Republic of Albania

"You Albania, give me honour, give me the name Albanian"

Eradicate Extreme Poverty and Hunger In Albania Report

By
Peeravich C.
Bhumrapee S.
Phurich R.
Peerawich S.
Table of Contents
Introduction ............................................................................................................................................. 1
Causes and Effects ............................................................................................................................... 4
Solutions .................................................................................................................................................. 5

A poverty reduction strategy .................................................................................................... 5

Policies ................................................................................................................................. 5
Education ............................................................................................................................. 5
Child Poverty ..................................................................................................................... 6

Labor Market and Social Protection ........................................................................ 6

Economics ............................................................................................................................ 7

European Union Integration ................................................................................................... 8

UNDP aids ...................................................................................................................................... 8

References ............................................................................................................................................... 9
Introduction:
Albania is currently one of the poorest countries in Europe. With nearly a quarter of it
population struggle in extreme poverty and using only two US dollars a day. Most of poverty
located in rural area. The issue of extreme poverty taken roots in Albania during socialist rule in
Albania following the end of World War Two. After eastern half of Europe been liberated by the
Soviet Red Army, Albania form a socialist regime with socialist policy. Which means the country
economy was operated under rigid socialist system with planned economy. Made Albanias
economy underdeveloped and fail. In 1992 mark the end of socialist regime in Albania and open
a new era of democratic Albania. Even though the socialist regime was defeated, the corruption in
a new democratic government prolonged and extend the problem instead of fixing them. Many
Albanian stuck in an extreme poverty cycle and struggle to break away. Still today many Albanian
and the government put immense effort in an attempt to end poverty in their country.
 Causes and Effects

Causes
The reason that Albania is known as one of the poorest countries in Europe came from the effects
of the transition from a centralized economy in a rigid communist state to a free market economy
in a democratic republic have weighed heavily on the people of Albania, particularly on its poor
people. Despite the economy's robust growth in recent years, about 7.5 percent of the population
lives in extreme poverty (UNDP MPI Index Report 2011/ CIA 2010) and struggle to put food on
the table each day. Rural and mountainous areas are the poorest places in the country.

The free market economy struggles in Albania due to its isolated villages leading to a lack of
available consumers. Due to this rural, spread-out geography, farmers are unable to travel to other
markets and sell their crops. In such a setting it is difficult for a sustainable economy to thrive and
for jobs to be created, and these low incomes and staggering unemployment keep this cycle of
poverty continuing.

Farming is one of the primary sources of income for this group of people and due to the cities
being much more expensive to live in for citizens without a high skill occupation, many have to
make ends meet by farming in mountains where small amounts of crops can get yielded from the
soil. These two issues in tandem contribute to the 19 percent of children having their growth
stunted and 7 percent of the infants being born with a low birth weight in the country. Thus, citizens
having a difficult time attaining a job and children dealing with malnutrition both contribute to the
causes of rural poverty in Albania.

Effects
The change from controlled economy to free market caused Albania to be one of the poorest
country in Europe. Living in cities takes much more expensive for the citizens that dont have high
skills so they have to move out to the rural area of the country which is the mountainous areas.
Farming is the only way for them to get money and unfortunately, they cant grow a lot of crops
at the mountainous areas because of the lack of nutrients in soil. This causes them to be even more
poor overtime.
 Solutions
A poverty reduction strategy
Policies

1. Albania should therefore focus on a fair distribution of the benefits of growth for the entire
population and should take into account existing social capital at the community level

2. Poverty reduction requires stronger public and private sector institutions that can operate in a
transparent and accountable fashion and that are accessible to the entire population, including the
poor. Economic activities in Albania have been severely constrained by the weak institutional
capacity for enforcement and the lack of transparency in administration which have fostered the
development of corrupt practices. As a step in this direction, a medium-term expenditure
framework (MTEF) is being introduced to improve the budget planning process and to facilitate
more effective expenditure prioritization.

3. The government has also initiated major steps to reform the judicial system by: upgrading the
quality of legal education; improving the functioning of the judicial system; creating a system for
out-of-court resolution of commercial cases; and, making essential legal information more
accessible.

4. Economic stability and growth, the government has, in consultation with the IMF, elaborated a
macroeconomic framework for the next three years which projects that Albanias economy will
expand at a growth rate of 8 percent over the next three years.This framework is underpinned by
a comprehensive set of structural reforms - including financial sector reforms, privatization of the
remaining state-owned enterprises, and measures to create an institutional and legislative
environment conducive to foreign and domestic investment. These reforms as well as those
measures geared more specifically towards poverty reduction are summarized in the attached
policy matrix.

