Final Report - European Commission - Europa

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Executive summary
This is the executive summary of the Evaluation of the EC’s Country Strategy in Albania for
the years 1996-2001. It is a part of a series of Country Strategy Evaluations of EC aid.
The report is based on a mission to Albania that took place from 29 April to 11 May 2001.
The mission involved an extensive review of Delegation files, monitoring reports and
evaluations, and interviews with Delegation staff, other donors, Government officials and
civil society organisations (80 interviews in total, see Annex2, p []).
Ch. 1 focuses on the relevance of the EC’s country strategy in Albania. Ch. 2 looks at the
performance of the EC’s programme in Albania, focusing principally on its impact on the
EC’s stated objectives in Albania. Ch 3. looks at key factors which explain this performance.
Ch 4. presents recommendations.
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1. Relevance of the strategy (p.1)
Country analysis
1. Political and economic situation.
Immediately after the fall of Communism,
Albania experienced a period of rapid
growth. However, the foundations of this
growth were extremely weak. Institutions
necessary to a market economy – a
functioning public administration, a
reasonably efficient and impartial justice
system, and so on – were not present. Civil
society – dominated by local and extended
family loyalties - was neither capable of nor
interested in influencing the state. These
weaknesses were revealed in the social
unrest that followed the collapse of the
pyramid schemes in 1997, which caught
donors – in particular, the EC – entirely by
surprise.
2. While economic growth has been
restored, its underpinnings – both economic
and social – remain fragile, since growth is
largely dependent on illegal and informal
activities, as well as a level of migration that
may not be sustainable or desirable.
Albanian public administration remains
extremely weak. Moreover, while the forms
of democracy are in place, political
competition is essentially “winner takes all”,
with parties seeking to gain control of state
institutions for the sake of the economic
rents they provide.
3. Sustainable growth will require wideranging
improvements in governance,
institutional capacity, and infrastructure; this
in turn will require dealing with some social
issues, including the dependence of the
economy on informal/illegal activity,
migration, and the continued possibility of
political instability.
4. Albania is one of the poorest countries
in Europe. However, the relative prosperity
of Tirana and the coast contrasts strongly
with high levels of absolute poverty in rural
areas. Poverty and lack of opportunity in
rural areas leads to migration, which in turn
leads to some social problems, particularly
affecting women. Environmental
degradation, which the government currently
lacks the capacity to address, is a serious
concern.
5. Regional issues. Albania is generally
recognised to have played a constructive and
responsible role in the region. Albania’s
relationship with the EU and the
international community is based on the
Stability Pact, which gives the EU a special
role, and offers Albania and other countries
in the region the prospect of EU integration
and perhaps eventual membership.