Economic environment deterioration

In the latest report of global competitiveness, Albania is ranked 95 out of 140 world economies, slipping behind with 6 seats, compared with a year ago. Since the beginning, in the part speaking of Albania, the report lists corruption as the most problematic factor that hinders business in Albania. In second place, they rank the difficulty of finding financing for enterprises with low interest rates, and then continues with Government bureaucracy and, this year, for the first time, the organized crime.

But these are only the factors in the business environment. The report analyzes over 140 other indicators, from institutions to innovation and technological development that are grouped into 12 pillars.

Albania is doing well only in a few of them, and in most part is classified with third world countries. The Global Competitiveness Report is the most comprehensive indicator that scans the state of an economy. Through a large number of indicators that affect all areas of development, it measures how much a country is able to provide opportunities and hope for economic welfare for its citizens and businesses.

The declining trend from 2010

Ilir Ciko, professor of “Competitiveness Micro-economy” and one of the best connoisseurs of the report said that the worsening of the Albanian economy is already a multi-year phenomenon.

“It’s a trend that began after 2010, showing a continued deterioration in the productivity of the Albanian economy and consequently the welfare of the Albanian population, which naturally reflected in the competitiveness report. Regress is observed in all pillars where the report is based. This regression compared to other countries in the region or in the world, is versatile, not only in a particular area,” says Ciko.

According to him, this regression is not accidental, but relates to the failure or delay of reforms in almost all areas of the economy.

“All this negative trend is related to the lack of appropriate reforms, as well as regression in certain areas of reform and is the best example that shows that you can be very successful in certain areas of economic reform, as for example in the case of Albania, business registration is still among the most advanced in the world, but if it is not accompanied by a comprehensive reform in all sectors of the economy, then obviously it leads to failure,” says Ciko.

For coincidence, this year, the publication of the report coincides with the last meeting of the government after eight years in power.

“In today’s level of productivity of the economy, starting practically on the competitiveness indicator, we’re back exactly where we were in 2005”, adds Ciko.

The blocking of economic reforms in recent years has been identified previously by other international institutions like the World Bank, in “Doing Business” report or the European Commission.

Top Channel