Kosovo Human Development Report 2014 MIGRATION AS A FORCE FOR DEVELOPMENT The views expressed in this report are those of the authors and do not necessarily represent those of the United Nations Development Programme or the Swiss Cooperation Office. All references to Kosovo are made in the context of UN Security Council Resolution 1244 (1999). The Kosovo Human Development Report 2014 would not have been published without the generous assis- tance of the Swiss Cooperation Office, Liaison Office of Switzerland in Prishtinë/ Priština. Albanian translator: Hyjnor Jasiqi Serbian translator: Besmir Fidahic Design: “Pi Communications” (Prishtinë/Priština, Kosovo) Printing: “Grafika Rezniqi” (Prishtinë/Priština, Kosovo) Photos: Arben Llapashtica Schweizerische Eidgenossenschaft Confédération suisse Confederazione Svizzera Confederaziun svizra Swiss Cooperation Office Kosovo Second, the report highlights how linkages with the Foreword Kosovo Diaspora contribute in multiple ways to the human development of Kosovo residents. Migrant remittances, labour income from short-term work- ers abroad, travel expenditures of migrants visiting Migration and close economic linkages with the Di- Kosovo, and other international reserve flows to the aspora population are an everyday reality for most economy of Kosovo serve to strengthen demand for people in Kosovo. One out of every four Kosovans domestic goods and services in Kosovo and boost currently lives abroad. Financial flows from mem- the demand for local workers. While unemployment bers of the Diaspora - including migrant remittances is indeed very high in Kosovo, it would be even high- and travel expenditures - correspond to one fifth of er, and wages lower, without this extra demand for Kosovo’s Gross Domestic Product. This report con- local goods and services. Furthermore, households siders the impact of migration on human develop- that receive remittances are able to escape poverty ment in Kosovo. In addition to the economic impact and spend more on education and health care. the report also examines the social impact of remit- Nevertheless, migration and remittances alone can- tances (e.g. increased political and civic participa- not guarantee sustainable economic growth and tion), as well as related changes in behaviour and human development. The design and implementa- attitude. The report also explores freedom of mo- tion of effective public policies will be critical for bility and its impact on human development beyond improving the investment climate in Kosovo and remittances. for laying the necessary foundation for sustained growth of output and incomes. Ensuring adequate The 2009 Global Human Development Report iden- levels of public investment in both the quality of and tified numerous ways in which migration promotes access to education and health care for all Kosovans and also impedes human development in the mi- will also be a key requirement. grants’ countries of origin. The 2014 Kosovo Hu- man Development Report applies the lessons from As those living in the Diaspora become more inte- the Global Report to the particular circumstances of grated in their host countries, they will need to adopt Kosovo and focusses on how migration and links a more “transnational” way of life if they wish to with the Diaspora affect human development in maintain close links to Kosovo. The report recom- Kosovo. mends a variety of measures that the authorities of Kosovo can consider to strengthen and to take better Two findings from the report stand out: advantage of the connections between the Diaspo- First, if we understand human development to be ra and Kosovo, including networking activities on essentially about expanding people’s choices to lead areas of common interest for Diaspora members high-quality lives, the decision to migrate is itself an and Kosovo-based groups, establishment of cultural important factor in human development. In Kosovo, centres abroad, provision of reserved seats for Dias- economic opportunities are limited by geographic pora representatives in the Kosovo parliament, and location, uneven relationships with neighbouring financial incentives for contributions by the Diaspo- countries, and a history of institutional development ra to development projects in Kosovo. In the years that makes good governance and implementation of to come, these are just some of the actions that could effective public policies a persistent challenge. Un- contribute to strengthening long-term and mutual- der these circumstances, opportunities for employ- ly beneficial cooperation between Kosovans living ment, study or travel abroad for business or leisure abroad and those who choose to stay. afford people in Kosovo a chance to transcend what is otherwise a relatively confined set