2000 NGO Sustainability Index usaid

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2000 NGO Sustainability Index

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KOSOVO

OVERALL RATING: 4.6

Civil society in Kosovo benefits from a strong history, as Koso-var society provided itself with social, cultural and basic com-munity services over the past ten years through a largely volun-tary civil society system. As a result, NGOs in Kosovo enjoy alargely positive public image.

There are currently over 400 local NGOs registered in Kosovo, al-though it is estimated that less than 100 of these are truly ac-tive. These figures reveal the significant divide in the KosovarNGO sector between a few well-established and capable organiza-tions, that mostly began opera-tions before the war, and thelarge number of less developedorganizations that have formedsince the war, often in re-sponse to the availability ofdonor funding. This dilutionhas diminished the overall ef-fectiveness and public image ofthe NGO sector.

The NGO sector in Kosovo bene-fits from a favorable legal environment that largely adheres tointernational best practices. However, other types of infra-structure including a cadre of capable local trainers and localsources of funding are necessary to increase the sectorssustainability and effectiveness.

LEGAL ENVIRONMENT: 3.0

Since November 1999, localand foreign NGOs in Kosovohave operated under the pro-

visions set forth in UNMIKRegulation No. 1999/22 on theRegistration and Operation ofNon-Governmental Organiza-tions in Kosovo. Administra-tive Direction No. 2000/10,signed on May 9, 2000, clari-fies the implementation ofthis Regulation.

The regulation and administra-tive direction are largelybased on international best

practices and establish a fa-vorable legal environment forNGOs. Consistent with civillaw traditions, the regulationpermits the establishment ofboth associations and founda-tions, which may be estab-lished for either public bene-fit or mutual interest. Inaddition, the regulation also

Capital: Pristina Inflation: n/a

GDP per capita: n/a Unemployment: n/a

Population: n/a Foreign Direct Investment: n/a

Kosovo Overall Ratings

4.4 4.6

1

2

3

4

5

6

7

1999 2000


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recognizes that individualshave the right to associatewithout forming a legal en-tity. Registration is simple,and UNMIK has limited author-ity to deny registration. As-

sociations and foundations areallowed to engage in economicactivities to support theirpurposes. In exchange for ex-emptions on customs duties andexcise and sales tax on im-ported goods, organizationswith public benefit statusmust submit an annual report

with programmatic and finan-cial information.

Although NGOs operate under afavorable NGO law, there islimited understanding of the

law among both local NGOs andlocal lawyers. There are cur-rently efforts underway to es-tablish a local organizationfocused on NGO legal issuesand to introduce a course onNGO law in the law school toaddress this deficiency.

ORGANIZATIONAL CAPACITY: 4.5

The NGO sector in Kosovo

consists of a few experiencedand sophisticated NGOs thathave been operating sincebefore the war, and a largenumber of NGOs that haveformed since, in part to meetthe needs of the largecommunity of internationaldevelop-ment and reliefagencies operating in Kosovo.There is a wide gap betweenthe level of organizationalcapacity between these twogroups. Several experienced

and established NGOs havedeveloped strong and loyalconstituencies, clearmissions, and strategic plans.The majority of NGOs, however,are more likely to designtheir initiatives in responseto donor interests andpriorities. Hundreds of NGOshave been created in responseto donor announcements ofgrant programs, and then ceaseoperations when funding endsor fails to materialize.

Stronger NGOs have permanent,high quality staff, butsmaller NGOs are more likelyto hire staff on a temporarybasis to fulfill the needs ofparticular projects.

A further problem faced by allNGOs is retaining experiencedNGO activists, as many have

accepted jobs with

international agencies thatcan offer higher salaries.The level of technicaladvancement within the NGOsector also varies widely.Organizations that have beensuccessful at attractingdonor funds have solidtechnical bases, while othersdo not have access to eventhe most basic equipment.However, while access tocomputers and the Internet isa particular problem for NGOs

in smaller cities and inrural areas, the situationhas improved dramaticallysince the war.

Over the past decade,volunteerism was prevalent inKosovo, as the Albaniancommunity provided itself withsocial, cultural, and basiccommunity services. Althoughvolun-teerism is stillrelatively high, the number ofactive volunteers has dropped

over the past year.

Internal management structuresremain weak, with most NGOsdominated by a single dynamicleader. NGOs must have aboard of directors toregister; however, feworganizations have definedroles for or effectively


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utilize their boards, and inmany cases, staff members also

serve as board members.

