The central Balkans were part of the Roman and Byzantine Empires before ethnic Serbs migrated to the territories of modern Kosovo in the 7th century. During the medieval period, Kosovo became the center of a Serbian Empire and saw the construction of many important Serb religious sites, including many architecturally significant Serbian Orthodox monasteries. The defeat of Serbian forces at the Battle of Kosovo in 1389 led to five centuries of Ottoman rule during which large numbers of Turks and Albanians moved to Kosovo. By the end of the 19th century, Albanians replaced the Serbs as the dominant ethnic group in Kosovo. Serbia reacquired control over Kosovo from the Ottoman Empire during the First Balkan War of 1912. After World War II, Kosovo became an autonomous province of Serbia in the Socialist Federal Republic of Yugoslavia (S.F.R.Y.) with status almost equivalent to that of a republic under the 1974 S.F.R.Y. constitution. Despite legislative concessions, Albanian nationalism increased in the 1980s, which led to riots and calls for Kosovo's independence. At the same time, Serb nationalist leaders, such as Slobodan MILOSEVIC, exploited Kosovo Serb claims of maltreatment to secure votes from supporters, many of whom viewed Kosovo as their cultural heartland. Under MILOSEVIC's leadership, Serbia instituted a new constitution in 1989 that revoked Kosovo's status as an autonomous province of Serbia. Kosovo Albanian leaders responded in 1991 by organizing a referendum that declared Kosovo independent. Under MILOSEVIC, Serbia carried out repressive measures against the Albanians in the early 1990s as the unofficial Kosovo government, led by Ibrahim RUGOVA, used passive resistance in an attempt to try to gain international assistance and recognition of an independent Kosovo. Albanians dissatisfied with RUGOVA's passive strategy in the 1990s created the Kosovo Liberation Army and launched an insurgency. Starting in 1998, Serbian military, police, and paramilitary forces under MILOSEVIC conducted a brutal counterinsurgency campaign that resulted in massacres and massive expulsions of ethnic Albanians. Approximately 800,000 Albanians were forced from their homes in Kosovo during this time. International attempts to mediate the conflict failed, and MILOSEVIC's rejection of a proposed settlement led to a three-month NATO military operation against Serbia beginning in March 1999 that forced Serbia to agree to withdraw its military and police forces from Kosovo. UN Security Council Resolution 1244 (1999) placed Kosovo under a transitional administration, the UN Interim Administration Mission in Kosovo (UNMIK), pending a determination of Kosovo's future status. A UN-led process began in late 2005 to determine Kosovo's final status. The negotiations ran in stages between 2006 and 2007, but ended without agreement between Belgrade and Pristina. On 17 February 2008, the Kosovo Assembly declared Kosovo independent. Since then, over 85 countries have recognized Kosovo, and it has joined the International Monetary Fund and World Bank. Serbia continues to reject Kosovo's independence and in October 2008, it sought an advisory opinion from the International Court of Justice (ICJ) on the legality under international law of Kosovo's declaration of independence. The ICJ released the advisory opinion in July 2010 affirming that Kosovo's declaration of independence did not violate general principles of international law, UN Security Council Resolution 1244, or the Constitutive Framework. The opinion was closely tailored to Kosovo's unique history and circumstances.

Southeast Europe, between Serbia and Macedonia

42 35 N, 21 00 E

Europe

slightly larger than Delaware

0 km (landlocked)

none (landlocked)

influenced by continental air masses resulting in relatively cold winters with heavy snowfall and hot, dry summers and autumns; Mediterranean and alpine influences create regional variation; maximum rainfall between October and December

flat fluvial basin with an elevation of 400-700 m above sea level surrounded by several high mountain ranges with elevations of 2,000 to 2,500 m

nickel, lead, zinc, magnesium, lignite, kaolin, chrome, bauxite

Albanians 92%, other (Serb, Bosniak, Gorani, Roma, Turk, Ashkali, Egyptian) 8% (2008)

Albanian (official), Serbian (official), Bosnian, Turkish, Roma

Muslim, Serbian Orthodox, Roman Catholic

1,836,529 (July 2012 est.)

