Dear AmCham members, As you know, I am running for Mayor of the Gjakova Municipality in the November 15 elections. I have taken this decision as a direct response to the challenges and problems which the municipality where I was born and raised is facing. How successful my initiative will be is left to be seen on Election Day. For almost four years with AmCham, I can sincerely say that I have had a very positive experience and I personally have tried to give the best of myself and my knowledge for the advancement and enhancement of the American Chamber of Commerce in Kosovo. I hope that at least I have successfully completed my mission in this journey of establishing AmCham Kosovo, accrediting it with the US Chamber of Commerce and the European Council of American Chambers of Commerce in Brussels. This has been a very meaningful journey in my career and I believe and hope that you have shared the same experience with us. It was an honor to work with each and every one of you, and I hope our paths will cross again in the near future â–ˆ All the best, Mimoza
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Capital Market Development in Kosovo With the initiative of AmCham Kosovo, two distinguished professors from the world renowned Georgetown University, Professor Reena Aggarwal and Dr. Lynn Lanz Doren, visited Kosovo this last July. Dr. Doran is a Professor of the Practice in Finance at the McDonough School of Business at Georgetown University, where she has been a faculty member for 11 years. Professor Doran teaches courses in financial management, corporate governance, and investments, at both the undergraduate and MBA levels. In addition to her teaching, Professor Doran serves as the Director of the Capital Markets Research Center at Georgetown’s McDonough School of Business. Her colleague, Dr. Reena Aggarwal, is the Robert Emmet Professor of Business Administration and Professor of Finance at Georgetown University’s McDonough School of Business, where she has been a faculty member for more than 20 years. Her research focuses on financial markets, market regulation, initial public offerings, and corporate governance, capital markets, and regulation. She has also served as an advisor to several countries on issues of privatization, capital markets, and regulation. ndryshme. During their visit the two professors were arranged meetings with the Minister of the Economy and Finance (MEF), Mr. Ahmet Shala, representatives of two leading banks in the country, ProCredit Bank and Raiffeisen bank, and with the officials of the Privatization Agency of Kosovo (PAK). All of the above mentioned bodies would be important stakeholders in the potential capital market of Kosovo. The highlight of the Georgetown professor’s visit was a roundtable discussion on Kosovo’s potential in developing a Capital Market. As a result of the importance of this roundtable’s topic, there was a high and colorful attendance in the audience as officials from the public and private sector came together to tackle the possibility of creating a Capital Market in Kosovo. Professor Reena Aggarwal held a presentation on the International Perspectives of Capital Market Development, the impact the financial crisis has had on the world and on the US capital market, and Kosovo’s perspective of developing such a market. In addition, Dardan Sejdiu, the Chief Executive Officer of the Slovene Kosovo Pension Fund (SKPF) also contributed to the roundtable by giving a highly informational presentation on the role played by pension funds in the development of capital markets. Lulzim Zeka, representative of the SCCAK, held a presentation on the importance of Financial Transparency and Reporting in Equity Investments in Kosovo. The presentations were followed by a fruitful discussion in which participants exchanged ideas on the possible creation of capital markets In Kosovo █
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Capital Market Development and Pensions Reform Dardan Sejdiu, MBA CEO of Slovene-Kosovar Pension Fund
Pension reforms usually pursue certain key objectives, and this has been the case in most countries which have undergone such a process. The tendency in such processes is to ensure that several objectives are met, such as to provide a reliable source of retirement income; to reduce the financial drain on governments; to boost local savings; to provide a stable domestic source of development finance; and to promote the development of local capital markets. All of these objectives should be treated as milestones in such an endeavor and should be facilitated by all actors in the process, rather than be treated as events or goals that will occur by themselves during the process. Thus far, in Kosovo, the pension reform goals have not been achieved to a comparable level with countries in the region or further, that have undergone this process. At the offset the reform was a three pillar system; the first pillar being government sponsored for all retirees; the second being the mandatory scheme, while the third one being the voluntary. Tax incentives were in place although for the third pillar they were not as “aggressive” as one would like to see in the beginning of such a process, especially in terms of boosting savings. The capital market was and still is the same, not developed. Kosovo has banks which provide access to loans; hence all until lately most of the savings accumulated by the pension funds in Kosovo were invested abroad. . The overriding objective in any reform process is to support the aging population. Kosovo inherited a non-existing pension system as a consequence of the break-up of Yugoslavia and the war with Serbia. Hence, it has been a “green field” project with no constraints from the past, however one can argue that this has been a great opportunity, and still is, that Kosovo may loose if it doesn’t act upon the positives achieved thus far with a fully-funded scheme in place ►
