The government program approved last week by the Government of the Republic of Kosovo, which will be discussed today in the Assembly of the Republic, presents the main objectives of the government for its four-year mandate. In 57 pages, the concrete measures and value goals of the executive are summarized, through which the current government aims to improve the situation in Kosovo’s social sectors.
In summary, this document does not have the format of an executive, i.e., an implementable document. None of the mentioned measures/goals include a timeline for implementation, which makes understanding the program extremely difficult. On the other hand, even when there are concrete measures, they do not specify their financing methods, which would allow for calculating the feasibility of implementing the measures. Furthermore, the document does not create the possibility of envisioning the governmental, economic, and social transformation of Kosovo. In most cases, it does not discuss any analysis of the effects of specific measures. Therefore, the government program leaves incomplete both the analysis of where we start from and where we are going.
In the 57 pages of the government program, in each chapter and subchapter, through the text, the government has shown that it will engage, meaning that it commits itself, whereas the government program should have contained concrete, clear, and precise policies indicating what they are and when they will be implemented.
From reading this report, the phrase “the government’s vision” is mentioned 8 times, “The government will engage” 41 times, and “we will engage” 21 times.
The “Musine Kokalari” Institute has evaluated several measures related to social rights and equality, employment and workers’ rights, the position of women in society, as well as interethnic coexistence and integration.
1. Employment and Sustainable Development
This is one of the Prime Minister’s main electoral priorities and one of the most extensive parts of the Program.
The main measures in this field are related to the institutional reform to which the government commits itself, by creating two ambitious institutions that will directly influence the speed of economic development.
a) The Sovereign Fund – which will take ownership of Kosovo’s strategic assets and will be responsible for their valorization and increasing the value of public enterprises, including improving corporate governance within them. The program states that the government will commit to creating the Sovereign Fund. No timeline is given for when the Fund may be established. There is no explanation as to why this Fund is expected to be more efficient in managing public enterprises compared to how the Ministry of Economic Development currently does it. It is briefly mentioned that the Fund will enable conditions for foreign investments and access to capital markets for strategic assets. It is not specified whether foreign capital will come through corporate bonds that the enterprises might sell or through shares they will sell, meaning through privatization of certain percentages of the enterprises. It is also not clarified how cross-subsidization of public enterprises will be avoided (e.g., taking money from Telekom and investing it in Trepça), which is prohibited by EU rules.
a) The Kosovo Development Bank – which will be an investment bank focused on strategic sectors of the economy to increase access to capital for enterprises that create jobs and improve the trade balance. If established, the Development Bank would be the first bank in Kosovo founded with public capital. However, even in this case, the Program does not provide any timeline or method for how and when the bank will be established.
Minimum wage for 1 year – for each young person employed for the first time is a proposed measure to encourage youth employment. This type of wage subsidy for newly employed youth has also been used in other countries as a response to the economic crisis caused by the pandemic. Although the government commits to active employment policies for women, it does not provide the same type of subsidy for the employment of women. Naturally, youth employment is important for our society. However, the situation is even more critical when it comes to women’s employment. A similar measure focused on the employment of women would help address this situation, at least to some extent.
Economic empowerment of women – Although it is not presented as a clear measure, it does mention the employment of women separately from general employment policies. However, the Program does not provide anything concrete apart from stating that “active measures for the employment of women and supportive measures to ensure liquidity for women-led businesses will be implemented.” What active measures? What will be the projected impact of this measure?
Raising the minimum wage to 250 euros – This is one of the government’s key policies related to working conditions and workers’ rights. On this point, the government remains silent about when the decision to increase the wage will be made. It also does not explain the basis for this amount, what calculations were used, or what the Economic and Social Council (ESC) has assessed in this regard, considering that by law, the ESC makes the proposal and the Prime Minister issues the decree on the minimum wage. If we do a calculation, it turns out that the current government will raise the minimum wage by 120 euros, compared to the current 130 euros. In percentage terms, that is a 48% increase. If this increase is spread over the years since the last change in 2010, it comes down to an increase of 12 euros per year. Meanwhile, if we calculate based on the other minimum wage level of 170 euros, the government would be raising it by 80 euros, which represents a 32% increase, or 8 euros per year when distributed over time.
In addition to this measure, the government has also foreseen an increase in tax-exempt income from 80 euros, as it currently stands at the minimum wage threshold, to 250 euros. This measure is intended as a mechanism to boost aggregate demand on one hand and as a measure to combat poverty on the other. However, at this point, it is not clear how the current progressivity in personal income tax will be adjusted. Currently, citizens of Kosovo pay taxes as follows: 0–80 euros: 0%;80–250 euros: 4%;250–450 euros: 8%;450 euros: 10%. Without knowing this progressivity, it is difficult to calculate the real effect this measure will have on wages in Kosovo (e.g., on the average wage).
Protection of workers’ rights and improvement of working conditions are two other priorities of this government. However, it is not specified which law needs to be amended, which mechanism will be strengthened for the implementation of the law, when this will take place, or what the cost of such implementation will be.
It is not specified how much the number of inspectors will increase, what the budgetary cost will be, or whether their salaries will be increased.
