Download Albania

 Relatively
small and underdeveloped region
◦ Less than 20 million people
◦ GDP is 68.9 billion EUR (7% of EU10, 0.5% of EU27)
◦ GDP in PPP p.c. 7850 EUR (49% of EU10, 31% of
EU27 average)
 Size,
population and level of economic
development vary among the countries of the
region
_________
Western Balkans covers: Albania, Bosnia and Herzegovina,
Macedonia, Montenegro, Serbia, and Kosovo*
1
Population
(million)
GDP
GDP in EUR at PPP,
GDP in EUR at
(EUR bn)
per capita, EU 27=100
PPP, per capita
Albania
2.8
9.2
27
6800
Bosnia and
Herzeg.
3.8
13.3
27
6800
2.1
0.6
7.2
1.7
7.5
3.3
30.9
4.7
38
42
35
n/a
9500
10500
8700
4810
18.3
68.9
34
7850
98.9
502.9
972
12630
63
100
15900
25100
Macedonia
Montenegro
Serbia
Kosovo*
Western
Balkans
EU-10
EU-27
Figure 1.1: Real GDP growth (in %)
12
10
8
6
4
2
0
-2
-4
-6
Albania
BiH
2001-2003
Macedonia
2004-2006
Montenegro
2007
2008
Serbia
2009
Kosovo*
2010
2011
Western
Balkans
EU-10
2012 proj1
Strong economic growth in the pre crisis period, followed by
sharp decline in 2009 and slow recovery after 2009
Figure 1.2: Current account deficit, 2007-2011 (% of GDP)
The economic crisis resulted in the reduction of imports
and current account deficits
Figure 1.3: External debt, 2007-2001 (% of GDP)
120
100
80
2007
2008
60
2009
2010
40
2011
20
0
Albania
BiH
Macedonia
Montenegro
Serbia
Kosovo*
Western
Balkans
•External debt recorded permanent growth in the pre-crisis period.
•In spite of the reduced current account deficits in 2009 and 2010,
foreign debt recorded further growth.
Figure 1.4: Fiscal balance, 2007-2011 (% of GDP)
•In 2007, the region had budget surplus of 0.3%.
•In 2009, the regional budget deficit averaged 4.9 due to
extensive borrowing from the IMF and other IFIs
•It remained below the average for CEEB (5.4%)
Figure 1.5: General government debt, 2007-2011 (% of GDP)
•The general government debt increased from 37% of GDP in
2009 to 44% at the end of 2011
•Debt levels remain high compared to pre-crisis levels of around
30%
Figure 1.6: Inflows of FDI in Western Balkan countries,
2007-2011 (% of GDP)
•FDI inflows strongly affected by the crisis.
•In the pre-crisis period, FDI 5.688 mil. EUR in 2007 (9.3% of
GDP).
•in 2008 the region experienced a decrease in FDI inflows, mostly
due to the impact of the global economic crisis.
STRENGTHS
WEAKNESSES
GDP growth remained positive during the crisis High exposure to the Eurozone crisis
Contracting current account deficit
High and growing general government debt
Relatively low external debt (the lowest in the
region)
Contracting fiscal deficit
STRENGTHS
Contracting fiscal deficit
Contracting current account deficit
WEAKNESSES
Current account deficit
High and growing general government debt
Slow recovery of GDP
High exposure to the Eurozone crisis
High external debt
World Bank survey “Doing Business” is a comprehensive
analysis of regulations and obstacles to starting, operating, and
closing a business, compares the ease of doing business
among more than 180 countries around the world
Albania
BiH
Macedonia
Montenegro
Serbia
Kosovo
Western
Balkans
EU-10
EASE OF DOING BUSINESS RANK
85
126
23
51
86
98
78
47
Starting a Business
62
162
5
58
42
126
76
77
Dealing with construction permits
185
163
65
176
179
144
152
85
Registering Property
121
93
50
117
41
76
83
41
Getting electricity
154
158 101
69
76
116
112
103
Getting credit
23
70
23
4
40
23
31
39
Protecting Investors
17
100
19
32
82
100
58
72
Paying taxes
160
128
24
81
149
44
98
90
Trading Across Borders
79
103
76
42
94
124
86
56
Enforcing Contracts
85
120
59
135
103
138
107
49
Closing business
66
83
30
44
103
87
69
56
Values better than the Western Balkans average are in red
Country rank
95
Country
CPI score
3.1
69
Albania
Bosnia and
Herzegovina
Macedonia
66
Montenegro
4.0
86
Serbia
3.3
112
Kosovo*
2.9
87
55
Western Balkans
EU-10
3.4
4.7
91
3.2
3.9
Transparency International’s Corruption Perception Index measures the
perceived levels of public sector corruption in more than 170 countries.
