Critical Reasoning

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Preface
It is a fact that most of our everyday activities require to make use of some critical thinking. And when it comes to it, nobody is an absolute beginner. However, just because we can think critically it doesn’t mean that we always do it well. Module of “Critical Reasoning” helped me to understand of what is meant by critical thinking and to develop my own reasoning skills. As critical thinking is an activity, our class lessons were enriched with practical work in order to be easy understandable by students. Assignment on “Critical Reasoning” module contains an Analysis on Business Environment of Kosovo.

Critical Analysis on Business Environment of Kosovo

Introduction
The health of business environment is very important for overall economy of a country. This paper places a critical view based on analysis of different indicators that have impact on business environment of Kosovo and the way how they affect it. Indicators which will be analyzed are as follows: Political / legal, infrastructure, Public administration, Infrastructure and system of education. Certainly there are other indicators who have impact on Business environment, but above mentioned ones are among most important and the ones who need improvements in order to have better business Environment. Even though Kosovo has been ranked on 98 –th place according to “Doing Business 2013” it still does not tell the whole story. It certainly do not measure all the aspects of business environment that matter to firms and investors or that affect competitiveness of the economy. Based on these considerations, this paper will introduce recommendations that might be relevant to the improvement of Business Environment of Kosovo. First indicator which will be analyzed is:

Political /Legal
Much of a Kosovo’s regulatory framework is in place but implementation and reinforcement are problem due to lack of capacity in local institutions .Kosovo in relation to business environment has two main courts: The Commercial court and the Supreme Court. However, cases that result in judgments last for years. Based on Investment Promotion Agency of Kosovo, the existing legal frame work in Kosovo allows incentives that enable Kosovo to cope with developments in the region. Current incentives cover the issues such as: carrying forward of losses; Avoid of double taxation; VAT prolongation, Customs and Investment guarantees. On contrary, according to the Global Corruption Barometer in 2010 from Transparency International, 73% of surveyed Kosovo’s believe that Corruption is continuously increasing and among most corrupt ted are viewed political parties followed by judiciary and legislative body. Corruption is perceived as one of main barriers to business. Furthermore, Freedom House report published in 2010 presents the fact of procurement and tender procedures in Kosovo as being not transparent or otherwise known as Single source tenders .Value of contracts won through single source tenders is 22% of total Kosovo’s GDP( Freedom House 2010).

Hence, businesses have lost faith in contracts enforcements due to corruption and ineffective work of Commercial court; therefore it leads to a conclusion that Kosovo has weak law enforcement. Another indicator which has impact on Business Environment is: Public Administration

Role of Public Administration is to help and to communicate with investors, foreign and vendor, in order to make as easiest as possible to went through all administrative procedures in order to startup a business. Today Kosovo stands at 126 in the ranking of 185 economies in the ease of starting business, which progress is supported on a fact of eliminating minimum per capita requirement and business registration fee and streamline business registration process (Doing Business 2013); nevertheless it still has a room for lot of improving, while having in mind that this is the first positive reform since 2008 that Kosovo business environment is experiencing. (Doing...
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