We want to be part of the world community of free market democracies. For Kosovo and Serbia, the prospect of full membership in the European Union and other Western institutions, is an incentive and inspiration for reconciliation and reform. Our agreement means that neither Serbia nor Kosovo can prevent – or encourage others to obstruct – each other’s progress towards EU integration. While we move forward towards peace with Serbia and EU participation, our economy offers opportunities for our people and for foreign investors. We need to overcome historical barriers – said Prime Minister in a speech held today at John Hopkins University, on “Opportunities for Kosovo and Serbia, after normalization”
Prishtina, 12 June 2013
During his official visit to the United States of America, the Prime Minister of the Republic of Kosovo, Hashim Thaçi held a lecture today at the Johns Hopkins University, School of Advanced Studies, Washington D.C.
The following is the full lecture given by Prime Minister Thaçi:
Thank you, Mr. Haltzeel for that excellent presentation.
Above all, allow me on behalf of the people of Kosovo, to express my appreciation to the American people for all that the United States has done to assist our country to achieve independence, to make peace with our neighbors and to build our future.
We could not have reached this point, without the peacekeeping efforts of the United States of America and NATO, who have contributed tens of thousands of troops to the Kosovo campaign.
During my visit here, I have met with prominent leaders in the White House, the Pentagon and on Capitol Hill.
I met Vice President Biden, Senator Mark Kirk, who served with the U.S. armed forces in Kosovo, and Congressman Eliot Engel, whose district includes many families with roots in the Balkans.
Honorable ladies and gentlemen
Today, I’m going to talk about the economic opportunities that are opening up in Kosovo, now when we are normalizing relations with Serbia.
Kosovo is a country open for business. We have opened the way for American investors and everyone else.
Kosovo’s citizens are very grateful to Americans, and our economy is open to you.
Kosovo is building a strong democracy, a free market economy, so we want you to be part of it.
But first, I want to talk about how we arrived at this historic moment and what it means for people in the world who are currently involved in ancient conflicts, which, at first glance, may seem irresolvable.
When I met Vice President Biden yesterday, I brought good news about how one of the most traditionally troubled regions in the world – Balkans – is making peace.
An open conflict between two peoples, lasting more than a century is nearing a peaceful end, closing the hostilities of the past.
With the tireless mediation of the European Union Representative for Foreign and Security Policy, Baroness Catherine Ashton, and the strong support of the United States, I and the Serbian Prime Minister Ivica Dacic in April signed the first agreement ever reached between our two countries.
Now, after reaching agreement, both our countries are working to implement it.
For Kosovo, it means duplicating efforts to build a diverse democracy and a free market economy.
This agreement provides, among other things, additional and comprehensive rights for the north of Kosovo where there is a Serb ethnic majority.
Our government is making efforts to integrate these ethnic Serbs in Kosovo institutions and society.
We are creating Serb-majority municipalities, guaranteeing political, economic and socio-cultural rights.
We want to ensure that the rights, culture, and religious institutions, including churches and monasteries, of the Kosovo Serb community are protected.
By doing this, we demonstrate in practice that we are a democratic, multiethnic, multicultural and multi-religious country.
Ladies and gentlemen
We want to be part of the world community of free market democracies.
For Kosovo and Serbia, the prospect of full membership in the European Union and other Western institutions is an incentive and inspiration for reconciliation and reform.
Our agreement means that neither Serbia nor Kosovo will prevent – or encourage others to obstruct – each other’s progress towards EU integration.
While we move forward towards peace with Serbia and EU participation, our economy offers opportunities for our people and for foreign investors.
We have to overcome historic problems.
However, one should note, that Kosovo is a country of many opportunities.
Kosovo is a strategic country, with rich natural resources, an educated and energetic population, with a business friendly environment and a country oriented toward economic growth.
While we head toward EU integration, our economy will grow continually.
Our economy faces many challenges head.
Kosovo is one of the poorest countries in Europe and has the highest unemployment in Europe.
We are trying to develop our economy, compensating for lost time.
From 1945 to 1990, we were the poorest region of the former Yugoslavia.
For four and a half decades, communism delayed our development.
And then, during the 1990s, we experienced war, genocide and inter-ethnic conflict.
During this decade, in the worst war in Europe since the Second World War, we had no access to international finance and trade.
While the rest of the western world was developing, we had no opportunity to make any progress during the ‘90s.
Even after the end of the war – when Kosovo was put under the United Nations Administration – our contested status was like a dead end for our economic development.
But our challenges have not been eliminated with Kosovo’s declaration of independence in 2008.
The global financial crisis reduced capital investment everywhere, not excluding Kosovo.
Despite these challenges, we have rebuilt our houses, roads, bridges and physical infrastructure.
And, above all, we are building a new country, and we have to work hard to improve our social structure.
We are helped by our resources and advantages.
We have a strategic position in the Balkans, because we are close to the countries of Eastern and Central Europe and the Mediterranean.
We are rich with natural resources.
For most of our history, we have been a mining center.
Among our plentiful resources, there are rich reserves of lead, zinc, silver, nickel, cobalt, copper and bauxite.
In fact, the World Bank has estimated that Kosovo has minerals to a value of 13.5 billion Euros.
We also have 14 billion tones of high quality lignite – the fifth largest reserves in the world.
