TIRANA, Nov.5 – The Global Competitiveness Report conclusions on Albania has worried domestic economists, though Albanian politicians have yet to comment on the report. Ilir Ciko, ex- deputy minister for the Economy and one of the contributors to this report, argues that the decline of Albania in the rankings has been influenced by the low levels of efficiency in the state bureaucracy. Ciko criticizes the exclusive focus of the government on taxes and reform of fiscal policies. “Taxes have never been the primary concern of Albanian businessmen, for their impact of their system of functioning. Other factors have been listed by Albanian entrepreneurs as more important,” says Ciko.
Albania’s position
Albania is ranked 109th on the list of 131 countries, as far as its global competitiveness is concerned, a fall of eleven places compared to last year. The report examines four main indicators which are institutions, infrastructure, macroeconomic stability and elementary education. The first two have made Albania’s position quite difficult, pinpointing in the report the lack of property and intellectual rights, the lack of transparent policies on the side of state administration, etc. The report lists Albania as 122nd out of 131 as far as transparency is concerned, considering the many faults of the judicial system and nepotism in administration. Other major problems identified have been the energy crisis and low spending on education. The only positive assessment has been given in the field of elementary education where Albania ranks 65th.
An important report
The report is published by The World Economic Forum, which continues its tradition with the 29th edition of the annual Global Competitiveness Index, featuring the latest indicators from the Executive Opinion Survey. The Report assesses over 130 developed and emerging economies and presents country profiles highlighting strengths and weaknesses of each economy. The United States tops the overall ranking in The Global Competitiveness Report 2007-2008. Switzerland is in second position followed by Denmark, Sweden, Germany, Finland and Singapore, respectively.
The rankings are calculated from both publicly available data and the Executive Opinion Survey, a comprehensive annual survey conducted by the World Economic Forum together with its network of Partner Institutes (leading research institutes and business organizations) in the countries covered by the Report. This year, over 11,000 business leaders were polled in a record 131 countries.This report is used by foreign investors to judge their options in Albania and is also a source used by “Transparency International” to derive its corruption index.
