Trading with the enemy in Mitrovica, Kosovo. - RUhosting

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also increase tensions. If jobs are scarce and members of the other ethnic group get your job not because they are better but because of a subsidy, that can create frustrations. Also, there have been experiments with this in the past in Kosovo with generally bad results. Subsidies did not lead to more contact, people found a way around the rules to still get the money but not have to work together, and it even increased frustrations towards the international community (CARE, 2006). “The barrier however for reintegrating Serbs trough this tactic (subsidies) is that the process is uncontrollable. This is because of the market economy. In a market economy you cannot have too many rules and it will just progress in the way that is most beneficial to the actors in it” (respondent #8). A high ranking member of the economical and fiscal unit of the International Civilian Office (ICO), had some very pragmatic ideas about what the international community can do. He is of the opinion that the government should try not to harm the trade and should put the smuggling into a legal framework. “There is a lot of trade happening between Kosovo and Serbia. The government could help by doing everything in its power not to harm this trade. The ‘invisible hand’ cannot be guided, it can only be not obstructed. Economic activity can improve relationships between ethnicities. With regard to smuggling, this kind of trade should be put into a legal framework, rather than destroyed” (respondent #11). More people I interviewed said the same thing, such as Respondent #8, the Albanian director of an NGO aimed at stimulating youth in the business sector. About Mitrovica he said that although currently much trade is very illegal, he believes that if the government and IC could create a legal framework especially for Mitrovica they would be able to pull it out of this grey zone it is in now and this would create opportunities for both sides. He believes that the interethnic trade in Mitrovica improves relations in the long run. It starts with basic trust in trade, but slowly this trust would extend to more personal feelings as well (respondent #8). So, there is some consensus that traders should be left alone, and perhaps the rules could be adjusted in Kosovo, or only in the strange border area of Kosovo north specially to make the trade more legal. If this would be done the consequences should be considered carefully. If trade would become more legal, it could also become less profitable for example. Perhaps a "policy of tolerance" could serve as a temporal solution here. The term basically means it is still illegal but it will not be prosecuted. This way the traders would be left alone but the government would still be in control. It was just discussed how some people believe some extra rules should be introduced to make the illegal trade more legal and not hinder it. Respondent #2 saw it a bit differently as he blames the high amount of illegal trade on the difficulty of the current rules for trade. He said the rules need to be made easier and complained that right now it is still nearly impossible for companies to work in northern Kosovo. Partly because paperwork from south Mitrovica is needed which is hard because their poor administration and the legal conflicts between the two governments (Serbian and Albanian). It is much easier to work in the grey economy. The barrier is too big for the legal economy, also the language is an issue next to the administration 75
issues. On top of that you have to pay both Serbian and Albanian taxes. It’s too much to pay both (Respondent #2). Besides making the rules for trade easier and/or creating a legal framework, trade might be stimulated by creating dependencies. Respondent #2 believes the international community has to create a need on both sides of the Ibar to stimulate inter-ethnic trade. There has to be something to gain on “the other side”. Perhaps the international community can instead of subsidising inter-ethnic cooperation directly, subsidise certain industries in specific areas to create mutual dependency in Kosovo. For example subsidise wheat farms in Albanian areas and a flower factory in a Serbian area. I was told this tactic was also used by Tito to create dependencies within Yugoslavia (field notes). Last but not least is the Trepça mining complex, which several people mentioned as a possible area of cooperation. With its mines located in north Mitrovica and its factories in south Mitrovica this mining industry could become a place of daily interaction between both communities as well as a source of economic growth for the entire area. Sadly, Trepça's future is at the moment still very unclear as it is uncertain to what extend the huge mineral deposits can by profitably mined. "The Trepce facilities are divided on both sides of the Ibar and Brezovica just needs a lot of investments, just like Trepce by the way. The latter also has environmental issues, unclarity on structures, liabilities, unskilled workforce, outdated materials etc" (Respondent #11). 76
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Nijmegen School of Management, Radb
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TABLE OF CONTENTS ACKNOWLEDGEMENTS.
Page 5 and 6:
CHAPTER 1: INTRODUCTION “Sixteen
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Governmental Organisations (IGO's)
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1.4. Thesis organisation - Short ou
Page 11 and 12:
I learned a lot from it, as I found
Page 13 and 14:
Of the seventeen people interviewed
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interesting experience was organisi
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Mitrovica Serb admitted that when h
Page 19 and 20:
CHAPTER 3: THEORETICAL FRAMEWORK "P
Page 21 and 22:
4. Trade encourages the broader exp
Page 23 and 24:
Miljacka River, separating the Serb
Page 25 and 26: This part of inter-ethnic trade can
Page 27 and 28: For the largest part of the past 60
Page 29 and 30: “Because of such dissatisfactions
Page 31 and 32: sent all colonists back to Kosovo.
Page 33 and 34: Conditions have improved and the de
Page 35 and 36: Albanians reacted to these new poli
Page 37 and 38: same: First an Albanian village whi
Page 39 and 40: Data from the SOK is sometimes used
Page 41 and 42: the highest aid per capita ever giv
Page 43 and 44: Country % of Export % of Import Alb
Page 45 and 46: which were in turn disbanded in fav
Page 47 and 48: Another similarity between both com
Page 49 and 50: situation developed in favour of th
Page 51 and 52: its economic situation. Mitrovica u
Page 53 and 54: CHAPTER 5: RESULTS Placing inter-et
Page 55 and 56: Albanian” and by Serbs associated
Page 57 and 58: “But I will never accept the inde
Page 59 and 60: Another important reason why reconc
Page 61 and 62: “Everything that happens in Mitro
Page 63 and 64: August 2009 with violent protests a
Page 65 and 66: nationalists” because he believes
Page 67 and 68: (respondent #4). A Serb working in
Page 69 and 70: CHAPTER 6: RESULTS Views on the eff
Page 71 and 72: elieves inter-ethnic trade will imp
Page 73 and 74: Trader 3. Respondent #7, an Albania
Page 75: daughter of his sister who went to
Page 79 and 80: towards their colleagues of the oth
Page 81 and 82: that even if the legal or the grey
Page 83 and 84: 2004. Second, Blanton argues that "
Page 85 and 86: REFERENCES Andreas, P. (2004). The
Page 87 and 88: Lagazio, M., & Russett, B. (2004).
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