Bekim Baliqi Higher Education Policy in Kosovo – Its Reform Chances and Challenges Preface In the twenty-first century, higher education has for the most part been seen by scho- lars and policymakers as the driving force behind democratic consolidation and eco- nomic prosperity. The good skills and knowledge formed through higher education are key factors in generating jobs and creating prosperity. In this sense, universities also play a central role in expanding political and social stability and promoting a de- mocratic society. Furthermore, not only GDP but also student numbers, the level of human capital, university quality, capacity building and competitiveness, the so-called Global Education Index (GEI), are perceived as being some of the main indicators of wide-ranging development. Particularly in the post-conflict societies, higher education is a crucial component of social and political transformation, which can also lead to stable state institutions and peaceful conditions. As has been demonstrated in many cases, higher education helps to a considerable degree in providing competitive and qualitative employees to the marketplace. But the higher education system, the politi- cal situation and economic development are linked and interdependent. Basically the higher education institutions have three main and interrelated functions: the know- ledge function, the marketplace function and the socio-political function. In the con- text of both globalisation and the transition of the university role, scientific research or the creation of knowledge and education in a broad sense lead toward a knowledge- based society and economy. Considering these facts and the demographic preconditions, tertiary-level educa- tion is perceived in Kosovo as an opportunity and as a key factor in increasing human capital, which on the one hand could enable economic development and on the other hand could enforce the democratization of Kosovo society. This research project seeks to understand how higher education functions in Ko- sovo, what the main challenges and obstacles are to making it more effective and effi- DER DONAURAUM Jahrgang  – Heft /2 43