Dr. Urmas Volens, partner at NOVE and Associated Professor with University of Tartu, was contracted by Policy and Management Consulting Group (PMCG), the consortium member led by Chemonics International, under USAID Partnerships for Development program. The project aimed to review the Draft Law on Business Organizations (LBO) of Republic of Kosovo prepared by Government of Kosovo (GoK) through a working group led by the Ministry of Trade and Industry (MTI) of Kosovo with support from USAID Partnerships for Development (USAID PFD).
The purpose of the review was to evaluate general compliance of the Draft with the Stabilization and Association Agreement (SAA) between Kosovo and the EU on 1 April 2016 (SAA) and the EU Acquis, identify any additional improvements to further streamline requirements and processes within the broad EU framework, considering international best practice and to evaluate current and possible further improvements in the World Bank Doing Business report for the Starting a Business and Protecting Minority Investors indicators, and reflect accordingly in the draft law.
As the result of the assignment an extensive report was produced for review by the United States Agency for International Development.
“I was honored to participate in the project, which is so essential to the development of Kosovo and for its greater integration with the European Union,” said Urmas Volens.
Volens commented on the extensive nature of the project, saying, “it was a highly interesting but complex project in which I could apply my experience from my earlier work in Estonian Ministry of Justice in developing Estonian corporate law. It is extremely important that countries like Estonia, which only recently have gone through a rapid and successful integration into the European Union, share their experiences and support to countries that are only at the beginning of this complex path. I am extremely grateful to USAID’s Kosovo team for support and assistance without which the project would not have been able to succeed. As the final draft Law on Business Organizations should unify the goals of EU approximation, as well as consolidate previous Doing Business gains and further improvement, the draft must follow the SAA, but also reflective of or exceeding best practice examples from EU member countries that are reported in the annual World Bank Doing Business report.”
USAID Partnerships for Development (USAID PFD) is a 4 year and 8 months project to support Government of Kosovo (GoK) institutions at the central and local level to create a business-friendly, regionally competitive business environment that will attract foreign investment in Kosovo, while at the same time maintaining macro-economic stability. USAID PFD works closely with a wide range of GoK institutions and other stakeholders to achieve this objective, by providing technical assistance for development of key policies and legislation that encourage private sector led economic growth in Kosovo. One of the most important laws in this area is the Law on Business Organizations (LBO), first adopted in 2008 and amended in 2011, which regulates business forms, business registration, corporate governance, and other relevant aspects.
Considering the recent entry into force of the Stabilization and Association Agreement (SAA) between Kosovo and the EU on 1 April 2016, the GoK, through a working group led by the Ministry of Trade and Industry (MTI), is finalizing a review of the Law on Business Organizations to consolidate previous and future reforms, and confirm compliance with the SAA and the EU Acquis Communautaire.
GoK has prioritized the implementation of reforms to improve Kosovo’s position in the World Bank’s Doing Business Report. Two out of the ten indicators of the World Bank Doing Business Report, Starting a Business and Protecting Minority Investors, connect directly with the LBO. From 2009 – 2016, Kosovo’s Doing Business country rank improved from 113 to 60. For Starting a Business, Kosovo improved from 164 to 13. For Protecting Minority Investors, Kosovo improved from 172 to 63. Estonia has scored 12th in the 2017 World Bank ease of doing business index, placing between Taiwan and Finland.
NOVE is an Estonian boutique law firm specialized in resolving complex business disputes in both pre-court and legal proceedings founded in March 2016. Urmas Volens is one of co-founders of NOVE.