Kosovo’s Economic Growth Hindered by Decades of Disinformation and Propaganda

Disinformation Campaigns Hamper Kosovo’s Economic Development, Green Transition

Kosovo’s economic development and green transition have been significantly hindered by persistent disinformation campaigns, primarily originating from Serbia and Russia, according to a recent investigation by KALLXO.com.

Despite initial expectations that Kosovo would become an attractive destination for foreign investment following the 1999 war, the country has struggled to reach the same level of economic development as its regional neighbors. Economic growth is projected at 3.8 percent for both 2025 and 2026, supported by increased consumption and investment, according to the World Bank’s spring 2025 report. However, economic uncertainty continues to affect global trade.

Kosovo remains the poorest country in the Western Balkans, facing challenges including a large trade deficit and low employment rates. This persists despite the country ranking better than most regional neighbors in rule of law, media freedom, and democratic governance, with lower corruption levels.

Former Minister of Finance Haki Shatri recalled the high expectations for Kosovo’s privatization process. “People believed that if we entered this transitional phase—mainly through privatization—the funds generated would be reinvested into the economy and create a new financial base for production and economic development,” Shatri told KALLXO.com.

The UN interim administration in Kosovo (UNMIK) began transitioning the economy from state ownership to privatization in 2000, but Serbia blocked the process until 2005. Kosovo’s privatization officially began in 2003 under the Kosovo Trust Agency and later transferred to the Kosovo Privatization Agency in 2008.

Despite substantial investments to promote the sale of Kosovo’s enterprises, including advertisements in world-renowned publications, international investors remained hesitant. Bernard Nikaj, former Kosovo ambassador to Belgium and Minister of Trade, explained that disinformation “definitely scared away serious investors from European Union countries who had an interest in Kosovo companies. As a result, most of those factories never became operational.”

Mimoza Kusari-Lila, currently a member of parliament with Vetevendosje and former Minister of Industry, described how Serbia continuously presented Kosovo as a territory without status where investment would be risky. She noted that Serbia sent direct letters to potential investors claiming ownership of strategic assets and companies in Kosovo, creating fear and uncertainty.

“The response to Serbia’s letters came from the U.S. State Department, which replied regarding Kosovo’s status, asset ownership, and project security, acting as guarantees for investors willing to come to Kosovo,” Kusari-Lila explained.

Online disinformation campaigns falsely claimed that Kosovo’s enterprises carried high debts to Serbian banks and that anyone purchasing them would inherit these liabilities. Notable examples include false claims about the Trepça mining complex being a debt-laden Serbian company and assertions that Ujmani Lake, one of Kosovo’s main water sources, is Serbian property.

Visar Prebreza, editor of BIRN Kosovo’s fact-checking platform Krypometri, explained that Russian and Serbian propaganda portrays the region as a crisis zone unsuitable for investment. “In the last 50 days alone, Kremlin propaganda has spread 353 disinformation articles,” he noted.

Local producers have also faced challenges competing in the market due to disinformation campaigns claiming Kosovar products are of poor quality and unsafe for consumption. Burim Piraj, owner of the Meka meat processing company operating since 1992, stated that “persistent propaganda made people hesitant to buy local products,” forcing domestic producers to sell at significantly lower prices than imported goods.

Berat Rukiqi, former president of the Kosovo Chamber of Commerce, observed a clear pattern of attacks from neighboring markets: “Attacks came from North Macedonia, Serbia, Albania, Bosnia and Herzegovina, Montenegro—the closest markets we have. When our products gained a foothold or introduced competition, the attacks intensified.”

Kosovo’s agricultural sector has been particularly affected by false claims that the land was contaminated by pollution and NATO bombing residue, spreading narratives that the area was polluted and its products unsafe.

As the most pro-EU country in the region, Kosovo has also been targeted by disinformation regarding European integration and environmental policies. Conspiracies denying climate change and portraying green economy investments as worthless have undermined Kosovo’s European-oriented economic development.

Viktor Berishaj, an environmental policy expert, explained that climate change disinformation typically comes from companies whose profits depend on fossil fuels. “They are part of a system that is financially very strong, with funds to spend on lobbying and disinformation,” he said.

Linda Çadvarbasha, environmental activist and former Deputy Minister of Environment, noted that global warming conspiracies benefit those who resist environmental investments, including industrial investors in thermal power plants who reject climate change as a conspiracy.

These coordinated disinformation efforts continue to create obstacles for Kosovo’s economic development and green transition, illustrating how information warfare can have tangible economic consequences for developing nations.