On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), GTZ started work in Kosovo in 1999, immediately after cessation of hostilities in the Balkans. Since then GTZ has supported state efforts to establish democratic structures based on the rule of law.

In June 2008 the Republic of Kosovo, with a population of about 2.2 million, became the youngest independent country in Europe and the world. After years of civil war and ethnic conflict, a process of political and economic transformation has been initiated in the country.

The economy is extremely weak and unemployment, at over 40 percent, very high, especially among the youth. As every second citizen is under 25, political and social conflicts are easily triggered. Political instability, dilapidated infrastructure and an uncertain climate for foreign investors are an additional strain on economic conditions in the country.

Since 2005 the Government, in consultation with international institutions and donors, has been pursuing the so-called 3E strategy, according to which the priorities of development efforts are the economy, energy and education. In order to create the basis for sustainable economic growth, Kosovo’s primary focus must be the energy sector. The business sector can grow only if the energy supply is reliable.

An additional challenge is the lack of clearly defined responsibilities of government institutions at central and local levels. Complicated organisational structures and a lack of specialist personnel are the outcome of years of discrimination against Kosovans not only with regard to leadership or managerial positions but also with regard to education overall.