Often referred to as “brown coal” it is burned in power stations to generate 97 per cent of our electric power.
Besides this mineral wealth, the most important resource we have is our citizens’ vitality and skills.
We are not just the newest country in Europe. We are also the youngest population in Europe.
Our average age is 27 years.
Seventy five per cent of our population is under 35 years of age.
Our youth are well educated and they are ready – and thirsty – to work with their contemporaries across Europe and the world.
Each year, our universities produce about 15,000 young undergraduates. Besides Albanian and Serbian, many Kosovars speak English, German and French.
At a time when many European countries are addressing the problems of an aging population, Kosovo enjoys the opportunities deriving from being “young Europeans”.
Despite all the suffering in our past, we can overcome the tragedy of the 20th century, because the current majority of our people will live out most of their lives in the 21st century.
Instead of being stuck in the past, our citizens face their future with great energy.
Instead of protectionism, our people welcome foreign investment.
Instead of fearing change, our people welcome it.
During the last five years of independence – and regardless of economic decline across the world – Kosovo has achieved economic growth.
The annual domestic product has increased from 3.9 per cent in 2010, to 5.3 per cent in 2011, and 4.4 per cent in 2012.
Rates of inflation have been stable.
And business is growing.
We have over 60,000 small and mid-sized businesses.
The number of companies with annual revenue of over 5 million Euros is growing from 144 to 179 companies.
From 2009 to 2011, total annual revenue of businesses operating in Kosovo grew from 4.7 billion Euros to 6.3 billion.
The profits we made were the first steps on our journey toward progress.
Our goal is to fully participate in the community of free democracies.
We are creating public policies, which are farsighted, business friendly, growth orientated and which are working.
As “Young Europeans”, Kosovars are real and potential consumers of the full range of modern services and products.
They are ready, willing and thirsty to work a full day for a full wage, so that they can have 21st century living standards.
Kosovo offers great opportunities for investment in the following fields:
• Agriculture, food processing and packaging;
• Energy and mines;
• Foreign outsourcing of business processes;
• Textiles;
• Metal and wood processing;
• Construction and
• Production of car and electric components
Winter tourism is another interesting attraction.
In a picturesque mountain area with a temperate climate in the valley, we are developing the Brezovica Ski Center, and foreign investors are welcome
We are also privatizing our telecommunications system and this has attracted great attention from foreign investors.
Our economy is open to the world economy.
Our currency is the Euro.
We are working toward EU integration, we have become part of international institutions and we have signed international trade agreements.
In 2009, we joined the World Bank and the International Monetary Fund. Meanwhile, this year we joined the European Bank for Reconstruction and Development.
We now enjoy Autonomous Trade Preferences with the EU.
We have unlimited access free of customs to the EU market, with more than 500 million customers.
We are part of the Free Trade Agreement on Central Europe with eight neighboring countries, with a combined population of 32 residents and a total GDP of 230 billion dollars.
We are part of the Generalized System of Preferences in the United States, with preferential duty-free entry for 4,800 products
In addition, we have trade preferences with Japan, Norway and Turkey.
For U.S. investors, the message is clear.
If you produce products in Kosovo, you will have access to markets in Europe and worldwide.
Our tax system sends a clear message that can be summarized in three words, “Invest in Kosovo.”
We have reformed and reduced our tax rates to the lowest levels in Europe.
For businesses operating in Kosovo, tax payments, as a percentage of revenues, are very low – only 3 to 4 percent per year.
With our fiscal policy and our young population, our tax burden is relatively low. And it will remain low.
In fact, we have the lowest level of debt as a percentage of GDP than anywhere else in Europe.
Our legal system is largely in line with the EU and is favorable to foreign investors.
Our law on foreign investment requires equal treatment for domestic and foreign investors.
In the event that you invest in Kosovo, you can count on the free transfer of funds, free repatriation of profits and dividends, and protection from expropriation and retroactive application of laws.
In order to encourage cross-border trade and investment, we have also adopted the International Financial Reporting Standards.
We are making it easier to set up businesses in Kosovo.
You can register a business in Kosovo within just one day.
We have reduced the administrative procedures for import and export by 70 percent.
No matter whether you come to Kosovo as an investor, scholar or a tourist, you will enjoy great respect as a member of the American people.
You have helped us to survive the war, to maintain our independence and to make peace with our neighbors.
We are eager to work with private investors, nongovernmental organizations, and development agencies of the United States.
We are ready for the Millennium Challenge to build our economy and bring new opportunities for our people who have suffered so much in the past, and who can contribute so much to the future.
With the continued support of the United States of America and the European Union, Kosovo and Serbia can prove that over time the old animosities are over for other troubled regions in the Mediterranean and around the world, and it is better to build a common future of peace and prosperity in the country instead of allowing ethnic friction and ancient hatred.
Finally, let me once again say to you, Thank you, America, for everything you’ve done, and everything that we will do together to build a better future.
And now, I would be delighted to answer your questions.
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The presentation by Prime Minister was attended by personalities from public life, diplomats, analysts, students and representatives of various American institutions.
The Prime Minister answered many questions about the political interpretation of the Agreement, the joint work between the government and the opposition to create laws and prerequisites for meeting the criteria for European integration and other aspects leading to the normalization of relations between the states of Kosovo and of Serbia, in the interests of peace and regional stability.
Last modified: July 31, 2022