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Finance ministers from donor governments meet today to discuss a programme, which includes a privatisation plan, to permit the medium-term reconstruction of Kosovo.
Joly Dixon, deputy special United Nations representative in Kosovo, said yesterday that work of reconstruction would be as much institutional as physical. Kosovo was not so much a place that had had "the economy bombed out of it" as a province that had suffered decades of economic attrition, particularly since Belgrade imposed direct rule in 1989.
"The whole of the institutional structure has been removed," said Mr Dixon who presents a report on Kosovo to today's meeting.
Since the UN administration took over in Kosovo, it had, among other things secured power supplies and introduced a measure legalising the use of all foreign currencies in Kosovo. But further action was necessary to assure a significant reconstruction effort could be under way in the spring.
Mr Dixon said: "In Kosovo, as in Alice's Wonderland, it's necessary to run faster and faster to stay in place."
The first meeting of donor governments in July raised pledges of $2.1bn (�1.3bn) for Kosovo and a second meeting is scheduled for November.
In the report to today's meeting, Mr Dixon said privatising a number of small and medium-sized public companies should be considered with an objective of maximising growth by spring of next year. This could be achieved either by transferring ownership to workers, encouraging foreign strategic investors or by selling through auction.
However, "current thinking" was that large public enterprises should probably not be privatised until after elections have taken place in Kosovo. However, a pilot programme should take place next year - in which some enterprises could be tendered to strategic investors. The report estimates there are about 200 public companies, of which 66 could be classified as major enterprises.
"To maximise the chances for success, the financial advisers who would assist in the implementation of this pilot programme would receive an incentive based reward. They would also be allowed to pick a certain number (perhaps 10) enterprises from the entire list of large enterprises, based on their own judgment on the chance of a successful sale for each enterprise," the report said.
It said agricultural production had almost come to a standstill. A majority of livestock, including half of all cattle, and most mechanical agricultural implements had been destroyed. Mines were limiting access to agricultural land. Demand for wood, for fuel and construction, was threatening forests. The food processing industry had been damaged, some by looting.
It said some sectors of the population would be unsure of being able to get food until well after the summer harvest next year.
The report also assumed Kosovo would have a "lean public service", with around 52,000 people employed compared with 120,000 previously. The Unmik administration has been able to raise some revenues by charging customs duties, but the report said it intended to impose further taxes.