WB’s Lvovsky “A modern, competitive, prosperous Albania is within reach. But the agenda is large and some reforms are difficult and require national consensus,” says the World Bank country manager
TIRANA, July 13 – Albania’s challenge in the coming period is to broaden the sources of growth, increase productivity and create an economic climate that will lead to more new jobs. The suggestion is made by Kseniya Lvovsky, the World Bank Country Manager for Albania. In a recent interview with local Scan TV, Lvovsky says Albania needs to invest in human capital and protect the natural capital it is endowed by. For sustaining growth and moving towards the EU living standards, it will be also important to give more attention to managing land, water and environmental quality, strengthen the rule of law, make the regulations clearer and make sure they are applied and enforced, said the World Bank country manager. Although the Albanian economy has come through the recent global turmoil in better shape than many other countries, there is little room for complacency given the weak recovery in the EU and problems in some of Albania’s most important trading partners such as Greece or Italy. Elaborating on reforms the country needs to make, the World Bank country manager called for consensus among political parties. “Regional cooperation and progress towards EU integration are important for future competiveness and growth. A modern, competitive, prosperous Albania is within reach. But the agenda is large and some reforms are difficult and require national consensus. Many of them require not only changes in legislation but in behavior of all economic actors. For this to happen, everyone has to work towards this future- government, main political parties, municipalities, local communities and civil society,” said Lvovsky. In its new grow agenda for Albania, the World Bank has recently suggested that Albania can sustain growth in the future by implementing a new generation of policies and reforms focused mainly on education and skills, ICT development, the energy sector, and better governance and rule of law. “Reaching the upper middle income country status in a relatively short time is a major achievement. It also poses new challenges. Under this new status Albania has to compete with low-wage poorer countries as well as with rich country innovators,” said Kseniya Lvovsky earlier. During its almost 20 years in Albania, the World Bank has supported country’s development across a broad range of sectors. It has helped to modernize Albania’s public administration and improve its public expenditure management practices. World Bank projects have focused on health care, education, and improving social protection and social service delivery systems. Local infrastructure has been upgraded, and financing of national and rural roads has improved communications within the country, facilitating people’s access to economic and social centers and services. The World Bank has helped Albania to take important steps to upgrade the regulatory framework for businesses and to remove harmful administrative barriers. Albania was one of the top ten reformers worldwide in 2009. Albania joined the World Bank in 1991. World Bank commitments to the country to date total approximately US$1.4 billion for 69 projects. Currently there are 14 operations under implementation totaling US$263 million in IDA credits and IBRD loans; US$180 million in co-financing loans, credits, and grants; and US$35 million of recipient-executed Trust Funds – amounting to a consolidated financial package of around US$480 million. Six new operations are under preparation.
