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Douglas Alexander's statement of support for Kosovo donor conference
11 July 2008
In a statement of support for the Government of Kosovo on the occasion of their
first international donor conference, taking place today in Brussels, UK
Development Secretary Douglas Alexander said:
"The United Kingdom congratulates the Government of Kosovo on this first international donor conference. The UK is ready to help the Government with this vital step on the path towards the European Union. On 18 February 2008 our Prime Minister announced the UK’s intention to provide up to £23 million over three years in development assistance.
The importance of transferring responsibility for Kosovo’s development to the Government cannot be over-emphasised. The international community can never be a substitute for an elected government. And no other system can provide direct accountability to the people it serves. Now is the time for the Government of Kosovo to take that lead and for the international community to support them.
Rapid progress on aid effectiveness is essential to this aim. We warmly welcome the Government of Kosovo’s statement on donor coordination. It places particular emphasis on the responsibilities which the Government must take if aid is to have greater impact. It is an honest appraisal of the challenges. The Government should act quickly to establish durable and functional structures, as well as new ways of working. The UK is ready to support these changes.
The UK endorses the development priorities set out in Kosovo’s MTEF. High unemployment and slow economic growth have beset the country for too long. They provide a fertile ground for instability and they prevent Kosovo from making progress towards its long-term vision of joining the European Union. Investment, funded in part by the donor community, has a major role to play in stimulating Kosovo’s economy. To maintain momentum on this critical agenda we would support the Government in holding a follow-up event in Pristina, engaging the private sector and civil society alongside the international community in these discussions.
But the Government also needs to do more now. Decisive actions – to enforce the rule of law in the commercial sector, improve tax administration and enhance the performance of the energy sector – are vital if Kosovo is to attract foreign investors. All these measures require strong political commitment to see them through. The UK is ready to be a partner in promoting investment in Kosovo as long as the Government is ready to make sustained efforts to improve the investment climate.
The UK welcomes the MTEF as a positive step towards better public financial management. We also welcome the World Bank’s plans to develop a multi-donor trust fund to provide budget support for sustainable employment. This will be good for Kosovo – giving it flexibility over how to spend its development assistance. And it will be good for donors, allowing us to provide high quality aid in a more effective way. But this will only be possible if the Government can achieve strong public financial management and clear development planning. We welcome the Government’s intention to set up a Public Financial Management Reform Action Plan and we look forward to seeing clear employment and growth targets in the Government’s Policy Matrix as it evolves. Government commitment to continuous improvement in planning, financial management and tackling corruption, backed up by sustained delivery, is an essential pre-requisite for any budget support programme. If the Government of Kosovo is successful in meeting these challenges the UK stands ready to consider providing budget support.
Other UK assistance will help the new government to deliver – strengthening the civil service, implementing a government-wide plan to achieve European standards and improving the rule of law.
The UK and Kosovo are close, long-term partners. We have overcome many hurdles together to get to where we are today. While the past decade brought the challenges of conflict and status, the challenges over the next decade are about development – and jobs and growth are the first priority. This conference marks the end of the beginning for Kosovo as the newest country in the world. It also marks the start of an exciting but testing journey. The primary responsibility now lies with the Government of Kosovo to serve all of its people well and ensure that Kosovo can achieve its European goals. The UK is ready to travel with Kosovo on this journey and we look forward to an even closer relationship over the coming years."
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