The Human Capital And Economic Instability In Kosovo

Abstract

Kosovo has great potential of human capital. This is a priority compared with regional countries. However, the highest percentage of unemployed people are showing their displeasure to the high level of unemployment and poverty, the difficult social situation and lack of prospects for young people. Kosovo is in a very unenviable situation or better to say in a miserable economic situation. The economic instability and political instability that prevailing in Kosovo is causing the flow of events and developments in the country. To be able it must create a positive environment for attracting foreign investors. It should create a suitable business atmosphere, an atmosphere of security investments and many other elements that will affect the attraction of foreign investors. With foreign investment will also open the new working places and this would affect many in alleviating unemployment. Kosovo is not yet achieved the creation of a suitable environment for foreign investors; the greater impact in creating this environment has political instability and economic instability that prevails in the country. For that foreign investors are reluctant to invest. For this part of unstable economic condition is the guilt of the banking system which is making it difficult for local business activity visible. Interest rates for loans are too high and government is still not made any semblance of intervention by the central bank credit to change these policies in a way that even if the local businesses suffocate. To have economic stability must be built and maintained macroeconomic policies that are crucial for economic stability in the long term. Everywhere in the world based on the development of a country's economy are small businesses. In Kosovo these businesses are facing financial difficulties due to difficult credit conditions. The political instability and economic instability are negatively affecting to the attraction of foreign investors. Kosovo's economic instability affects a very delicate situation in the business environment. For that Kosovo institutions should take steps in this direction.