Kosovo’s government has shielded the country from the sharp economic slowdown plaguing the rest of Europe by improving its investment climate and maintaining macroeconomic stability. As a result Kosovo’s economy has grown, and it is fighting the over 40 percent unemployment rate which makes a third of its  population very poor.

Lundrim Aliu, Communications Officer for World Bank Office in Kosovo, reported that the World Bank injected 61 million Euros into Kosovo’s budget, mostly grant money. The Sustainable Employment Development Policy Program (SEDPP) funds were disbursed from the end of 2011 to the middle of 2012, and had a strong effect on many sectors, supporting reforms and improving transparency.

The positive effects are visible, stated Bedri Hamza, Kosovo’s Finance Minister: “First of all, it is important for the macro-fiscal stability of Kosovo, as it involves significant amount of funds. They were distributed among several projects, which will have a long-term effect. he adds. Kosovo has a prosperity and economic growth estimated at around 5% for 2011.”

One of Kosovo bigger constraint in its pursuit of economic growth was Kosovo’s unfavourable investment climate. To remove the barrier, the government has taken steps to speed up and ease business registration. The measure has encouraged private investments, which create jobs and in turn, incomes for families. Twenty-six one-stop-shops for registering businesses have been established in municipalities across Kosovo, where in the past there was only one in the capital.

Reforms making it easier to do business are paying off: in the first 9 months of 2012, new businesses registration has risen by 24 percent if compared to 2011. Moreover, it is now evident that Kosovo’s reform efforts outpaced those of neighbouring countries, according to the Doing Business 2013 report, improving its ranking.

Muhamet Doblibora, the Director of the Kamila chocolate production company, who recently re-registered its business in Prizren, said: “Before, due to bureaucracy there was no will to register the business, today bureaucracy is reduced at a minimum.”

Recently, a glimmer of hope in the form of a public works program was offered to those who have been out of work for a long time. The program offers them a place in the workforce and an income to support their families. The public works program has created 3,500 temporary jobs: 2,000 for poor and long-term unemployed people.

Finally, the recent switch to computer-based records has made it easier for public employment centres to focus their attention on people who want a job.

Hake Gegaj, Employment Advisor says: “We can now very easily check if someone is an active or passive job-seeker.” This move, together with search capabilities, has made employment advisors’ caseloads more manageable.

The World Bank’s budget support program in Kosovo coordinated ten multi- and bilateral donors, and is the largest joint financing activity in the country; donors included the European Union, United States, Czech Republic, Denmark, Estonia, Finland, Italy, Norway, Sweden and Switzerland.

“One overriding theme of my visit is the importance of dialogue and mutual respect across the region,” Ban told reporters upon his arrival in Kosovo’s capital, Pristina. “I have emphasized to all the leaders I am meeting the crucial importance of taking further steps for greater understanding.”

“I bring the same message to Kosovo’s leaders, and to the people of Kosovo, who I know have suffered from conflict and who yearn for a peaceful, prosperous future,” he added. “In particular, I expect strong efforts toward the normalization of relations with Belgrade, including through the same serious and sincere commitment to dialogue which I have asked from the Serbian leadership.”

Over the past week Ban has visited Croatia, Montenegro, Slovenia and Serbia, promoting the partnership between United Nations and the region, as well as discussing common challenges and future opportunities.

In his remarks to the media, Ban also said he was concerned about the situation in northern Kosovo – which remains a flashpoint amid continuing tensions between the Kosovo Albanian and Kosovo Serbian communities – and the escalation of tensions over the past year, adding that it is essential that sensitive issues such as this one be resolved through peaceful dialogue.

During his visit, the Secretary-General will meet with a range of local and international officials, as well as the UN Interim Administration in Kosovo (UNMIK). Mr. Ban said UNMIK continues to play an important role in accordance with UN Security Council resolution 1244, which was adopted in 1999 following the end of fighting in Kosovo.

“Together with the Kosovo Team, much has been achieved in building democratic institutions, strengthening the rule of law, protecting minority rights, facilitating dialogue and promoting confidence between communities.” Mr. Ban said, reiterating the UN’s readiness to cooperate with all international partners.

Established in 1999, UNMIK is mandated to help ensure conditions for a peaceful and normal life for all inhabitants of Kosovo and advance regional stability in the western Balkans. It began its operations when North Atlantic Treaty Organization forces drove out Yugoslav troops amid bloody ethnic fighting between Serbs and Albanians, but it gave up its administrative role in 2008 when Kosovo Albanians declared independence. Serbia rejects Kosovo’s declaration of independence.

Over the past couple of days, Ban met with the President of Montenegro, Filip Vujanovic, and the President of Serbia, Tomislav Nikolic, as well as with other officials from both countries, with whom he discussed the need for dialogue and reconciliation among countries in the region.

Before leaving Serbia this morning, Mr. Ban also visited a cooperative that targets the Roma community and seeks to ensure they have access to healthcare, education and social services. While at the site, he said that the UN will do all it can to promote the rights of the Roma.

While in Kosovo, Ban also visited the Visoki Decani monastery, a UNESCO World Heritage Site, as well as the city of Prizren.

His next stop is the Former Yugoslav Republic of Macedonia, where he will meet with President Gjorge Ivanov and Prime Minister Nikola Gruevski. His final stop will be Bosnia and Herzegovina.