COMMERCIAL

JUSTICE ACTIVITY

Quarterly Report - Quarter 2 June 1, 2019 – August 31, 2019

September 13, 2019

USAID Commercial Justice Activity

Contract No.: 72016719C00001

Prepared by:

Chris Thompson

Chief of Party, Commercial Justice Activity Address: Str. Lorenc Antoni (Mbreti Zogu), no.13, Pejton, 10000 , Email: [email protected] Internet: www.checchiconsulting.com

Delivered on September 13, 2019

DISCLAIMER

The content of this report is sole responsibility of Checchi and Company Consulting, Inc., and the author’s views do not necessarily reflect the views of the United States Agency for International Development or the Government of the United States.

This report may be reproduced, multiplied, or transmitted in electronic, mechanical, photocopy, recorded, or any other manner, provided that attribution to USAID and the USAID Commercial Justice Activity is clearly indicated on any copy made and distributed.

TABLE OF CONTENTS TABLE OF CONTENTS ...... i LIST OF ABBREVIATIONS AND ACRONYMS ...... iii I. PROGRAM PURPOSE AND APPROACH ...... 1 II. EXECUTIVE SUMMARY ...... 1 III. STATUS OF ACTIVITIES AND TASKS ...... 1 OBJECTIVE I STRENGTHENING KOSOVO’S CAPACITY TO RESOLVE COMMERCIAL DISPUTES AND ENFORCE JUDGMENTS ...... 2 Activity Area 1.1. Improve Resolution of Commercial Disputes in Court ...... 2 Activity 1.1.1 Conduct Commercial Litigation Rapid Assessment (CLRA) ...... 3 Activity 1.1.2 Advocate and support identified reforms to court-based commercial litigation ...... 3 Activity Area 1.2. Training of commercial judges, staff, and business support professionals ...... 4 Activity 1.2.1 Conduct TNA for commercial law training of Judges and court staff .. 4 Activity 1.2.2 Support development of commercial law training curriculum ...... 4 Activity Area 1.3. Improve accountability, transparency, and professionalism of private enforcement profession ...... 4 Activity 1.3.1 Support strengthening of accountability system over private enforcement agents ...... 4 Activity 1.3.2 Develop capacity of Chamber of Private Enforcement Agents ...... 5 Activity 1.3.3 Build professionalism of private enforcement agents ...... 7 Activity Area 1.4. Improve business perceptions of commercial justice ...... 8 Activity 1.4.1 Conduct Commercial Justice and Business roundtables ...... 8 Activity 1.4.2 Conduct surveys of business to measure perceptions of corruption in commercial justice ...... 8 OBJECTIVE II ENHANCE COMMERCIAL LAW AND USE OF ALTERNATIVE DISPUTE MECHANISMS AND IMPROVE PUBLIC’S AWARENESS AND LEGAL LITERACY ...... 8 Activity Area 2.1. Alternative Dispute Resolution ...... 9 Activity 2.1.1 Increase reliance on arbitration ...... 9 Activity 2.1.2 Increase reliance on mediation ...... 10 Activity Area 2.2. Commercial Legislation ...... 12 Activity 2.2.1 Support anticipated legislative review committee to consider unification of commercial legislation ...... 12 Activity Area 2.3. Strategic Communication of Commercial Justice Institutions ...... 12 Activity 2.3.1 Support communication among commercial justice institutions ...... 12

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Activity 2.3.2 Support communication and outreach of commercial justice institutions ...... 13 Activity 2.3.3 Support improved advocacy capacity among commercial justice institutions ...... 13 Activity Area 2.4. Public Awareness ...... 13 Activity 2.4.1 Develop and broadcast public service announcements ...... 13 Activity 2.4.2 Conduct Surveys and Focus Groups ...... 13 CROSS-CUTTING ...... 14 Activity Area 3.1. Internship Program ...... 14 Activity 3.1.1 Develop and implement Commercial Justice Academy Internship ..... 14 IV. PROGRESS ON MONITORING, EVALUATION, AND LEARNING INDICATORS ...... 14 V. PERFORMANCE PROBLEMS DURING QUARTER ...... 14 VI. LIST OF REPORTS AND DELIVERABLES DURING QUARTER ...... 15 VII. SIGNIFICANT ACTIVITIES PLANNED FOR NEXT QUARTER ...... 15 ANNEX 1 – INDICATOR TRACKING TABLE – Y1Q2 ...... 1

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List of Abbreviations and Acronyms ADR Alternative Dispute Resolution AI Administrative Instruction AmCham American Chamber of Commerce in Kosovo BAR Bank Account Registry CLE USAID Contract Law Enforcement Program CLRA Commercial Litigation Rapid Assessment CMIS Case Management Information System CPEA Chamber of Private Enforcement Agents EAS Enforcement Automation System ERP Economic Reform Program of the Republic of Kosovo EU FLP EU Project – Support to Free Legal Professions and Bar Association JSSP USAID-funded Justice System Strengthening Program KBA Kosovo Bar Association KBRA Kosovo Business Registration Agency KCC Kosovo Chamber of Commerce KIESA Kosovo Investment and Enterprise Support Agency KJA Kosovo Judicial Academy KJC Kosovo Judicial Council LEP Law on Enforcement Procedure MEL Monitoring, Evaluation, and Learning MELP Monitoring, Evaluation, and Learning Plan MOF Ministry of Finance MOJ Ministry of Justice MTI Ministry of Trade and Industry NGO Non-Governmental Organization OCA Organizational Capacity Assessment PBC Pristina Basic Court PSA Public Service Announcement SME Small and Micro Enterprises STTA Short Term Technical Advisor TAK Tax Authority of Kosovo TNA Training Needs Assessment UIHJ International Union of Judicial Officers

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I. Program Purpose and Approach The Commercial Justice Activity (Program) was designed to reduce opportunities for corruption and improve businesses’ and the public’s perception of corruption by improving commercial dispute resolution, enforcement, and fostering an understanding of the processes that enhance investment and promote economic growth in Kosovo. To achieve its objectives, the Program supports reforms on core aspects of Kosovo’s commercial justice environment: 1) improving how courts resolve commercial disputes; 2) strengthening the capacity and readiness of judges and court staff to handle commercial disputes effectively; 3) building the accountability, reliability, and professionalism of Kosovo’s private enforcement system; 4) expanding the availability of, and reliance on, alternative dispute resolution (ADR) mechanisms; 5) enhancing and harmonizing commercial legislation; 6) building the capacity of commercial justice institutions to communicate effectively; and, fundamentally, 7) improving business and general public perceptions of commercial justice in Kosovo. The Program employs a flexible, demand-driven approach that relies on constant two-way communication and collaboration among all relevant stakeholders, other donors, and USAID. With a government context that is often unpredictable and rapidly changing, the Program is designed to respond and adapt quickly to new conditions and opportunities to improve Kosovo’s commercial justice system.

