"Poverty in Kosovo is persistent and widespread: nearly half the population is estimated to live below the poverty line. Economic growth has been solid since the endof the war, but foreign assistance and remittances are declining while exports andforeign investment are not much improved. Kosovo remains one of the poorestcountries in Europe: living standards are not improving; social assistance programmes seem to be inadequate; and exports are still facing legal problems withneighbouring countries. The number of people entering the job market is increasingbut job opportunities remain low and the inadequate training and skills of job seekers add to long-term unemployment. The level of participation in compulsory education is not bad, but the quality of education is poor. In order to ensure equity andefficiency in social policy, economic growth should see a decrease in the povertylevel while reducing unemployment implies the creation of new jobs. However, thisrequires better governance, improved infrastructure, foreign investors and encouragement for entrepreneurship and agriculture as well as investment in education."

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