BRIEFING PAPER PAGE 5 and business associations are aware that this can potentially have positive effects for the economy if tax evasion is reduced(and levelled) across individual businesses and across industries. However, under the conditions explained above, i.e. where there is scope for corruption and there is already high tax evasion(in some businesses more than in others), it is reasonable for businesses to fear that the revenue colleting agencies will choose the path of least resistance and target companies that already pay relatively more and/or are not involved in corruption. In this respect, the Government and its agencies should make sure that the approach in their fight against tax evasion is inclusive and it is in favour of improving competition. Finally, the provision of licences and permits(both at central and local level) are considered as another source for corruption and unfair competition(i.e. if they are issued quicker and/or more easily for some firms than others). The number of lincences and permits and the complexity and cost of procedures(concerning time and money) has been recongised as a serious problem in Kosovo by the World Bank’s Doing Business report. Similarly, the three largest business associations in Kosovo, OEK, AmCham and AKB, when interviewed for the purpose of this policy brief, have ranked this as a top barrier to doing business in Kosovo. While recognising that it is beyond the scope of this policy brief to individually analyse licences and permits and their respective procedures and costs, it is recommended that the possibilities of reducing their burden in firms is to be analysed by the relevant institutions at both the central and local level. The level of employee education and training are many times lower in Kosovan firms compared to other transition economies 3. Workforce Skills Skills and education of the workforce is a key determinant of Kosovan businesses’ (lack of) competitiveness both on the domestic market and abroad. Previous studies by Riinvest Institute(Riinvest, various years; Riinvest, 2009) have found that the level of education of managers and employees of private businesses is relatively low, with most of them having secondary education as the highest level of educational attainment. These findings have been also confirmed by the World Bank (2010) which suggests that the skills and education of the workers are the private firms’ most severe problem in 2008. According to this survey, 24 percent of Kosovan firms indicate that skills and education of the workforce are not a problem, compared to an average of 42 percent and 33 percent in the SEE region ECA regions respectively. Similarly, according to World Bank’s(2010) BEEPS survey, the share of employees who have a university degree or higher in the SEE region is twice as high as that in Kosovo(15% compared to 7%) while that in the ECA region is over three times as high(24%). Firms in Kosovo are also less likely to offer training to their employees. In the production sector the