II. Executive Summary Following rapid mobilization and startup of program activities in quarter one the Program broadened and deepened its presence in its core activity areas in the second quarter. The Program also filled out its local professional team by engaging the Objective Two Lead—Key Personnel—(following her return from a post-doctoral Fulbright grant in the United States) and the Automation Development Manager. During the second quarter, the Program also filled a new position, that of Senior Governance and Rule of Law Advisor to manage coordination with one the Program’s key counterparts—the Ministry of Justice (MOJ)—and to support the Judiciary Chapter of the Ministry-led Rule of Law Functional Review. On broader rule of law reforms, the Program supported the MOJ with the Functional Review initiative, served as a conduit of communication between the MOJ and USAID rule of law activities, provided input on policy papers, and drafted the judiciary chapter of the Rule of Law Strategy. In its court-based commercial litigation work, the Program created significant forward momentum on commercial court reform by supporting the drafting of a Concept Note on Judicial Reform of Commercial Justice through a collaborative process. To help the reform initiative survive Kosovo’s relatively short electoral cycles, the Program supported the MOJ’s submission of a proposal to incorporate commercial court reform into Kosovo’s Economic Reform Programme (ERP). This will help to minimize backsliding on the reform between governments. On enforcement, the Program helped the MOJ to organize a first consultative working group meeting to amend PEA tariffs and follow-up workshops on PEA discipline and establishment of professional standards. It assisted the Chamber of Private Enforcement Agents (CPEA) to organize and conduct an international conference celebrating the fifth anniversary of the Private Enforcement Agent profession. The Program continued capacity

1 building support for the CPEA by delivering workshops on advocacy and working with media, guiding the development of a strategy implementation plan, and creating an organizational self-assessment tool for the CPEA. The Program also initiated support to develop an automation system for private enforcement. In arbitration, the Program met with a number of institutions and industry associations to discuss joint efforts to promote arbitration and increase awareness. On mediation, the Program completed Administrative Instructions (AI) required by the Law on Mediation including: an AI on Licensing Mediators; an AI on Oversight and Procedure for Disciplinary Responsibility of Mediators; an AI on Registry of Mediators; an AI on Training and Certification of Mediators; and a Draft Code of Conduct for Mediators. All these AIs are completed and waiting to be signed by the Minister of Justice. In addition, the Program and the MOJ drafted two additional AIs—one on the Mediation Procedure of Self-initiated and administrative cases including forms and templates and one on Mediation Tariffs. Both of these AIs are currently in the public consultation phase. The Program drafted a charter for the Chamber of Mediators, required by the Law on Mediation, and supported development of an informal “Mediation Club” to discuss challenges that the mediation profession faces and the need to build awareness of mediation. The Program also started a dialog with the MOJ to develop mediation training capacity using MOJ resources. Finally, the Program carried out a baseline survey during the quarter and completed a report analyzing the results of the survey.

III. Status of Activities and Tasks The Program is organized into two core objective areas: I) Strengthening Kosovo’s Capacity to Resolve Commercial Disputes and Enforce Judgments; and II) Enhancing Commercial Law and Use of Alternative Dispute Mechanisms and Improve Public Awareness and Legal Literacy. Except as specifically noted otherwise, this report is structured to address activity areas, activities, and sub-activities as they are set out in the Program’s approved work plan.

OBJECTIVE I STRENGTHENING KOSOVO’S CAPACITY TO RESOLVE COMMERCIAL DISPUTES AND ENFORCE JUDGMENTS

Objective 1 of the Commercial Justice Activity addresses court-based commercial justice, supporting improved court processes and structure, specialized judicial training on commercial topics, strengthening capacity and accountability in enforcement, and building business confidence in commercial justice processes and institutions. Activity Area 1.1. Improve Resolution of Commercial Disputes in Court All of Kosovo’s commercial cases in court are currently handled by the Commercial Department of the Pristina Basic Court (PBC), which has average case resolution times of two to three years for each case. Business complaints for administrative decisions go to the Administrative Department of the PBC, which is badly overloaded and has even slower case resolution times. Because of the outsized impact that access to commercial justice has on Kosovo’s economic environment and investment climate, the need to reform these dispute resolution institutions is recognized by all stakeholders as urgent. As already established by the government of Kosovo in the Functional Review processes, reforms in this area are being treated as an immediate priority. The Program is providing support to the MOJ, the KJC, and the Commercial Departments, as well as the Functional Review working group

2 tasked with commercial justice reforms, in particular, to support reforms of court-based commercial litigation. Activity 1.1.1 Conduct Commercial Litigation Rapid Assessment (CLRA) This activity was completed in the previous quarter. The CLRA recommendations— including, in particular, establishment of a freestanding commercial court and inclusion of administrative cases affecting business in it—served as principal inputs to the commercial reform design efforts outlined below in Activity 1.1.2. Activity 1.1.2 Advocate and support identified reforms to court-based commercial litigation The Program supported the MOJ’s development of a Concept Note on Judicial Reform of Commercial Justice (the Concept Note) through a working group process. The Concept Note is a preliminary step to necessary legislative changes for reforms. The sub-activity descriptions below set out support efforts by the Program during this quarter.

Sub-Activity 1.1.2.1 Support MOJ to design and draft legislation for the establishment of a Commercial Court During the quarter, the MOJ established a working group to develop the Concept Note to explore and define reform options for commercial litigation in court. The Program provided support to this working group by organizing a two-day workshop that included participation by working group members and, inter alia, representatives of the EU Office, American Chamber of Commerce, Kosovo Chamber of Commerce, German-Kosovar Chamber of Commerce, and Kosovo Law Institute. The Program supported the initial drafting of the Concept Note, translation, and oversight of public consultation, as well as initial drafting of legislation to implement it. The Concept Note analyzed three policy options for handling court-based resolution of commercial disputes: Option 1) leave in place existing system of the Economic Department and Fiscal Division of the Administrative Department of the Pristina Basic Court (no change); Option 2) improve the functioning of the Economic Department and Fiscal Division (no structural change); or Option 3) establish a standalone commercial court that would serve as a single address for all business disputes (structural change). By agreement of the working group, the third option was selected. The MOJ had originally planned for adoption of the Concept Note by the government during August 2019, as an urgent matter, and for submission of draft implementation legislation to the Assembly during September 2019. This reform plan was interrupted by dissolution of the Kosovo Assembly pending elections, now planned to occur in October 2019; however, the MOJ has circulated the Concept Note for internal government and public comment. The result, expected early in the following quarter, will be a final Concept Note that is either adopted by the current caretaker government or is available for consideration and adoption by the next government to be formed following elections. To improve chances that the commercial court reform initiative survives Kosovo’s relatively short electoral cycles, the Program also assisted the MOJ in preparing and submitting a proposal to incorporate the reform into Kosovo’s Economic Reform Programme (ERP). Because the European Commission requires all EU prospective countries to submit annual ERPs and, subsequently, oversees their implementation, the reform’s introduction into the ERP serves as an additional method of promoting resilience of the reform effort into the next government.