5.To ensure that sustainable economic growth is inclusive in Albania, the government will
therefore promote human development through the design and implementation of comprehensive
and integrated strategies in health, education, child poverty, and social protection sectors.

Education
1.The government aims to increase enrollment in basic and secondary education. In basic
education, the government will undertake an analysis of the recent decline in gross enrollment
rates. It will also review the structure of the secondary education system in order to make it more
appropriate to current demands in the labor market and identify measures for improving the quality
of secondary schooling. For the entire education system, the government will adopt more
appropriate curriculum standards, improve arrangements for the supply of textbooks, and address
issues of the quality of teaching staff. It will also explore how to improve the integration of internal
migrants into the education system. Furthermore, the government will use its school mapping
database to rationalize the allocation of resources for school rehabilitation and construction.

Child Poverty
1. The government will pay particular attention to alleviating poverty and vulnerability among
children. The 1996 LSMS indicates that incidence of poverty among children, particularly in rural
areas, is high. Moreover, other evidence indicates that in north-eastern areas, malnutrition is
observed in around one quarter of children. In urban areas, the growing number of street children
needs to be addressed. The government intends to address child poverty and vulnerability through
its programs in education, health and social protection. In the area of social protection, the
government will take steps to ensure adequate income support to poor families with children.
Introduction of other programs, such as school feeding, food supplements for infants and pregnant
women, and assistance in kind to children from poor families will also be considered.

2. The government will pay particular attention to protection of children without parental care. As
an alternative to their institutionalization, foster care arrangements will be developed, including
necessary legislation, financial support to foster care providers and appropriate monitoring and
supervision institutions and mechanisms. The government will prepare a plan for the introduction
of community based social care services (daily care centers, family counseling centers, respite care
centers, etc.) in order to provide assistance and support to handicapped children and their families,
dysfunctional families, children and youth with disturbed behavior and other vulnerable groups.

Labor Market and Social Protection

1.Currently, 18 percent (or about 239,000 people) of the workforce is officially registered as
unemployed. In order to create a flexible labor market that promotes employment opportunities,
the government will review and, where necessary, revise its labor market legislation and
regulations, labor market policies and social insurance programs. The Ministry of Labor and Social
Affairs (MoLSA) will examine the possibility of implementing public works programs focusing
on poor communities, particularly in rural areas, and strengthening job counseling and job search
assistance for the unemployed. Well targeted, demand driven training programs will continue to
be implemented, with special focus on training and retraining of workers who have been made
redundant by privatization, structural changes, etc. In addition, efforts will be undertaken to
improve labor statistics.

Awareness and marketing will be achieved through work at multiple levels to develop domestic
tourism; consolidate a unifying theme to link the countrys tourism product with international
markets; and create a convincing image on the countrys assets for market opinion leaders through
specialized travel companies, local tourism companies, the internet, active participation in
international tourism trade fairs, as well as invitations to foreign media to visit Albania. Product
development and diversification will concentrate on the discovery of Albania through its nature
and culture. This depends on the ability of local areas to effectively organize themselves to convert
their natural and cultural assets into a viable tourism product, complete with recommended sites
and activities, information and interpretation, lodging, food, guide services and a variety of other
features that determine the value of a destination. New tourist itineraries passing through rural
areas that are rich in natural and cultural assets will diversify the product on offer. Investments in
nature areas and culture will be realized particularly through the establishment of long-term
financial mechanisms and the development and approval of tourism plans which encourage
investors providing them with the major development directions and applying an incentive policy
for potential tourism investments. Human resource management, including the establishment of
an elite group of tourist guides, training of managers of tourism spots, training of hospitality
professionals and staff, and building of language skills, will be enabled through the enrichment of
teaching programmes with professional subjects on tourism, especially in higher education.
Business climate: Business sectors grow more successfully with a regulatory framework that is
clear and ensures that all actors are playing by the same set of rules. This will be achieved through
a close partnership with the public sector, calibrating to international tourism standards, and
establishing a common platform for the development of tourism. Data and information
management is fundamental for tourism planning, marketing and monitoring. The district Tourism
Information Offices will assist this effort, while a centre will be established for data collection,
processing and dissemination.

