Kosovo: Reconstruction and Development Assistance (CRS Report for Congress)
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| Release Date |
Revised June 7, 2001 |
| Report Number |
RL30453 |
| Report Type |
Report |
| Authors |
Curt Tarnoff, Foreign Affairs, Defense, and Trade Division |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
Efforts to reconstruct and develop Kosovo following the devastation and disruption caused by
the
war will require billions of dollars and support from multiple donors. In P.L. 106-429 , the FY2001
foreign aid bill, Congress limited Kosovo aid to 15% of donor assistance. The Bush Administration
has requested $120 million for Kosovo activities under the SEED account in FY2002.
Assessments conducted by the World Bank and the European Community in 1999 estimated
external financing needs for Kosovo reconstruction at $2.3 billion over four to five years. UNMIK,
the U.N. Interim Administration Mission in Kosovo, is the chief governing body in Kosovo,
supported by the OSCE (Organization for Security and Cooperation in Europe) and the European
Union.
At the two 1999 Kosovo donor conferences, $1.5 billion was pledged for reconstruction-related
efforts. In 2001, more than $593 million has been pledged. Reconstruction programs include a wide
variety of activities. Support for the U.N. administrative budget, economic policy reform,
establishment of rule of law, and efforts to stimulate a nascent private sector and civil society are
being undertaken by the United States and other donors.
One issue for Congress is the level of aid to be provided and the proportionality of U.S.
assistance vis a vis European donors. Both the FY2000 and FY2001 appropriations
limited U.S.
contributions to 15% of the total. Some are also concerned that Europeans are not matching pledges
with actual disbursements and necessary dispatch.
Whether aid pledged will go to meet actual needs is another issue of possible concern to
Congress. Both external financing for the UNMIK administrative budget and numbers of
international civilian police have not met targets in the past.
Some observers have been critical of the way the program has been implemented thus far and
others are concerned regarding the possibility of corruption in the aid program as well as in the new
Kosovo government. Steps are being taken by donors to address these issues.
The relationship of Serbia to Kosovo will affect future reconstruction. At present, efforts to
remake Kosovo are creating a de facto independence, although the U.N. continues to recognize the
sovereignty of Serbia over Kosovo. The October 2000 change of government in Serbia may
facilitate a resolution to this issue.
