Mainstreaming Environment and Poverty Reduction into National Development

Process in Kosovo

UNDP – UNEP POVERTY AND ENVIRONMENT INITIATIVEInception Workshop

9-10 November 2008 in Bratislava, Slovakia

Kosovo

Kosovo at glance

Total Population

Rural population

Urban population

Population density

Age distribution, total

0-14 years

15-64 years

65 and older

Total Kosovo Surface

2 126 708

55 %

45 %

195 p/km²

33 %

61 %

6 %

10.908 km²

Source: Statistical Office of Kosovo

Human Development Index (HDI) 2007

•HDI 0.745 at the bottom of Medium HDI Countries

•Bottom South Eastern Europe Countries

•99th HDI Ranking

•Main HD issues: income and health

Source: Kosovo HDR 2007

Economy

• The economic growth in the aftermath of the conflict was fairly favourable however post-conflict growth was not sustainable

• Between 2002-2007, the average real GDP growth was 1.5 % per year

• In 2007 GDP grew at 3.5%

• The GDP per capita in 2007 around €1250…

Environment

• Agricultural land 53 %

- 52 % arable

- 31 % pastures

• Forests 39 %

• No sewage water treatment facilities

• No dumping site meeting minimal EU standards

• Pollution from thermoelectric plants

Environment Issues and Concerns

• Quantity and quality of water

• Waste management

• Air pollution

• Land pollution

• Loss of biodiversity and deforestation

• Loss of agricultural land

• Poor spatial planning

Poverty Outlook

• 45 % poor (15 % extreme poverty)

• 42 % unemployment

• Low health and educational outcomes

• Caused by inability of economy to generate new jobs and low levels of economic growth

• More than 35,000 families, around 240,000 people receiving social assistance from the government budget

Source: World Bank, Poverty Assessment, 2007

Poverty Outlook

• Poverty in Kosovo is high but shallow

• On average larger households are poorer

• Households with female heads have higher poverty incidence

• The majority of poor people are living in rural areas

• The poverty risk is higher for the unemployed and low skilled

Poverty and Unemployment

• In 2006 unemployment rate estimated at 42% (around 4 times higher than EU average)

• Youth, women and less educated are disproportionably effected from unemployment

• Additional challenges: low participation rate, high entrance to labour market (30,000 new entrants/year)

• The current predicted growth is not expected to lead to a significant decrease in unemployment

Source: Ministry of Labor and Social Welfare

Environment and Poverty

• 26% of households lack tap water supply from public systems

• 39% are not connected to the public sewage/sanitation system

• 6 % have central heating

• 99% have access electricity

• In 2003, 70% of water samples from rural areas and only 8 % of urban areas were found to have bacteriological contamination

Source: Kosovo Mosaic 2006

Environment and Poverty

• Life expectancy is lowest in the region - 68 years

• The TB incidence rate per 100.000 in 2005 - 52 cases highest in Europe

• Highest level of infant mortality in Europe, with 35 cases in 1.000

• Maternal mortality in 2003 was estimated at 23 per thousand - one of the highest in Europe

Source: Second MDG Report 2006

Challenges for Environment and Poverty

• Limited Budget

• Implementation and enforcement of law

• Capacity building in this area – experts

• Lack of data on environmental parameters

• Lack of environmental monitoring programs

• Not eligible to GEF or Clean Development Mechanism

Mainstreaming Environment and Poverty

• Preparation of Kosovo Social Exclusion Agenda (Kosovo Parliament and UNDP)

• Drafting White Paper on social policies (Ministry Finance and Economy )- Identify and address the main issues

- Better targeting of social assistance scheme

• Resolution on MDG’s – annual reporting on achievements

• Three environmental laws have been declared and approved

• Four Administrative Guidance notes about environment have been signed and approved

Future steps

• Continuation of fulfillment of Kosovo Action Plan in Environment 2006-2010

• Network for air quality control

• Improve standards in mining and energy generation

• Promotion of reforestation

• Beautiful Kosovo

• Dragash Project

Kosovo in a Transition Period

• New Constitution

• New Institutions

• New Opportunities!