Western Balkans Social Protection Situational Analyses : Kosovo
An effective and equitable social protection system can help Kosovo to promote human capital, foster productivity, and reduce poverty. Since its independence in 2008, the country has made considerable socioeconomic progress, benefiting from the sup...
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099255003172230352/P176230099581a01a099140dad12d38ba14 http://hdl.handle.net/10986/37192 |
| Summary: | An effective and equitable social
protection system can help Kosovo to promote human capital,
foster productivity, and reduce poverty. Since its
independence in 2008, the country has made considerable
socioeconomic progress, benefiting from the support of the
international community and its own diaspora. Kosovo's
economic growth has not been sufficient to reduce the high
rates of unemployment or create formal jobs. It stands out
as the Western Balkan country with the lowest labor market
outcomes, especially for women, and is one of the poorest
countries in Europe and the poorest in the Western Balkans,
secondly to Albania. The recent Coronavirus (COVID-19)
pandemic has highlighted the vulnerability of the population
to the negative effects of shocks, which are anticipated to
become more frequent with climate change. And yet, in
contrast with other Western Balkan countries, Kosovo's
working-age population is on the rise and the country stands
to benefit from the demographic dividend. Kosovo can respond
to these challenges and harness opportunities by investing
in human capital while promoting employment and protecting
those vulnerable to shocks. A strong social protection
system can play an important role in promoting these
objectives. This note presents a situational analysis of the
social protection system of Kosovo. It assesses the extent
to which the social protection system fulfils its purpose
and proposes areas for reform in the short-, medium-, and
long-term. The note is based on analysis of administrative
data, the most recent European Union Survey on Individual
Living Conditions (EU-SILC) and Household Budget Survey
(HBS), a review of relevant literature, and engagement with
technical experts in the Ministry of Finance, Labor and
Transfers (MFLT) and with select development partners. The
situational analysis of the social protection system in
Kosovo unfolds as follows. After the introduction, section 2
reviews the country's main poverty and labor market
outcomes; Section 3 provides a brief overview of the social
protection system; Section 4 looks at non-contributory cash
transfers to support the poor, vulnerable and disabled;
Section 5 examines social services; Section 6 analyzes
pensions; Section 7 explores employment and active labor
market programs; Section 8 reviews the social protection
response to the Coronavirus (COVID-19) pandemic; and Section
9 concludes by identifying the knowledge gaps and main areas
for reform. |
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