The report shows corruption remains the most problematic factor for doing business in Albania for 25.5 percent of respondents, followed by access to financing for 20.3 percent, and inefficient government bureaucracy at 12.7 percent
TIRANA, Sept. 4 – Albania lost six places in the 2013-2014 Global Competitiveness report published this week by the World Economic Forum, ranking 95th among 148 economies on deteriorating basic requirements, efficiency enhancers and innovation and sophistication factors. In this year’s report Albania was sandwiched between Jamaica and Kenya, lagging behind all regional countries, except for Serbia which ranked 101st. Albania ranked 89th in the 2012-2013 global competitiveness report and 78th in the 2011-2012 report.
The report shows corruption remains the most problematic factor for doing business in Albania for 25.5 percent of respondents, followed by access to financing for 20.3 percent, inefficient government bureaucracy at 12.7 percent, tax regulations at 11.6 percent, and crime and theft at 9.8 percent.
With a score of 3.8 Albania ranked worst in innovation sophistication factors (119th), and slightly better on efficiency enhancers (100th), and basic requirements (94th) in a 148 country list on a 1 to 7 scale. The report ranked Albania’s macroeconomic environment, which suffers from public debt at 62 percent of the GDP, 94th. Institutions and infrastructure were placed 118th and 99th respectively. Property rights and judicial independence continue hindering progress in the institutions pillar ranking 137th and 134th respectively.
In the efficiency enhancers pillar, financial market development ranked 128th, market size 107th, labour market efficiency 67th, and goods market efficiency 97th.
Business sophistication and innovation rank Albania 122th and 119th. The report describes Albania’s economy as dominated by services accounting for 60 percent of the GDP and the agriculture and manufacturing industries with 20 percent each.
The Global Competitiveness Index is based on 12 pillars of competitiveness, providing a comprehensive picture of the competitiveness landscape in countries around the world at all stages of development. The pillars include institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation.
An earlier World Bank report has warned enduring politicization of the public administration and incomplete separation of powers, exemplified by instances of political interference in judicial processes, remain serious obstacles in Albania. “Further efforts to strengthen the rule of law, ensure security of property rights, eliminate corruption, and improve government effectiveness are necessary to accelerate Albania’s integration with the EU, increase the country’s international competitiveness as an investment destination, and improve the quality and efficiency of public service delivery,” says the report.