FINANCIAL VIABILITY: 6.0

Although there is a long-

standing history of communitysupport for civil societyinitiatives in Kosovo, the NGOsector relies heavily onforeign donors for financialsupport. The local economy hasextremely limited capacity toprovide financial support toNGOs, and even volunteerism isdeclining.

Existing legislation does notplace any limitation on NGOcapacity to compete

for government (i.e. UNMIK)

contracts and procurements,but such com-petition is rare.Some NGOs have started tocharge fees for the servicesthey provide, but this isstill an uncommon practice, asmost of their targetbeneficiaries can not affordto pay for the services theyreceive.

In general, NGOs lack soundfinancial management systemsto track the use of theirfunds.

ADVOCACY: 4.5

Local NGOs have littleexperience in advocating forpolicy change. Over the pastten years NGOs had no contactwith the government and thereare currently limitedtraditional governmentalentities with whom NGOs can

communicate. Furthermore, theNGO sector is generally morecomfortable with the role ofopposing the government,rather than lobbying thegovernment to implementspecific policies.

Despite these obstacles, NGOsgenerally have good lines ofcommunication with UNMIK andOSCE, both of whom consultwith NGOs on a variety ofpolicy issues. Local NGOs

were actively involved inreviewing and commenting onUNMIKs NGO regulations, aswell as the nature andcontent of reporting forpublic benefit organizations.NGO coalitions exist in theareas of election monitoring

and womens issues.

Some NGOs played a role inlocal elections in Kosovo inOctober 2000, both asobservers and in educating thepublic about candidateplatforms. As localgovernment structures evolve,NGOs will need to develop thecapacity to successfullyparticipate in public policydebate and decision makingwith these structures.

SERVICE PROVISION: 5.0

In the absence of support andservices from the Serbiangovernment, Kosovar civilsociety has been active inproviding health services,education, protection of human

rights and other publicservices over the past decade.While numerous organizationsremain active in the field ofservice provision, the influxof international organizations


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with missions to provide suchservices has reduced thenumber of local organizationsinvolved in this sphere. Thisdisempowerment of local groupsraises serious questions about

the provision of needed socialservices once internationalgroups start to pull out ofKosovo.

There is wide discrepancy inthe ability of NGOs to producegoods and services thatreflect community needs andpriorities, but manyestablished organizationsregularly conduct assessmentsto ensure that their projectsrespond to local realities.

Furthermore, local NGOs serveas a valuable source ofinformation about communityneeds for internationalorganizations. However,several local NGOs report that

international NGOs oftendevelop projects based onlocal groups ideas or usetheir contributions withoutrecognizing theirparticipation. The ability of

local NGOs to provide highquality services is alsodiminished by the braindrain that is taking place,as talented NGO leaders acceptpositions with internationalorganizations.

While UNMIK is favorablydisposed to local NGOs, thereare no established proceduresfor government structures toprovide grants or contracts toNGOs to deliver services.

NGOs also have a difficulttime recovering costs for theservices they provide, giventhe devastating local economicsituation.

INFRASTRUCTURE: 5.0

The OSCE has been activelytrying to develop aninfrastructure to support thedevelopment of the NGO sector

in Kosovo. This has includedthe development of a networkof seven NGO resource centersand the establishment of anNGO assembly, led by anExecutive Council.Unfortunately, theseinitiatives have had limitedsuccess to date. Theservices offered by the NGOresource centers are largelylimited to access to spacefor meetings, officeequipment, and modest

libraries. The sustainabilityof these centers is a seriouscause for concern. Likewise,the Executive Council has hadlimited effectiveness, asmany of the larger and moreestablished NGOs have chosennot to participate in it.

Local NGOs have had somesuccess at buildingstructures for sharinginformation and promoting

cooperation both within thesector and with businessesand government agencies.NGOs operating in the fieldof womens rights have beenespecially effective atnetworking, and have formed astrong coalition. Acoalition also exists fororganizations involved inelection monitoring. Inaddition, local NGO councilsexist in two towns.

Two local organizations theKosovo Civil SocietyFoundation and the KosovoFoundation for Open Society provide grants to localgroups. Both of these groupsrely on international donorsfor their funds. While thereare some local trainers,their level of skill remains


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low. As a result, foreigntrainers lead most of the

training sessions takingplace in Kosovo.


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2000 NGO Sustainability Index usaid