USAID Business Enabling Environment Program Annual Report July 2011 - July 2012

This report describes project activity since July 2011 through July 2012, the end of the second contract year. The program's second year activities built on the Government of Kosovo's (GoK) buy-in achieved in the first year, driving transformational business environment reform that unleashes economic potential and impacts the lives of citizens in Kosovo. Leveraging the GoK's commitment to ambitious reform initiatives through its Economic Vision 2014, this year saw impressive results in areas of business startup, construction permitting, national- and municipal-level transparency, international trade, licensing, regulatory harmonization and rationalization, and credit. Transformational reform across a country cannot be accomplished alone. USAID|BEEP has forged crucial relationships with collaborative partners in the public and private sectors and the donor community. Champions of business environment reform proved invaluable in Kosovo's journey to improved economic prosperity, including the Office of the Prime Minister (OPM), the Ministry of Environment and Spatial Planning (MESP), the Ministry of Trade and Industry (MTI), the Central Bank of Kosovo (CBK), and Kosovo Customs. Political willingness to undertake often difficult initiatives remains key to achieving sustained improvement in the business environment. The program's collaboration with other donors and projects is critical due to the business environment's cross-cutting nature. In Year Two, USAID|BEEP partnered with the European Union Small and Medium Enterprise (EU SME) project on a number of initiatives, including the development of a business environment impact table and the implementation of a municipal competitiveness index. These partnerships have helped to leverage resources, expertise, and influence to drive business environment reform in Kosovo. The program's results in Year Two are a testament to the effectiveness of the Business Enabling Environment Program's approach. Key achievements include the development of a comprehensive business environment impact table, the implementation of a municipal competitiveness index, and the improvement of business startup and construction permitting processes. These results demonstrate the program's ability to drive transformational business environment reform and contribute to Kosovo's economic growth and prosperity. The program's success is also reflected in the improvement of international trade, licensing, regulatory harmonization and rationalization, and credit processes. The development of a business environment impact table has provided a comprehensive framework for assessing the business environment and identifying areas for improvement. The implementation of a municipal competitiveness index has helped to promote transparency and accountability in municipal-level decision-making. The program's partnership with the EU SME project has also helped to leverage resources and expertise to drive business environment reform in Kosovo. The development of a business environment impact table and the implementation of a municipal competitiveness index are examples of the program's ability to drive transformational business environment reform and contribute to Kosovo's economic growth and prosperity. The program's success is also reflected in the improvement of business startup and construction permitting processes, as well as the improvement of international trade, licensing, regulatory harmonization and rationalization, and credit processes. The program's results demonstrate the effectiveness of the Business Enabling Environment Program's approach and its ability to drive transformational business environment reform in Kosovo.