|
Europe and Central Asia Dept, |
Map courtesy of the FCO | |
Albania
Background
Albania has made a remarkable progress from being Europe’s poorest country during 90’ to being reclassified as middle-income country (MIC). It is still, however, one of the poorest countries in Europe.
An estimated 2% of the population live on an income of less than $1 a day and 18.5% of the population live below the national poverty line of $2 a day. It is this sector of the population that is suffering most from the lack of access to basic services such as education, water, health and social assistance.
Since the 1990s, Albania made impressive progress on economic reform. In 1996/7, however, the pyramid saving scheme scandal (which wiped out about 60% of private savings) and the influx and maintenance of Kosovo refugees slowed social and economic development, which returned Albania temporarily to low-income country status. Since then, Albania has experienced a stable economic situation with an average growth of 5–6% per year, and with an estimated GNI per capita of about US$2,960 in 2006.
DFID’s bilateral programme in Albania will end in March 2009. This is a mark of Albania’s success over the last decade. We will continue to support Albania’s development and progress with European integration through our membership of the multilateral institutions, particularly the EU, the UN, the World Bank, and the European Bank for Reconstruction and Development. We anticipate continued substantial aid flows to Albania through these institutions over the coming years. The UK will also continue to support Albania through other programmes managed by the British Embassy.
Albania still has many challenges ahead -
- building public confidence and trust in delivery of public services
- tackling corruption which is a major barrier to prosperity
- developing further public finance and effective taxation systems, which are at relatively early stages
- fundamental reform of social assistance and social welfare systems.
For more information about the political and economic situation in Albania
please see the
Foreign and Commonwealth Office (FCO) Albania
website.
DFID in Albania
DFID has supported programmes in Albania since 1993, spending approximately £40 million in technical assistance and humanitarian aid. In 2007-08 DFID will commit around a further £2million to programmes in Albania. Earlier initiatives included projects to
- build government capacity
- improve livelihoods of rural communities
- support to the health sector
- rural and mountain areas development
- social services and tax administration.
In the last 10 years we have also channelled an average £9.7 million per year
through multilaterals such as the
European Commission,
the
United Nations
and the
World
Bank.
Over the past few years, DFID has developed more strategic activities
supporting key government reforms and complementing the activities of other
significant donors. The newly established
Integrated Planning System
(IPS) (to ensure that the Government of Albania’s core policy and financial
processes function in a coherent, efficient and integrated manner) will be the
hub of DFID support to Albania for the remaining period.
Increasingly, we focus on supporting aid effectiveness and assisting the
Government's aid coordination role. DFID's contribution, along with other
donors, through the
World
Bank Trust Fund to implement the IPS will help reach this objective.
DFID continues to support the implementation, monitoring and evaluation of Albania's National Strategy for Development and Integration (NSDI). We also support the strengthening of public expenditure management complementing the NSDI.
DFID is also a partner with the Foreign and Commonwealth Office and Ministry of
Defence in the management of The
Global Conflict Prevention Pool (GCPP) which
was established in March 2001. It funds high impact initiatives
in the Balkans to help stabilise the region and move towards
integration into wider Euro-Atlantic structures (EU, North Atlantic Treaty
Organisation (NATO)).
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Other donors
The World Bank and theEuropean Union (EU) (European Commission) remain the
two most significant donors to Albania. The EU commitment for the CARDS
programme (from which Albania benefits) for 2000-6 is €4.65bn of which the UK
share is approximately 18% of total.
The successor to CARDS is the Instrument for Pre-accession Assistance (IPA) for
delivering assistance to the region for the 2007-13 period. This instrument
is in line with the principles of
aid effectiveness as agreed by the Development
Assistance Committee (DAC) members, and endeavours to deliver
targeted assistance which supports the strategic priorities of the region. Also,
a Multi-annual Indicative Planning Document (MIPD) for Albania has been produced
setting out priorities that will serve as a basis for the annual programming of
EU funds in 2007, 2008 and 2009.
DFID has also been working closely with these organisations to strengthen the capacity of the state, in partnership with civil society, to improve the quality of life for all Albanians.
Links
Last updated: 21 August 2008