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Sub-Activity 1.1.2.2 Support MOJ to advocate commercial court reform With Program support, the MOJ advocated for the reform principally through discussions with each of the key stakeholders participating in the working group consultation workshop. Once the Concept Note is adopted by government decision and legislation is drafted, the Program plans to work with the MOJ to develop an advocacy plan to assist in its passage through the assembly. Activity Area 1.2. Training of commercial judges, staff, and business support professionals The direction of training development for commercial judges and court staff is dependent on the shape and progress of the commercial court reform. Creation of a new court will likely give rise to a significant new group of training participants. Therefore, the start of the Program’s activities for commercial judge and staff training is currently being deferred pending a decision on commercial court reform. Activity 1.2.1 Conduct TNA for commercial law training of Judges and court staff Although no commercial law training activities were planned to take place during this quarter, the Program had an introductory meeting with the Kosovo Justice Academy (KJA) to discuss possibilities for cooperation. The outcome of this meeting is that the Program will coordinate with the Justice Academy on the training needs assessment (TNA) the Academy conducts every year to plan trainings for the following year, including mediation and arbitration as topic areas. Activity 1.2.2 Support development of commercial law training curriculum No actions were planned or carried out under this activity during the quarter. Activity Area 1.3. Improve accountability, transparency, and professionalism of private enforcement profession The Program provides technical assistance to the MOJ to build effective accountability systems over the private enforcement profession and supports the CPEA to develop its capacity and sustainability as a self-governing body of the profession. Details of this assistance are detailed below. Activity 1.3.1 Support strengthening of accountability system over private enforcement agents The Program’s accountability support addresses agent inspections and discipline systems. In the past, PEA inspections were carried out by an ad hoc inspection committee within the MOJ. Under the recently revised Law on Enforcement Procedures (LEP), the MOJ is now staffing a standing Inspection Division. During this quarter, the MOJ provisionally selected a professional to serve as Head of the Inspection Division. To handle agent discipline, either for violations observed during inspections or arising from complaints filed with the MOJ, the LEP provides for an independent body—the Disciplinary Commission—composed of judges and private enforcement agents appointed by the Minister of Justice. The Disciplinary Commission acts to hear and make determinations on violations by agents and decides on imposition of sanctions. The sub-activity descriptions below set out support efforts by the Program during this quarter.

Sub-activity 1.3.1.1 Support capacity building of new MOJ Inspection Division No actions were planned to take place under this sub-activity during the quarter. However, in anticipation of staffing of the Inspection Division, the Program met with the Chairperson of the current ad hoc Inspection Committee to learn of developments in inspections.

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Sub-activity 1.3.1.2 Support restructuring of tariff for private enforcement services The Program assisted in organizing the initial meeting of an MOJ working group on amending the Administrative Instruction on fees. The working group was composed of representatives from the MOJ, CPEA, Kosovo Bar Association, and Kosovo Bankers Association. This meeting solicited opinions and recommendations for revision of the PEA tariff in line with requirements established in a 2017 amendment of the Law on Enforcement Procedure (LEP). The deadline for recommendations was to be the end of August 2019, based on which, the MOJ working group would review recommendations and continue to draft the AI. As of the end of the quarter, however, the MOJ does not report having received any recommendations. Due to deep animosity of some PEAs to the new requirements of Article 13 of the LEP addressing PEA fees, the CPEA conducted an extraordinary meeting of the General Assembly to discuss whether the Chamber would even participate in the MOJ’s Working Group to amend the PEA fee tariff in implementation of the law. The assembly decided that the CPEA would participate. The CPEA also decided to establish an ad hoc Legislative Committee consisting of PEAs who will confer among all PEAs and the MOJ, including the MOJ working group on drafting the administrative instruction on fees.

Sub-activity 1.3.1.3 Train Disciplinary Commission on its roles and responsibilities over the private enforcement profession During the reporting period, the Program sponsored a full-day workshop on the PEA disciplinary system to strengthen accountability over agents and build professionalism. The workshop was targeted at members of the Disciplinary Committee appointed by MOJ earlier this year, and PEAs. As with introductory trainings delivered in the previous quarter, this workshop facilitated discussion and provided an opportunity to mentor Committee members in carrying out their roles. There were nine participants in the workshop: two members of the Disciplinary Committee, the CPEA’s President, and the remainder were PEAs. Combined, these workshops are helping develop an enhanced appreciation and sensitivity by committee members of the need for adequate sanctions of violations.

Sub-activity 1.3.1.4 Support design of processes and templates for screening of complaints to MOJ regarding enforcement During the reporting period, the Program initiated discussions with the MOJ Department of Free Professions to develop a system for processing and tracking of complaints against PEAs, including a process guide setting up detailed procedures and template forms to handle all complaints. In an unexpected reaction, the MOJ Department of Free Professions responded that there is no legal basis in the law for the Minster of Justice to issue and approve this guide. In the next quarter, the Program will pursue this concern with other relevant offices within the MOJ to come up with a practical solution. Activity 1.3.2 Develop capacity of Chamber of Private Enforcement Agents The CPEA system, although established in early 2015, remains in early stages of development. The Program has directed its support toward strategic planning, financial planning, and communication planning. During the reporting period, the CPEA selected and engaged a Director of Professional Services (the equivalent of an executive director), who took office on August 1, 2019. This Director will serve as a critical coordination point for the Program in implementing capacity building activities with the CPEA. The CPEA had been working without a Director since mid-2018.

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Sub-Activity 1.3.2.1 Support strategic planning capacity the Chamber of Private Enforcement Agents Following strategic planning workshops delivered to board members of the CPEA in the previous quarter, the Program team worked with the CPEA to develop a draft strategic implementation action plan. The team also had introductory meetings with the newly appointed Director to introduce her to the activities and plans of the Program in support of the enforcement system and the CPEA. In the next quarter, the Program will continue to support strategic planning capacity of the CPEA through mentoring the Director and board members.

