POLITICAL INTERVENTION AS A DE/STABILIZING FACTOR IN KOSOVO’S ECONOMY

Abstract

In all modern economies, the state has an indisputable, and often primary, economic role. The basic task of the state in relation to the economy of each country is to establish and maintain the functioning of the legal and institutional platform on which economic activity is being conducted. Practice has clearly shown that in certain circumstances, the free market fails to function properly by often introducing economic activity into a negative coil, from which it can not be done without the state intervention to cope with this situation the private sector. The recurring economic crises clearly dictate the need for intervention by the state to overcome the temporary failure in the functioning of the market mechanism. In such cases, the benefit of state intervention in the economy is justified by the capabilities the state owns. However, state intervention is distorted when interfering with politics to realize their aspirations to the detriment of economic activity which results in failure. Since the war, Kosovo's economy has established the principles of a market economy in a formal way, but this is valid and continues only for the middle and lower tier, while for politicians and close people with the politic, it doesn’t apply because this category of people affects the doing business, and as a result, every day the market economy is challenged. Through professional literature and research, we will contribute to the conclusions and recommendations that will be needed for the market economy and doing business in harmony with the competition law. The broad definition of economics as science of economic actions is acceptable, while formalization of the definition takes more into account the nature of the problems studied by economists although some reduce them or prefer to emphasize even in reported societies born and built in the process of producing matrix goods. (Bundo, 1998, p. 17). The existence and development of every human society depends first and foremost on securing the products and services needed for individual and collective human life. Under these conditions, it is fully understandable that the economic field has been and remains the most important field of human activity. For these reasons it is perfectly understandable that any other society, regardless of the stages of its development, is obliged to pay special attention to the study and study of the organization and functioning of individual or collective economic activity. Initially, man's knowledge of economic activity came from his empirical observations and only in the last four centuries they have been expressed through the study of different authors as principles and scientific law. Each stream of economic thought, according to the degree of development of society, has had its own views on the specific categories, principles and laws of functioning and economic development. However, in spite of changing the views of the particular currents of economic thought, most authors have highlighted the main economic problems that each society must face in its various stages of its development. These major problems facing any society can be summarized; Firstly, both from empirical observations and from scientific arguments, it has been found that one of the most fundamental contradictions of economic activity is the contradiction between the limited amount of matrix and human sources of society and the unlimited and individual and collective demands and wishes of others .Secondly, from the discovery and formulation of this principle it was concluded that in the conditions of limited maternal and human resources and the unlimited demands of the individuals and society as a whole, every society should choose the priority of complementary needs through use of limited resources. (Pano, Angjeli, 2015, pp. 9,10)