SEEU Review vol. 5 Nr. 2 (pdf) - South East European University

Arjeta VOKSHI-ABAZI and Sulo HADERI
Table 4: Governors turnover rate in Albania (re-estimated)
Country Governors Period Turnov
er Rate
Albania Ilir Hoti (May 92 –September 93
16 months 0.40
Dylber Vrioni (September 93 – December 94)
Kristaq Luniku (December 94 – April 97)
Qamil Tusha (April 97 – August 97)
Shkëlqim Cani (August 97 – September 2004)
Ardian Fullani (October 2004 - …)
15 months
40 months
5 months
84 months
60 months
Source: authors’ calculations
Another indicator that measures the real independence is the indicator of
governors’ change within 6 months from the elections. In Albania the
governor was changed only after the elections of 1992 and the election of
1997. In 1992 Albania created its Central Bank two months after the political
election and in 1997 Albania experienced a very difficult period 27 . A new
political party won the elections and it approved a new law on the Bank of
Albania. For this reason, they needed a new governor 28 . So, the indicator
mentioned above shows a good level of real independence.
Another factor that is important in defining the real independence of the
central bank is the accountability and transparency of Central Bank.
Responsibility and transparency are very important for the achievement of
real independence. For this reason, they have been taken in consideration
from the BoA, but more work is needed to achieve a good level of
responsibility (accountability to the public for the monetary policy). This
must be followed by transparency increase. Many authors believe that the
achievement of the main objective increases the confidence of the public on
monetary policy. They think that objectives like internal and money reserves
(government borrowing) are not transparent. Imagine publishing a report
about these objectives. Can the people create a clear idea about what the
inflation rate is expected to be in the future? Is it better to wait and see the
results of the policy and than to convince the public for the advantages of a
27
28
64
In that year Albania had a high level of political instability caused mainly from the fall of
pyramids.
Shkëlqim Cani was the first governor of Bank of Albania that finished his mandate of 7 years.