1. Illinois Institute of Technology Nationbuilding IPRO: Fall 2003

2. Overview  History  UN Security Resolution 1244  Political development  Final status controversy  Economic development

3. History Ottoman Empire & League of Prizren Post- World War I boundaries Tito: Autonomous Province of Kosovo Milosevic: end to autonomy, jobs for Albanians Rugova’s passive resistance Dayton Accords: omit Kosovo KLA emerges October, 1998 agreement War: NATO bombing campaign < June, 1999

4. Maps  Ottoman Empire Ottoman Empire  Balkan Wars Balkan Wars  After World War I After World War I  After World War II After World War II  Today Region Kosova Topography

5. UN Security Council Resolution 1244 UNMIK, led by SRSG, exercises sovereignty Preamble recognizes sovereignty of Yugoslavia Other provisions obligate UNMIK to devolve power to local institutions Envisions negotiations to determine final status

6. UNMIK Regulations Regulations = legislation (1999-1) Applicable law = UNMIK + Int’l human rights + Yugoslav @ 1989 (1999-24) Commercial law framework in place: banking (1999-13; 1999-20; 2001-24), business organizations (2001-6), contracts (2000-68), payments (2001-26); foreign investment (2001-3), mortgages (2001-5, 2001-32), privatization (2001-12) Constitutional framework (2001-9)

7. Political development Government in exile/parallel state  Self-sufficiency  Sense of entitlement Rural radicals & KLA 3 big parties: LDK (Rugova), PDK (Thaci), AAK (Haradinaj) 3 elections: LDK 60%; PDK 30%; AAK 10% Slating of candidates  only party on ballot Political struggle Kosovars v. UNMIK Fareed Zakaria’s “Liberal Democracy” & civil society: political intermediation

8. Final status Serbian v. Kosovar Albanian views  Reincorporation into Serbia  Independence and statehood SCR 1244 envisions negotiations  Kosovo & Serbia?  Role of US  Role of UNMIK  Role of EU “Standards Before Status”Standards Before Status

9. Economic development  Macroeconomic realities Foreign spending exceeds domestic spending, but will decline High savings rate Remittances  Privatization Controversies over employee claims, where to begin, appraisals Controversies over independence of KTA Low viability of most SOEs  SME sector Huge entrepreneurial energy Little aside from service sector The weak “middle”