the level of development of health-care are: longevity of population, Preferential Tariff Treatment. Based on this agreement, Kosovo has general fertility, births, deaths and increase of population (table 5). the opportunity to export products that meet the required standards from Kosovo. Main export partners of Kosovo are: Albania, 3.1.7. ECONOMY and CONDITIONS FOR BUSINESS Macedonia and Greece that import mainly mineral products, 3.1.7.1. Economy different metals, leather products (Figure 6) etc.

Currency: EURO (€), 2007 GDP: € 2.378 billion, GDP Per Capita: € 1,150

Inflation: Since 2004 close to 0 percent, in 2007 - 2% Financial Mineral resources Sector: Two-level Bank System consisting of Central Bank Authority of Kosovo and 8 Private Banks, 9 Insurance Companies and 2 Pension West Kosovo is also very rich with large amounts of lignite reserves Schemes. Enterprises: 87960 SME in 2008, app. 47% of SME Engaged that are located in Klina municipality – about 2 billion tons. In in trade industry. 500 Social Enterprises, out of which 300 privatized addition, there are lignite reserves in Istog municipality as well, already. Budget: In 2008 with an approximate value of 1.090 million with a surface area of 100 km² with a thickness of 30-50 meters and €. Customs duties: 10% for imports, excise tax for fuel, alcohol, up to 230 meters of depth. The reserves of Bauxite minerals are tobacco and luxury goods. There are no taxes for exports. Taxes in located in Klina municipality – about 2 million tons.

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3.1.7.2. Road Transport the potential for upgrading/widening these roads in the future is being jeopardized, safety levels and the speed of traffic circulation Roads in Kosovo are ranked in highways, regional roads and local has decreased to a large extent in these highways and this has also roads. Hence, highways are the roads of highest category. Actually degraded the category of these roads. Earlier, it would take one (according to the data of 2004) their length is 647 km, 97% of them hour to pass the road (Pristina - Peja), nowadays it takes 1 hour and being asphalted. Regional roads follow with a length of 1278 km (in 25 minutes to pass it. In the near future, it is planned to connect 2004), around 76% of them being asphalted. Highways and regional West Kosovo to the Adriatic Highway through the highway M9 roads are in the competency of the Ministry of Transport and Post- (Pristina – Peja - Kullë). Due to a lack of Railway transportation, Telecom (MTPT). especially of goods with heavy tonnage roads are overloaded and consequently damaged. In 2004 there were around 250,000 Local roads that are ranked as the lowest category of roads have a vehicles in Kosovo. Public Transport Service of Passengers is length of around 6000 km and are in the competency of local realized by private transport agencies licensed by MTPT. governance. After the war in Kosovo, many illegal constructions and connections are done along the highways. This phenomenon 3.1.7.3. Rail Transport continues even nowadays and presents a serious problem. Thus, The level of development of Railways in Kosovo is quite low. The fact that no new railway line is built since 1963 alone speaks for itself. Railway lines, with the exception of those in some Railway Stations, are single-track Railways.

These Railway lines exist nowadays (in 2004) in West Kosovo:

Fushë Kosovë - Peja is built in 1936 with a length of 81.261 km and length in stations 21.511 km (Figure 6). Klinë - Prizren is built in 1963 with a length of 58.435 km and length in stations 11.420 km. As a result of a lack of investments in Railways their state is quite bad. The maximum speed allowed in a few places is 80 km per hour. Maintenance of Railway is at a very low level. They are being Figure 6 - Imports of Kosovo during the period 2002 -2007 damaged by unauthorized crossovers, illegal constructions near

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Railways and due to dumping of trash in their vicinity. Railway and approximately 100 thousand military personnel (website transportation in Kosovo is at a very low level. This results as a Pristina Airport). consequence of underdeveloped Railway infrastructure.

Figure 7 – Military Airport Gjakova

Figure 6 – Railway station Peja The objectives of MTPT – Development of Pristine Airport into a major regional airport with intercontinental air lines and 3.1.7.4. Aviation development of Gjakova Airport into an airport for civilian operations are the goals of MTPT (Figure 7). The nearest access for Today, there is a civilian airport in Kosovo, in Sllatina near Pristine, transport of goods for West Kosovo is the customs terminal of while in West Kosovo, there is an airport located near Gjakova that automobile traffic in Peja, the Railway terminal in Fushe Kosova, is used for the needs of KFOR. Today, the International Airport of the International Airport of Pristina through cargo transport and Pristine has an average of 20 flights daily, while the number of currently access through the seaports of Durres and Shengjin – flights is increasing continuously. During 2008, for the first time Highway Morina-Kukes-Durres. Construction of Highway Adriatic – ever, the number of 1 million passengers was achieved and Alpe Shengjin – Gjakova, at least 34 km of road (Lugina e Drinit exceeded. Altogether, there were 1.137 million civilian passengers Koman – Fierza), out of the total length of 150 km of road is planned as an alternative for West Kosovo.

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Table 6 - Review of TKP of KRU in 2008 In West Kosovo waste management is carried out by KRM Utilities “Ambienti”and KRM ”Qabrati” (Gjakova) (Figure 9).

Services regarding water supply management are provided by two According to the data of “annual report of performance of KRM”, regional companies: KRU “Hidrodrini” (Peja) and KRU”Radoniqi” KRM “Qabrati” from Gjakova has the following % of service coverage (Gjakova).Figure 4 shows that KRU”Radoniqi” has the highest level in Kosovo. of expansion of supply services with 95% and Hidrodrini with 64%.Management of waste-water (sewers) is also delivered by Radonici (62%) and Hidrodrini (34%) (Figure 8 and Table 6).

Figure 9 - % of service coverage by KRM “Qabrati”

Gjakova is 53% and by KRM”Ambienti” Peja is 29%. Figure 8 - % of service coverage

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3.1.7.5. Energy country depends on the import of liquid fuels. The level of participation of BRE in total production of energy: fire-wood In Kosovo, more than 87% of available electrical energy is produced contributes 8.46%; hydro-electric energy 0.54%; and solar energy by the capacity generated by lignite-fired local power plants (Kosovo with only 0.04% (Table 8). The Sector of Central Heating Systems A and Kosovo B) in Obiliq near Pristina. KEK, the national power (CHS) in Kosovo is relatively new and limited to only 3 geographic production and distribution company reports some 30% transmission locations (Pristina, Gjakova, Mitrovica), where only 5% of demand for losses of which some 3% are allocated to ‘technical’ reasons and the heating in Kosovo is fulfilled. Non-payment of bills for services of rest to theft. 13% of Kosovo’s energy is secured through import central heating has brought these enterprises in a very difficult mostly from Serbia and Albania. Almost daily ‘outages’ come as a situation. result of load-shedding, as well as cuts due to weak maintenance of system. The only hydroelectric plants outside KEK are: Hydroelectric 3.1.7.6. Telecommunication plant of Gazivoda/Ujman (2 X 17.5 = 35 MW), which is administered In the territory of West Kosovo operate the following licensed by the Water Company (Hidrosistemi Ibër-Lepenc) and Hydroelectric operators: PTK – Fixed Telephone Network (Kosovo Telecom), plant ”Lumëbardhi”, with an installed capacity of 8.3 MW, which is licensed on 30 July 2004 and IPKO (licensed on 08 September 2006). operated by a private investor. In Kosovo there are still unidentified During 2008, except for PTK, IPKO Telecom started providing Fixed sources of oil and there is no refinery for its processing, therefore our Telephone Network Services. Internet services through ADLS technology are provided by PTK and private operators, such as IPKO and KUJTESA through cable modem and networks of cellular technology that operate in frequencies 2.4 GHz.