1 Values better than the Western Balkans average are in red
Regulatory quality
Rule of law
Control of
corruption
Albania
0.23
-0.44
-0.43
Bosnia and Herzegovina
-0.1
-0.36
-0.32
Macedonia
0.28
-0.30
-0.06
Montenegro
-0.06
-0.02
-0.33
Serbia
-0.2
-0.39
-0.21
Kosovo*
-0.04
-0.64
-0.64
Western Balkans
0.02
-0.36
-0.33
EU-10
0.97
0.61
0.25
WGI permit meaningful cross-country comparisons in governance as
well as monitoring progress over time
1 Values better than the Western Balkans average are in red
Albania
Bosnia and
Herzegovina
Macedonia
Montenegro
Serbia
Western
Balkans
EU-10
Global Competitiveness
Index - overall rankings
1. Basic requirements
2. Efficiency enhancers
3. Innovation and
sophistication factors
89
88
80
72
95
85
54
87
92
81
97
71
84
74
74
95
88
82
87
55
47
113
99
110
69
124
103 61
The 2012/13 rank is out of 144 countries. The lower the rank number, the better
1 Values better than the Western Balkans average are in red
STRENGTHS
Macroeconomic stability
Reduced business barriers in the area of
protecting investors, starting a business, and
closing a business
Quality of regulations above the regional
average
WEAKNESSES
Level of competitiveness
Capability for innovation
Business barriers in the area of construction
permits and registering property
Corruption
Market size
Rule of law
STRENGTHS
WEAKNESSES
Reduced business barriers in the area of Level of competitiveness
protecting investors and closing a business
Quality of regulations
Capability for innovation
Macroeconomic stability
Business barriers in the area of construction
permits, enforcing contracts and paying taxes
Corruption
Market size
Rule of law
BiH
Macedonia
Montenegro
Serbia
√ (RS)
√
√
√
Kosovo*
Albania
√
1.1. Systemic approach to a better regulation agenda
Regulatory reform strategy
√ (BiH state & FBiH)
Segments of the regulatory reform strategy as a part of other country strategic documents
√
1.2. Main motive for the regulatory reform?
Need to boost competitiveness and growth
√
√
√
√
√
√
International commitment (e.g. EU integration commitment)
√
√
√
√
√
√
Government reform agenda
√
√
√
√
√
√
√
√ (BiH state & FBiH)
√
√
√
√
√ (RS)
√
1.3. Leadership of the regulatory reform implementation
Government
Businesses
Citizens, national opinion
√
NGOs
√
√
Country
Albania
Bosnia &
Herzegovina
- BiH State
- BiH Federation
- Republic of Srpska
Macedonia
Montenegro
Serbia
Kosovo*
Central regulatory oversight authority
Regulatory reform task force
No oversight authority
No oversight authority
Council for regulatory reform
Central body for better regulation and capacity
building within the Ministry of Information
Society and Administration (MIOA)1
Council for Regulatory Reform and
Improvement of Business Environment
Office for RIA and Regulatory Reform
Council on Economic Development
Montenegro
Serbia
√
√
√
Kosovo*
Macedonia
Bosnia and
Herzegovina
Albania
Table 3.3: Better regulation agenda - use of Regulatory Impact Analysis (RIA) in the government
1. Regulatory Impact Analysis (RIA)
Formally introduced
Initiated
√
√ (BiH state, FBiH
and RS)
√
None
2. Regulatory Impact Analysis
√
Government-wide
For specific sectors or policy areas
RIA pilots
√
√ (BiH state & RS)
