KOSOVAR INSTITUTE FOR POLICY RESEARCH AND DEVELOPMENT Policy Research Series PAPER #4 LOCAL GOVERNMENT AND ADMINISTRATION IN KOSOVO Prishtina, September 2004 Xxxx xx xxxxxxx xxxx xxx KOSOVAR INSTITUTE FOR POLICY RESEARCH AND DEVELOPMENT Policy Research Series PAPER #4 Policy Research Series PARPER #4 Series Research PARPER Policy LOCAL GOVERNMENT AND ADMINISTRATION IN KOSOVO Prishtina, September 2004 KOSOVAR INSTITUTE FOR POLICY RESEARCH AND DEVELOPMENT Xxxx xx xxxxxxx xxxx xxx This project has been supported by the Friedrich Ebert Schtiftung, Germany, Olof Palme International Center, Sweden, and the Rockefeller Brothers Fund, USA. This research project was compiled by Era Gjurgjeala, Researcher, and Leon Malazogu, Research Director. Local Government and Administration in Kosovo and Administration Government Local Copyright © 2004 by KIPRED. All rights reserved. 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Published by Kosovar Institute for Policy Research and Development Kodra e Diellit, Rruga 3, Lam. 39 Prishtina, Kosovo (UNMIK) Phone and Fax: +381 38 555 887 [email protected] www.kipredinstitute.org KOSOVAR INSTITUTE FOR POLICY RESEARCH AND DEVELOPMENT KOSOVAR INSTITUTE FOR POLICY RESEARCH AND DEVELOPMENT Policy Research Series PAPER #4 Local Government and page 1 #4 Series Research PARPER Policy Administration in Kosovo Analysis Press Coverage page 67 of Local Government and Administration in Kosovo Analysis Public Debates page 95 on Decentralization Report KOSOVAR INSTITUTE FOR POLICY RESEARCH AND DEVELOPMENT Xxxx xx xxxxxxx xxxx xxx Local Government and Administration in Kosovo and Administration Government Local KOSOVAR INSTITUTE FOR POLICY RESEARCH AND DEVELOPMENT Xxxx xx xxxxxxx xxxx xxx Table of Contents T List of abbreviations vii Local Government and Administration in Kosovo: Analysis L Executive Summary 1 1. Introduction 3 1.1. The debate about local government reform in Kosovo 3 1.2. The aim of the report 4 1.3. Main findings 4 1.4. Methodology 6 #4 Series Research PARPER Policy 2. General geographic and demographic characteristics 7 3. Analysis of local government and administration in Kosovo 9 3.1. Ethnic minority communities 9 3.1.1. The size of municipalities 9 3.1.2. Local political representation of ethnic communities 12 3.1.3. Ensuring equitability for ethnic communities 15 3.2. Local government politics 18 3.2.1. Government building and lack of opposition in municipal assemblies 18 3.2.2. The politicization of the executive body 19 3.2.3. Reforming the executive body 21 3.2.4. The influence of party centers 22 3.2.5. Public confidence in and satisfaction with the municipality 23 3.3. Municipal finances 25 3.3.1. The current financial situation of the municipalities 25 3.3.2. Municipality relations with central government institutions 28 3.3.3. Problems of accounting practices 30 3.4. Municipal administration 33 3.4.1. The current administrative organisation of municipalities 33 3.4.2. Municipality relations with central government institutions 36 3.4.3. Poor administrative efficiency 37 3.4.4. Improving administrative efficiency 38 3.4.5. Lack of technical specialists 39 3.5. Positive practices 39 4. Conclusions 41 5. Recommendations 42 Annex A: The current system of local government and administration in 48 Kosovo 1. The legal framework 48 1.1. Municipal competences 48 1.2. Municipal institutions 49 2. Sub-municipal arrangements 50 Annex B: Arguments regarding the management of socially-owned enterprises 52 and property Annex C: List of people met during field research 54 Bibliography 59 KOSOVAR INSTITUTE FOR POLICY RESEARCH AND DEVELOPMENT Xxxx xx xxxxxxx xxxx xxx Notes 61 Press Coverage of Local Government and Administration in Kosovo: Analysis L Executive Summary 67 1. Introduction 69 2. Methodology 69 3. Analysis 70 3.1. Types of articles 70 3.2. Types of sources 71 3.3. Most frequently reported municipalities 73 3.4. Most frequently reported issues 75 3.4.1. Political frictions 75 3.4.2. Electing executive structures and inter-party problems 77 3.4.3. Decentralization 78 Local Government and Administration in Kosovo and Administration Government Local 3.4.4. Infrastructure and other development projects 78 3.4.5. Other issues 80 3.5. Other issues important for local government 80 3.5.1. Minority communities and interethnic relations 80 3.5.2. Democracy 81 3.5.3. Gender, education and health care as issues of local government 82 3.6. Issues discussed in analyses and editorial articles 83 3.7. The level of bias in reporting issues 84 3.7.1. Quantitative analysis 84 3.7.2. Qualitative analysis: analysis of language used 84 3.8. The level of balance in reporting