Table 7 – Total energy in PJ - 2003

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3.1.7.7. Agriculture

West Kosovo - with a surface area of agricultural land of 141.287 hectares, has developed intensive agricultural cultures such as arboriculture, viniculture and, on the other hand, is developing Table 9 – Land Use in West Region cattle-breeding, poultry farming and beekeeping. The privatization process has enabled a large surface area of Agricultural land There is also a great potential in arboriculture, which is increasing (including agricultural land of former agricultural enterprises and and is one of the main suppliers of the market of Kosovo with apples. cooperatives) to be transferred to the hands of the private sector Existing orchards in Istog and new surface areas in the part of (table 8). Gjakova, Peja, Decane and Klina indicate that this region is developing this sector, replacing export products. Wine- cellar”Ereniku” in Gjakova is actually the only active producer of wine in West Kosovo. Cattle-breeding sector, including processing of milk, with one of the biggest milk production plant in Kosovo ”Vita”and meat processing by some small enterprises which enjoy a very good reputation for the quality of meat and meat products. (Table 9)

Table 8 – Surfaces of Forest and Pastures in ha

West Kosovo is renowned and developed in these agricultural sectors: cultivation of trout, arboriculture, truck farming, viticulture, beekeeping and cattle-breeding. Actually, West Kosovo is renowned for production of trout and its sale in all Kosovo.

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3.1.7.8. Industry

Food Industry: In West Kosovo, there is a good perspective, since now with the process of privatization, enterprises such as Peja Brewery, producers of mineral water ”Rugova”, ”Peja” (Table 11), etc, Seed Factory, ”Trofta”, Poultry Farm ”Konsoni”, Factory for production of milk and fruit juices ”Vita”, Factory for production of dairy products ”Golaj” are the main enterprises in local market and solid exporters in the regional market of neighbouring countries. Textile Industry: Lead by NMVM in West Kosovo has started to give first signs of replacement of import products. Construction Industry: IMN Factory of construction material and roof-tiles is a leader in the market of Kosovo for production of building blocks and roof-tiles for the construction industry. Producers of windows and doors made from PVC and wood occupy a Figure 11 – Brewery “Peja” Peja considerable part in the overall market of Kosovo.

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3.2. Analysis of the West Kosovo Socio-Economic Information

3.2.1. The Strategic Issues Profile West Kosovo Strategic Issues Comment

GEOGRAPHIC LOCATION OF Landscape attractive to visitors and foundation for Image Proposed spatial approach facilitates understanding of THE REGION AND ITS but environmental degradation – largely due to poor the issues and supports controlled and well-directed NATURAL RESOURSES waste management and pollution has to be reversed and development. controlled (3.1.1) Strength is the quality of the landscape and the natural Geographical location offers Gateway potential for trade resources both renewable and non-renewable with neighbours Weakness is lack of some resources and the inability to Mineral Resources (Lignite and Bauxite) are non- manage others well or lack of awareness by public renewable and not under local control and so authorities and local people exploitation could prove a threat Opportunity lies in the EU support for sustainability- Exploitation of some resources (timber and river gravels) oriented activity is either not controlled or controls are bypassed Threat to this is the lack of local control over exploitation threatening sustainability and pollution Legislation to protect natural resources is not

implemented and outside local control

CLIMATE (3.1.2) No strategic issue identified Some consideration should be given when developing detailed strategies for Agriculture to the limitations on competitiveness associated with the climate in West Kosovo and relations to limited but important local markets.

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Profile West Kosovo Strategic Issues Comment

DEMOGRAPHY (3.1.3) Out- migration of young people from West Kosovo Related to lack of work and low expectation of work but also quality of life and connections to family already part

of Diaspora. Life Expectancy lower than EU Average Health-related – NB Klina especially low possibly associated with poor quality ground-water.

POPULATION, HUMAN Lack of detailed quantitative information but: 2011 National Census should improve data available in 2012 especially if it can be formatted to take account of RESOURCES AND LABOUR High unemployment levels the strategic issues highlighted. MARKET (3.1.4) Supply-Demand mismatch in the Labour-Market Agreed operational focus on dealing with immediate Local Labour offices not regionally aware or issues by cooperation with employers and potential empowered employers. Moving unemployed into available work by provision of customised training and encouraging employers to participate in helping develop labour- market supply-side issues through early intervention in schools and higher-education etc.

EDUCATION (3.1.5) Education Infrastructure not rationalised to demand Education, including Higher Education generally dislocated from the Labour Market. This, to some extent Curriculum not aligned with potential employment and relates to the lack of labour-market information in lack of focused (employer-oriented) vocational training general. Perception of low quality of Higher Education Overall educational infrastructure needs investment but based on a practical review and some realistic analysis of needs over next 30 years.

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Profile West Kosovo Strategic Issues Comment

HEALTH SERVICES (3.1.6) No strategic issues identified Lack of structure – no health insurance or system of records leads to anarchic approach and wasteful use of very limited resources.

ECONOMY and Availability of Development Land (Brownfield sites) Extensive closed sites and buildings available for recycling CONDITIONS FOR BUSINESS Lack of Strategic thinking and focus for business growth (3.1.7) at national and sub-national levels Post war interventions have been essentially emergency aid and not focused or strategic in nature and some Privatisation well advanced grant-dependency is emerging Improvement of West Kosovo image to attract investors Privatisation process can prevent rather than stimulate Access to low-cost finance for development compared to investment as sometimes promised investment stalls. neighbouring countries Overall the image of Kosovo is poor internationally being Young and well educated available workforce generally associated with war and ethnic cleansing. Lack of workforce data means many people are overqualified for the positions they hold

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3.2.2. Strengths, Weaknesses Opportunities and Threats

Strengths - GEOGRAPHIC LOCATION OF THE REGION AND ITS NATURAL RESOURSES including CLIMATE

Strategic Issue Underpinning Evidence Implications for Strategy/Strategic Weighting

S1 High Amenity Natural Environment Mountain terrain and developed foothills Foundation for Image improvement and attraction for visitors

S2 External Connectivity Geographical Location with land borders and Gateway location includes links to Macedonia via connections to Albania, Montenegro and Serbia Prizren – Cross border projects to increase trade and develop shared interests (tourism etc)

S 3 Availability of Development Land Redundant Industrial Infrastructure is plentiful for Enables the controlled spatial approach that lies redevelopment in a controlled development Zone at the heart of the West Kosovo Vision to be implemented

S4 Plentiful supply of clean water and air for QoL Water Quality tested by Peja Institute – Air quality Quantification is proposed to demonstrate West and healthy population not quantified– no monitoring. No known air or Kosovo benefits to visitors and investors water pollution issues except in Kline (natural contaminants)

S5 Renewable Natural Resources available for Timber, Water (hydro-power & irrigation), Basis for controlled logging for timber-based controlled exploitation industries and eco-friendly hydro-power. Power in particular is in great demand in Kosovo

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Strengths – DEMOGRAPHY, POPULATION, HUMAN RESOURCES AND LABOUR MARKET

Strategic Issue Underpinning Evidence Implications for Strategy/Strategic Weighting

S6 Kosovo has a ‘young’ demographic profile 50% of population is under 25 years and 37% Young and relatively well-educated workforce is under 14 years can be expected to be reasonably adaptable and attractive to investors.

Strengths – EDUCATION & HEALTH

Strategic Issue Underpinning Evidence Implications for Strategy/Strategic Weighting

S7 Primary and Secondary Education is to a good Good basis for development of the workforce standard supply side with improved focused HE

Strengths – ECONOMY and CONDITIONS FOR BUSINESS

Strategic Issue Underpinning Evidence Implications for Strategy/Strategic Weighting

S8 Young and well educated available workforce Municipality data’s for Education Young and motivated workforce is attractive to investors GAP Institute

S9 Privatisation well advanced Publication “Privatisation and post privatisation in Solid industrial infrastructure, high quality Kosovo" Forum 2015, Sep.2008 agricultural land and young and well educated

workforce

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Weaknesses - GEOGRAPHIC LOCATION OF THE REGION AND ITS NATURAL RESOURSES including CLIMATE

Strategic Issue Underpinning Evidence Implications for Strategy/Strategic Weighting

W1 High Amenity Natural Environment Degradation of the Environment “The state of Actual situation of environment will turn amenity Environment” MESP pg.55 of natural environment to a weaknesses for economic development

W2 External Connectivity Slow process of cross border cooperation Illegal trading makes Region weak in economic development

W3 Availability of Development Land Land use without respecting law, change of the Continuation of construction without proper land use planning will block accessibility and in same time will block development of the region

W4 Plentiful supply of clean water and air for QoL Klina issues (natural contaminants) and healthy population Degradation of the Environment “The state of Environment regulation of West Region is Environment” MESP pg.55 considered weak with limited attraction for the business development which sees the grey W5 Renewable Natural Resources available for Illegal logging is commonplace economy as a threat controlled exploitation