1
√
√
Kosovo*
Serbia
Macedonia
√
Montenegro
BiH
Albania
√
1. Consultation with stakeholders in the government
1.1. Is consultation mandatory during the period of drafting laws?
For all laws
For complex and systematic laws
1
√
√
√
√
1.2. Is public consultation with parties affected by regulations a part of developing draft laws?
Always
In most of the cases
In some cases
1.3. What forms of public consultation are routinely used:
Broad circulation of proposals for comment
(e.g. through Internet)
Public meetings, roundtables, focus groups
Advisors or experts
2. Forward planning of regulatory activities
2.1. Plan of legislative activities
Fully implemented/publicly available plan
Partially implemented/not publicly available plan
2.2. Is there monitoring of the implementation of the legislative
activities plan
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
2005
INSTITUTIONAL
FRAMEWORK
Regulatory reform
Task Force
Inter-ministerial
Coordination Body
Technical working
groups, in 7 policy
areas
2005
REGULATORY REFORM
Two-pronged Regulatory
reform
- Reducing the existing
barriers to businesses
(business registration;
licensing)
-RIA
2009
REGULATORY REFORM
CONTINUATION
Two-pronged
Regulatory reform
- Reducing the existing
barriers to businesses
(Inspections)
-RIA
2010
RIA IMPLEMENTATION
-RIA pilots
-RIA trainings
-RIA guidelines
- RIA strategy:
(December 2010)
STRENGTHS
Strategic approach to regulatory reform
Regulatory reform strategy as a separate
strategic document
Established
Institutional framework –
Regulatory reform Task Force
Successfully implemented Program of reduction
of administrative barriers to businesses licensing system and business registration.
Publicly available plan of legislative activities
WEAKNESSES
Slow implementation of regulatory strategy
Regulatory reform office abolished
Public consultation obligatory only for complex
and systemic laws
RIA implementation still in its initial phase
Insufficient
cooperation
between
the
Government and the Parliament in the
implementation of regulatory reform.
STRENGTHS
Mostly strategic approach to regulatory reform
WEAKNESSES
Insufficient cooperation between the
Government and the Parliament in the
implementation of regulatory reform.
Established Institutional framework
Insufficient interface between sub-national and
national level of government in the regulatory
reform process.
Implemented Program of reduction of Uniqual progress in RIA introduction and
administrative barriers to businesses
implementation
Publicly available plan of legislative activities
Lack of capacities for RIA implementation
STRENGTHS
WEAKNESSES
2nd Copenhagen economic criteria
Broad political consensus on the essentials of EU candidate status not yet granted
economic policy
High private sector share in GDP
Underdeveloped non-banking sector
High level of trade liberalization
Legal system weaknesses, in the area of rule of
law, property rights, and judicial independence
High level of price liberalization
Low share of R&D spending in GDP
High level of trade integration with the EU
Low level of state interference in the economy
STRENGTHS
WEAKNESSES
nd
2 Copenhagen economic criteria
Broad political consensus on the essentials of Moderate progress towards the EU
economic policy
Underdeveloped non-banking sector
High level of trade liberalization
Legal system weaknesses, in the area of rule of
law, property rights, and judicial independence
High level of price liberalization
Low share of R&D spending in GDP
High level of trade integration with the EU Unemployment rate
Kosovo
Serbia
Montenegro
Macedonia
Bosnia and
Herzegovina
Economy related negotiating
chapters of the EU acquis
Albania
3rd Copenhagen Criteria – Acceptance of the Community acquis
Chapter 1: Free movement of goods
Chapter 5: Public procurement
Chapter 6: Company law
Chapter 8: Competition policy
Chapter 9: Financial Services
Chapter 11: Agriculture and rural development
Chapter 15: Energy
Chapter 16: Taxation
Chapter 17: Economic and Monetary policy
Chapter 18: Statistics
Chapter 20: Enterprise and industrial policy
Chapter 28: Consumer Protection
Chapter 29: Customs Union
Chapter 30: External Relations
 Yellow
- the country has the capacity to comply with the requirements of the acquis in the medium term;
Orange – additional efforts are needed to align with the EU acquis and to implement it effectively in the
medium term
Brown - considerable and sustained efforts are needed to align with the EU acquis and to implement it
effectively in the medium term.