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◄Kosovo has the youngest population in Europe, which is a very positive demographic picture in terms of pension reform as it can provide a large revenue stream, also a “positive” outlook in terms of future revenue stream as only “50%” of the population is unemployed. The future for the pensions system is bright should the picture slowly become better if we progressively utilize pension savings by boosting development finance and the development of a capital market local or regional in which these savings can be invested; especially when noting that Kosovo and regional macroeconomic data show that in general our economies are moving forwards rather than backwards. The need for the pension system to evolve and along side it the idea to use these funds in development finance as well as in a local capital market becomes palpable, especially now as we see the first signs of recovery from the recession in developed economies. The pension system reform is expected to provide for long-term sustainability, moreover, it is able to stir financial stability and economic growth in general. As the resources of pension funds continue to grow (an average of EUR 7.5 million with only one fund operating in the mandatory pillar) the need for purposeful investments in the national economy becomes apparent, also the lack of financial instruments to invest these assets in is apparent and these assets are pension savings of the Kosovar population and therefore, the power of pension fund resources to invest grows. The existence of options (pension funds and investment tools) should in time create a greater demand for securities and encourage issuance of new instruments by type and maturity, however of no less importance are the government and why not municipal securities. Government and municipal based securities become even more obvious as an investment tool with the large infrastructure projects being discussed by the government in the last 2 years. In conclusion, one can note that pension funds being the largest institutional investors in most if not all capital markets, can also facilitate the process by which Kosovo can improve and develop a viable capital market. By taking the following steps: evolving the pension system by liberalizing the market and ensuring better regulation of the pension fund-industry (if the development of a pension fund industry is the aim); liberalizing restrictions on investment options and developing investment instruments we can provide sufficient space for pension fund administrators to invest prudently in the local market. Through these means we create local investment options to both the individual saver and the institutional investor, we consequently create the need for enhanced governance, a sense of urgency from the regulators, a need for more investment tools, and we push the banking industry to evolve by offering custodial and brokerage services. Moreover, the evolution of the pension system and the capital market creates space for deliberation on the investment options available such as the idea of offsetting the dependence on the current volatile nature of developed international capital markets by developing a capital market that can boost a stagnating local economy █
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The importance of IPR for the Business Community
AmCham supported by the Kosovo Foundation for Open Society, has completed the research study on “The Importance of IPR on the Business Community in Kosovo” with 600 businesses being part of the research project. The aim of this project was to assess the business environment in Kosovo and the impact of the unlawful use of trademarks, intellectual property rights, and patents in our business community and economy. A short debate was held along with the publication of this report. Panelists of the conference were the AmCham Executive Director, Ms. Mimoza Kusari – Lila, the Head of Kosovo Customs, Mr. Naim Huruglica, Trade and Industry (MTI) Deputy Minister, Mr. Januz Kastrati, representative of the Kosovo Foundation for Open Society, Mr. Ilirjana Kacaniku, and the author of the report, Mr. Kushtrim Shaipi.
Mr. Shaipi presented the report findings. According to the report, IPR violation takes place in every sector in Kosovo, based on the responses of businesses that their respective sector is affected. Similar to any other country in which similar research was conducted, the primary motivation of businesses in Kosovo to violate copyrights, patents and trademarks is the immediate financial benefit from such activities as well as the perception that they can get away with it. Such a belief is based on the perception of dysfunctional institutions and their limited capacity to enforce IPR. The lack of interest on the part of businesses to develop and register their own trademarks can also be justified with the lack of domestic recognizable brands and trademarks that need protection. Businesses perceptions should especially be taken into account when designing policies to enforce trademarks, patents, and copyrights as they provide valuable insights into the behavior of the businessmen and entrepreneurs and into their mentality concerning IPR. After this fruitful presentation and debate, a lot of participants were very impressed and suggested AmCham to continue organizing such projects in the future █
After the opening speech by Ms. Kusari – Lila, Mr. Huruglica emphasized the importance of IPR for the Customs and in this regard he proposed to strengthen the links between Kosovo Customs and the MTI.