W 6 Mineral Resources available Gravel Extraction not well controlled

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Weaknesses – DEMOGRAPHY, POPULATION, HUMAN RESOURCES AND LABOUR MARKET

Strategic Issue Underpinning Evidence Implications for Strategy/Strategic Weighting

W7 Out- migration of young people from West Demographic statistics Lack of vision by authorities has reduced confidence of young people in their future in Kosovo TV and newspaper Interviews with young Kosovo generations

W8 Life Expectancy lower than EU Average Statistical Institute 2004 pg. 48 Missing of instrument for monitoring and controlling of health quality leaves implication of poor health issues for the workforce – unattractive for employers

W9 High unemployment levels Municipal Statistical data’s Burden on public authority and lack of data means problem is difficult to manage GAP Institute

W10 Supply-Demand mismatch in the Labour- Municipal Statistical data’s Focus in sectors which do not have future in Kosovo dilutes limited resources and prevents Market GAP Institute investment in growth areas. Lack of real data makes proper management difficult

W11 Local Labour offices not regionally aware or Interviews with working force This service are not currently justifying their establishment and so lose credibility with job- empowered TV and newspaper seekers – need to be reenergised and refocused

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Weaknesses – EDUCATION & HEALTH

Strategic Issue Underpinning Evidence Implications for Strategy/Strategic Weighting

W12 Education Infrastructure not rationalised to Many secondary schools in the Region west with Many investments in school constructions in the demand up to 50 pupils in the class areas were population is not concentrated

W13 Curriculum not aligned with potential Employment statistics Municipalities Focus in sectors which do not have future in employment and lack of focused (employer- Kosovo dilutes resources GAP Institute oriented) vocational training

W14 In adequate provision of Higher Education Only two faculties in the region (for Education in Movement of young population toward Pristina or facilities Gjakova and for Business in Peja) other education centres in neighbour countries

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Weaknesses – ECONOMY and CONDITIONS FOR BUSINESS

Strategic Issue Underpinning Evidence Implications for Strategy/Strategic Weighting

W15 Improvement of West Kosovo image to No, or very low activities in the field Low rate of international investments in Kosovo attract investors Factual situation Field visits

W16 Lack of Strategic thinking and focus for Economic situation balance Import with export Construction of petrol station (37km = 40 petrol business growth at national and sub-national station), hotels in every village etc levels

W17 Access to low-cost finance for development Major banks in Kosovo average more than 2% Actual interest rates of Kosovo banks are rather compared to neighbouring countries Inters rates (Procredit Bank, Raiffeisen Bank) contributing to strangle development than contributing to economic growth

Employment statistics in West Kosovo If no chance for work strength can be turn to W18 Young and well educated available presented in % (Municipalities and GAP Institute) weaknesses and threat for west region workforce

W19 Privatisation Many privatised enterprises are not activated Work force engaged in former SOE did not find themselves in job market, Privatisation fund is Publication “Privatisation and post privatisation in blocked. Kosovo" Forum 2015, Sep.2008

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Opportunities - GEOGRAPHIC LOCATION OF THE REGION AND ITS NATURAL RESOURSES including CLIMATE

Strategic Issue Underpinning Evidence Implications for Strategy/Strategic Weighting

O1 High Amenity Natural Environment Mountain terrain and developed foothills Lies in the EU support for sustainability-oriented activity

O2 External Connectivity Geographical Location with land borders and Cross border cooperation have tradition with FRM connections to Albania, Montenegro and Serbia Yugoslavia republics) and with Albania

O3 Availability of Development Land Redundant Industrial Infrastructure is plentiful for Enables the controlled spatial approach that lies redevelopment in a controlled development Zone at the heart of the West Kosovo Vision to be implemented

O4 Plentiful supply of clean water and air for QoL Water Quality tested by Peja Institute – Air quality Quantification is proposed to demonstrate West and healthy population not quantified– no monitoring. No known air or Kosovo benefits to visitors and investors water pollution issues except in Kline (natural contaminants)

O5 Renewable Natural Resources available for Timber, Water (hydro-power & irrigation), Basis for controlled logging for timber-based controlled exploitation industries and eco-friendly hydro-power. Power in particular is in great demand in Kosovo

O6 Mineral Resources available Bauxite Lignite and Chromite reserves; Sand and Future exploitation if carefully handled could Gravel from rivers for construction generate much wealth and employment.

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Opportunities – DEMOGRAPHY, POPULATION, HUMAN RESOURCES AND LABOUR MARKET

Strategic Issue Underpinning Evidence Implications for Strategy/Strategic Weighting

O7 Out- migration of young people from West Demographic statistics Potential to encourage young people to remain if Kosovo opportunities for employment can be created TV and newspaper Interviews with young generations

O8 Supply-Demand mismatch in the Labour- Municipal Statistical data’s Opportunity to redress the mismatch over time Market and secure higher proportion of employment for GAP Institute those leaving education

O9 Local Labour offices not regionally aware or TV and newspaper Interviews with working force Redevelopment of local labour offices to play an empowered effective role in managing the labour-market situation

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Opportunities – EDUCATION & HEALTH

Strategic Issue Underpinning Evidence Implications for Strategy/Strategic Weighting

O10 Education Infrastructure not rationalised to Many secondary schools in the Region west with Business-focused education should enable demand up to 50 pupils in the class correction and demand-led educational system

O11 Curriculum not aligned with potential Municipal Statistical data’s Curriculum can be realigned with support of employment and lack of focused (employer- employers GAP Institute oriented) vocational training

O12 In adequate provision of Higher Education Two faculties in the region (for Education in Existing facilities can be developed in a demand- facilities Gjakova and for Business in Peja) led environment and aligned with future needs if accurate information is available

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Opportunities – ECONOMY and CONDITIONS FOR BUSINESS

Strategic Issue Underpinning Evidence Implications for Strategy/Strategic Weighting

O13 Improvement of West Kosovo image to No, or very low activities in the field A proactive stance by public authorities to create the conditions for structured and sustainable attract investors Factual situation business growth will send a clear message to Field visits potential investors

O14 Lack of Strategic thinking and focus for Economic situation balance Import with export West Kosovo Strategy will demonstrate clear business growth at national and sub-national strategic thinking levels

O15 Access to low-cost finance for development Major banks in Kosovo average more than 12% Low cost finance should be made available to compared to neighbouring countries Inters rates (Procredit Bank, Raiffeisen Bank) sectors where clear potential for growth has been demonstrated

O16 Young and well educated available Municipality data’s for Education Important platform for change in the supply-side of the labour market workforce GAP Institute

O17 Privatisation Opportunity for investment Publication “Privatisation and post privatisation in Kosovo" Forum 2015, Sep.2008

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Threats - GEOGRAPHIC LOCATION OF THE REGION AND ITS NATURAL RESOURSES including CLIMATE

Strategic Issue Underpinning Evidence Implications for Strategy/Strategic Weighting

T1 External Connectivity Geographical Location with land borders and Possibility of illegal import from all a particularly connections to Albania, Montenegro and Serbia from Serbia

T2 Availability of Development Land Redundant Industrial Infrastructure is plentiful for Uncontrolled development of inappropriate land redevelopment in a controlled development Zone will harm development potential

T3 Plentiful supply of clean water and air for QoL Water Quality tested by Peja Institute – Air quality Existing clean supplies have to be maintained and and healthy population not quantified– no monitoring. No known air or pollution managed roperly to maintain reputation water pollution issues except in Kline (natural of West Kosovo contaminants)

T4 Renewable Natural Resources available for Timber, Water (hydro-power & irrigation), If no local regular monitoring and measures are in controlled exploitation place threat of irrecoverable damage to forest and water resources

T5 Mineral Resources available Bauxite Lignite and Chromite reserves; Sand and Mineral exploitation licences are granted centrally Gravel from rivers for construction and not well monitored or controlled. Pressure needs to be brought to bear to ensure proper controls are in place.

