Top 10 Facts About Poverty in Kosovo
The Kosovo War in the late 1990’s destroyed much of country’s agricultural sector and infrastructure, and a large portion of the working population was crippled by war consequences. Currently, Kosovo’s total population is about two million. The scars of the war can still be seen in its high poverty rate and human development index (HDI) score compared to its neighbors. Here is the list of the top 10 facts about poverty in Kosovo.

  1. Kosovo’s GDP per capita or Gross Domestic Product (the number that gives an estimation of individual-based economic health) tripled from 2000 to 2017 and is currently at $3,902. However, Kosovo is still the third-poorest country in Europe.
  2. In 2015, approximately 17 percent of the population was living below the poverty line of $2.11 a day, and about five percent of the population was living below the extreme poverty line of $1.51 a day.
  3. UNICEF, based on 2006-2007 data, found that families in Kosovo with children were less likely to be poor than families without children. However, this research also concluded that children aged 0-19 were more likely to be at risk of poverty than the general population.
  4. Kosovo is rich in lignite (a type of coal) and many other natural resources, but the population’s energy needs exceed the production of the country’s two power plants. Less than 0.8 kW (kilowatts) is generated per person, which is under half of that in Slovenia and under a quarter of that in Austria.
  5. From December 2014 to February 2015, the number of migrants seeking asylum from Kosovo to the EU had grown by 40 percent.
  6. Economic growth in Kosovo is projected at between two to four percent for the period from 2018 to 2020. It has held a steady rate of growth since the 2008 global recession.
  7. Nearly two decades after the Kosovo War, ethnic tensions began to ramp up again. Local politicians are taking advantage of fear from potential conflicts and are using nationalist slogans for their political campaigns.
  8. Foreign aid and remittances from countries such as the United States, France, and others reached more than 700 million dollars in 2017, reducing poverty and trade deficits in Kosovo, according to the country’s Central Bank.
  9. Self-employment is widely recognized as one of the solutions to poverty in Kosovo, but conducted surveys show that the low investment capital and limited access to loans keep most of the people away from starting a business.
  10. Kosovo’s transportation infrastructure is very weak, with undeveloped networks of railways and motorways. It lags behind the EU average as well as other Balkan states, such as Macedonia and Albania.

Silver lining

Despite many domestic challenges Kosovo faces regarding the economy and its infrastructure, the country is back on track in economic growth and self-sustainability. Country’s quality of life has steadily improved, while poverty has decreased over the last two decades and this can be attributed to international aid and domestic policy reform.

If Kosovo can continue to maintain its growth rate and effectively integrate foreign aid and advising into both its public and private sectors, in addition to addressing its social issues, the country can expect a brighter future for its citizens in the upcoming decades.

Alex Qi

Photo: Flickr

Since the end of the war in 1999, the Republic of Kosovo has experienced consistent economic growth. Now a lower-middle-income country, it is one of only four countries in Europe that recorded positive growth rates during the economic crisis between 2008-2012, averaging about 4.5% each year. Despite its rapid growth, Kosovo continues to struggle with high rates of poverty and unemployment.

Joblessness is estimated to be at about 40% and remains a central economic-policy challenge. Youth and women are disproportionately affected by the difficult labor market conditions, creating an environment that undermines the country’s social fabric. Kosovo is one of the poorest countries in Europe with a per-capita gross domestic product (GDP) of about €2,700 and about one-third of the population living below the poverty line and approximately one-eighth living in extreme poverty.

Recent studies by UNICEF Kosovo showed that children are at higher risk of living in poverty in Kosovo compared to the general population. The greatest risk of poverty is for children who live in households with three or more children, children between 0 and 14 years of age, children of unemployed parents, children in households receiving social assistance, and children with low levels of education. Whereas, the risk of poverty is much lower for children in a household with at least one employed parent.

The European Union is mainstreaming an effort to fight child poverty by  recognizing the multi-dimensional nature of the issue. Child poverty and exclusion have high social and individual costs. Children in poverty are at high risks of low educational attainment, poor health, and an inability to find work later in life. Investing in children, therefore, is important not only for the well being of current children living in poverty, but also for the health, productivity, and engagement of future adult citizens.

Kosovo declared independence in 2008, however only 98 of a total 193 UN member states have recognized Kosovo’s independence. The lack of agreement remains a central obstacle to achieving the country’s goals for political integration and socio-economic development.

To help reverse joblessness and build a long-term economic growth plan, the World Bank, along with ten other donors, recently awarded Kosove 61 million Euros, mostly in the form of grant money. The Sustainable Employment Development Policy Program (SEDPP) funds were disbursed from the end of 2011 to the middle of 2012. The funds have supported reforms and improved transparency throughout many sectors in the country.

– Ali Warlich

Sources: World Bank, UNICEF, World Bank
Photo: SOS Children’s Villages