Micro, small and medium enterprises are the driving force for Albania’s economic growth and job creation. They account for 99.5 percent of private enterprises and about 75 percent of total employment in non-agricultural sector. USAID is helping Albanian enterprises increase productivity and competitiveness.

Overview

Albania has played a positive, moderating role in the Balkans and in recent years has made head-long strides towards Euro-Atlantic integration—signing a Stabilization and Association Agreement with the European Union and receiving an invitation to join NATO both in 2008. Still, significant challenges exist for Albania to become a socially and economically viable democracy.

Under the U.S. Government’s Foreign Assistance framework, USAID’s development program strengthens governmental accountability and transparency, reduces corruption, increases the competitiveness of Albania’s private sector, improves the delivery of quality healthcare, helps ensure a reliable and affordable energy supply, and reduces trafficking in persons. In January 2009, USAID will begin implementing a Stage II Millennium Challenge Corporation (MCC) Threshold program in Albania to address additional corruption-related reforms in the country’s public administration and justice sectors.

INCREASE PRIVATE SECTOR PRODUCTIVITY AND COMPETITIVENESS
Since 2001, Albania has maintained an impressive GDP growth rate, averaging roughly five percent each year, and poverty levels continue to decline. Despite progress, Albania high levels of unemployment, low foreign direct investment, poor infrastructure, and rising trade deficits. USAID’s program strengthens the competitive capacity of the private sector, facilitate access to commercial credit for small and medium-sized enterprises (SME); and improve the enabling environment that enhances business development, trade and investment. Major efforts are particularly focused on improving SME productivity and competitiveness by promoting technological innovations, adoption of international quality standards, application of good management practices and marketing techniques. To further support the private sector, USAID provides direct assistance to Albania’s energy sector.

PROMOTE GOOD GOVERNANCE AND LOCAL ECONOMIC DEVELOPMENT
Albania has made real progress towards replacing the highly centralized political system inherited from communist times with one that gives real authority and autonomy to Albania’s local governments. USAID’s local governance project supports such local government functions as planning, economic development, and public access management that help create a favorable climate for business and investment. The rule of law program serves to foster models of accountable and transparent courts that uphold the rule of law.

STRENGTHEN PRIMARY HEALTH CARE SERVICES FOR ALL CITIZENS
Better, more accessible health systems contribute to improved health of both adults and children—helping to achieve sustainable development and improve the well-being and productivity of its citizens. To reduce the incidence of disease, promote primary healthcare, and improve how scarce resources are managed, USAID is working with the Ministry of Health to change the way primary health care in Albania is organized, financed, and delivered. USAID programs improve the efficiency in the financing and delivery of services, citizen access to primary health care, the quality and availability of reproductive and maternal services, and the capacity of the government to respond to public health threats.

PREVENT TRAFFICKING IN PERSONS AND PROTECT VICTIMS
Albania is a source country for women and children trafficked for sexual and economic exploitation in internally, in the region, and to other parts of Europe. In order to reduce trafficking, protect victims and prosecute traffickers, USAID reaches at-risk populations and informs the general population about trafficking issues; addresses the root causes of poverty and social stigmatization; enhances services and witness protection to ensure successful reintegration for victims; and builds the capacity of the government and non-governmental organizations to respond to trafficking in persons. These two, six-year programs are entering their final years of implementation in FY 2009. 

IMPROVING ACCOUNTABILITY, TRANSPARENCY, PUBLIC ACCESS, AND EFFICIENCY OF GOVERNMENT INSTITUTIONS
Albania’s $15.7 million “Stage II” MCC Threshold program builds upon the successes of the first program which has sought to reduce the levels of corruption in Albania’s public administration: public procurement, tax administration, and business registration systems. Managed by USAID, this new program will build the capacity of the judiciary, enhance the capability of law enforcement to investigate corruption, and continue reforms in Albania’s tax and business licensing administrations. Progress in these five components will assist Albania in achieving the Millennium Development Goals and help qualify for MCC compact status.