Table 5.1: The structure of parliaments in Western Balkan countries
Unicameral
Albania
Bicameral
√
Bosnia and Herzegovina
- Bosnia and Herzegovina – state level
√
- Federation of Bosnia and Herzegovina
√
- Republika Srpska
√
Macedonia
√
Montenegro
√
Serbia
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
Kosovo*
√
√
Serbia
Montenegro
Direct parliamentary oversight of the government activity
Parliamentary questions and interpellations
Government annual reports to the parliament
Ministries’ quarterly reports to the related committees
Budgetary scrutiny and financial control
Parliamentary oversight over implementing public agencies
Telecommunication regulatory body
Agency submits reports to the parliamentary committees
Parliament adopts the reports
Parliament nominates executives
Energy regulatory body
Agency submits reports to the parliamentary committees
Parliament adopts the reports
Parliament nominates executives
BiH
√
√
Albania
Macedonia
Table 5.2: Parliamentary oversight of the government activity
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
Table 5.3: Number of parliamentary committees in Western Balkan
countries’ parliaments
Albania
Bosnia and Herzegovina:
- Bosnia and Herzegovina – state level1
- Federation of Bosnia and Herzegovina2
- Republika Srpska
Macedonia
Montenegro
Serbia
Kosovo*
Number of parliamentary
committees
8
16
27
22
21
11
19+13
164
Table 5.4: Parliamentary Committees for Economy and Finance in Western
Balkan Countries
Country
Parliamentary Committees for Economy and
Finance
Albania
Bosnia and Herzegovina
Economy and Finance Committee
23
Bosnia and Herzegovina – state
level
Finances and Budget Committee
Joint committee for economic reforms and
development
Committee for economic and financial policy
Finances and Budget Committee
Audit Committee
Committee on Financing and Budget
Committee on economy
Committee on economy, finance and budget
Committee on Finance, State Budget and Control of
Public Spending
Committee on the Economy, Regional Development,
Trade, Tourism and Energy
Committee for Budget and Finance
The Committee on Oversight of Public Finances
Committee on Economy, Trade, Industry, Energy,
Transport and Telecommunication
9
Federation of BiH
Republika Srpska
Macedonia
Montenegro
Serbia
Kosovo*
No. of committee
members
11
11
9+21
9
14
12
12
17
17
11
9
11
Parliamentary Committees for Economy
and Finance
Economic
policies
State budget:
consideration and
execution
State budget:
oversight of
implementation
Public
finances
Financial and
banking system
Consideration of
regulations in the
field of budget and
finance
Consideration of
regulations in the
field of economy
Albania:
Economy and Finance
Committee
Macedonia:
√
√
√
√
√
√
√
√
√
√
√
√
Committee on
Financing and Budget
Committee on
economy
Montenegro:
Committee on
economy, finance and
budget
√
√
√
√
√
√
√
√
√
Montenegro
Serbia
Kosovo*
Research department
x
x (state level)
Number of employees
3
5
Number of experts
3
1
Number of experts working for parliamentary department /committee(s)
Department/ committee for Economy and Finance
3 (BiH state)
Number of employees
4
10 (FBiH)
x
17
4
6
2
x
10
7
x
6
4
4
4
13*
10
2
1
4*
8
11
6
4
3
3
2
3 
3
6
5
7
3
1
1
6
3
Macedonia
BiH
Albania
Table 5.8: Parliamentary research departments and experts in WBCs
3 (RS)
Number of experts
4
3 (BiH state)
6 (FBiH)
1 (+2)3 (RS)
Department / committee for legislation
Number of employees
5
Number of experts
5
3 (BiH state)
5 (FBiH)
1 (RS)
3 (BiH state)
5 (FBH)
1 (+2) (RS)
EU integrations department
Number of employees
5
Number of experts
5
2 (BiH state)
2 (FBiH)
1 (RS)
2 (BiH state)
8 (FBiH)
1 (+2) (RS)
