World Bank supports improving business climate in Albania
The World Bank approved a 7.3m-euro loan last month to help Albania attract investment and promote an export-led private sector. Together with funding from the Albanian government, the loan will boost efforts to narrow the import-export gap and improve the business climate, currently hampered by unfair competition and regulatory practices as well as bureaucratic and administrative barriers.
The authorities have acknowledged that Albania's long-term economic growth requires a business environment conducive to export-led private sector growth. Currently, Albania's imports continue to increase, while exports are low.
"This operation will assist the government in facilitating business entry and operations in the formal economy and to strengthen the enterprise sector's capability to increase exports to the region and the EU," said Silvia Minotti, the head of the World Bank team designing the project.
Specific goals include reducing costs, time and the number of steps necessary for businesses to comply with regulations affecting business entry and operations.
Since Albania joined the World Bank in 1991, the institution's commitments to the country have exceeded 690m euros, going towards 61 projects.
The Bank says the relative political stability and commitment to reforms since 1998 have led to robust growth in private sector activity. However, to sustain private sector growth leading to poverty reduction, it is necessary to improve the business environment and complete the structural reform agenda -- especially enterprise and financial sector privatisation. A Foreign Investment Advisory Sector study identified poor governance and weak institutions as the chief problem discouraging foreign direct investments.
Albania's economic performance during the 1990s has been something of a roller coaster. After an output collapse in 1991-92, the country enjoyed strong growth between 1993 and 1996. In 1997, however, the country entered a period of extreme social and political instability following the collapse of a number of fraudulent pyramid schemes, and real output plummeted. Since that time the economy has recovered dramatically.
The authorities have acknowledged that Albania's long-term economic growth requires a business environment conducive to export-led private sector growth. Currently, Albania's imports continue to increase, while exports are low.
"This operation will assist the government in facilitating business entry and operations in the formal economy and to strengthen the enterprise sector's capability to increase exports to the region and the EU," said Silvia Minotti, the head of the World Bank team designing the project.
Specific goals include reducing costs, time and the number of steps necessary for businesses to comply with regulations affecting business entry and operations.
Since Albania joined the World Bank in 1991, the institution's commitments to the country have exceeded 690m euros, going towards 61 projects.
The Bank says the relative political stability and commitment to reforms since 1998 have led to robust growth in private sector activity. However, to sustain private sector growth leading to poverty reduction, it is necessary to improve the business environment and complete the structural reform agenda -- especially enterprise and financial sector privatisation. A Foreign Investment Advisory Sector study identified poor governance and weak institutions as the chief problem discouraging foreign direct investments.
Albania's economic performance during the 1990s has been something of a roller coaster. After an output collapse in 1991-92, the country enjoyed strong growth between 1993 and 1996. In 1997, however, the country entered a period of extreme social and political instability following the collapse of a number of fraudulent pyramid schemes, and real output plummeted. Since that time the economy has recovered dramatically.