1. 1 Regional Competitiveness Initiative: 4 th Annual Regional Conference on Competitiveness and Economic Growth Prepared by: David Cowles, Chief of Party, Kosovo Private Enterprise Program 17 June 2009 Wrap-up Session: KPEP Project Overview

2. 2 Kosovo Private Enterprise Program (KPEP) Overview Four Year Project 2008 – 2012 $17.8 Million 4 Components

3. 3 Robust Business Services and Associations Improved Business Enabling Environment Workforce Development Support to Targeted Target Sectors 1 1 2 2 3 3 4 4 KPEP’s Four Primary Components - An Integrated Approach

4. 4 Identify Development Goals Assess Development Potential of Each Sector Evaluate Results Confidence Level 1 1 2 2 3 3 Sector Analysis and Recommendations 4 4 Sector Selection Process - Weighted Scenario Model Ensures resources are directed to sectors likely to achieve greatest development impact

5. 5 ROI Approach - Plotting new and pre-selected sectors on risk-reward framework helps balance project’s risk and reward potential Development Impact Potential Results Confidence Level Forestry and Wood ICT Decorative Stone Tourism Fabricated Metals and Auto Parts Note: Size of the bubble indicates the size of the industry in terms of total revenue for 2007. Data is from UBO Consulting. Agriculture Construction Recycling

6. 6 INFORMATIONAL Gather More Information Determine Unique Opportunities Initiate Activity as Warranted INFORMATIONAL Gather More Information Determine Unique Opportunities Initiate Activity as Warranted TRANSACTIONAL Focused and Discrete Activities That Impact Sector to: Increase Sales Increase Export Increase Employment Attract FDI TRANSACTIONAL Focused and Discrete Activities That Impact Sector to: Increase Sales Increase Export Increase Employment Attract FDI TRANSFORMATIONAL Achieving Transformational Change During Life of Program Intervention Beyond ROI, Includes Entire Spectrum of Assistance: Business Support Services Policy Advocacy Workforce Development TRANSFORMATIONAL Achieving Transformational Change During Life of Program Intervention Beyond ROI, Includes Entire Spectrum of Assistance: Business Support Services Policy Advocacy Workforce Development Framework for Sector Selection and Approach Sector Selection Process - Framework

7. 7 Selected Sectors - Classification based on approach project will take on sectors Fishing and AquacultureInformation and Communication Technology Apparel and Leather Printing and Media Tourism Decorative Stones Forestry and Wood products Recycling Fabricated Metals and Auto Parts Energy Efficiency Sectors Selected InformationalTransactionalTransformational Agriculture Construction Pre-Selected

8. 8 Contact Information Booz | Allen | Hamilton David Cowles Senior Associate Booz Allen Hamilton, Inc. 8283 Greensboro Drive McLean, VA 22102, USA Work 381 38 233 006 Mobile 386 49 236 465 Cowles_David@bah.com