Based on GAP Institute comments MED cancels the proceeding of the draft document on Kosovo Participation Agency


On May 2018, Ministry of Economic Development opened public consultations about the draft document on Kosovo Participation Agency through which it attempted to establish a new independent agency, which would manage publicly-owned enterprises. After arguments provided by GAP Institute that this agency would not help on the performance improvement of the publicly owned enterprises and it is against objectives of the reform on public administration, Ministry of Economic Development has cancelled further proceedings of the draft document.

GAP institute objected establishment and functioning of such agency, which would take the responsibility to implement government’s policies and strategies about publicly-owned enterprises. Transfer of responsibility from the ministries and the municipalities to an independent agency, which doesn’t give political accountability, would not improve publicly–owned enterprises performance but will have a counter-effect. Moreover, the Ministry of Economic Development did not provide any fact why an independent agency would better manage publicly-owned enterprises, and the cost of establishing this agency has not been calculated at all. GAP Institute also argued that the establishment of a new independent agency managed by the Kosovo Assembly is against the reform objectives on public administration. Based on these arguments, it was required not to proceed further with the establishment of Kosovo Participation Agency.

GAP institute has recommended that the solution for the weak management of publicly-owned enterprises is depoliticizing boards of the publicly-owned enterprises by increasing transparency during recruitment and professional capacities of the Department for Policies and Monitoring of Public Enterprises within the Ministry of Economic Development.