Privatisation in Kosovo
Privatisation in Kosovo

Summary/Abstract: The United Nations Interim Administration Mission in Kosovo (UNMIK) has to deal with both a political economy destroyed by a violent conflict and the transformation of the remains of the pre-conflict socialist system, in particular clearly established property rights. In the course of a debate over the mandate with respect to unresolved property issues, severe negative consequences of a hands-off approach became clear in practice – affecting economic reconstruction, the maintenance of public law and order, and democratisation. After three years, a compromise model has been developed, which allows for privatisation of socially-owned enterprises under a trusteeship concept. Besides some immediate tactical lessons, the article draws some important conceptual lessons for future international mandates. In particular, it is crucial for mission planners to address the political economy issues from the very beginning, taking into account the interaction between property and entitlement questions on the one hand, and the development of the political system and civil society on the other hand.

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