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Threat – DEMOGRAPHY, POPULATION, HUMAN RESOURCES AND LABOUR MARKET

Strategic Issue Underpinning Evidence Implications for Strategy/Strategic Weighting

T6 Out- migration of young people from West Demographic statistics Potential loss of skills and knowledge from West Kosovo Kosovo (brain-drain?) TV and newspaper Interviews with young generations

T7 Life Expectancy lower than EU Average Statistics This has cost implications for the state and for employers. Also throws doubts on the issue of QoL for investors

Threats – EDUCATION & HEALTH

Strategic Issue Underpinning Evidence Implications for Strategy/Strategic Weighting

T8 Education Infrastructure not rationalised to Many secondary schools in the Region west with Yong workforce poorly prepared. demand up to 50 pupils in the class

T9 Curriculum not aligned with potential Municipal Statistical data’s Workforce supply will continue to be misaligned employment and lack of focused (employer- with demand unless action is taken to redress the GAP Institute oriented) vocational training imbalance

T10 Inadequate provision of Higher Education Two faculties in the region (for Education in Loss of skills and knowledge to the region’s

40 facilities Gjakova and for Business in Peja) workforce

Threats – ECONOMY and CONDITIONS FOR BUSINESS

Strategic Issue Underpinning Evidence Implications for Strategy/Strategic Weighting

T11 Improvement of West Kosovo image to No, or very low activities in the field Improvement of image for investors is vital if they are to be attracted to the region. attract investors Factual situation Field visits

S2 Strategic thinking and focus for business Economic situation and balance of trade West Kosovo strategy is based on moving thinking growth at national and sub-national levels from what is to be done towards why it is to be done and what can be achieved

S3 Access to low-cost finance for development Major banks in Kosovo average more than 12% Discourages business development. More compared to neighbouring countries Inters rates (Procredit Bank, Raiffeisen Bank) supportive financial mechanisms needed to overcome this but based on focus real growth potential not ‘free for all’ basis

S4 Young and well educated available workforce Employment statistics in West Kosovo presented This important asset will be lost if appropriate in % (Municipalities and GAP Institute) employment cannot be found of indication of change given

S5 Privatisation well advanced Many privatised enterprises are not activated Privatisation success-stories need to be promoted to overcome negative messages Publication “Privatisation and post privatisation in Kosovo" Forum 2015, Sep.2008

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4. The Strategy for Sustainable Economic Development of West Kosovo

is for that reason that the strategy has proceeded to the additional 4.1. Introduction step of identifying ‘Areas of Intervention’ or ‘Measures’ Despite the lack of hard statistical data and trend information In the first instance the key task was to encourage the stakeholders available to the West Kosovo RDA and its partners and the very to think in a more analytical way and move from the ‘shopping list’ short timescale for production of this strategy a clear vision and approach to their needs and adopt more reasoned thinking by outline forward plan has emerged. This covers all six municipalities considering not what they needed/wanted to do but why they of (North to South) Istog, Kline, Peja, Decane, Junik and Gjakova needed to do it. The RDA team, with help and encouragement which define the Western Economic Zone of Kosovo, proved to be very effective in doing this through the many partnership meetings, and more importantly to do this in a Analysis of the regional profile supported by information (regional collaborative not controlling style giving ownership of the product intelligence) gathered through the regional working groups has to West Kosovo. facilitated the development of a document based on shared objectives derived from the considerable previous input into the six It is this focus on a transparent and supportive partnership Municipal Plans as well as from the regional profile. approach which has enabled this document to be realised with the full support of the region’s stakeholders through the Core Following EU Regional Policy guidelines the regional stakeholders Partnership Working Group (CPWG), its Thematic Working Groups were not just observers of this process but active participants. (TWG) and the Regional Forum which includes all six Municipalities. ‘Equality of Opportunity for All’ and ‘Environmental Sustainability’ have been mainstreamed throughout the entire process. Work to develop and strengthen the partnership for its continuing role goes on, and will underpin all future work as Kosovo develops. Care was taken throughout to ensure transparency and to emphasise that this was a transition process necessary to guide West Kosovo’s development until such time as more substantive 4.2. The Vision of West Kosovo national and sub-national planning and programming could be achieved with framework guidance from central government. The Working with the stakeholders of West Kosovo and looking at the RDA has been required to develop this strategy by June 2010 and to area’s socio-economic profile and the aims of the municipal plans complement this with a delivery ‘Action Plan’ by the end of 2010. It has led to the development of a shared vision based on the natural

42 landscape and gateway location as its major strengths and as assets 1. A controlled and appropriate development in three zones, The to be protected but used. Mountains, The Development Zone (clusters based on the Istog- The geographical and environmental nature of these assets has led Gjakova regional transport corridor), and the Agricultural Zone to a spatially-oriented approach to future development and a focus 2. A circular regional transport route based mostly on a revitalised on re-use and recycling as a methodology for a sustainable future. existing railway and ‘gateway’ links to Kline/The International Airport and Pristina; Prizren/Albania; Junik-Gjakova/Albania; Decane/Albania/Montenegro; Peja/Montenegro; and Istog/Mitrovica/Serbia. 3. A high ‘Quality of Life’ for its residents

4.3. Strategy Overview

West Kosovo recognised the need to embed the sustainability concepts of Equality of Opportunity for All and Securing a Sustainable Environment in all regeneration activity. Care has been taken throughout that these fundamental principles are mainstreamed in the West Kosovo approach set out below. As with any developing economy the major strategic thrust lies with the public sector to create the conditions which will encourage and facilitate the generation of wealth and creation of jobs. This will be common to all Economic Zones in Kosovo, however the approach adopted by West Kosovo is to recognise the importance of the environment and natural landscape to its image in the eyes of its residents, visitors and investors. The vision is of West Kosovo as a place to Live, Work, Relax and Invest for the future based on: The strategy that has been adopted seeks to direct development in such a way as to minimise or even reverse environmental damage

by a controlled spatial approach largely based on existing infrastructure and transport corridors and the ‘gateway’ location

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West Kosovo has with relation to Albania, Montenegro and Serbia. In the Agri-business sector there may need to be a focus on quality, This will not limit development potential but maximise benefit of productivity, diversification, processing, marketing, etc. rather than the natural resources. simple production increases. Limited local markets need to be In addition there is clear recognition that the whole area needs to carefully researched in order to maintain sustainability. address the issue of waste management and that the use of Tourism growth needs to keep pace with the development of the ‘ecological landfill’ offers only a temporary and unsatisfactory local resources and so, in the first instance, should focus on low- solution. A more proactive and coordinated approach is needed volume and high return initiatives, essentially external visitor with a focus on commercial recycling (public-private partnerships) numbers and overnight stays rather than recreational day-trips. including waste to energy initiatives. Outside these two business sectors there is a third sector which In parallel with creating the conditions for economic growth and West Kosovo needs to encourage based not on the existing improving West Kosovo’s image existing business need to be more business base but on an identified gap and local needs. competitive and to be encouraged to seek to add value to their The stakeholders recognise that encouragement of inward product. In West Kosovo Agri-business is a major economic player. investment is a vital part of any development strategy. Resources This success is based on beneficial local conditions and a long are limited and so particular focus will be needed in marketing tradition of growing quality produce but in the international st West Kosovo as an investment opportunity. The socio-economic context much needs to be done to move this sector into the 21 profile sets the overall tone and the direction of the vision for West Century and enable it to compete with imports in terms of quality Kosovo and this suggests that investment should be concentrated and price. Tourism based on the landscape and culture also exists as much as possible on encouraging the Environmental Business and has potential for growth but is constrained by lack of sector not only to create wealth employment but to help West investment in the quality and condition of the environment (both Kosovo’s municipalities achieve their aim of making it a place that natural and built). Both these business sectors are held back from everyone will want to live, work, relax and invest for the future. being truly competitive on the market by the international image of This is entirely complementary to the overall vision and to Kosovo and the lack of investment in diversification and added- development of the ‘competitiveness’ sectors. value development. The third strategic strand focuses on the people of West Kosovo, its These sectors are those selected by the stakeholders for particular ‘Human Capital’. This is an area where hard evidence is sadly focus; however it is important to recognise that support should be lacking but where much informal (and possibly inaccurate) concentrated only in those areas where growth potential is real in a information exists. It may well be that following the National context wider than Kosovo and so more research is needed and Census in 2011 a better framework will emerge. pilot-projects will play an important role through to the proposed mid-term review at the end of 2012.

