Public Enterprises in Kosovo and Their Challenges in the Future

Abstract

Public enterprises in Kosovo have this form of organization from 2009, even though most of them have existed earlier and have performed their activity as socially owned enterprises. We can distinguish four important periods that influenced their development: the period of establishment and operation in an economy with a socially owned enterprises, the period of 1990- 1999 characterized by galloping inflation and destruction of assets with minimal utilization of capacity, the period of 2000-2007 or the administration of public enterprises by former Kosovo Trust Agency ( KTA ), their transformation into public enterprises, and the period from 2008 or after the implementation of the Law on public enterprises in Kosovo ( Law no . 03/L-087 ). Public enterprises in Kosovo nowadays are facing numerous challenges including: changing the form of government, introduction of public-private partnership, monopoly, regulation or free formation of prices, privatization or changes in their organizational form, and saving the independent status from the political influence. Almost all public enterprises in Kosovo are having difficulties with revenues which will ensure the development of their activity. Therefore, based on the current situation, public enterprises in Kosovo must prepare to face these challenges and have to find solutions that will help the managements of the public enterprises to meet the minimal requirements which will directly increase the level of services to citizens.

DOI: 10.5901/ajis.2014.v3n2p63