Sub-activity 1.3.2.2 Support update of organizational structure and processes of Chamber The CPEA currently operates under its original statute (bylaws) and Code of Ethics. The MOJ has not acted on revised drafts of each, submitted in 2016 by the CPEA, a point the Program raised with the MOJ in the previous quarter. Prolonged lack of progress on these documents is symptomatic of poor communication and coordination between the CPEA and the MOJ and leaves the CPEA and the PEA profession with ambiguity in its governance. As a complex relationship still exists between the MOJ and the CPEA, and the CPEA has only recently engaged a Director, the Program plans to address this during the second half of year one as part of its facilitative partnering work between the MOJ and the CPEA. In the meantime, the Program will assist the CPEA in reviewing and updating their organizational processes and templates for screening handling complaints against agents.

Sub-activity 1.3.2.3 Support development of guidance policies of the CPEA The Program started development of a guidance manual with templates for the processes and tracking of complaints made to the CPEA regarding enforcement. One of the templates being developed is the annual report form, which the CPEA is obliged to deliver to the Minister of Justice before the 31st of March each year. Going forward, the Program will support other guidance policies, such as a policy on use of the Bank Account Registry of the Central Bank to collect against bank accounts and a policy on protection of data by agents and the CPEA.

Sub-activity 1.3.2.4 Support CPEA develop strategic communications capacity During the quarter, the CPEA decided to organize a series of events to celebrate the fifth anniversary of the profession. This offered an opportunity for the Program to provide the CPEA with communications and media relations guidance and training. For advance planning and sensitization of media, the Program held a half-day workshop on Working with Media for members of the Executive Board. The workshop took place on June 7, 2019, and five members of the CPEA Executive Board, out of seven, participated. The members also participated in another half-day workshop provided by the Program on that date introducing basic advocacy principles and formation of strategic alliances. The Program also supported planning and organization by the CPEA of a regional and international conference to mark the anniversary. The conference took place on July 16, 2019, and a total of 94 persons participated, including the President of International Union of Judicial Officers, representatives of Private Enforcement Chambers from Albania, Bulgaria, , and North , as well as representatives from public institutions, the MOJ, the Kosovo Judicial Council, the Central Bank, the Kosovo Police, judges, and PEAs.

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During this event the CPEA signed a Memorandum of Cooperation with the Chamber of Private Enforcement Agents of Bulgaria and Montenegro. The Program’s support included design and printing of promotional materials, including: an infographic of CPEA achievements in the past five years; a process map on PEA enforcement; and a visual on the enforcement procedure for public education. In addition, the Program arranged a meeting between the President of International Union of Judicial Officers and Minister of Justice to discuss the importance of the PEA profession.

Sub-activity 1.3.2.5 Support development of organizational self-assessment of the Chamber of Private Enforcement Agents During the reporting period, the Program introduced the CPEA to the concept of organizational self-assessment. The Program started working with the newly-hired Director to adapt an Organizational Capacity Assessment (OCA) Tool to the work of the CPEA. The OCA tool is a questionnaire that will help the CPEA to understand and reflect on its processes and functions and to set priorities for actions to strengthen its capacity. In the next quarter, the Program will work with the CPEA to complete the questionnaire and analyze the results. Activity 1.3.3 Build professionalism of private enforcement agents The Program supports increased professionalism and responsiveness of private enforcement agents by assisting the profession to design and adopt modern professional standards and develop case management automation. The Program is working with the CPEA, MOJ, select private enforcement agents, and other stakeholders to develop professional standards and performance indicators for the profession, following guidance provided by the Council of Europe’s Commission for Efficiency of Justice.

Sub-activity 1.3.3.1 Support design and adoption of professional standards for the private enforcement profession Following workshops delivered in the previous quarter, the Program organized a third full- day workshop on Professional Standards of PEAs. Part of an extended campaign supported by the Program, the workshop addressed the need to establish a regulatory framework for professional standards tailored to Kosovo's context and to define performance indicators. A total of four persons from among the MOJ and the CPEA participated in this workshop.

Sub-activity 1.3.3.2 Support development of case management automation for private enforcement agent profession The Program’s Automation Development Manager joined in August 2019 to support design and development of an Enforcement Automation System (EAS). In the previous quarter, the CPEA’s President of the Board had expressed concern that PEAs might not support the development of the system, so the Automation Development Manager’s first activity during the quarter has been to meet with PEAs to understand what concerns agents have and what functionality they would support. So far, the Program has met with three agents across Kosovo, finding significant support for development of the system as well as interest in participating in system design. These meetings will continue into the next quarter.

In addition to finding support for enforcement automation, the Program has also learned of strong interest in upgrading the Bank Account Registry (BAR) to prevent “over-blocking” of debtor accounts. Currently, the BAR blocks all debtor accounts regardless of the sum being collected, and the discussed upgrade would limit the number of accounts blocked to those

7 sufficient to cover the collection sum. The Program is currently considering whether and how this new activity might be undertaken.

Sub-activity 1.3.3.3 Support development of training capacity of private enforcement agents During this quarter, no actions were taken. In the next quarter, the Program will meet with the established CPEA's Committee on Training to potentially organize workshops with students and advise on a curriculum for the mandatory training program and materials for PEAs. Activity Area 1.4. Improve business perceptions of commercial justice During the reporting period, the Program collected and completed a baseline survey activity. The survey collected quantitative and qualitative data by surveying 178 businesses and 166 members of the general public, holding focus group discussions and one in-depth business interview. The survey effort informs Program activity design and provides several baselines on the Program Monitoring Evaluation and Learning Plan (MELP). Results of the survey effort are set out in detail in a Baseline Survey Report, which was approved by USAID in August 2019. Activity 1.4.1 Conduct Commercial Justice and Business roundtables Following findings in the baseline survey of low awareness of, and trust in, commercial justice by businesses, the Program initiated planning during August 2019 to organize Commercial Justice and Business Roundtables for businesses around the country. These two-way communication events are to start taking place during the next quarter (see following activity). Activity 1.4.2 Conduct surveys of business to measure perceptions of corruption in commercial justice The Program had originally planned low cost surveys of businesses to follow-up and track findings of an AmCham corruption perception survey published in March 2018. The results of these periodic surveys would inform the Program’s approach. However, in discussion with AmCham, the Program learned that AmCham plans its own follow-up to the corruption perception survey, making such surveys by the Program unnecessary. Thus, the Program’s business survey effort shifted to measuring awareness of commercial justice processes and institutions. As part of the baseline survey activities, the Program surveyed representatives of businesses and other entities, such as public enterprises and NGOs from Mitrovica, Gjilan, , , Peja, Gjakova, and Pristina. Of the total survey interviews, 18 were in municipalities in Serb majority communities, of which half were in North Mitrovica. In almost all cases, the interviews were with either the owner, director, or legal representative of the business. Survey findings on business perceptions are set out in detail in the baseline study report.