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Sustainable Regional Development is about people, not simply as a 2. To Create Wealth and Employment in West Kosovo by workforce or as contributors but as the fundamental recipient of supporting increasing competitiveness in existing sectors the benefits of regeneration activity. In any real meaning of the with potential for sustainable growth and encouraging word the people of West Kosovo should be the beneficiaries. inward investment in industries with potential to help The Strategy seeks to address the issue at two levels, sustainable regeneration of the region. 3. To Create an Employable Workforce in West Kosovo a. On the demand side of the labour market - to safeguard and through modifying the supply side of the labour market create employment by stimulating sustainable growth in two working with employers and educational institutions and existing sectors and encouraging inward investment to develop supporting targeted training for jobs (customised training). a third, environmental businesses. For these three sectors it is proposed to support customised training (specific training for jobs) preferably based on the ‘learning by doing’ principal to 4.5. The Operational Priorities for West Kosovo ensure that these sectors can develop quickly without man- power constraints. Two of West Kosovo’s Priorities address operational rather than b. On the supply side these sectors will be supported to develop strategic objectives. These are designed to facilitate more effective long-term training programmes and work with educational implementation and are summarised as follows: institutions to ensure that vocational training is seen as a 4. Community Based Development – also intended to address favourable opportunity by young people. In addition there the three strategic priorities previously described but with a should be a comprehensive audit and analysis of the West perspective more focused on specific local needs not Kosovo workforce to identify the unemployed as an asset for normally apparent or measurable at national or sub- potential employers. national levels. These interventions should generally be relatively low cost but have a high VFM where they succeed. 4.4. The Strategic Priorities for West Kosovo They would be expected to be higher risk but have a more immediate and visible effect and often may act as ‘pilot West Kosovo’s Strategic Priorities can be summarised as follows: projects’. Although equally applicable in urban and rural communities or even ‘communities of common interest’ it is 1. To Create the Conditions for Sustainable Economic Growth hoped that this will encourage the ‘LEADER’ mini- in West Kosovo by securing and improving its environment programme approach improving its Image and maximising the benefits of the natural landscape and resources for the people of the region and its investors.

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5. Technical Assistance – specific support to administration Operational Grant to continue to develop the partnership, and development of the planning process through Technical identify indicators, and collect relevant data for review and Assistance (EURED and possible successors) and the RDA updating of the strategy over the next three years.

4.6. Conclusion

West Kosovo’s Development Strategy is founded on a clear and shared vision for the future which has been developed through an inclusive and transparent partnership approach. It recognises the developing national role and also the necessity to begin implementation of the ideas as soon as possible. For this reason this document also begins to consider the focus needed to deliver the development changes identified. The stakeholders have participated in this and understand that the second stage of this process will need to be completed by the end of 2010. Areas of Intervention (Measures) have been identified, albeit only in outline. These are set out with example projects in the ‘Priority Data Sheets’ which make up the final part of this section. Detailed ‘Measure Data Sheets’ will form the core of the Implementation Plan which will be deleloped by the end of 2010.

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5. West Kosovo Development Priorities 2011 to 2013

5.1. Summary 5.1.1. To Create the Conditions for Sustainable Economic Growth Supporting Inward Investment in Key Development by securing and improving its environment; improving its Sectors for West Kosovo and in particular Image and maximising the benefits of the natural landscape Environmental Businesses and the associated supply- and resources for the people of the region and its investors chain to encourage recycling, waste to energy and renewable energy production Supporting Development of Environmentally friendly approaches to Waste Management and provision of 5.1.3. To Create an Employable Workforce through research and public utilities intervention to develop a better understanding of the local labour market and its trends and to engage employers, and Protection and refurbishment of the Landscape, potential employers in the process. Heritage and the Natural and built environment of West Kosovo Working with employers and the Educational Institutions to influence the skills-supply into the Focusing spatial development to maximise upgrading labour market and use of existing infrastructure and to secure environmental and social sustainability Working with employers and potential employers and investors to define the developing demand for 5.1.2. To Create Wealth and Employment by supporting skills and to try to address that demand from within increasing competitiveness in existing sectors with potential the existing workforce through training and for sustainable growth and encouraging inward investment retraining for specific jobs in industries with potential to help sustainable regeneration of the region.

Increasing Competitiveness in Existing Growth Sectors including Agri-business and Tourism

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5.1.4. Community Based Development addressing the three Continued Capacity-building of the RDA Team and strategic priorities with a perspective more focused on other West Kosovo Stakeholder specific local needs Although equally applicable in urban and rural communities or even ‘communities of common Continue to develop and strengthen the West Kosovo interest’ it is hoped that this will encourage the ‘LEADER’ Partnership both in breadth and depth with a mini-programme approach particular view to the structures becoming self- sustaining in the future with the sustainability Supporting Community-based projects and micro- ‘Horizontal Themes’ fully mainstreamed and projects addressing specific socio-economic problems recognised as engines of growth. that seek to upgrade the quality of life and/or create employment or training opportunities within those Developing and defining the socio-economic profile communities. of West Kosovo through:

Support the development and implementation of o A series of studies and development of LEADER-style mini-programmes or project ‘packages’ focused strategies in specific areas to identify which address focused socio-economic problems indicators and baselines for future planning

5.1.5. Technical Assistance giving specific support to o Careful monitoring of project progress and administration and development of the planning process results to support the development of an through Technical Assistance (EURED and possible effective evaluation framework for future successors) and the RDA Operational Grant to continue to plans develop the partnership, identify indicators, and collect relevant data for review and updating of the strategy over the next three years.

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5.2. Data Sheet – Priority 1 Creating the Conditions for Sustainable Economic Growth

Rationale:

Underdeveloped or damaged economies can only be improved if the basic conditions for economic growth exist. The fundamental role of the public sector, both national and local is to ensure that the conditions are such that existing businesses can thrive and additional investment can be attracted to generate wealth and create additional employment.

This strategy has identified key areas for the West Kosovo public sector to focus on in moving towards these aims in a pragmatic way without losing sight of the overall vision for the region developed by the stakeholders. This has been achieved by considering the immediate concerns and treating this as a preparatory exercise for more in-depth development in the future

Approach:

West Kosovo will focus its development on securing and improving its environment; improving its Image and maximising the benefits of the natural landscape and resources for the people of the region and its investors. Against this background in the first instance it will seek to improve and bring back into effective use existing infrastructure rather than seek to invest in new until needs are clearer. In particular the railway offers more opportunity than road transport and is much more sustainable in terms of the environment. In addition it offers an important ‘gateway’ route to the Capital, Pristina and, potentially to the International Airport which currently lacks public transport links.

Gjakova has sufficient redundant industrial land and buildings to handle any immediate expansion and it is proposed to begin as soon as possible to develop a regional environmental transport plan and review existing feasibility studies for Gjakova’s linkage to the Kline-Prizren rail-line and carry out, at the minimum a pre-feasibly study on the Istog to Gjakova corridor. West Kosovo will need to begin discussions with MLGA and the Ministry of Environment and Spatial Planning to have its spatial development concept adopted at national level.

Effective and commercially viable waste management will be needed to secure the development future of West Kosovo. In the first instance some system of clean-up and storage needs to be put in place quickly if the Image-promotion is to proceed. The Regional Environmental Centre (Budapest) is already working in Peja, Gjakova and Kline and discussions are underway for them to engage at the level of all six municipalities.

Proposed Areas of Intervention 2011 - 2013

A. Supporting Development of Environmentally friendly approaches to Waste Management and provision of public utilities

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Example Projects:

Reducing use of landfill by:

1. Developing Municipal Transfer stations for hand-sorting and storage/recycling of solid waste 2. Provision of recycling waste containers for ‘at sources’ sorting of household and commercial waste 3. Provision of ‘bottle-banks’ for recycling of glass 4. ‘Environmental Task Forces’ to work with schools (including providing educational institutions with and training them in the use of locally-based recycling systems) and to collect and sort solid waste creating employment and reducing pollution particularly of waterways. 5. Identifying ‘informal’ recycling (particularly among minority communities) and providing training and support to integrate this into the overall approach to waste management in West Kosovo 6. Provision of home composting systems for household organic waste and, working with the agricultural sector, setting up collection and composting of organic waste from the hospitality sector. 7. Working with the retail sector to raise awareness and reduce use of non-degradable plastic bags and containers and to set up collection and recycling schemes including durable and re-usable bags as advertising.

