First Sustainable Employment Development Policy Operation

closed

Closed

The program aims to support the Government of Kosovo in (a) maintaining a stable macroeconomic framework while increasing the transparency, accountability, and management of public expenditures, and (b) laying the institutional and legislative foundations Kosovo needs for sustainable employment and growth. At the heart of Kosovo's ability to achieve inclusive development and social stability lies the attainment of employment-generating economic growth. Today, only three out of ten Kosovo's of working age are employed-by far the lowest employment rate in Europe. This is a result of extremely low levels of labor force participation at 53 percent of the working age population, the lowest in Europe, coupled with an extremely high rate of unemployment, estimated at about 45 percent. The program would support core structural reforms in Kosovo but with substantial associated risks. There are substantial risks associated with the implementation of the program as there would be in any post conflict, fragile state, including (1) the dangers of falling into macroeconomic instability, (2) spillover effects of the global financial crisis, (3) fragility of Kosovo's governance and political structures as institutions of government are being developed, (4) limited capacity in program implementation given the limited experience, (5) delays in implementation of pay and grading reform of core civil servants, and (6) difficulties in maintaining a conducive framework for employment generation given political demands for increased benefits. Improved public financial management would help mitigate the macroeconomic risks, including those related to the financial crisis, as well as contribute to improving the overall governance of public policies.

FY17 - Education,FY17 - Industry, Trade and Services,FY17 - Public Administration,FY17 - Social Protection

World Bank Group

Project

Government, Education