TIRANA, Sep 15lbania’s economy gained 3 spots in the 2009 Economic Freedom Index, compiled by US think tank Heritage Foundation. The country ranked 62nd out of 179.
Albania scored 63.7 in terms of economic freedom, up 1.3 points compared to last year and showing improvement in three of the 10 categories, bringing it to 27th place in the European region of 43 countries.
Comparatively, Albania’s freedom level is on par with that of other developing Balkan states like Croatia and FYROM.
“Fiscal freedom, investment freedom, and financial freedom all rate significantly higher than the typical country’s levels,” the US think-tank said in its report.
Albania recently adopted a flat rate of 10% for both individual and corporate taxes, and the government has focused on developing an economic strategy that fosters growth driven by the private sector. However, Albania’s overall score is reduced by weak property rights and pervasive corruption.
“Albania’s judicial system enforces the law weakly and is one of the country’s most tainted institutions. Judges are often appointed strictly for political reasons and can be corrupt. Organized crime is a major obstacle to the effective administration of justice. Judges are subject to intimidation, pressure, and bribery, and judicial reform remains very slow. Protection of intellectual property rights is weak, and violations of copyrights and trademarks are common. Land rights are not well defined, especially in coastal areas, and 70 percent of all civil court cases involve property disputes,” the report summarized.
Money-laundering is a significant problem in the cash-based economy. The low property rights score is largely a result of political interference in the judiciary, which leads to erratic enforcement of laws, according to the report.
“Albania’s economic freedom ranks above the world average, and its score has risen rapidly over the years, a noteworthy achievement in a region characterized by political fragmentation and instability,” the report stated.
Category Score EF avg.
Business Freedom 67 64.3
Trade Freedom 75.8 73.2
Fiscal Freedom 92.8 74.9
Government Size 75.6 65
Monetary Freedom 79.6 74
Investment Freedom 70 48.8
Financial Freedom 70 49.1
Property Rights 30 44
Corruption 29 40.3
Labor Freedom 47.2 61.3