Reducing pollution of rivers and groundwater by:

1. Encouraging low-cost, low-maintenance organic-based waste-water treatment systems in farms, villages and towns throughout West Kosovo (reed-bed systems etc.) 2. Providing development sites with potential pollution issues (e.g. automotive industries) with waste-water collection and recycling systems 3. Managing transport-system pollution run-off from direct-entry to river systems particularly in urban areas

B. Protection and refurbishment of the Landscape, Heritage and the Natural and built environment of West Kosovo

Example Projects:

1. Refurbishment of streetscapes and provision of attractive street furniture and regenerated and well maintained public open spaces in urban areas 2. Provision of quality off-street parking and park-and-ride facilities and prevention of illegal parking on pedestrian areas 3. Refurbishment of heritage sites and provision of high-quality access, signing and interpretation 4. Clean-up and refurbishment of public areas land and buildings adjacent to transport corridors 5. Prevention, investigation and punishment of ‘fly-tipping’

6. West Kosovo Environmental Education/Visitor and Conference Centre (Junik?)

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C. Focusing spatial development to maximise upgrading and use of existing infrastructure and to secure environmental and social sustainability

Example Projects:

1. Bringing existing railway back into effective and high-standard use by local people 2. Connecting Gjakova Town and Airport to rail-system 3. Feasibility Study into (Mitrovica?)- Istog – Gjakova – (Prizren?) Environmental Transport/Development Corridor including encouragement of business cluster development and multi-modal interchanges

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5.3. Data Sheet – Priority 2 - Creating Wealth and Employment

Rationale:

Currently the major strengths of West Kosovo lie in its geographical location as a gateway to neighbouring countries with which it has a long tradition of trade and also in the quality of its natural environment in terms of production of agricultural produce as well as an attraction for visitors.

Given the lack of focused data on businesses in the region it has been determined that two existing sectors should be developed and assisted to become more competitive in order that their markets can be secured against cheap imports and jobs secured and new jobs created.

In addition it is recognised that inward investment is desirable. However this will need a specific focus which should be linked in some way to the overall image of West Kosovo. As there is a clearly identified need for better and commercially viable environmental management across the entire area West Kosovo will seek to attract environmental businesses to come to the region.

Approach:

To Create Wealth and Employment by supporting increasing competitiveness in existing sectors with potential for sustainable growth and encouraging inward investment in industries with potential to help sustainable regeneration of the region.

More research will be needed to identify in detail the areas where there is potential for growth in the Agri-business and Tourism sectors but it seems clear that more ‘added-value’ will be needed. West Kosovo will focus on improving competitiveness in these two sectors over the next two years but through further research will identify additional growth areas.

The mineral resources of the region could appear as much a liability as an asset if they are not exploited in a sensitive way and this is something which currently lies outside the remit of the West Kosovo stakeholders. The potential for use of renewable energy sources could prove vital to Kosovo as well as the region and this is seen as one of the potential investment sectors with possible supply-chain clusters in the ‘Development Corridor’

Finally there is an immediate need for intervention to support and sustain the environment and given the limited resources available it is important that this approach can be made commercially viable and economically sustainable.

Proposed Areas of Intervention 2011 - 2013

Increasing Competitiveness in Existing Growth Sectors including Agri-business and Tourism

Example Projects:

1. Support for cooperatives to store, grade, pack and market local produce 2. Encouraging business which process and add value to local produce - canning fruit, jams and preserves bakery produce etc

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3. Business to Business web portal for West Kosovo 4. Marketing and local centres of excellence 5. Packaging Tourism offers to develop critical mass to generate overnight stays 6. Improving Tourism signing and interpretation, leaflets, maps, transport timetables etc

Supporting Inward Investment in Key Development Sectors for West Kosovo and in particular Environmental Businesses and the associated supply-chain to encourage recycling, waste to energy and renewable energy production

Example Projects:

1. Hydro-electric power with a focus on smaller units with minimum visible infrastructure and underground cables etc

2. Environmental Waste Management Companies (collection sorting etc)

3. Recycling Companies (Metal, glass, plastic, compost etc)

4. Production of bio-degradable packaging

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5.4. Data Sheet – Priority 3 - Creating an Employable Workforce

Rationale:

There is little hard information about the working age population and it is difficult to quantify the levels of employment and income in a way that will enable interventions that will restructure the labour market situation in the future. Nevertheless some activity is possible to deal with the more immediate problems whilst carrying out further research into the labour problems of West Kosovo. The national census planned for 2011, the first for 30 years will establish baselines in certain areas and hopefully can be enhanced to direct more locally sensitive activity in the future.

Overall with the decline of industry in the area there are many people with skills and experience which are difficult to match to the current situation. In addition the Education system is not tuned to supply labour market. Indeed very little is known about this labour market other than it clearly out of balance.

Employers and potential employers are best placed to identify needs and also opportunities but they need to be supported through research and quality information about the real situation and to be encouraged to see the benefits of investing in their employees and also the overall workforce of West Kosovo.

Approach:

The approach will be based on creating and employable workforce through research and intervention to develop a better understanding of the local labour market and its trends and to engage employers, and potential employers in the process. In parallel, measures need to be taken to deal with the immediate issues and provide examples of good practice to influence national policy to support the needs of West Kosovo.

The approach proposed to deal with the immediate problem is to encourage engagement by employers and potential employers at both the supply and demand side of the equation. Projects will be sought which facilitate the input of employers, and potential employers with the educational system to encourage young people to train and develop towards real opportunities, now and in the future

Proposed Areas of Intervention 2011 - 2013

Working with employers and the Educational Institutions to influence the skills-supply into the labour market

Example Projects:

1. Careers Advisors sponsored by private sector for schools and Higher Education Institutions

2. Annual employer road-shows for students

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3. Employer panels to propose curriculum enhancement/Vocational Options

Working with employers and potential employers and investors to define the developing demand for skills and to try to address that demand from within the existing workforce through training and retraining for specific jobs

Example Projects:

1. ‘Learning by Doing’ customised training in the working environment

2. Apprentice Schemes with wage subsidies (all ages)

3. Enhancement of local labour offices to be more aligned to needs of local employers and to give advice and guidance and monitor the workforce.

4. Local labour schemes and more structured ‘Labour Exchanges’ for casual workers

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5.5. Data Sheet – Priority 4 - Encouraging Community Based Development

Rationale:

Because of the lack of high quality needs information we need to mobilise local people to achieve focus but also to raise the profile of the overall vision for West Kosovo and create quick, visible and tangible results that the people will recognise. This will help build ‘bottom-up’ momentum through the three ‘Strategic Objectives’ which larger projects cannot achieve.

It is recognised that such interventions may not have the economic impact and sustainability and of the large scale projects but they generally offer very good VFM and often are good ‘pilot’ schemes being low cost but high visibility. Local ownership is very strong and generally local input in terms of ideas and enthusiasm make up for lack of local financial resources.

These can often lead to local-authority led community initiatives which are far more effective in operation than the more traditional schemes with similar objectives. This approach also encourages inclusion. These reflect the European Commission’s ‘Community Initiative’ approach to Regional Development in the 1990s when the Structural Funds Programmes were less sensitive to specific identified problems across Europe. Examples were:

Coal Closures – RECHAR

Textile Industry Closures – RETEX

Defence Industry Restructuring – KONVER

Rural Development – LEADER

Urban Blight/Decline - URBAN

Approach:

The approach proposed is to encourage ‘Community Based Development’ addressing the three strategic priorities with a perspective more focused on specific local needs. Although equally applicable in urban and rural communities or even ‘communities of common interest’ it is hoped that this will encourage the ‘LEADER’ mini-programme approach.

Communities should be encourages to identify specific problems, or groups of problems and to seek solutions to which they can contribute ideas, time and energy and co-financing.

Proposed Areas of Intervention 2011 - 2013

Supporting Community-based projects and micro-projects addressing specific socio-economic problems that seek to upgrade the quality of life and/or create employment or training opportunities within those communities.