OBJECTIVE II ENHANCE COMMERCIAL LAW AND USE OF ALTERNATIVE DISPUTE MECHANISMS AND IMPROVE PUBLIC’S AWARENESS AND LEGAL LITERACY

Objective 2 of the Program addresses commercial justice outside of the courts, supporting increased reliance on arbitration and mediation, harmonizing commercial legislation, and building strategic communication capacity within commercial justice institutions. It combines

8 these reform areas with outreach to build the public’s awareness and understanding of commercial justice and its role in Kosovo’s society and economy. Activity Area 2.1. Alternative Dispute Resolution The European Commission’s Kosovo 2018 Report urged Kosovo to step up efforts to reduce the backlog of court cases, including by using alternative dispute resolution tools. With substantial donor assistance over the years, the two predominant forms of Alternative Dispute Resolution (ADR)—arbitration and mediation—now exist in Kosovo but are significantly underutilized. Use of ADR by litigants provides some relief to Kosovo’s overburdened courts. The Program supports increasing reliance on each of these methods. Activity 2.1.1 Increase reliance on arbitration A large part of the baseline study report focused on collecting data on the perception of businesses and members of the general public of ADR and particularly arbitration. The main findings from the survey showed that businesses largely lack information about arbitration and very few have used it, while a large majority of the general public have never heard of it. Consequently, the program will support building awareness and demand for arbitration by working with key financial industry organizations and influential business associations to promote arbitration among their respective members.

Sub-activity 2.1.1.1 Work with industry associations to advocate use arbitration clauses in contracts and more actively market arbitration among members During this quarter, the Program initiated a series of meetings with institutions and industry associations to discuss promotion of arbitration and increase awareness. The Program met with American Chamber of Commerce (AmCham) and discussed ways to improve arbitration in Kosovo, including increasing reliance on arbitration and awareness activities to be organized in close cooperation with AmCham Arbitration Center. The same discussions occurred at the meeting with representatives of Kosovo Chamber of Commerce (KCC). Both chambers were receptive to cooperation and joint activities. The Program met with the Kosovo Chamber of Advocates to discuss cooperation on increasing awareness of arbitration among attorneys. Agreed to joint activities will be planned in coming weeks, including help in drafting the working plan for the Committee of the Chamber for Commercial Law which will be established by the end of September 2019. The Program also met with attorneys specialized in commercial law to discuss possible cooperation with arbitrators and a representative of University of Pristina to discuss possible cooperation and efforts in improving arbitration. During the reporting period, the Program met officials from the KJA and agreed to cooperation in promoting commercial justice activities in general and to include specific trainings for arbitration and mediation in initial and continuing training for judges. The Program will assist the KJA in drafting the objectives and proposed content for trainings for judges for commercial law, to be included in the annual curricula of judges training program for 2020. The Program met with Kosovo Investment and Enterprise Support Agency (KIESA) to discuss possible cooperation in promoting arbitration amongst foreign investors and local Small and Micro Enterprises (SME). KIESA agreed to work jointly with the project in promoting arbitration and providing all necessary assistance from their side to businesses they work with.

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To promote arbitration with newly established businesses, the Program met with the General Director of the Kosovo Business Registration Agency (KBRA). The KBRA expressed support for the Program and agreed to work together in promoting arbitration by providing newly established businesses with brochures with basic information on arbitration and in other areas yet to be determined. During the next quarter, the Program will continue meetings with other relevant institutions such as Kosovo Banking Association and the Kosovo Association of Producers. The Program will compile the results of these meetings and develop an action plan to design interventions promoting arbitration so that businesses are aware of and use this mechanism.

Sub-activity 2.1.1.2 Support consolidation of arbitrator lists From discussion with institutions, the Program has determined that there is no longer support for consolidation of arbitration lists. Consequently, no actions were planned or carried out under this sub-activity during the quarter. Activity 2.1.2 Increase reliance on mediation Mediation represents a strong opportunity for moving cases out of, and diverting them from, overloaded courts. The new Law on Mediation regulates the process and profession and provides for mandatory mediation of certain types of cases and requires courts and prosecution offices to dedicate personnel to serve as full-time mediation clerks. Yet the number of cases that go to mediation is low. To increase the use of mediation, the Program will work with the KJC and courts to prioritize case referral strategies and processes, and support institutionalization and training of dedicated mediation clerks in each court. The Program will also assist the MOJ to define and implement its governance role over the profession and work to build public awareness of mediation as a valuable means of resolving disputes. The sub-activity descriptions below set out support efforts on this activity by the Program during the quarter.

Sub-activity 2.1.2.1 Design and conduct mediation awareness training series In order to design a self-sustainable mediation awareness training series, the Program initiated planning for a first round of mediation awareness trainings to take place in the third quarter. To have mediators qualified to conduct mediation awareness trainings, the Program held a “Mediation Club” meeting in which 17 mediators participated. The Mediation Club is an informal group of licensed mediators identified by the Program based on observed quality of their individual work performance, including feedback by court personnel who work with them on a regular basis. The Program anticipates that members of this club will serve as a core group of qualified professionals to promote mediation. Several of the members will serve as trainers in training for delivery of the mediation awareness training series.

Sub-activity 2.1.2.2 Support court filing clerks to advise parties about mediation option During this quarter, the Program held a meeting with the Director of KJC Secretariat and a member of the KJC to discuss the support for court filing clerks to advise parties about mediation to courts and branches. The KJC is supportive and will cooperate in all activities needed to improve the courts, especially branches effectiveness in mediation. During this quarter, a list of appropriate civil and criminal cases to be referred to mediation was drafted. The draft will be finalized with the KJC and shared with court filing clerks. This list will ease the process of identifying appropriate cases for mediation. Starting next quarter, the

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Program will start coordination with courts and branches to encourage court clerks to advise parties to try mediation before filing their cases.

