IMPACT OF ECONOMIC AND FINANCIAL CRISIS IN KOSOVO BUSINESSES AND MEASURES UNDERTAKEN BY THE GOVERNMENT

The economy of countries in the Balkans as a whole and Kosovo face greater challenges which requires undertaking substantial reforms in order to increase competitiveness of products of the countries in the Balkans, not only in the Balkan market but in the European and world market as well. Different economic and financial crisis bear great impact in the overall development thus countries with rather sensitive economy, underdeveloped private sector, high degree of informality in the economy, lack of foreign investments and a great number of other weaknesses must be extremely vigilant and focus their capacities to easily and quickly overcome such difficulties and emerge from these cyclic crisis with as little damage as possible to the overall economy and especially domestic businesses. Similar to a large number of places, the economic and financial crisis affected Kosovo businesses that face numerous difficulties such as lack of government fiscal incentives, lack of legal infrastructure for their protection from unforeseen circumstances and situations, disloyal competition, high loan interest rate, inability to utilize professional staff proven throughout the world and some other factors that influenced in Kosovo economy to become highly dependent on the import with little growth of its productivity. Regardless of the reforms Kosovo Government undertook to overcome the economic crisis and endeavours to establish reforms that will allow Kosovo business to breathe, these actions remain flawed with regard to what should have taken place and what the country could do in current conditions where Kosovo business has vital need for comprehensive and advantageous reforms. With this paper we therefore wish to emphasize steps undertaken until now and steps that must be undertaken in the future to create a favorable and competitive environment for Kosovo businesses.