WB: Economy must be reoriented

“When looking Albania and the region, the main problem is the low economic growth. I had the opportunity to talk with leaders of the new government. I think that their analysis is right. Albania needs a new strategy of economic growth. The existing model has used all the resources, and is in its limits. Now the focus should be on the orientation of the economy from production, establishing a manufacturing base in the country,” says Timmer.

Arrived on Tuesday to take part in the conference “Next Generation Albania”, organized by the Socialist Party, Mr. Timmer believes that this requires a new way of directing the economy.

“As I said, the analysis, meaning that the country needs a new way of thinking as from will come the economic growth, is the necessary one for me. There shouldn’t be a reaction to everything that happens in the region or abroad. Focus should be on policies within the country. So the question is: where could Albania can be more competitive and beyond any restriction which may create new jobs, “said Timmer.

The CEO of World Bank for Europe and Asia says that the main condition for the revival of the economy is the construction of an efficient public sector and a well-organized government.

“Perhaps the biggest challenge is to improve the quality of public services. To have a government that is a reliable partner and supports private sector, which pays the taxes and has no arrears: so, an efficient government. If there is no improvement in this point, then you will have the same old problems that any country anywhere in the world has, high deficits and increasing debt. So debt itself is not the problem. The main problem is how to create a better organized government, “says Timmer.

After 2009, Albania’s economic growth has fallen rapidly. Initially it halved from six to three percent, while last year it fell to a 1.6 percent minimum.

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