Sub-activity 2.1.2.3 Build capacity of judges and court clerks to refer cases to mediation During the quarter, the Program met with the Director of the KJC Secretariat to discuss filling the new mediation clerk positions required under the Law on Mediation. Rather than create new positions, due to budget constraints, the KJC expressed interest in reviewing all administrative staff positions to identify existing court clerks who can be reassigned to handle mediation referrals fulltime. The KJC expressed readiness to work jointly with the Program in building capacities of judges and court clerks to refer cases to mediation. It will cooperate in the activities needed to improve the courts, especially branches effectiveness through mediation. Next quarter, the Program will meet with Presidents of the basic courts to discuss ways to support judges and court clerks in the case management office and to select appropriate cases to be referred to mediation. A challenge may be in Pristina, Ferizaj, and Mitrovica basic courts as, according to the judges, it will be difficult for the court clerks to select the appropriate cases for mediation since they are overloaded.

Sub-activity 2.1.2.4 Build capacity MOJ to carry out its mediation governance responsibilities under the Law on Mediation The Program continued to support the MOJ in the process of drafting the sub-legal acts foreseen by the Law on Mediation. The Program participated in several MOJ internal Working Group meetings to review and finalize the draft Administrative Instructions (AIs) on: Licensing Mediators; Oversight and Procedure for Disciplinary Responsibility of Mediators; Registry of Mediators; Training and Certification of Mediators; and Draft Code of Conduct of Mediators. These AI’s were finalized and are in a holding process to be signed by the Minister. Following research by the Program on how other countries in the region regulate mediation fees, the Program has prepared an executive brief for the MOJ to use as guidance on structuring these fees in Kosovo. The AI on Mediation Fees was drafted during this quarter. The MOJ is expected to submit it for public consultation in the upcoming weeks. The Program will support the MOJ in reviewing the feedback and comments after the consultation process, incorporating changes to finalize the regulation. The Program supported the MOJ in drafting the AI on the Mediation of Self-Initiated and Administrative Cases including forms and templates. The AI is finalized, and the MOJ is expected to submit it for public consultation in the upcoming weeks. The Program will assist the MOJ in reviewing the feedback and comments after the consultation process, incorporating changes in order to finalize the regulation. To discuss the mediation fee, quality control, and the trainings for mediators, the Program met with the MOJ. The MOJ decided on setting a fixed per-case fee for mandatory mediation and criminal cases, while for other cases the fees will vary based on the agreement of parties and the mediator, up to a specific limit. Regarding the quality and control of the mediation profession, the MOJ decided that mediators will undergo an evaluation process after obligatory trainings. The quality control and trainings are addressed in the relevant AI’s.

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The Program met with the Head of the Division for Free Legal Professions within the MOJ regarding the establishment of a Mediators Chamber. Under the Law on Mediation, the MOJ is obliged to establish a Mediation Chamber. To support this, during this quarter, the Program assisted the MOJ in drafting a Charter for the Chamber of Mediators. The draft was discussed with the MOJ and mediators who participated in the Mediation Club meeting. The Program will support the MOJ in organizing a General Assembly of the Chamber during the next quarter. Finally, the Program initiated a dialog with the MOJ to develop mediation training capacity using MOJ resources.

Sub-activity 2.1.2.5 Assess and support development of environment for commercial mediation in Kosovo No activities were planned or conducted. During the second half of the first year, the Program plans to study support for commercial mediation. The Program will start consultations with relevant stakeholders such as the KJC and courts to explore the establishment of a mediation office within the future Commercial Court. Activity Area 2.2. Commercial Legislation During the reporting period, the Program worked on putting together a first draft of the inventory of main legal acts that may be part of the consolidation process for commercial legislation. The first draft of the inventory is finalized. Starting next quarter, the Program will meet and coordinate with the Ministry of European Integration to complete this inventory with EU legislation and compare the compliance of existing legislation with EU directives. The inventory will serve as the first draft of proposed laws for consolidation and eventual unification of commercial legislation once the new Government is established. Activity 2.2.1 Support anticipated legislative review committee to consider unification of commercial legislation The Functional Review’s Policy Paper on Commercial Justice recommends establishment of a special committee of experts, institutional representatives, and business community members to review and make recommendations for unifying commercial legislation. Program work is not planned to start on this activity until there is a government decision to establish this committee. Activity Area 2.3. Strategic Communication of Commercial Justice Institutions To encourage improvement of communications among commercial justice institutions themselves and with the public, media, and civil society, the Program provided the MOJ with an example of communication through the work on drafting of the Concept Note on the commercial court. To encourage better communication among institutions, the Program advised the MOJ to include the KJC, commercial judges, CSOs, and media as part of the discussions. As a result, the working group meeting promoted communication so that all relevant institutions and organizations had a better understanding of the need for this reform and provided significant contributions to this process. Activity 2.3.1 Support communication among commercial justice institutions During this quarter, the CPEA held regional and international conferences (reported above in sub-activity1.3.2.1). Among other activities, CPEA presented a certificate of appreciation to the institutions that have cooperated with them in the years since establishment. The CPEA and the MOJ thus far do not have consistent communication, largely because the CPEA perceives that the MOJ hasn’t done enough to support or promote the profession.

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The Program, in support of these conferences, emphasized that the CPEA must set the foundation to build a relationship for future cooperation with the MOJ. As a result, the CPEA invited the MOJ to speak at the conference and presented the speaker with a certificate of appreciation. In addition to this event, the Program facilitated a meeting between the Minister of Justice, the CPEA President, and the President of the International Union of Judicial Officers (UIHJ), as reported above under sub-activity 1.3.2.4. One month after the event, the CPEA filed a request to become a member of the UIHJ. Activity 2.3.2 Support communication and outreach of commercial justice institutions During the reporting period, the Program held a series of meetings with the communication office of the MOJ. The purpose of the meetings was to discuss ways to engage the judiciary. There appears to be no leadership among the counterparts on the larger issues of commercial justice, public education, or legal literacy. It was agreed that it is necessary to create a communicator working group in the justice sector to build a strategic approach to communications planning and targeted messaging. The Program will support such activities in the next quarter based on the Program Communication Strategy. Activity 2.3.3 Support improved advocacy capacity among commercial justice institutions No actions were planned or carried out under this sub-activity during the quarter. Activity Area 2.4. Public Awareness The Program is working with subcontractor Pi Communications to design and carry out a Commercial Justice Public Awareness Campaign. The campaign will include development of Public Service Announcement (PSA) videos and radio spots, supported and informed by focus groups and surveys. The campaign will be developed and implemented in close coordination with the Program’s other outreach events, such as the mediation awareness training series and the commercial justice and business roundtables. Activity 2.4.1 Develop and broadcast public service announcements The Program had earlier planned a first PSA to cover mediation outreach. However, based on the finding in the baseline survey of a very low level of awareness of, and trust in, commercial justice, the Program decided to design the first PSA to address commercial justice in general. The Program team will commence design discussions with subcontractor Pi Communications during the next quarter. Activity 2.4.2 Conduct Surveys and Focus Groups In addition to the business portion of the baseline survey activity, discussed above under Activity 1.4., the Program surveyed the general population in Kosovo. The survey methodology was designed to help identify important issues on which to focus program resources. The methodology was structured to match the financial resources that were available to conduct the research.1 The public survey was included in the baseline study to ensure the Program does not lack any baseline data.