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Example Projects:

1. Local Waste management and recycling schemes

2. Cleaning and planting, footways and cycle-ways

3. Refurbishment of the built environment, Public Open Spaces, Parks and play areas

4. Local produce markets, open days and fairs

5. Allotment (Gardens) Schemes,

Support the development and implementation of LEADER-style mini- programmes or project ‘packages’ which address focused socio-economic problems

Example Projects:

1. Provision of community centres for Healthcare, advice, internet access and training, entertainment, public meetings etc.

2. Local safety schemes for footways, traffic calming, cycle-ways, training and education

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5.6. Data Sheet – Priority 5 - Technical Assistance

Rationale:

Kosovo West is in a transitional stage where much research is needed in order to provide a more structures analysis in the future. Future work will be able to build on results achieved. This is currently not the case and so an approach based on a considerable amount of primary research will be needed.

It is hoped that at the stage where the proposed ‘mid-term review’ is carried out (end of 2012/early 2013) that some results will be emerging which will support better analysis of the regions situation for the future. However it is seen that the RDA’s work over the next three years will be vital to underpin this, not just at the level of West Kosovo but also nationally and even in the developments with neighbouring countries and the EU.

It is felt appropriate that through this ‘operational priority’ the RDA and its stakeholders will enhance the West Kosovo information base but also identify areas for support in the future particularly in the way Kosovo develops its regional policy areas and EU support for this development through successor TA programmes for Regional Development.

Approach:

Capacity building support to administration and development of the planning process through Technical Assistance (EURED and possible successors) and the RDA Operational Grant to continue to develop the partnership, identify indicators, and collect relevant data for review and updating of the strategy over the next three years.

Proposed Areas of Intervention 2011 - 2013

Continued Capacity-building of the RDA Team and other West Kosovo Stakeholders

Example Projects:

Training in:

o Analysis, planning and programming

o Meeting management & partnership management/Facilitation

o Evaluation methodologies – Input/Output/Results and Impact

o Project preparation and management

o Public procurement

Capacity Building for management:

o Influencing Skills

o Time Management

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o Risk Management

o Negotiation

Continue to develop and strengthen the West Kosovo Partnership both in breadth and depth with a particular view to the structures becoming self- sustaining in the future with the sustainability ‘Horizontal Themes’ fully mainstreamed and recognised as engines of growth.

Example Projects:

1. Creation of a project preparation team made up of secondees (minimum two years) from the local authorities and other stakeholders to be trained and supported to prepare projects on behalf of all West Kosovo stakeholders.

2. Support training and development of thematic working groups in policy issues, particular for social and environmental sustainability mainstreaming.

Developing and defining the socio-economic profile of West Kosovo through:

o A series of studies and development of focused strategies in specific areas to identify indicators and baselines for future planning

o Careful monitoring of project progress and results to support the development of an effective evaluation framework for future plans

Example Projects:

1. Web-based ‘Project Development Tool’ and Management Information System

2. West Kosovo Workforce (knowledge, skills and employment) Audit

3. West Kosovo Tourism Strategy

4. West Kosovo Rural/Agri-business Development Strategy

5. West Kosovo Regional Transport Strategy

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6. The Next Stage - Implementation Planning

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This final section of this document sets out the connections and issues associated with the next stage, the Implementation Plan. The strategy set out in the documents has been specifically oriented to this second stage through two key elements, the imposing of a limitation in terms of time (ending in 2013 with an interim review-point in 2012), and the identification, working with the West Kosovo Stakeholders, of areas for intervention as points of focus (potential ‘Measures’).

The continuing process of developing the Implementation Plan will act as a practical test of the work so far. It will be based on the same partnership approach and structures that have been used to generate the vision and strategy with strategic and operational priorities. Through this continuing development indicators will be identified and processes put in place to identify baselines and set targets for the future.

At the same time a clear ‘Evaluation Framework’ should be designed even if all the data are not available. This should link to a web-based ‘Project Pipeline Tool’ and associated Management Information System to facilitate a rolling evaluation and design of successor programmes linked to future strategies and plans.

The RDA team will begin immediately to identify possible funding streams which might support implementation for the 2011-2013 period and so be able to identify a funding envelope to be considered during the development of the ‘Implementation Plan. This will be necessary if partners are to develop the necessary skills to prioritise and allocate resources based on the strategy rather than other (less transparent) factors that have been used, unsuccessfully, to date.

ANNEXES

Partnership – Annex A

Partnership Structures

Partnership structures have been established with stakeholders from West Kosovo in line with EU Regional Policy best practice and following advice from the EURED TA team and discussions with colleagues from other RDAs. The following structure is in place:

The Partnership structures have been based on the following groups:

CPWG – Core Partnership Working Group – The basic unit of practical operation of the RDA with its partners with a balanced composition of Municipal Representatives, stakeholders and representatives of public organisations.

THG – Thematic Groups – created to deliver input on specific tasks or themes

RF – Regional Forum – Regional Partnership oversight/decision-making group advising the RDA Governing Board on Regional Development issues in West Kosovo

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Partnership – Annex A

The Core Partnership Working Group

Has a membership of 35 persons of which:

40% from Municipality Representatives 25% from Civil Society 22% from Business Community 3% from Other Public Sector

Thirteen meetings of the CPWG have taken place to date

CPWG meeting in Peja

A full List of CPWG Members – West Kosovo is below

Name Organisation Sector

1 ADEM LUSHI NGO “IGD” Decan Civil Society 2 AFRIM SELIMAJ Municipality of Peja Economic Sector 3 AGRON SALLOVA Shpk “Dukagjini” Peja Business Community 4 AGRON TIGANI RC” Hidrodrini” Peja Public Service 5 ALI GACAFERI Municipality of Junik Agriculture Sector 6 ANTONINA SELMANI Municipality of Klina Projects planning Municipality of Junik Economicsector Sector 7 ARTEN HAMZA 8 FADIL KABASHI Municipality of Istog Civil Society

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Partnership – Annex A

Name Organisation Sector

9 FLORIM SHALA “Oda e Junikut” Junik Business Community 10 HASAN CACAJ “Hidroforca” Decan Business Community 11 HAVE THAQI Municipality of Klina Economic Sector 12 IBËR ELEZI “Agroelita” Klina Business Community 13 ISMAIL BYTYQI “Trofta” Istog Business Community 14 MILAZIM SHATRI RC” Drini I Bardhë” Peja Public Service 15 MIRSAT NIMANI Municipality of Decan Economic Sector 16 MUSA KALIQANI Municipality of Istog Economic Sector 17 MUSA MUSHKOLAJ LAG”Gjeravica” Decan Agriculture Sector 18 NAIM KUQI NGO”Junik” Junik Civil Society 19 NDUE MUÇAJ NGO”Solution” Gjakove Agriculture Sector 20 NEXHAT AVDULLAHU KRM “Ambienti” Peja Public Service 21 NIMON BRICORI Municipality of Peja Economic Sector 22 QAUSH BERISHA Municipality of Klina Agriculture Sector 23 RRUSTEM LLAPI LAG”Agrodukagjini” Istog Agriculture Sector 24 SABAHUDIN CIRIKOVIC Municipality of Peja Community Sector 25 SAFETE GACAFERI NGO “Jeta” Decan Civil Society 26 SAMIR LLESHI Chamber of Commerce ,Peja Business Community 27 SANIJE RUGOVA MAVRAJ Municipality of “Istog” Economic Sector 28 LALE GRABANICA NGO “Elena Gjika” Klina Civil Society 29 MALUSH TULLUMI NGO “ABS” Gjakove Civil Society Chamber of Commerce Gjakova Business Community 30 MASAR LLUKA 31 MIFTAR HASANI Joos “Krasniqi”Junik Business Community 32 MIGENA ARLLATI Newspaper “Lajm”Gjakova Media Sector 33 SKENDER NUSHI “ETC” Gjakove Business Sector NGO “Syri Vision” Peja Civil Society 34 VETON MUJA 35 HAKI GJEVUKAJ ELKOSGROUP, Peja Business Sector 36 KUSHTRIM TIGANI DEVOLLIGROUP, Peja Business Sector 37 ISMET LOSHAJ Businessman Business Sector

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Partnership – Annex A

Thematic Working Groups

To date six Thematic Working Groups have been created with the specific task of contributing to the strategy creation process. Each of these have met twice. The groups are as follows: Creating condition for growth Communuity based development Supporting innovativ business human rescources Environment Social inclusion

The relationship between the TWG and the Core Partnership Working Group is shown in the adjacent diagram:

