Ethnicity
Of Kosovo’s population estimated at around 2 million people, 90% are thought to be ethnic Albanian, 5% Serbian and 5% other minority groups, (although no census has been conducted recently). The majority of Serbs live in and North of Mitrovice, including rural areas, although minorities do live in almost all municipalities, with the largest concentrations in Gracanica and Strpce.

Protection of minorities is a key concern. Albanian and Serb communities are poorly integrated, and empowerment is particularly problematic for minorities. Both income and non-income forms of poverty (such as access to health and education) are highest among non-Serb minorities. However, some reconciliation efforts have been made. Following the March 2004 riots, the PISG spent $8.1 million on rebuilding Serb houses. A pilot project on decentralizing more authority to the sub-municipal level in Gracanica is being planned - a process intended to strengthen the ownership and participation of minorities in decision-making in Kosovo.

Poverty is widespread, but shallow; 37% of the population live in poverty (below $1.75 per adult equivalent per day); and 15% live in extreme poverty ($1.14 per day). However, most of the poor live just below the poverty line. Children, the elderly, female-headed households, the disabled, the unemployed, precarious job holders, residents of secondary cities, and non-Serb ethnic minorities (such as Roma and Slav Muslims) are the groups most at risk in terms of income poverty.

In non-income dimensions of poverty, education outcomes are low, but there are signs of improvement. Half of the adult population has only completed primary education, and 6% are illiterate. However, progress has been made. Primary school enrolment rates were 95.4% in 2003, and the illiteracy rate has been reduced to less than 0.5% among children and youth. But the quality of education still remains a problem. With insufficient space and classrooms, children do not have a full-day’s education. Instead, schools operate on 3-4 shifts per day. Furthermore, health outcomes are among the worst in South East Europe. Infant mortality rates (18-44 per 1,000) are the highest in the region. Tuberculosis, disabilities, and mental health problems are major issues. Again, non-Serb ethnic minorities are the groups most at risk in terms of non-income poverty.

Four major constraints are holding back agri-rural development in minority areas:

1. lack of an effective MAFRD communication strategy for rural people and economic operators who live and work there;

2. very limited support to date by donors in economic and rural development, (as opposed to post-conflict humanitarian assistance);

3. a Serbian parallel system that prevents municipalities, individuals and economic operators from being more involved in Kosovo’s development, as well as creates suspicion towards international organizations; and

4. lack of political involvement concerning minority integration issues, and a lack of organized rural structures/networks.

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