presume that once the Association of Serbian Municipalities is established it will contribute to peace and security. In addition, 25% of Albanians think this menachism will lead to tensioned raports with them and 25% think it will have no real perspective. According to those statistics, we can assume that this institucional mechanism, if contains elements of decission-making beyong Kosovo constitution, is not going to serve as a basis to foster the cooperation and reconsiliation between Albanians and Serbs but rather is would only contribute to escalating tensions and mistrust. Recommendations We think that investing more time in improving internal factors such are economic development, rule of law and building democratic institutions, and eliminating the external political influences, are the cornerstones for the decentralization to become successful. Implementation of decentralization as a tool for reconciliation, peace­building and security improvement will be more successful in the cases when sovereignty is uncontested by ex disputed populations. Government of Kosovo must confront rigidly the short-comings of governance; must combat organized crime and corruption without comprise and must seek ways to attract foreign investors as well as develop various form of financial and technical assistance to the local small and medium enterprises which the sole purpose is to contribute to decrease the level of unemployment; increase their export capacities and invest in sectors like: IT, energy, minerals, agriculture and education.