1 Given the high costs of conducting a survey of the general population to answer a relatively small number of indicators, the Program requested that these questions be covered by the Public Pulse survey instrument, collected bi-annually by USAID and UNDP. 13

CROSS-CUTTING

Activity Area 3.1. Internship Program The Program will design and implement an Internship activity aiming to establish a Commercial Justice Academy, which will work with public and private schools in Kosovo to provide paid internship positions for students from several universities. Opportunities will include both activities on the Program directly, rotating placements at key counterparts— such as the CPEA, MOJ (Legal Department and Free Professions Department), and the Kosovo Bar Association—at the outset of the activity, and later with individual PEA offices and other free professions. To introduce this internship model, the Program had initially planned to work with the Law School, University of Pristina, and Iliria College to provide an opportunity for interested students to participate as paid interns in commercial justice activities. However, during the quarter, Iliria College lost its accreditation from Kosovo’s Accreditation Agency. As a result, the Program will initially work with University of Pristina to engage the first interns. Activity 3.1.1 Develop and implement Commercial Justice Academy Internship To provide opportunities to interns, the Program assessed the need and interest of placing students at the Program’s key counterparts – such as the CPEA, MOJ, Justice Academy, and the Kosovo Bar Association. Each of these institutions has expressed interest, and the Program drafted an announcement inviting interested students of University of Pristina “Hasan Prishtina” to apply. Beginning next quarter, the Program will select the interns and place them with the Program, Kosovo Bar Association, and Justice Academy for 6 months.

IV. Progress on Monitoring, Evaluation, and Learning Indicators During the reporting period, the Program’s MEL efforts were directed at designing, overseeing, and completing the baseline study. All questionnaire drafts were shared with Program staff and relevant feedback was collected internally, as well as from USAID and lead researchers. Quality assurance of the data collection process was regulated through regular reporting from field staff, as well as random monitoring and support visits from the Program MEL Specialist. Regular exchange of drafts among the research team and MEL Specialist have applied adaptive coordination of the baseline study to the extent possible, such as adding an additional data collector to the Pristina region to mitigate the low response rate. Learning and adaptive management efforts were made by sharing and discussing the main findings of the baseline study report during a Communication Strategy staff retreat in August. Staff were asked to analyze data and main findings, and discuss what they mean for the Program, how they can be best utilized, and how they align with Program assumptions. The data collected through the baseline study, along with secondary data from relevant stakeholders and Program outputs, comprise of all relevant indicator data at this stage of the Program. For more details, please see the Indicator Tracking Table in Annex 1, below.

V. Performance Problems During Quarter Resignation of the Prime Minister and the subsequent dissolution of the Kosovo Assembly has precluded passing of commercial court reform legislation until after elections and formation of a new government. Despite this governmental setback, the Program has

14 focused its assistance on moving work on the Concept Note forward and engaging counterparts to maintain reform momentum.

VI. List of Reports and Deliverables During Quarter

NO. DOCUMENT CJAQ02- Trip Report of the Senior Capacity Building Expert – 2019-06-07 001 CJAQ02- Trip Report of the Senior Capacity Building Expert – 2019-07-23 002 CJAQ02- Trip Report of the Senior Enforcement Expert – 2019-08-21 003 CJAQ02- PP Presentation of the Workshop on Advocacy of CPEA – 2019-06- 004-005 07 (ALB-ENG) CJAQ02- PP Presentation of the Workshop on Working with Media – 2019- 006-007 06-07 (ALB-ENG) CJAQ02- PP Presentation of the Workshop on Professional Standards of PEAs 008-009 – 2019-07-23 (ALB-ENG) CJAQ02- PP Presentation of the Workshop on the Disciplinary System – 2019- 010-011 07-19 (ALB-ENG) CJAQ02- Infographic of the CPEA – 2019-07-14 (ALB-SRB-ENG) 012-014 CJAQ02- Process Map on enforcement proceeding performed by PEAs – 015-016 2019-07-15 (ALB-ENG) CJAQ02- Banner for the CPEA – 2019-07-14 (ALB) 017 CJAQ02- Folder of the CPEA – 2019-07-14 (ALB) 018 CJAQ02- Template of Certificate of Appreciation for the CPEA – 2019-07-14 019 (ALB) CJAQ02- Template Notebook of the CPEA – 2019-07-14 (ALB) 020 CJAQ02- Template of PP Presentation for the CPEA – 2019-07-14 (ALB) 021 CJAQ02- Baseline Survey – 2019-08-23 (ENG) 022

VII. Significant Activities Planned for Next Quarter • Organize initial Commercial Justice and Business Roundtables with businesses around the country. • Organize informational workshops in cooperation with University of Pristina on mediation and arbitration.

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• Support adoption by the CPEA of a revised communications strategy encompassing a broader, modern approach to messaging, outreach, and effective management of social media. • Support the MOJ in finalizing the first draft of the country's Rule of Law Strategy. • Support the MOJ in broad stakeholder consultations on the Rule of Law Strategy. • Draft a bill on commercial court reform. • Support the MOJ and KJC in conducting an effective awareness and advocacy campaign during the adoption process of the bill on commercial court reform. • Continue discussions with institutions and industry associations to promote arbitration. • Organize roundtable discussions with the Chambers of Commerce and industry associations. • Support both Arbitration Centers in AmCham and KCC to increase use of arbitration. • Support the KJA in developing a training curriculum for judges of the Commercial Department of Basic Court of Pristina. • Develop draft inventory of commercial legislation to be discussed with Government for harmonization and consolidation of commercial legislation. • Meet with courts and its branches to encourage court clerks to advise parties to try mediation before filing the cases in front of the courts. • Conduct initial Mediation Awareness Training workshops. • Support MOJ to establish the Mediation Chamber.