4.3% of GDP (2008)

republic

37 municipalities (Albanian: komunat, singular - komuna; Serbian: opstine, singular - opstina); Decan (Decani), Dragash (Dragas), Ferizaj (Urosevac), Fushe Kosove (Kosovo Polje), Gjakove (Dakovica), Gjilan (Gnjilane), Gllogovc (Glogovac), Gracanice (Gracanica), Hani i Elezit (Deneral Jankovic), Istog (Istok), Junik, Kacanik, Kamenice/Dardana (Kamenica), Kline (Klina), Kllokot (Klokot), Leposaviq (Leposavic), Lipjan (Lipljan), Malisheve (Malisevo), Mamushe (Mamusa), Mitrovice (Mitrovica), Novoberde (Novo Brdo), Obiliq (Obilic), Partesh (Partes), Peje (Pec), Podujeve (Podujevo), Prishtine (Pristina), Prizren, Rahovec (Orahovac), Ranillug (Ranilug), Shterpce (Strpce), Shtime (Stimlje), Skenderaj (Srbica), Suhareke (Suva Reka), Viti (Vitina), Vushtrri (Vucitrn), Zubin Potok, Zvecan

17 February 2008 (from Serbia)

Independence Day, 17 February (2008)

adopted by the Kosovo Assembly 9 April 2008; effective 15 June 2008

evolving legal system; mixture of applicable Kosovo law, UNMIK laws and regulations, and applicable laws of the Former Socialist Republic of Yugoslavia that were in effect in Kosovo as of 22 March 1989

has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt

18 years of age; universal

unicameral national Assembly (120 seats; 100 seats directly elected, 10 seats guaranteed for ethnic Serbs, 10 seats guaranteed for other ethnic minorities; members to serve four-year terms)

Supreme Court; Appellate Court; basic courts; Constitutional Court

Albanian Christian Democratic Party of Kosovo or PShDK [Uke BERISHA]; Alliance for a New Kosovo or AKR [Behgjet PACOLLI]; Alliance for the Future of Kosovo or AAK [Ramush HARADINAJ]; Alliance of Independent Social Democrats of Kosovo and Metohija or SDSKIM [Ljubisa ZIVIC]; Ashkali Party for Integration or PAI; Bosniak Party of Democratic Action of Kosovo or BSDAK; Bosniak Vakat Coalition or DSV [Sadik IDRIZI]; Citizens' Initiative of Gora or GIG [Murselj HALJILJI]; Coalition for New Kosovo or KKR; Democratic Action Party or SDA [Numan BALIC]; Democratic League of Dardania or LDD [Nexhat DACI]; Democratic League of Kosovo or LDK [Isa MUSTAFA]; Democratic Party of Ashkali of Kosovo or PDAK [Berat QERIMI]; Democratic Party of Bosniaks [Dzezair MURATI]; Democratic Party of Kosovo or PDK [Hashim THACI]; Independent Liberal Party or SLS [Slobadan PETROVIC]; Kosovo Democratic Turkish Party of KDTP [Mahir YAGCILAR]; Movement for Self-Determination (Vetevendosje) or VV [Albin KURTI]; Movement for Unification or LB; New Democratic Initiative of Kosovo or IRDK [Xhevdet NEZIRAJ]; New Democratic Party or NDS [Predrag JOVIC]; Serb National Party or SNS [Mihailo SCEPANOVIC]; Serbian Democratic Party of Kosovo and Metohija or SDS KiM [Slavisa PETKOVIC]; Serbian Kosovo and Metohija Party or SKMS [Dragisa MIRIC]; Serbian National Council of Northern Kosovo and Metohija or SNV [Milan IVANOVIC]; Social Democratic Party of Kosovo or PSDK [Agim CEKU]; Socialist Party of Kosovo or PSK [Ilaz KADOLLI]; United Roma Party of Kosovo or PREBK [Haxhi Zylfi MERXHA]; United Serb List or JSL

Council for the Defense of Human Rights and Freedom (human rights); Organization for Democracy, Anti-Corruption and Dignity Rise! [Avni ZOGIANI]; Serb National Council (SNV); The Speak Up Movement [Ramadan ILAZI]

IBRD, IDA, IFC, IMF, ITUC, MIGA

centered on a dark blue field is the geographical shape of Kosovo in a gold color surmounted by six white, five-pointed stars arrayed in a slight arc; each star represents one of the major ethnic groups of Kosovo: Albanians, Serbs, Turks, Gorani, Roma, and Bosniaks