2. Health
To a large extent, government policies in the health and social protection sectors are generalized and never concretized regarding how they will be implemented, where the resources for their implementation will come from, and by which year they will be completed, even though the program covers a four-year governance period (2021-2025).
In the health sector, there is talk of the vision to have a healthy population through the provision of quality and safe health services, but without specifying which services will be improved and which will be added. Nowhere in its pages does it explain what the “health reform” includes, nor is there any timeline for when the ‘New Health Sector Strategy’ will be approved.
The revision of the legal framework of the health sector, as a prerequisite for the necessary reform of the health system, is foreseen as one of the aspects that will impact this system; however, it still does not specify what changes in the health law will entail. Nowhere in the government program pages is there mention of the full operationalization of the University Clinical Center of Kosovo, whether the construction of the Capital City Hospital will begin—which is a legal obligation under the Capital City Law—what will happen with the constructed Ferizaj Hospital building, or the commitment to build a hospital in Podujevo.
Regarding public health insurance, it is not explained why the amendment and revision of the Health Insurance Law are necessary, and if changes are to be made, why they would be needed and when the law will be submitted for approval, given that such a law requires significant governmental efforts to implement. Furthermore, even when it is stated that human administrative and infrastructural capacities at the Health Insurance Fund will be strengthened as prerequisites for starting the collection of contributions, it is not specified what the staff will be, what the costs will be, or when this process will begin. The situation is the same regarding the initiation and completion of the Health Information System and the Clinical Guidelines.
3. Social Protection
According to the program, the government’s goal is to support vulnerable groups, restructure social and pension schemes, and design schemes for guaranteed seasonal employment for one family member and for all those involved in social schemes. However, the program does not specify how many citizens are unemployed, how many citizens involved in social schemes will become part of social policies, what types of work these individuals will be engaged in, or where the resources for implementing this part of the program will come from.
Reimbursement of low-income families – The implementation of the child allowance program again does not specify numerically where the funds will come from, whether they will be transferred from capital investments or from some other budget line.
Maternity and parental leave changes – It is not specified in which year the two laws in this sector will be amended, nor what the budgetary cost will be.
For mothers who are unemployed during the 6 months of maternity leave – compensation will be provided with a minimum salary of 250 euros. Again, it is not specified whether any calculation of the budget cost has been made, or if this will be one of the promises that will not be fulfilled. According to the Kosovo Statistical Yearbook for 2020, the number of live births in 2019 was 21,798. If 70% of these mothers are unemployed, this means the government budget will cost approximately 22,887,000 euros, not including the administrative costs for implementing this policy.
Review and restructuring of the current social and pension schemes – through the cleansing of the beneficiary lists of social and pension schemes. It is not mentioned nor clarified whether such a cleansing of the lists will be followed by the fusion of all social schemes into one pension code, or if the same laws distributed across specific sectors will continue to apply.
4. Human Rights and Interethnic Integration
The issue of human rights, communities, and gender equality is a very superficial and generalized part of the government program. It does not appear to be a priority.
Only two pages out of more than 60 contained in the government program are dedicated to human rights, gender equality, and the promotion and protection of community rights.
On these issues, government policies are generalized and mostly political commitments, without specifying and concretizing the mechanisms, implementation timeline, and budget.
• In section 2.5, “Human Rights and Gender Equality” under the paragraph “Promotion and Protection of Human Rights” the Roma, Ashkali, and Egyptian communities are highlighted, while other minority communities are not mentioned.
In the same section, under the paragraph “Ensuring Gender Equality through Women’s Empowerment” it is not specified what amendments are being considered regarding the “completion of the legal framework for protection against domestic violence and gender-based violence”.
It is not specified which institutional mechanisms are being referred to for capacity building in handling cases of domestic violence.
There is no economic cost assessment for increasing the functional efficiency of shelters for protection against domestic violence, nor for “gender budgeting”.
Similarly, for the “property registration” (in the name of both spouses), where affirmative measures and financial support are not specified.
• In point 2.6 “Promotion and protection of the rights of communities” the measures and mechanisms to combat discrimination in employment, education, or support for entrepreneurs from non-majority communities are not specified.
Also here, the RAE community is singled out, and other communities are not mentioned.
Regarding vulnerable communities, they are mentioned only in connection with increasing the number of teachers.
Regarding “Improvement of policies for communities” the measures are generalized through the idea of drafting the “Strategy for the Protection and Promotion of the Rights of Communities and Their Members,” a concept document for displaced persons, drafting the Law on Displaced Persons, based on the principles of fundamental rights without excluding any community. The calendar agenda for drafting and approving this strategy is not specified.
Regarding “Social inclusion and overall stabilization of communities in Kosovo” projects are generally mentioned “in the function of return, reintegration, and stabilization of communities, financial support for civil society aimed at creating mutual trust between communities,” referring to the project “EC Program for Community Stabilization IV.” Neither the calendar timeline nor the budgetary investment of the Government of Kosovo itself is detailed.
Regarding “Return of displaced persons and sustainable solutions” the Serbian minority—which is considered one of the communities most affected by return issues—is not mentioned. Likewise, there are no concrete measures, no calendar agenda, and no budgetary data provided.
The Government Program does not include any concrete policies regarding the integration of Northern Kosovo.
Pristina, May 17, 2021