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ANNEX 1 – INDICATOR TRACKING TABLE – Y1Q2 Commercial Justice Activity - Contract September 13, 2019 No. 72016719C00001

# Indicator Baseline Target Actual Target Actual Target Actual Target Actual Target Actual Comments Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Year 4 Year 4 Year 5 Year 5 Purpose: Improve commercial dispute resolution and enforcement to reduce opportunities for economic corruption, thereby encouraging investment in Kosovo. 1 Freedom House 6/162 6/163 7/16 7/16 7/16 8/16 Reported Nations in Transit annually Judicial Framework and Independence Score 2 Public Pulse 43.6%4 46% 49% 52% 55% 58% Reported Perception of annually Judiciary’s Independence Objective 1: Strengthening Kosovo’s Capacity to Resolve Commercial Disputes and Enforce Judgments. 1.1 Average number of PBC: 822 Reported days to resolve annually CoA: 304 commercial cases 1.2 Percent of business 21% 24% 27% 30% 33% 36% Reported including ADR clauses annually in their contracts ER 1.1. The Economic Departments of the Pristina Basic Court and Appellate Court issue decisions more efficiently and professionally. 1.1.1 Commercial case PBC: 39% Reported resolution ratio annually CoA: 35% ER 1.2. The Economic Departments of the Pristina Basic Court and Appellate Court improve timely enforcement of their decisions. 1.2.1 Number of enforced 13,423 Reported cases through PEA annually

2 Freedom House Report 2018 – Kosovo – Section F: Rule of Law. 3 Targets reported in this Indicator Tracking Table are preliminary targets subject to review and approval of USAID. 4 Baseline reflects Public Pulse 2018 Democratization Index Trend Analysis.

# Indicator Baseline Target Actual Target Actual Target Actual Target Actual Target Actual Comments Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Year 4 Year 4 Year 5 Year 5 1.2.2 Collected value from USD Reported resolved cases by PEA 76,166,5005 annually ER 1.3. Ministry of Justice provides appropriate oversight over and holds Private Enforcement Agents accountable as set forth in amendments to the Law on Enforcement Procedure. 1.3.1 Number PEAs with 0 Reported significant disciplinary annually action imposed upon 1.3.2 Number of 0 15 New government officials participant receiving USG- M: 10 counted supported anti- only. F: 5 corruption training

(DR.2.4-1) ER 1.4. Improved organizational capacity of the Chamber of Private Enforcement Agents to more effectively manage its resources, improve enforcement, strengthen professional standards, and retain and recruit staff. 1.4.1 Percent change in TBA6 Reported performance of CPEA annually as measured by OCAT annually 1.4.2 Number of people 17 New affiliated with non- 0 participant governmental M: 15 counted organizations only. receiving USG- F: 2 supported anti- corruption training (DR 2.4-3) ER 1.5. Increased knowledge and effective application of commercial law by judges, court staff, and other stakeholders. 1.5.1 Number of judicial 0 12 Q1 data personnel trained with M: 11 was USG assistance reported (DR.1.3-1) F: 1 by mistake in 1.5.3.

5 Converted from EUR 68,264,500 on Oanda.com rate of May 22, 2019 6 Planned for upcoming reporting period 2

# Indicator Baseline Target Actual Target Actual Target Actual Target Actual Target Actual Comments Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Year 4 Year 4 Year 5 Year 5 Corrected in Q2. 1.5.2 Percent change in N/A7 60 33.4% 30 30 30 30 Suggest knowledge as decreasing measured by pre and target to post training be assessment between 25-30% 1.5.3 Number of judicial 0 Reported personnel that apply annually improved commercial law enforcement practices, as a result of USG assistance ER 1.6. Perception of corruption and satisfaction of businesses with commercial dispute resolution improved. 1.6.1 Percent businesses 28.8% Reported satisfied with Disaggregation annually commercial court by winning, vs. services losing cases: 47% winning, 13% losing, 40% neither. 1.6.2 Number of 0 2 commercial justice and business roundtable events ER 1.7. Administrative claims of businesses are handled more efficiently and professionally. 1.7.1 Business PBC: 24% Reported administrative case annually CoA: 69% resolution ratio

Objective 2: Enhance Commercial Law, Use of Alternative Dispute Mechanisms, and Improve Public’s Awareness and Legal Literacy.

7 No baseline value applicable, as it measures the level of knowledge of trainees before and after program-related trainings. 3

# Indicator Baseline Target Actual Target Actual Target Actual Target Actual Target Actual Comments Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Year 4 Year 4 Year 5 Year 5 2.1 Number of PBC: 697 Reported commercial cases annually CoA: 237 resolved per year 2.2 Percent of businesses 47.4% - - - - 50% 55% - - Reported with trust in CJI at baseline, mid-line & end-line ER 2.1. Increased use of Alternative Dispute Resolution mechanisms. 2.1.1 Number of cases Mediation8: Reported resolved through 1265 annually ADR Arbitration: 99 2.1.2 Percent of businesses 100%10 Reported satisfied with ADR annually ER 2.2. Commercial legislation harmonized with European Union (EU) and international best practices. 2.2.1 Number of 0 Reported commercial laws that annually are amended with Program assistance ER 2.3. Improved strategic communication between commercial justice institutions and the general public. 2.3.1 CJI with effective 0 Draft strategic Communic communications ation policy in place Strategy for CPEA produced, approval expected in Q3 ER 2.4. Increased public awareness of commercial law dispute resolution and enforcement mechanisms, including existence and nature of reforms.

8 Ministry of Justice – Department of Free Professions – 2018 Annual Mediation summary data 9 American Chamber of Commerce – 2018 Annual Arbitration data (1) & Kosovo Chamber of Commerce – 2018 Annual Arbitration data (8) 10 Only survey responses are counted for indicator measurement as per PIRS 2.1.2. The overall usage of ADR in Kosovo is very low. Focus group and Interview data are not included in the indicator – as per PIRS – but are presented in the baseline report for information only. 4

# Indicator Baseline Target Actual Target Actual Target Actual Target Actual Target Actual Comments Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Year 4 Year 4 Year 5 Year 5 2.4.1 Percent of public 23% - - - - 35% 40% - Reported aware of the at baseline, commercial justice Disaggregation mid-line & by gender: end-line Male: 24% Female 23%

Disaggregation by Business- owner: 30% 2.4.2 Percent of public 31% - - - - 35% 40% - Reported aware of the ADR at baseline, mechanisms Disaggregation mid-line & by gender: end-line Male: 30% Female 33%

Disaggregation by Business- owner: 30%

ER 2.5. Commercial Justice Institutions more effectively advocate for adoption of their initiatives. 2.5.1 Number of initiatives 0 0 adopted 2.5.2 Number of public 0 0 officials trained on advocacy Cross-Cutting ER. Commercial justice-related internship program is operating and self-sustainable. CC. Number of interns 0 Reported 1 that completed annually internship program CC. Sustainable internship No Reported 2 business model annually identified

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