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Understand the Job Market Understanding today's job market is very essential when searching for a new job. This year’s Career Fair was organized with a new concept known as “Understanding the Job Market”, which opened with company presentations on job opportunities and all other procedures for obtaining employment. As part of AmCham’s “Best Business Practices” series and a component of a KPEP-funded project, the Career Fair 2009 was held on July 17th in the Red Hall of the Youth and Sports Center. The fair was organized in cooperation with the youth organization UNI Group, which is a part of the European Conference of Young Entrepreneurs. This conference gathered a group of 150 students from across Europe and students from the local universities based in Prishtina, with the objective of promoting the exchange of experiences as well as the internationalization of the projects between European students. Representatives of Kosovar and international companies participating in the fair included a wide range of sectors such as banking, consulting, Information Technology, and education, among which were MDA, a management consulting company, ProCredit Bank, Unternehmertum, Dua Punë, Expik, Devolli Group, etc. These businesses presented employment and internship opportunities to visitors and used the event to create networks with other exhibitors and visitors. This was an excellent opportunity for businesses to collect CVs and inform the public about the procedures in applying for vacant positions. The visitors were thrilled with the idea of having many companies in one place, where they were able to receive on site information about application procedures and also be interviewed. The activity was organized in two parts, the presentations of the companies and the Career Fair. In order for the students to have a better understanding of the necessary steps when applying for a job position or internship, students were given short presentations on how to apply in a particular company. The aim of the presentations was to help the students understand recruitment procedures. After the presentations each interested student received more information at the different company stands. They submitted their CV’s, received contact numbers, and most importantly they understood the procedures related to recruitment in that particular company █
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Rewards for most regular taxpayers, importers, and exporters AmCham has made it a tradition for a few years now to reward the most regular taxpayers, importers and exporters in Kosovo. In cooperation with the Kosovo Chamber of Commerce (KCC), the Tax Administration of Kosovo (TAK), and the Kosovo Customs, AmCham co-organizes this event on a yearly basis. The ultimate aim of this ceremony is to raise awareness among the business community in Kosovo on the importance of complying with fiscal obligations. At the same time, this event increases cooperation between business representative bodies, TAK and Kosovo Customsâ–ş
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◄The awards were delivered by Mr. Ahmet Shala, Minister of Economy and Finance, Mr. Behxhet Haliti, the director of TAK, Mr. Naim Huruglica, Head of Kosovo Customs, Ms. Mimoza Kusari-Lila, the Executive Director of AmCham, and Mr. Besim Beqaj, the president of KCC. All panel members held opening remarks and emphasized the importance of tax payments for the economy of Kosovo and for the benefit of the businesses. Eleven companies’ were selected as recipients of the most regular taxpayer awards for 2008, and they were: Banja e Kllokotit Fab.Uj.Mi.&Co2 Coca-Cola HBC - Kosovo L.L.C. N.P.SH. Elting – Electronics N.T. Interadria Informatika Computers L.L.C. Metalkos L.L.C. NPT Meka Raiffeisen Bank Kosovo J.S.C. Rofix L.L.C. Sharr Beteiligungs GmbH Trasing Group L.L.C. Wurth– Kosova “ L.L.C. Also, AmCham in cooperation with Kosovo Customs awarded the most compliant importers and exporters for 2008: Gekos NEXT L.L.C. Sharr Beteiligungs GMBH Eksportuesit më të rregullt për vitin 2008 ishin: M & Sillosi L.L.C.. NewCo Ferronikeli Complex L.L.C.
