Structural characteristics of Kosova’s economy

Abstract

An important role for the economic development of the country plays the adjusting of structural changes as well as the opportunities and conditions of development based on market demand for products and services delivered.

Development of industry and natural resources are of special importance in this regard. The industry contributes the most to economic growth and division of labor.

It creates opportunities for the reconstruction and promotion of other economic sectors as agriculture, communications, trade and others. The influence of industry in the transformation of economic and social structure of the country is high or low, depending on the level of overall economic development of the country.

Kosova’s economy after the war has been facing major challenges as a result of poor management for a whole decade and of a devastating war. However, Kosova successfully passed the phase of reconstruction, which was very difficult.

The beginning of privatization, dynamic development of the private sector of small and medium sized enterprises, with particular emphasis on the manufacturing sector, the first initiatives of the integration process of the economy of the region through signing the agreement of free trade, involvement in the Stability Pact as a non equal member, are only the first steps of the long and heavy processes towards the development of market economy and integration into regional and international institutions.

In the postwar period, Kosova’s economy was a consumer economy and its needs were largely met through the import by using “cash” as means of payment due to the lack of organized financial institutions.

The economic structure of a country, regarding economic development, represents more than any other indicator the directions and reality of development. Therefore, it is treated as a current generator at any time and in any modern society.