Over the past few years Kosovo's economy has shown significant progress in transitioning to a market-based system and maintaining macroeconomic stability, but it is still highly dependent on the international community and the diaspora for financial and technical assistance. Remittances from the diaspora - located mainly in Germany, Switzerland, and the Nordic countries - are estimated to account for about 10% of GDP, and donor-financed activities and aid for approximately 7.5%. Kosovo's citizens are the poorest in Europe with an average annual per capita income (PPP) of $6,500. Unemployment, around 45%, is a significant problem that encourages outward migration and black market activity. Most of Kosovo's population lives in rural towns outside of the capital, Pristina. Inefficient, near-subsistence farming is common - the result of small plots, limited mechanization, and lack of technical expertise. With international assistance, Kosovo has been able to privatize 50% of its state-owned enterprises (SOEs) by number, which represents a majority of SOE assets. Minerals and metals - including lignite, lead, zinc, nickel, chrome, aluminum, magnesium, and a wide variety of construction materials - once formed the backbone of industry, but output has declined because of ageing equipment and insufficient investment. A limited and unreliable electricity supply due to technical and financial problems is a major impediment to economic development, but Kosovo has received technical assistance to help improve accounting and controls. The US Government is cooperating with the Ministry for Energy and Mines and the World Bank to prepare a commercial tender for a project to include construction of a new power plant and the development of a coal mine to supply the new power plant as well as two existing plants. Privatization of the distribution and supply divisions of the national energy and telecommunications corporations is also planned. In July 2008, Kosovo received pledges of $1.9 billion from 37 countries in support of its reform priorities. In June 2009, Kosovo joined the World Bank and International Monetary Fund, and Kosovo began servicing its share of the former Yugoslavia's debt. Kosovo continues to work with the international community on measures to improve the business environment and attract foreign investment. In order to help integrate Kosovo into regional economic structures, UNMIK signed (on behalf of Kosovo) its accession to the Central Europe Free Trade Area (CEFTA) in 2006. Serbia and Bosnia previously had refused to recognize Kosovo's customs stamp or extend reduced tariff privileges for Kosovo products under CEFTA, but both countries resumed trade with Kosovo in 2011. The official currency of Kosovo is the euro, but the Serbian dinar is also used in Serb enclaves. Kosovo's tie to the euro has helped keep core inflation low. Until 2011, Kosovo maintained a budget surplus as a result of efficient value added tax (VAT) collection at the borders and inefficient budget execution; in 2011 expenditures climbed sharply. Kosovo's small size and relatively small trade sector has helped to protect it from the worst of the global financial crisis.

$13.02 billion (2011 est.)

$12.41 billion (2010 est.)

$11.94 billion (2009 est.)

$6.452 billion (2011 est.)

5% (2011 est.)

3.9% (2010 est.)

2.9% (2009 est.)

$6,500 (2011 est.)

$6,400 (2010 est.)

$5,300 (2009 est.)

800,000

45.3% (2011 est.)

45.4% (2010 est.)

30% (2010 est.)

30 (FY05/06) (FY05/06)

35% of GDP (2010 est.)

27% of GDP (2011 est.)

-5% of GDP (2011 est.)

5.6% of GDP (2011)

7% of GDP (2009 est.)

8.3% (2011 est.)

3.5% (2010 est.)

13.86% (31 December 2011 est.)

14.31% (31 December 2010 est.)

wheat, corn, berries, potatoes, peppers, fruit; dairy, livestock; fish

mineral mining, construction materials, base metals, leather, machinery, appliances, foodstuffs and beverages, textiles

-$2.88 billion (2011 est.)

-$900 million (2010 est.)

$419 million (2011 est.)

$400 million (2007 est.)

mining and processed metal products, scrap metals, leather products, machinery, appliances, prepared foodstuffs, beverages and tobacco, vegetable products, textile and textile articles

$3.3 billion (2011 est.)

$2.7 billion (2010 est.) (2007 est.)

foodstuffs, livestock, wood, petroleum, chemicals, machinery, minerals, textiles, stone, ceramic and glass products and electrical equipment

$NA

$326 million

$900 million

$21.2 billion (31 December 2011 est.)

$21.65 billion (31 December 2010 est.)

euros (EUR) per US dollar -

0.7194 (2011 est.)

0.755 (2010 est.)

0.7198 (2009 est.)

0.6827 (2008 est.)

0.7345 (2007 est.)

5.16 billion kWh (2011)

5.674 billion kWh (2011)

NA bbl (1 January 2012 est.)

0 bbl/day (2007)

NA bbl/day (2011 est.)

0 cu m (2007)

0 cu m (2007)

NA cu m (2011 est.)

106,300 (2006)

562,000 (2007)

8 (2012)

2 (2012)

Kosovo Security Force (FSK) (2010)

Serbia with several other states protest the US and other states' recognition of Kosovo's declaration of its status as a sovereign and independent state in February 2008; ethnic Serbian municipalities along Kosovo's northern border challenge final status of Kosovo-Serbia boundary; several thousand NATO-led Kosovo Force peacekeepers under United Nations Interim Administration Mission in Kosovo authority continue to keep the peace within Kosovo between the ethnic Albanian majority and the Serb minority in Kosovo; Kosovo and Macedonia completed demarcation of their boundary in September 2008