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During the awards ceremony AmCham and the Kosovo Customs signed a Memorandum of Understanding with the aim of increasing cooperation between the two bodies █
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AmCham hosts Kosovo Overseas Security Advisory Council meeting On October 2nd, 2009 the American Chamber of Commerce in Kosovo hosted a meeting of the Kosovo Overseas Security Advisory Council (OSAC) for a brief presentation on border security and smuggling, which was given by the head of Kosovo Customs, Mr. Naim Huruglica. OSAC is an outreach program which assists the U.S. private sector through Country Councils in selected foreign cities. The Country Council serves as a forum where security problems and concerns can be discussed and if necessary, information about changes in the local security situation can be disseminated through the Council to the community at large. An increase in global security concerns over the last 25 years has prompted many American companies and organizations to seek advice and assistance from the U.S. Government, particularly the U.S. State Department. As a result, the establishment of the Overseas Security Advisory Council (OSAC) has developed into an enormously successful joint venture. Today over 3,500 U.S. companies, educational institutions, religious and non-governmental organizations are constituents of OSAC. The Council provides a forum for best practices and provides the tools needed to cope with today’s ever-changing challenges and security-related issues abroad. According to Mr. Huruglica, Kosovo Customs have created the Anti Smuggling Unit with the aim of reducing the number of smuggled goods in the territory of Kosovo. In addition, Mr. Huruglica presented a number of success stories of Kosovo Customs which prevented the smuggling of goods. The presentation was followed by a discussion on the impact border security and smuggling have on private operations █ Kosovo Business Journal
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AmCham held the annual network and promotion event As it has become part of our tradition here at AmCham, this year’s Network and Promotion event was held on July 8th, at Sheshi 21. The attending companies, members and non members of AmCham, were offered the opportunity to promote their products and services, network and interact. The event was followed by a cocktail in a more informal setting. Participating companies at this event were: Alcatel Lucent Boga and Associates Expik Grant Thornton ILO-IPEC Kalo&Associates Kosovë Karrota Ogilvy Kosova NewCo Aromatik ProCredit Bank Uni Group and Valvis Company Present in this event were also a few non-member companies of AmCham. About fifty present participants had the chance to interact with member companies of AmCham. Ogilvy Karrota and Boga and Associates, both members of AmCham, offered 20% discounts on their goods and services for all fellow member companies █
AmCham welcomes new staff
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mCham Kosovo welcomes two new staff to its family. Zana Haxha is the External Relations Manager and she joined us this last September, while Besianë Musmurati is our Administrative Assistant and she has been with AmCham since the beginning of June. Also, the Board of Directors is in the process of recruiting our new Executive Director. █
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Special thanks to: •AGANI Ltd • ALCATEL LUCENT • Banka Ekonomike • BelleAir • Deloitte •Devolli Company • Konet L.L.C. • Kosovo Resource Company LLC •Marigona Residence • McCroft Tobacco Holdings Ltd • Meridian Corporation •Microsoft • New Kosovo Energy LLC • ProCredit Bank • Raiffeisen Bank Kosovo •Royal Iliria University • SGS Kosovo Ltd • Sole Kosova • "StoneCastleI" Vineyards&Winery •TEB • Unioni Financiar Prishtine • Washington Group International • Atlas Electric • ARKING • ASGETO • BONUS • BEJTA Commerce • British Airways • Buçaj Sh.p.k. • BSB – Company • Booz Allen Hamilton Inc, Kosovo Branch • CONIN • DELFIN LTD • ELTING • L.T.I EXPIK sh.p.k • FONDI SLLOVENO KOSOVAR I PENSIONEVE • GLLAREVA • Gorenje Niti Tiki • Grant Thornton • Ilir Kosova • KMPG Albania - Kosova Branch Sh.p.k • MDA • NewCo Aromatik L.L.C. • Pestova • PharmaSwiss SA, Sh.p.k • Pronet • Rima Eng. • Santefarm sh.p.k. • Scan Color & Jysk • Sigal • 3CIS LLC • UBT • UNIPROJECT • American Alliance Language Services • American University in Kosovo • Boga & Associates • COMPAKT GROUP • ECOTRADE • Emerson Moore Drilling Ltd • FEKI • INFORMATIKA Computers sh.p.k • Kalo & Associates Kosove Sh.p.k • Kosova Steel • ONIHERBA • Ogilvy Kosova • Propharm Helvetica • Semitronix Center • Triangle General Contractors Inc • Sport In •Gail Warrander • Linda Shala • Safet Dorambari • Xheladin Zeka• Diamant Rrahmani
American Chamber of Commerce in Kosovo Gustav Majer STR. No 6 Prishtina, Kosovo, 10,000 Phone: 038 246012 Fax: 038 248012 e-mail: newsletter@amchamksv.org www.amchamksv.org Prepared by: Zana Haxha dhe Besiana Musmurati Design: ashagraphics.com for comments and suggestions, please write us at: info@amchamksv.org