Increasingly, consultants are offered and accept opportunities to participate in development efforts sponsored by governmental organizations to assist in building, restoring, or reforming nations in crisis. Most recently, these opportunities in Iraq have received a great deal of scrutiny. As the CEO of a company involved in the economic recovery efforts in Iraq and elsewhere over the past 15 years through our Emerging Markets practice, I would like to offer our perceptions on consultants and the reconstruction process. Today's business consultants, as exemplified by their work in helping to reconstruct Iraq and reintegrate its economy back into the fiber of the international marketplace, bring a wealth of skills and experience to this task of assisting nations to build stable economies on unstable ground.
Nor is Iraq a unique case. Another good example of how the combined effort and expertise of international consultants and the people in countries in conflict can support reconstruction and stability is found in Kosovo. The steady progress seen in Kosovo over the past five years is a highly relevant example of how a people's aspirations for personal freedom and economic prosperity can drive them — with the aid of external resources — to achieve impressive goals.
When the international community entered Kosovo in 1999, its mission was not merely to resettle refugees and reconstruct war-torn communities. The objective was the emergence of a peaceful, self-governing entity that could someday contribute to the burgeoning European Union. Kosovars, in turn, quickly developed their own desire for stability and economic prosperity. Tensions linger between Serbia and Kosovo, and are expressed in periodic outbursts of violence as occurred in March of 2004. Intermittent violence, uncertainty about the status of Kosovo, and a tenuous relationship with Belgrade are all indicators of a still-troubled region.
In a few months, the United Nations will assess Kosovo's viability to be an independent country. The U.N.'s assessment will evaluate the extent to which the Interim Provisional Self-Governing Authority of Kosovo (the government) has demonstrated its ability to govern for all Kosovars, regardless of their ethnicity. The U.N. will also evaluate the extent to which other standards, including general societal benchmarks such as minority and gender representation, as well as more pragmatic issues like rule of law and a viable economic framework, have been met.
Notwithstanding the sporadic violence, and uncertainty about whether Kosovo will remain an autonomous province within Serbia or become a sovereign nation, Kosovo has made some remarkable progress since 1999 through the efforts of organizations like the U. S. Agency for International Development (USAID) and other international donor organizations. Working with implementing partners such as BearingPoint and other consulting firms, USAID and other donors have helped transform Kosovo from a place where, not long ago, there was no legitimate government, electricity was a novelty, and the streets were a virtual war zone to a province where a functioning government is now in place after two democratic elections. The Ministry of Finance is operational. A modern budget and treasury underwriting system has been established. Electronic banking is the universal standard. A simple yet modern tax structure has helped increase government revenues threefold in five years and has made Kosovo self-reliant in its operating budget needs. One of the most modern pension systems in Europe has been established, ensuring a safety net for people of all ethnic groups. In addition, a recognizable market economy is developing, lending to the corporate sector is booming, and an increasingly diversified small business sector is emerging.
The groundwork for these achievements was laid over the course of five years of painstaking efforts. From drafting legislation to screening and training government employees, donors and their implementing partners worked with the Kosovars to lay a foundation for capitalizing on the strengths of the region and the energy of its population. In the coming months, even more practical applications will be laid over this foundation, and BearingPoint is proud to have been a part of this progress, under its contract with USAID.
BearingPoint is also proud of its work in Iraq, also under a USAID contract, which is to help Iraqis establish a viable market economy. As in Kosovo, BearingPoint's team of technical experts is working with Iraqis to implement a modern budgeting and financial management system, to restore the banking system, and to develop commercial laws to support the fledgling private sector. As in Kosovo, these efforts are guided by donor organizations in concert with the Iraqi government and are often being implemented by consulting firms that bring many years of experience to the considerable tasks at hand.
Kosovo and Iraq, however wrought with strife, have the potential to be valuable participants in the global marketplace. Indeed, the world will come to them if the proper capabilities are in place. Democracy and economic growth are worthy objectives; integration into the global marketplace is the natural next step.
Consultants, by definition, have access to a breadth of expertise that can speak directly to these issues of nation building. Insight into the public sector, core municipal infrastructure, and technical training is imperative and can and should be leveraged to aid in the speedy recovery of conflicted regions. It is through this work that we make our most profound contribution.
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