issues 86 3.9. The level of information provided by articles on local government 87 3.9.1. Quantitative analysis 87 3.9.2. Qualitative analysis: case studies 88 4. Conclusions 89 Notes 91 Debates on Decentralisation: Report Executive Summary 95 1. Introduction 98 2. The importance of debating decentralisation 100 3. Society’s priorities and the final status 101 4. Decentralization vs reform of local government and implications for inter-eth- 102 nic relations 5. Current problems 102 6. The importance of the CoEDMK proposal 104 7. The role of local and international institutions 105 8. The role of the civil society 105 9. Discussion of the three decentralisation models 106 10. Organisational problems and recommendations for similar projects in the future 108 11. Conclusions 109 Notes 111 KOSOVAR INSTITUTE FOR POLICY RESEARCH AND DEVELOPMENT Xxxx xx xxxxxxx xxxx xxx List of Abbreviations AAK Alliance for the Future of Kosova AMK Association of Municipalities of Kosova CEO Chief Executive Officer CDF Community Development Fund CoEDMK Council of Europe Decentralization Mission in Kosovo KPS Kosovo Police Service KTA Kosovo Trust Agency LCO Local Community Office LDK Democratic League of Kosova #4 Series Research PARPER Policy MEF Ministry of Economics and Finance MEST Ministry of Education, Science and Technology MHSW Ministry of Health and Social Welfare MPS Ministry of Public Services OMIK Organisation for Security and Cooperation in Europe Mission in Kosovo PDK Democratic Party of Kosovo PSHDK Albanian Demo Christian Party SOE Socially-owned Enterprises SOK Statistical Office of Kosovo SRSG Special Representative of the Secretary-General of the United Nations UNDP United Nations Development Program UNMIK United Nations Mission in Kosovo KOSOVAR INSTITUTE FOR POLICY RESEARCH AND DEVELOPMENT vii Xxxx xx xxxxxxx xxxx xxx Local Government and Administration in Kosovo and Administration Government Local KOSOVAR INSTITUTE FOR POLICY RESEARCH AND DEVELOPMENT Local Government and Administration in Kosovo: Analysis Local Government and Administration in Kosovo Analysis Executive Summary #4 Series Research PARPER Policy Reform of local government in Kosovo became a prominent issue in October 2002, when the then Special Representative of the Secretary-General of the United Nations, Michael Steiner, promised to decentralise local government structures in the hope of encouraging the Serb community to take part in local elections. Although an issue cru- cially affecting the interests of the Kosovar citizen in general, decentralisation in Kosovo has remained integrally tied to inter-community politics, and all the more so following the inter-ethnic violence of March 2004. While recognising that local government reform is an issue that crucially affects the interests of ethnic communities, KIPRED’s researchers took the view that the decen- tralisation debate ought not to be narrowed to the point of ignoring the interests of other social and economic groups, and those of the citizen in general. Hence, as well as examining local government in relation to ethnic communities, this report also con- siders some broader issues of municipal governance, administration and finance. KIPRED’s research found that a territorial division of current municipalities will, in general, not improve the local autonomy of most ethnic communities because the majority of them are either already concentrated in municipalities in which they are numerically dominant or are too dispersed to form a compact territorial unit. Hence, rather than treating decentralisation as a panacea for all troubles affecting Kosovo’s eth- nic minorities, efforts should be placed to develop mechanisms that can strengthen the voice of communities in the current municipal system. Mechanisms that provide com- munities extra security at local level are to be welcomed, although they must be devel- oped in conjunction with other measures provided at the central level. Another finding is that the performance of local governments and administrations in Kosovo is critically affected by political dynamics at local level, encompassing inter- and intra-party rivalries as well as relations with central party organisations. Our conclusion is that in municipalities with political disagreements, the main point of contention between actors tends to be the control of executive positions of the municipal admin- istration. Such political conflicts are detrimental to the efficient and effective function- ing of municipalities, as well as harming the voters’ long-term trust and confidence in KOSOVAR INSTITUTE FOR POLICY RESEARCH AND DEVELOPMENT 1 Local Government and Administration