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After significant political wrangling, Kosovo's politicians agreed to establish Kosovo's first coalition government in March 2002, with Bajram Rexhepi (PDK) as Prime Minister and Ibrahim Rugova (LDK) as President. The Provisional Institutions of Self-Government (PISG) were formed, with ministries allocated to the parties according to the March 2002 power-sharing agreement, and in the same year, the Kosovo Assembly began to function and pass its first laws. Beginning in 2003, UNMIK began transferring a significant number of governing competencies to these ministries and continues to work to build their capacity, in accordance with UNSCR 1244. UNMIK will retain many powers associated with state sovereignty, including foreign affairs and some security functions, until Kosovo's final status is decided. In November 2004, UNMIK approved the creation of three new PISG ministries: Energy, Returns and Communities, and Local Self-Government; new Ministers of Interior and Justice were later added and are now operational.  
 
After significant political wrangling, Kosovo's politicians agreed to establish Kosovo's first coalition government in March 2002, with Bajram Rexhepi (PDK) as Prime Minister and Ibrahim Rugova (LDK) as President. The Provisional Institutions of Self-Government (PISG) were formed, with ministries allocated to the parties according to the March 2002 power-sharing agreement, and in the same year, the Kosovo Assembly began to function and pass its first laws. Beginning in 2003, UNMIK began transferring a significant number of governing competencies to these ministries and continues to work to build their capacity, in accordance with UNSCR 1244. UNMIK will retain many powers associated with state sovereignty, including foreign affairs and some security functions, until Kosovo's final status is decided. In November 2004, UNMIK approved the creation of three new PISG ministries: Energy, Returns and Communities, and Local Self-Government; new Ministers of Interior and Justice were later added and are now operational.  
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NATO established its KFOR operation in Kosovo to “keep the peace”—instead, the unit engaged in human trafficking of women and children. They became prostitutes and sex slaves for KFOR troops. ''[[The Guardian]]'' reported in 2004,
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{{quotebox-float|"In a report on the rapid growth of sex-trafficking and forced prostitution rackets since Nato troops and UN administrators took over the Balkan province in 1999, Amnesty said Nato soldiers, UN police, and western aid workers operated with near impunity in exploiting the victims of the sex traffickers."<ref>https://www.theguardian.com/world/2004/may/07/balkans</ref>}}
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According to [[Amnesty International]],
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{{quotebox-float|"Since the deployment in July 1999 of an international peacekeeping force (KFOR) and the establishment of the United Nations Interim Administration Mission in Kosovo (UNMIK) civilian administration, Kosovo has become a major destination country for women and girls trafficked into forced prostitution. Women are trafficked into Kosovo predominantly from Moldova, Bulgaria and Ukraine, the majority of them via Serbia. At the same time, increasing numbers of local women and girls are being internally trafficked, and trafficked out of Kosovo."<ref>https://www.amnesty.org/en/documents/eur70/010/2004/en/</ref>}}
 
On October 23, 2004, Kosovo held elections for the second three-year term of the Kosovo Assembly. For the first time, Kosovo's own Central Election Commission administered these elections, under OSCE guidance. The main Albanian political parties were the same as in the 2001 elections, but for the addition of the new party ORA, led by Veton Surroi, and two new Kosovo Serb parties: the Serbian List for Kosovo and Metohia (SLKM) led by Oliver Ivanovic, and the Citizens Initiative of Serbia led by Slavisa Petkovic. The LDK won the elections with 45.4% of the vote, and the PDK came in second with 28.9%. They were followed by AAK at 8.4% and the ORA at 6.2%. Most Kosovo Serbs boycotted the elections with support from Belgrade, with less than one percent voting. However, Kosovo Serbs still received ten Assembly seats that are reserved to them as a minority community under the Constitutional Framework, but many chose not to take their seats.  
 
On October 23, 2004, Kosovo held elections for the second three-year term of the Kosovo Assembly. For the first time, Kosovo's own Central Election Commission administered these elections, under OSCE guidance. The main Albanian political parties were the same as in the 2001 elections, but for the addition of the new party ORA, led by Veton Surroi, and two new Kosovo Serb parties: the Serbian List for Kosovo and Metohia (SLKM) led by Oliver Ivanovic, and the Citizens Initiative of Serbia led by Slavisa Petkovic. The LDK won the elections with 45.4% of the vote, and the PDK came in second with 28.9%. They were followed by AAK at 8.4% and the ORA at 6.2%. Most Kosovo Serbs boycotted the elections with support from Belgrade, with less than one percent voting. However, Kosovo Serbs still received ten Assembly seats that are reserved to them as a minority community under the Constitutional Framework, but many chose not to take their seats.  
  
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