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The circumstances after the war provided for a “clear start” in the labor policies because “the war brought complete loss or disappearance of previous institutions in this area” (World Bank Report No. 25990, 2003, p. 66). Since the laws that existed in FR Yugoslavia were out of force in the newly established legal realm of Kosovo, new laws were necessary. In 2001 the Essential Labor Law in Kosovo was put in force and pensions and social assistance were also introduced. The policies followed the notion that Kosovo will be developed as a market-economy. As the World Bank Report (2005) highlights: “Kosovo’s labor market policies are generally right on track for the flexibility that characterizes wellfunctioning labor markets in market economies.” (p. iv).

A recent study of the labor markets in Eastern Europe shows that “youth employment programs are a dominant labor market intervention in Kosovo.” (Kuddo, 2009, p.62). Additionally, labor market policies in Kosovo are funded by donors. According to the World Bank (2005) the lack of resources of the local government is not the only problem. Employment counselors who can carry out active labor market programs are also defiient. The war and the destruction of inter-ethnic trust have created employment problems for minorities. The World Bank report (2005) states that “ethnic minorities have faced exceptional labor market difficulties. Econometric results show that the members of Kosovo’s ethnic minorities have faced higher probability of being unemployed, and have been paid less, than Albanians with similar characteristics” (p. vi.). The failure to provide equal ground for everyone on the labor market regardless of ethnicity is a worrisome condition and active labor market policies are lacking in this aspect. There are some examples of extensive use of government intervention regarding employment, although the funding again comes from international donors. That is the case with the Kosovo Protection Corps Resettlement Programme lead by the Kosovo United Nations Development Programme. The program provided benefits for around 1600 former members of the dissolved army organization, including benefits to help start own business initiatives, various trainings and employment for those individuals who preferred a job in the public sector. The project was evaluated as successful. The majority of persons who participated at the end had equal or greater monthly wage than the one they received while working in the Kosovo Protection Corps. Special focus was given to women by receiving “customized support and mentoring” in line with United Nations commitment to gender equality (Kosovo United Nations Development Programme, 2011, p.17).

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