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Investment Reform Index 2010

Monitoring Policies and Institutions for Direct Investment in South-East Europe

image of Investment Reform Index 2010

Using an innovative methodology, the Investment Reform Index 2010 (IRI 2010) monitors investment-related policy reforms in the economies of South-East Europe and compares these to best practices in the OECD area. Based on inputs from governments, the private sector, independent experts and multilateral organisations active in the region, the IRI 2010 assesses policies and institutional settings in eight fields of policy critical to domestic and foreign investors. These are: investment policy and promotion; human capital development; trade policy and facilitation; access to finance; regulatory reform and parliamentary processes; infrastructure for investment; tax policy analysis; and SME policy. For the economies examined, the IRI 2010 provides an independent and rigorous assessment of investment-related policy settings and reform against international good practice, guidance for policy reform and development and an evidence base with which to facilitate prioritisation of donor activities supporting investment and growth.

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Kosovo under UNSCR 1244/99

While robust statistics are not available in Kosovo, it is clear that this is one of the poorest economies in South-East Europe. Approximately 45% of the population lives in poverty and 15% in extreme poverty1 (World Bank, 2007). The IMF estimates that, in 2008, GDP per capita was EUR 1 726, while real GDP growth reached 5.4%. Remittances and international aid are estimated to represent approximately 12.1% of GDP and 7.7% of GDP respectively. Inflation rose to 9.4% in 2008 from 4.3% in 2007 due to global food and fuel price increases (European Commission, 2009a).

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