Abstract

Public enterprises in Kosovo have this form of organization from 2009, even though most of them have existed earlier and have performed their activity as socially owned enterprises. We can distinguish four important periods that influenced their development: the period of establishment and operation in an economy with a socially owned enterprises, the period of 1990- 1999 characterized by galloping inflation and destruction of assets with minimal utilization of capacity, the period of 2000-2007 or the administration of public enterprises by former Kosovo Trust Agency ( KTA ), their transformation into public enterprises, and the period from 2008 or after the implementation of the Law on public enterprises in Kosovo ( Law no . 03/L-087 ). Public enterprises in Kosovo nowadays are facing numerous challenges including: changing the form of government, introduction of public-private partnership, monopoly, regulation or free formation of prices, privatization or changes in their organizational form, and saving the independent status from the political influence. Almost all public enterprises in Kosovo are having difficulties with revenues which will ensure the development of their activity. Therefore, based on the current situation, public enterprises in Kosovo must prepare to face these challenges and have to find solutions that will help the managements of the public enterprises to meet the minimal requirements which will directly increase the level of services to citizens. DOI: 10.5901/ajis.2014.v3n2p63

Highlights

  • Public Enterprises in Kosovo and Their Challenges in the FuturePublic enterprises in Kosovo are a continuation of former SOEs in terms of the activities they perform today but with substantial difference represented in their way of governance

  • Public enterprises in Kosovo have this form of organization from 2009, even though most of them have existed earlier and have performed their activity as socially owned enterprises

  • In order to increase the quality of public services, performing more efficiently and having lower costs, some public enterprises will be challenged by new forms of organization

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Summary

Public Enterprises in Kosovo and Their Challenges in the Future

Public enterprises in Kosovo are a continuation of former SOEs in terms of the activities they perform today but with substantial difference represented in their way of governance. As any other form of governance even the corporate governance has its own challenges. These challenges usually are present during the implementation new form of the governance as well as the organization and development of enterprise in the future. Based on the experiences they are having more and more challenges are related with the requests they have In this sense, the purpose of the paper is to analyze available data and experiences of public enterprises, and to emphasize the challenges without pretending to give a solution for them. We believe that successfully or not successfully coping with the challenges in the future will determine their further development and the level of public services to be provided

The Formation of Public Enterprises and Corporate Governance
Completion of the Boards of Directors
Lack of experience in corporate governance
Strengthening supervision from PAMU of public enterprises
Reorganization of public enterprises
Increased levels of revenue collection
Implementation and harmonization of laws
Environmental requirements
Recommendations and Conclusions
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