1. Budgetary independence of the parliament
Budget of the parliament as a segment of
√
√
the government budget
Partial budgetary independence - Budget
Council
Full budgetary independence
2. Available financial resources for drafting laws
Sufficient
Limited
√
√
√
Kosovo*
Serbia
Montenegro
Macedonia
BiH
Albania
Table 5.9: Budgetary independence of parliaments
√
√
√
√
√
√
√
Kosovo*
Serbia
Montenegro
Kosovo*
Serbia
Macedonia
Montenegro
Bosnia and
Herzegovina
Macedonia
Bosnia and
Herzegovina
1. Public hearing with stakeholders
Albania
Albania
Table 5.10: Use of better regulation: regulatory quality tools related to
transparency in the legislation process in Western Balkan parliaments
1. Public hearing with stakeholders
1.1. Is public hearing in the parliament mandatory? conducted during the consideration of laws in the parliament?
1.1. Is public hearing in the parliament mandatory? conducted during the consideration of laws in the parliament?
Yes
No
Yes
No
√
√
√
√√
√
√
√
√√
√
√
√
√
√
√
1.2. Is public hearing conducted during the consideration of laws in the parliament?
1.2. Is public hearing conducted during the consideration of laws in the parliament?
For all laws
For some laws
2. Forward planning of regulatory activities
For all laws
For some laws
2.1. Plan of legislative activities
2. Forward planning ofFully
regulatory
activities
implemented/publicly
available plan
Partially implemented/not publicly available plan
2.1. Plan of legislative activities
2.2 . Harmonization of forward planning of
Fully implemented/publicly
available plan
regulatory activities between government and
parliament
Partially implemented/not
publicly available plan
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
3. Regulatory Impact Analysis (RIA)
2.2 . Harmonization of forward
planning
regulatory
Formally introduced
RIA asof
a part
of explanatory
note of the draft law (in the Rules of Procedure of
activities between government and parliament
the Parliament)
Initiated
Impact Analysis
(RIA)
None
3. Regulatory
Formally introduced RIA as a part of explanatory note
of the draft law (in the Rules of Procedure of the
Parliament)
Initiated
None
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
Albania: Economy and Finance Committee
1. Role of the committee in the consideration, execution and oversight of the implementation of the
state budget:
2.
reports of the ministry of finance
active role of the committee in the budget decision-making role
monitoring of the implementation of the state budget
state audit institution report
Strengthening the role of the committee in economic policy creation
Documents related to the effect of the crisis and external shocks
National development plans and strategies
3. Reports of the regulatory bodies/agencies that report to this committee
- State audit institution
- Competition Agency
4. Cooperation of the Economy and Finance Committee with the EU Integrations Committee in the
following areas:
-
progress in the EU integrations process
State budget: consideration, execution and oversight of implementation
harmonization of the legislation with the EU acquis
Albania: Economy and Finance Committee
5. Types of analysis to be prepared in order to improve the efficiency of the Economy and finance
committee
-
consideration, execution and oversight of implementation of the state budget
-
economic policy analysis
-
fiscal policy analysis
-
sharing the knowledge and experience with the relevant committees from the region in the areas of
common interest
6. Cooperation with the private sector and NGOs
-
Chambers of commerce
-
Foreign investors council
-
SMEs
-
NGOs
7. Improving the control function of the parliaments over executives:
-
annual government reports
-
reports of the relevant ministries related to their work
-
questions and interpellations
Albania: EU integrations committee
1. Cooperation of the EU Integrations Committee with other committees
(Economy and Finance Committee) in the following areas:
- EU integrations and their influence on the state budget
2. Types of analysis to be prepared in order to improve the efficiency of the
EU Integrations Committee
- achieved progress in the EU integrations process
- progress in the acceptance of the EU acquis
- sharing the knowledge and experience with the relevant committees
from the region in the area of the EU integration process
- initiatives of the committee related to EU integrations
3. Cooperation with the private sector and NGOs
- Chambers of commerce
- Foreign investors council
- NGOs
4. Improving the control function of the parliaments over executives:
- reports of the EU integration office related to its work
- questions and interpellations related to the EU integration process