“THE IMPACT OF THE WORLD BANK IN ECONOMIC DEVELOPMENT – STUDY CASE OF KOSOVO”

Abstract

In this paper we discussed about the impact of the World Bank in Kosovo. The World Bank was established in order to help the reconstruction and development of the Member States destroyed during World War II, and later providing aid to economically underdeveloped countries. Besides financial assistance, especially for the developing of infrastructure, World Bank organizes and provides technical assistance crediting the prior problems of developing Member States. Kosovo has a young and dynamic economy. Its base is transformed from an orchestrated centralized economy to an open market economy, which its deep transforming has experienced after 1999 with the liberation of Kosovo from Serbia. One of the challenges that Kosovo faced during the last decade is the process of privatization. Located in Southeastern Europe Kosovo's economy has become part of economic integration of this region, which offers opportunities for market expansion in a broad range space. The goal in itself already is to increase the competitiveness of this economy by increasing export capacity to reduce trade deficit that Kosovo currently has. As an important place for business development Kosovo offers numerous comparative advantages as young population and very well qualified, where the average age is quite young, natural resources, favorable climate, new infrastructure, fiscal policy with lowest taxes in the region, geographical location with access to regional CEFTA market and that of the European Union. Kosovo besides of being a member of CEFTA, in June 2009, it has joined the IMF (International Monetary Fund) and WB (World Bank) and aspires to other powerful mechanisms economic and financial like EBRD which is already a member of it since 2012, and the development Council of Europe Bank CEB. Kosovo during the month of June 2013 is a full member in CEB. This bank is an autonomous branch of the Council of Europe. Aspires in other powerful mechanisms in economy and finance like World Trade Organization WTO etc. Therefore my main research will be the economic development and integration of Kosovo and the role and influence of the World Bank in this regard, especially in recent years. Through this work is explained the impact and the role of the World Bank in economic development of Kosovo, the impact of World Bank projects in economic growth, to have a successful result in the reduction of poverty and the impact of World Bank in reducing unemployment. To identify progress and setbacks made to the World Bank projects and to identify areas where it has been most successful, where the problems are shown and where the big challenges have passed successfully, concrete case is taken Kosovo from joining at the World Bank.