The issue of the liquidation process of social enterprises during privatization process in Kosovo

• Author: Armand Krasniqi
• Position: Faculty of Economics, University of Prishtina
• Pages: 186-195

The issue of the liquidation process of social enterprises during

privatization process in Kosovo

Associate professor Armand KRASNIQI

1

Abstract

The privatization process in Kosovo with all its difficulties, permanent dilemmas

entered into the final phase. Despite a considerable number of SOEs privatized until now

there has not been any study done b y any governmental or non-governmen tal body that will

reflect more comprehensively the performance and its effects in economy. This process

until now had several complex problems, changes and p olitical, social, legal interests. In

retrospective the privatization process in Kosovo evaluated by academics and media is

considered to be one of the most specific an d complicated phenomenon for the

transformation of social a ssets in individuals or private enterprises. Its complexity has

derived from what is meant by "social own ership" and who has been in fact its official in

the past and which the rights are given to working class in possess management and

governance. On these bases the Kosovo Trust Agency (KTA) founded by UNMIK in 2002

and later the Privatization Agency of Kosovo (PAK) founded in 2008 by the institutions of

Kosovo after the declaration of independence (2007) have continued with the privatization

15 years later after the dilemmas an d institutional transformation and we can say that

economy in Kosovo is in collapse. PAK with all its successes admits that the difficulties of

this process never stop. At the moment PAK is not recognized by the Special Chamber of

Supreme Court of Kosovo and also there are problems and gaps in the law on the

liquidation of social enterprises assets. The legal basis of OVGJS and the execution of the

law for the reorganization of specific enterprises and their assets by shortening and

simplifying the deadlines because they are causing serious bottlenecks and unwa nted

delays of proceedings.

Keywords: law, privatization, transformation, privatization agency.

JEL Classification: K22, K23

1. Introduction

In the economic transformation processes that is passing our country, the

privatization is conceptualized not only as an ownership change

2

but also as the

only alternative that will ensure the effective function of acts for all “market

stakeholders”, private or public in order to ensure loyal competition between them.

This process until now has faced several changes, political interests, and micro,

macro and legal problems. In retrospective the privatization process in Kosovo

evaluated by academics and media is considered to be one of the most specific and

complicated phenomenon for the transformation of social assets in individuals or

1

Armand Krasniqi - Facult y of Economics, University of Prishtina "Hasan Prishtina",

armand.krasniqi@uni-pr.edu .

2

John Bennett & Saul Estrin & James Maw & Giovanni Urga (2004), Privatization methods and

economic growth, CEPR, Discussion papers, 4291.