This book looks beyond the apparently united and generally self-congratulatory statements of The United Nations, other major multinational organisations and many large bilateral aid donors to examine what actually happened when they tried to work together in restoring stability and establishing governance in the territory.

The reconstruction of Kosovo after 1999 was one of the largest and most ambitious international interventions in a post-conflict country. The United Nations, other major multinational organisations and many large bilateral aid donors all played a role in restoring stability and establishing governance in the territory. This book looks beyond the apparently united and generally self-congratulatory statements of these international actors to examine what actually happened when they tried to work together in Kosovo to achieve this goal. It considers the interests and motivations, and the strengths and weaknesses of each of the major players and how they contributed to the creation of new institutions in public finance and public sector management. Although in general the international exercise in Kosovo can be seen as a success, in the sphere of public administration the results have been mixed. More than fifteen years later, some institutions of government perform well while others face ongoing challenges. The book argues that much of the current day performance of the Kosovo government can be traced to the steps taken, or not taken, by these international actors in the crucial first years.

During fiscal 2003-05, World Bank lending and administrative budgets to fragile states amounted to $4.1 billion and $161 million, respectively. This report assesses the effectiveness of this Bank support. The report finds that the Bank and the donor community have improved their operational readiness to engage with fragile states, and made substantial progress on donor coordination at the international policy level. Significant challenges remain, however. Donor agendas have been overly ambitious and need to be made more selective, the effectiveness of donor programs needs to be improved after the immediate post-conflict phase in war-ravaged countries when structural change is needed, and donors need to develop transparent aid allocation criteria that ensure that fragile states will be neither under- nor over-aided. The report makes recommendations to overcome these challenges and distills lessons for the Bank and other donors.

This report reviews the IMF’s effort to build fiscal capacity in fragile states. It presents case studies on IMF technical assistance (TA) and capacity development in the fiscal area, provided by its Fiscal Affairs Department in collaboration with the Legal Department, in countries including Afghanistan, Haiti, Kosovo, Liberia, Mali, Myanmar, South Sudan, and Timor-Leste. The details in the case studies in various areas of fiscal policy management shed light on country-specific characteristics, how well IMF TA helped countries address fiscal capacity in the past, and lessons learned that could improve TA strategies and delivery in the future.

Kosovo Country Study Guide - Strategic Information and Developments Volume 1 Strategic Information and Developments