Members for Thematic Working Groups were identified by CPWG, each TWG has 10 members as set out in the following tables:

Thematic Group members - Creating condition for growth:

Name Organisation Sector Arten Hamza Municipality of Junik Economic Sector Nexhat Avdullahu KRM “Ambienti” Peje Public Service Veton Muja NGO “Syri Vision” Peja Civil Society Have Thaqi Municipality of Klina Economic Sector Afrim Selimi Municipality of Peja Economic Sector Musa Kaliqani Municipality of Istog Economic Sector Mirsat Nimonaj Municipality of Decan Economic Sector Samir Lleshi Chamber of Commerce Peja Business Community Visar Tofaj Municipality of Junik Economic Sector Nimon Bricori Municipality of Peja Economic Sector

A - 4 -

Partnership – Annex A

Thematic Group members – Human Rescources:

Name Organisation Sector Adem Lushaj NGO “IGD” Decan Civil Society Musa Kaliqani Municipality of Istog Economic Sector Naim Kuqi NGO”Junik” Junik Civil Society Sabahate Qorkadiu Municipality of Peja Human Rights Sector Hasan Cacaj “Hidroforca” Decan Business Community Migena Arllati Newspaper “Lajm”Gjakova Media Sector Arsim Culaj Municipality of Klina Economic Sector Muhamet Kelmendi Municipality of Peja Human Resources Sector Fadil Kabashi Municipality of Istog Agriculture Sector Masar Lluka Chamber of Commerce Gjakova Business Community

Thematic Group members – Social inclusion:

Name Organisation Sector Adem Lushaj NGO “IGD” Decan Civil Society Have Thaqi Municipality of Klina Economic Sector Mirsat Nimonaj Municipality of Decan Economic Sector Naim Kuqi NGO”Junik” Junik Civil Society Kushtrim Tigani ”Devolli” Group Business Comunity Sanije Rugova Mavraj Municipality of Istog Economic Sector Lale Grabanica NGO “Elena Gjika” Klina Civil Society Veton Muja NGO “Syri Vision” Peja Civil Society Behar Fetaj Centre for Social work - Junik Social Sector Migena Arllati Newspaper “Lajm” Gjakova Media Sector

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Partnership – Annex A

Thematic Group members – Environment:

Name Organisation Sector Virtyt Morina Municipality of Peja Tourism Sector Merita Kuraja Municipality of Peja Environment Sector Musa Mushkolaj LAG”Gjeravica” Decan Agriculture Sector Jashar Hulaj Municipality of Decan Agriculture Sector Nexhat Abdullahu KRM “Ambienti” Peja Public Service RC” Hidrodrini” Peja Public Service Agron Tigani Qaush Berisha Municipality of Klina Agriculture Sector Musa Kaliqani Municipality of Istog Economic Sector Arten Hamza Municipality of Junik Economic Sector Beqir Kadrijaj NGO “IGD” Decan Civil Society

Thematic Group members – Supporting innovativ business:

Name Organisation Sector Musa Mushkolaj LAG”Gjeravica” Decan Agriculture Sector Qaush Bersiha Municipality of Klina Agriculture Sector Driton Shkololli ”Devolli” Group Business Comunity Sanije Rugova Mavraj Municipality of Istog Economic Sector Miftar Hasani Joos “Krasniqi” Business Community Iber Elezaj “Agroelita” Klina Business Comunity Agron Sallova “Dukagjingroup” Peja Business Comunity Beqir Berisha Urbis Group -Decan Business Comunity Ismail Bytyqi ”Trofta” istog Business Comunity Malush Tullumi NGO” ABS” Gjakove Civil Society

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Partnership – Annex A

Thematic Group members – Communuity based development:

Name Organisation Sector Ajne Iberhysaj Municipality of Decan Economic Sector Hasan Maxharraj Municipality of Istog Agriculture Sector Shaban Pejqinovic Municipality of Decan Community Sector Florian Miroci Centre for Soc. Work - Junik Social Sector Sabrije Zeqaj ”Handikos” Peja Social Sector Bajram Qeku Municipality of Decan Agriculture Sector Ali Gacaferri Municipality of Junik Agriculture Sector Sabahate Qarkadiu Municipality of Peja Human Rights Sector Agim Gashi Municipality of Klina Community Sector Rrustem Llapi LAG”Blegtori” Istog Agriculture Sector

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Partnership – Annex A

Regional Forum

There have been two meetings of the Regional Forum in which 21 persons members participated. The first meeting was held in Klina on 07.05.2010 and the second meeting in Gjakova on 11.06.2010

Participants were:

Name Organisation

Fadil Kabashi Municipality Istog Arten Hamza Municipality Junik Agron Kuqi Municipality Junik Xheladin Malaj Municipality Deqan Denis Begolli ICO/EUSR Zenun Zeqaj Municipality Klina Mazllom Kumnova Education Faculty Gjakova Sabrije Zeqaj Handikos Lirim Kurtaj Municipality Peja Qazim Loxha Municipality Istog Nimon Tofaj Municipality Junik Ali Berisha Municipality Peja Mirsat Nimonaj Municipality Deqan Veton Muja CPWG representative Mimoza Sefaj Handikos Musa Kaliqani Municipality Istog Arten Hamza Municipality Junik Pal Lekaj Municipality Gjakova Drin Haraqia MLGA Lale Grabanica Municipality Klina Have Thaqi Municipality Klina

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Project List West Kosovo – Annex B

No Project Working Title Applicant Est. Budget Regional Priority Status 1 Regional Tourism Centre CHWB Priority 2 – Business Submited Support 2 Agricultur Soil Analyses of heavy Peja Institute 280,000 Priority 5 – Technical Submited metals Assistance 3 Rugova Access Action Plan Municipality of Peja 550,000 Priority 1 – Creating the Submited Conditions for Growth 4 Restoration of the Klina River bed Municipality Klina Priority 1 – Creating the Submited Conditions for Growth 5 Production of yogurt with fruits Ramiz Nikqi 223,000 Priority 2 – Business Submited Support 6 Support Irrigation Company and Veton Hajdini 500,000 Priority 2 – Business Submited Farmers Association on Irrigation Support 7 Training for Dairy Sector RTM - Italy Priority 3 – Human Submited Capital 8 Training for Farmers AVSI- Italy Priority 3 – Human Submited Capital 9 Forest Fruit Project Municipality Junik 550,000 Priority 2 – Business preparation Support 10 Water way clean up project Municipality Junik 500,000 Priority 1 – Creating the preparation Conditions for Growth 11 Strategies for West KosovoTransport; RDA/EURED Priority 5 – Technical concept Competitive Agriculture; West Assistance KosovoTourism 12 Regional waste management Feasibility Municipalities Priority 1 – Creating the concept Study Conditions for Growth

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Project List West Kosovo – Annex B

No Project Working Title Applicant Est. Budget Regional Priority Status 13 Agricultural cool storage ≥ 1.500,000 Priority 2 – Business Concept Development 14 B to B webportal Regional Chambers, 250,000 Priority 2 – Business Concept Municipalities, Development Ministry of T & I? 15 Sector Study of the Forestry and 250,000 Priority 2 – Business Concept Forest Industry Development 16 Regionalisation of local Railway Municipalities Priority 1 – Creating the Concept Conditions for Growth 17 Gjakova Railway Link Municipality Gjakova Priority 1 – Creating the In preparation Conditions for Growth 18 Decani bypass Municipality Decani Priority 1 – Creating the Concept Conditions for Growth 19 Labour market audit Priority 5 – Technical Concept Assistance 20 Establishment of One-stop-shops in Municipalities, SME Priority 2 – Business Concept municipalities for business assistance Agency, Local Labour Support Offices 21 Establishment of a Regional loan Priority 2 – Business Concept guarantee fund Sopport 22 Regional Environmental Education and All Municipalities & Priority 1 – Creatring the Concept Training/Visitor Centre Education Institutions Conditions for Growth

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Project List West Kosovo – Annex B

No Project Working Title Applicant Est. Budget Regional Priority Status 23 Istog-Gjakova Development Corridor Governing Board – 25,000 Priority 5 – Technical Concept Environmental Transport Feasibility RDA West Kosovo Assistance Study N. The Above tables are not exclusive.

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