of choices. The availability of opportunities for legal employ- Andrew Russell ment abroad very much depends, however, on the relationship of Kosovo to its international partners. Visa-free short-term travel to the Schengen Area would make a significant contribution to interna- tional mobility, but progress on this front will de- pend on the pace at which Kosovo can implement UN Development Coordinator the EU visa liberalization roadmap. UNDP Resident Representative MIGRATION AS A FORCE FOR DEVELOPMENT v Acknowledgements (All persons are listed as per alphabetical order) UNDP Kosovo Human Development Reports - Project Team: Bardha Çunaj (Associate to HDR- and PP Projects), Denis Nushi (HDR Project Manager), Erëblina Elezaj (Research Analyst, PRGC-Team), Leon Thaqi (Associate to HDR- and PP Projects), Iris Duri (Statistician, PRGC-Team) and Mytaher Haskuka (PRGC-Team Leader) UNDP Kosovo Quality assurance Team: Ardian Spahiu (DEED Project Manager), Brikena Sylejmani (Gender Programme Associate), Burbuqe Do- branja (Communication Associate), Danijela Mitic (Communication Analyst), Dian Dulaj (DEED Project Associate), Michelle Odea (Programme Analyst) Team of Writers: Aliriza Arenliu, Ardiana Gashi, Artane Rizvanolli, Besnik Krasniqi, Denis Nushi, Edona Krasniqi, Kaltrina Kelmendi, Matthias Lücke (lead writer), Mihail Peleah, Shpend Kursani Swiss Cooperation Office Kosovo Peer Review Group: Arjan Shabani (National Programme Officer), Christoph Lang (Deputy Country Director), Markus Baechler (Country Director) Peer Review: Ben Slay (Poverty Practice Leader), Elena Danilova (Policy Analyst, Social Inclusion and Human devel- opment), Jonathan Hall (Policy Specialist – National Human Development Reports), Mary Ann Mwangi (UNDP HDRO, NHDR Unit), Mihail Peleah (Human Development Programme and Research Officer), Sarah Rosengaertner (Migration and Development Expert), Tim Scott (UNDP HDRO, NHDR Unit) Government’s contribution: Avni Kastrati (Kosovo Agency of Statistics), Ibrahim Makolli (Ministry of Diaspora), Isa Krasniqi (KAS Chief Executive Officer) Proofreading and Editing: Christine Vlasic, Deidre Keogh vi Kosovo Human Development Report 2014 Abbreviations BEEPS Business Environment Enterprise Performance Survey BOP Balance of Payments BSCK Business Support Centre Kosovo CBK Central Bank of Kosovo CEC Central Elections Committee COP Community of Practice DEED Diaspora Engagement in Economic Development EASO European Asylum Support Office EDG Economic Development Group EU European Union EUR Euro Eurostat European Commission Statistics EYE Encouraging Young Entrepreneurs FDI Foreign Direct Investment GDP Gross Domestic Product HBS Household Budget Survey HDI Human Development Index HDR Human Development Report ILO International Labour Organization IMF International Monetary Fund IOM International Organization for Migration K- Albanian Kosovo Albanians KAS Kosovo Agency of Statistics KFOR Kosovo Forces NATO North Atlantic Treaty Organization KHDR Kosovo Human Development Report K-RAE Roma, Ashkali and Egyptian KRHS Kosovo Remittance Household Survey KRS Kosovo Remittance Survey K-Serbs Kosovo Serbs LFS Labour Force Survey MLSW Ministry of Labour and Social Welfare NGO Non-Governmental Organization OR Odds Ratio PP Public Pulse PRGC Policy, Research, Gender and Communication SCO Swiss Cooperation Office SDG Sustainable Development Goals UK United Kingdom UN United Nations MIGRATION AS A FORCE FOR DEVELOPMENT vii UNDP United Nations Development Programme UNSCR United Nations Security Council Resolution US United States USD United States Dollar WB World Bank WDI World Development Indicators viii Kosovo Human Development Report 2014 3.3.1 Structural change towards non-tradable Contents goods and services (“Dutch disease”) 36 3.3.2 Effects on the labour market 37 Key Points - Chapter 3 39 Foreword V Acknowledgements VI CHAPTER 4 Abbreviations VII 4. Incidence and use of remittances 41 Executive Summary XII 4.1 Incidence and value of remittances according Bibliography 94 to area of residence and ethnic groups 41 Notes 103 4.2 Key labour force indicators for remittance recipient vs. non-recipient households 42 CHAPTER 1 4.3 Effects of remittances on household 1.Introduction 19 consumption, human development and business 43 1.1 Human development, mobility and Kosovo 19 Key Points - Chapter 4 45 1.2 Outline of the 2014 KHDR 20 CHAPTER 5 CHAPTER 2 5. Gender effects and vulnerable groups 2. Evolving patterns of demography, left behind 47 migration, and the Kosovan Diaspora today 23 5.1 How do women migrants fare? 47 2.1 Demography, waves of migration, and the 5.1.1 A profile of Kosovan women migrants 47 Diaspora 23 5.1.2 Migrant women: how do they fare abroad 2.1.1 Socioeconomic characterictics 24 in terms of human capital development