2009年-世界发展银行全球_Albania_-_Building_Competitiveness___Main_Report_-_Overview_of_Findings_and_Recommendations_70页_5mb

Summary of Report No. 47866-AL: Albania Building Competitiveness in Albania

Core Content

This report, Albania Building Competitiveness in Albania, provides an in-depth analysis of the challenges and opportunities facing Albania in improving its economic competitiveness. It is divided into two volumes, with Volume I focusing on an overview of findings and recommendations. The report highlights the progress made by Albania in transitioning from a centrally-planned economy to a market-based one, while also identifying critical areas that require reform to sustain growth and development.

Main Findings

• Economic Transition: Albania has made significant progress in establishing a market-based economy, with the private sector now contributing three-quarters of value added. The country has experienced sustained economic growth of over 5% annually since 1998, which has contributed to a notable reduction in poverty (6.8 percentage points).

• Macroeconomic Stability: Prudent fiscal and monetary policies have played a key role in stabilizing the economy. Fiscal deficits have decreased from around 10% of GDP in the late 1990s to less than 4% since 2005, while inflation has been kept at about 3%.

• Structural Challenges: Despite growth, Albania faces structural challenges in maintaining productivity improvements. The shift of labor from low-productivity agriculture to manufacturing and services has been a major driver of growth, but the decline of agriculture cannot continue to fuel productivity gains indefinitely.

• Export Dependency: Albania's exports are heavily concentrated in low-skill, labor-intensive sectors such as apparel and footwear, which account for nearly half of all exports. These exports are dominated by simple assembly tasks, limiting access to advanced technologies and market knowledge. The country's export relationships are also heavily reliant on Italy, which accounts for about 75% of its apparel exports.

• Infrastructure Constraints: Infrastructure remains a major barrier to productivity. Unreliable electricity supply is cited as a major constraint by 60% of firms, with power cuts occurring more frequently than in other regional countries. Many firms rely on standby generators, increasing operating costs. Other infrastructure issues include high telecommunications costs, limited internet and email usage, and inefficient customs procedures, which take 21–22 days to process, among the worst in the region.

• Investment Climate: The investment climate is characterized by both formal and informal regulations. While formal regulations have been updated to align with EU and global standards, informal practices such as the "time tax" (slow bureaucratic procedures) and the "corruption tax" (bribery) significantly impede business operations. These informal practices are more severe in Albania than in other transition countries.

• Knowledge Transfer and Adoption: The report identifies two main areas that hinder the adoption of new knowledge: access to advanced foreign knowledge and the capacity to adopt it. Albania has limited FDI, which restricts the inflow of new technologies. The country also struggles with brain circulation, as skilled workers tend to emigrate and rarely return to contribute to domestic innovation. The education system is underperforming, with low levels of vocational training and limited access to high-quality secondary education.

• Skills and Education: There is a significant skills deficit, particularly in the context of technological change. The education system is not adequately equipped to meet the needs of modern industries, especially in ICT and other high-tech fields. Firms are reluctant to invest in internal training due to concerns about employee retention.

Key Recommendations

• Infrastructure Development: The report recommends reforms in the power sector, including restructuring, privatization, and improved funding mechanisms. It also calls for enhancements in the telecommunications and logistics sectors.

• Investment Climate Reforms: There is a need to improve the regulatory environment, including completing reforms of licensing and inspection regimes, establishing a robust system of regulatory impact assessments, and reducing informal practices.

• Knowledge and Technology Transfer: Strengthening access to foreign knowledge through trade, FDI, and brain circulation is essential. The report suggests targeted support for technological upgrading, such as matching grants and partial credit guarantees for small and medium enterprises (SMEs).

• Skills Development: Improving the quality and relevance of education and vocational training is crucial. The report recommends expanding secondary education, integrating VET with general education, and providing financial incentives for employer-led training programs.

• Diaspora Engagement: The Albanian government should adopt a more strategic approach to engaging the diaspora in the country's development, leveraging the skills and experience of returning migrants.

Key Terms and Abbreviations

Conclusion

Albania has made significant strides in economic transition and growth, but it faces critical challenges in sustaining competitiveness. The report emphasizes the need for reforms in infrastructure, the investment climate, and skills development to ensure that Albania can continue to grow and improve its productivity in the coming years. These reforms are essential to close the gap between formal regulations and informal practices and to enhance the country's ability to absorb and apply new knowledge and technologies.