Economics
To respond to these challenges, programme strategies will make economic growth priorities,
policies and programmes more inclusive, sustainable, and gender responsive, and address major
structural constraints related to decent job creation especially for young people and other
vulnerable groups, business competitiveness, and rural development. Strategies will:
Strengthen the delivery of economic support services at national level and local levels that
promote gender equality and green economy and contribute to inclusive and sustainable industrial
development;
Support further reform of regulatory and tax policies to reduce red tape for entrepreneurs,
Improve governance of the labour market, and support tripartite dialogue between government,
industry, and labour;
Enhance the employability of youth, women and other vulnerable groups;
Address gaps in occupational health and safety policies and standards;
Develop new capacities to design and implement policies and strategies for sustainable rural
development and modernisation of the agricultural sector that are gender-sensitive and empower
rural women;
Enhance agricultural production and value chain development, with focus on small rural
households; Enhance capacity to build/revitalize infrastructure inter alia through public-private
partnerships and foster innovation sector; Improve access to adequate housing including for those
with special needs and vulnerable population groups; Support integration of traders into regional
and global value chains; Strengthen cultural industries, promote cultural diversity and
management of cultural heritage as a vehicle for sustainable development.
EU Integration (European Union)
In June 2003, during Thessaloniki European Council summit. Albania along with other
Balkan countries are label as potential candidate for EU membership. In October 2012, European
Union Commission recommended Albania to be granted the candidate status. In June 2014,
Albania was awarded candidate status by the EU. The fact that Albania joined NATO in 2009 also
help.
If Albania become European Union member state, ALbania will benefit greatly from the
Union. Free trade will help boost Albania economy, and improve trade relation with other member
state. Albania will likely to get a financial aid from European Union. Albania will also likely to
become Schengen country, which will encourage tourism and can bring more revenue.

UNDP (United Nation Development Programme) aids

UNDP operate 170 different countries and territories to help eradicate poverty and
inequalities in the world. UNDP offer countries to help form policies, institutional
capabilities, partnering abilities, leadership skills and build resilience in order to sustain
development results. UNDP start to operate in Albania in 1991. UNDP continue to work with the
government of albania, civil society and businesses to promote human rights and freedoms,
strengthen the rule of law, protect the environment and support economic and social reforms for
social inclusion and an equitable society.
UNDPs goal in Albania is sustainable human development in Albania. First is to deepen
the democratic practices in Albanian institution, and to align Albania laws with UN Conventions
and international human rights norms and standards. With roughly ten millions dollar in funding
both from UN and EU, UNDP conduct many projects and programme to aid Albania.

For more information visit their website : http://www.al.undp.org/content/albania/en/home.html

References:
Norris, W. (2017, April 18). Poverty in Albania. Retrieved October 30, 2017, from
https://borgenproject.org/poverty-in-albania/
Qokaj, B. P., Communications Manager World Vision International. (2016, December
19). The chains of the poverty in Albania. Retrieved October 30, 2017, from
http://wvi.org/albania/article/chains-poverty-albania
Albania - European Neighbourhood Policy And Enlargement Negotiations - European
Commission. (2016, December 6). Retrieved November 14, 2017, from
https://ec.europa.eu/neighbourhood-enlargement/countries/detailed-country-
information/albania_en
Republic of Albania, Government of Albania. (n.d.). Albania Interim Poverty Reduction
Strategy Paper. (May 3, 2000 )
Republic of Albania, Government of Albania, Republic of Albania Council of Ministers.
(2008). Albania: poverty reduction strategy paper: national strategy for development and
integration. Washington, D.C.: International Monetary Fund.
United Nations Development Programme. (n.d.). UNDP in Albania. Retrieved December
05, 2017, from http://www.al.undp.org/content/albania/en/home.html
Country profile:

Location: Europe, Southeastern Europe, bordering the

Adriatic Sea and Ionian Sea, between Greece to the
south and Montenegro and Kosovo to the north
Population: 2.876 million in 2016
Religion: 1st Islam
2nd Christianity
Currency: Lek
GDP (Gross Domestic Product) PPP( Purchasing
Power Parity) : $36.241 billion in 2017
GDP (Gross Domestic Product) (nominal) : $12.876
billion
Coordinate: 41 00 N 20 00 E
Area:Total : 28,748 sq km
Land : 27,398 sq km
Water : 1,350 sq km
Climate: mild temperate; cool, cloudy, wet winters; hot,
clear, dry summers; interior is cooler and
wetter
Terrain: mostly mountains and hills; small plains
along coast
Land use: agricultural land: 42.86%
(arable land 52.42%; permanent crops 6.84%;
permanent pasture 40.73%)
forest: 28.19%
other: 28.95% (2014 est.)
Natural resources: petroleum, natural gas, coal,
bauxite, chromite, copper, iron ore, nickel, salt, timber,
hydropower, arable land