Albania one Euro and… more

TIRANA, Aug. 16 – Albanian Prime Minister Sali Berisha launched Wednesday a project offering everything to foreign direct investment (FDI) for just 1 euro. Speaking at a government meeting Berisha said foreign investors would spend only 1 euro to have land, technological water, business registration, entrance to the country and other services trying to turn the country into the most attractive one for FDI. Now Albania is the last country in the region and among the last in the world on FDI. “The country should profit from the Albanians’ genius of the free initiative,” said Berisha considering this project the only way for the poor tiny Balkan country to reach European Union standards. “Albania will become attractive if it is the cheapest and the best. We should not be illusive,” said Berisha. “This is the way to make possible to Albania and Albanians get distanced from their wildest enemy in modern Albania, poverty.”
But the idea of “Albania 1 euro” seems to be illusive in this tiny Balkan country, one of the poorest in Europe, which is far from the idea of getting practicable integration into the European Union it dreams of simply because its administration needs a lot of work to reach the EU standards, not to mention here corruption and backward technology and infrastructure.
If investors will pay 1 euro for their registration, how much their expenditure will be taking into consideration our infrastructure _ roads, energy and water supply, judiciary? An investor will come here if he has a good road to bring his products and services, if he has continuous power supply and not cut unexpectedly, if there is good water continuously, and if he trusts the local judiciary when he wants to resolve a dispute. They were considerably higher compared to our standards when such an idea was carried out in eastern Germany after its unification. East Germany was considered as the most developed in former communist countries of Eastern Europe. Speaking about such a stolen idea when applied to China or India, one for sure thinks they were more advanced, industrialized and welcoming. Otherwise why should someone come and throw the money in a country where profit may come after many years. Such money is hard to land in Albania if the government does not offer all the proper terms to a foreign investor.
Deputy Minister of Industry and Economy Eno Bozdo said that was an initiative that would urge foreign investors come to the country to produce and consequently employ people. But Bozdo also said they had still to work upon the idea on what would be offered with 1 euro. Bozdo also mentioned the figure of 100,000 hectares of free land that is either never used or not accepted by the old landowners for restitution. There comes another problem: how can the government offer land for just 1 euro to foreigners at a time when it promised to old landowners either to pay them back with land or with money. It is well known that this poor country cannot find billions of dollars to pay them back, so land restitution could be a good way out. It has been said there is no free land to compensate them all. Now it comes out there are 100,000 hectares. The Then-opposition Democrats had publicly said that no free land would be privatized or differently used unless old landowners would get restituted. They seem to have earned the landowners’ votes last year and came to power, but the newly launched project may deeply displease them and turn them against the now in-power Democrats.
Berisha’s project also sparked an interesting debate in the media. “Berisha ‘sells’ Albania for 1 euro,” wrote Korrieri newspaper. “Berisha’ Albania costs 1 euro,” “One euro for Albania,” wrote Gazeta Shqiptare. “Government’s initiative: ‘Albania, one euro,'” wrote Shqip newspaper. Besides presenting Berisha’s proposal to attract more FDI in the country critical and politically oriented comments were also present. “More than a fiscal incentive to absorb foreign investment, such an initiative is more a media ‘show’ that if taken may take to serious deformation of competition and markets from investors of the same sphere, causing problems for the country’s economy,” said economist analyst Zef Preci at the Gazeta Shqiptare newspaper.
As expected the opposition immediately came out to criticize such an idea. “With this idea Berisha reconfirmed he has not changed and that he is 15 years back,” said Socialist leader Edi Rama at a news conference.
It seems that the launched project will be a serious challenge for the new government to apply. “To claim and try to turn Albania into the most attractive country for investors is a very difficult initiative but also possible,” said Berisha. Wait and see, old and wise people would say at this first moment!