Albania - The New Growth Agenda : A Country Economic Memorandum
Since 1998 Albania has experienced an important transformation that has lifted it into the ranks of upper middle income countries and has allowed a sharp reduction in poverty. Growth averaged more than 6 percent per year between 1998 and 2010, the...
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| Format: | General Economy, Macroeconomics and Growth Study |
| Language: | English |
| Published: |
World Bank
2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20101121235513 http://hdl.handle.net/10986/2935 |
| Summary: | Since 1998 Albania has experienced an
important transformation that has lifted it into the ranks
of upper middle income countries and has allowed a sharp
reduction in poverty. Growth averaged more than 6 percent
per year between 1998 and 2010, the best performance in
Europe. This helped to reduce absolute poverty by half, with
the headcount rate falling from 25 percent of the population
in 2002 to 12 percent in 2008. The recent period of global
turmoil has dampened growth somewhat but not as sharply as
in many other countries. These challenges suggest the need
for a 'new growth agenda' and this is the central
topic of the report. The report is organized into four
chapters. Chapter one gives a macroeconomic overview,
examines the potential vulnerabilities of the economy and
proposes measures for maintaining macro-financial stability
of the economy. It further elaborates the growth challenges
Albania faces as newly arrived upper middle income country.
Chapter two describes the human capital needs of the new
growth agenda and focuses on education and skills. Chapter
three examines the backbone infrastructure, while the final
chapter addresses the investment climate and factors
influencing the return on investment. The report provides a
diagnosis of some of the key factors likely to drive future
growth but without recommending specific products or areas
for private investment. The report argues instead that the
role of the government in this process is that of
facilitator, removing the obstacles to investment and
helping to provide information and institutions that private
firms require to flourish. |
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