Evaluation of the USAID-Kosovo SME and Agriculture - Economic ...

Development Associates, Inc.One way to get standards adopted is to have the architects and engineers that designbuildings to call for explicit standards in the construction materials that are being used;And then the construction contractors would demand these standards from the suppliers;andTherefore, KBS focuses on architects and engineers and construction contractors hopingto generate backward linkages to higher quality production by Kosovo building materialmanufacturers and suppliers.This chain of logic is not totally conclusive. All activities have been concentrated on the serviceproviders – designers, architects, civil engineers, etc. The producers of construction materialshave been omitted, except in the case where a construction contractor is also a material producer.Yet this is exactly where the local business faces huge pressure from imports. In addition, thereconstruction period has ended and construction in Kosovo is now done by Kosovar-ownedcompanies, employing Kosovar workers. It is hard to see the direct link between the projectactivities and the acceleration of economic growth through import substitution and exports andultimately job creation. It may be that this activity is best justified by saying that KBS needed toadd two product-groups beginning in October 2003 and these two were available, could bepositive in the long run and within the resources and timeframe available. On those grounds, theresponse to being consistent with the SO for this sector would be a qualified, maybe.1.2 Are the actions taken by the construction team in line with the Action Plan?The activities are found to be consistent with the Action Plan.2. What are the main strengths and weaknesses of project activities?StrengthsThe project has focused on one important issue and that it has laid the foundations for a constantand productive dialog between the main stakeholders (apart from end-users) within theconstruction services sub sector.WeaknessThe link between the service sectors supported and increased economic opportunities, jobcreation, import substitution and export potential is tenuous, when these same opportunitiesdefinitely exist within the construction materials sub-sector.RecommendationsThe Construction Team has been actively engaged with an activity that, although important forKosovo, seems lightly related to the past and future USAID Strategic Objectives, as understoodby the Evaluation Team. Although standards are important, the enactment of those is more likelyto be an issue for the negotiations between Kosovo and the EU, as Kosovo begins the process offuture integration, rather than a crucial economic growth activity. Therefore those issues aremuch more likely to be influenced by considerations outside of USAID’s declared focus.Evaluation of the USAID/Kosovo SME 39 May 2004and Agriculture/Agribusiness ProgramsVolume I