Corruption seen as main investment obstacle in Albania, Western Balkans

BRUSSELS, Nov 16 – Corruption and the unpredictability of regulations are the main obstacles to investments in the Western Balkans both for EU-based businesses and for those located in the region, according to a study presented by Eurochambres, the European Association of Chambers of Commerce and Industry.
“We reiterate the great potential of the Western Balkans,” said Dirk Vantyghem, the director International Affairs for Eurochambres, who added that political leaders in the EU area “must intensify their cooperation in order to combat the absence of transparency and uncertainty in a legal and regulatory context in the Western Balkans benefiting the economies in both regions.”
According to a survey presented in the report, 52 percent of entrepreneurs in the region remain dissatisfied with the existing legal framework in their country, claiming that it does not prove a reliable tool for resolving disputes between their businesses and public authorities.
“Which countries are making the greatest strides to attract investments? Those where reforms are most necessary, such as Albania and Montenegro,” explained Ventyghem, “which at the same time are the countries with the longest battle to fight in terms of combating corruption and implementing the rule of law.”
In any case, “it is very important to stimulate investments in the region and among the same countries in the region,” concluded the head of Eurochambres, who sees the upcoming liberalization as “an important element on both a psychological and practical level”.
Interestingly enough, a report on corruption published this week by Transparency International, ranked Albania 95th in the world, ten places lower than it had in 2008. Only Bosnia & Herzegovina was ranked lower.
The index showed Croatia to be the least corrupt country in the region, ranked in 66th place, followed by Montenegro at 69th, Romania, Bulgaria and Macedonia tied at 71st , Serbia at 83rd , Albania at 95th and Bosnia ranked 99th.
The Eurochambres report also highlighted the serious lack of knowledge, on the European side, of the investment-related opportunities in the region, and the need, on the Western Balkan side, for a more rapid and full alignment with EU standards, as well as more efficient and up-to-date customs procedures.
However, the climate for Foreign Direct Investments (FDI) in the Western Balkans is receiving an increasingly positive appraisal from European businesses.
Eight cluster partnerships involving 15 EU Chambers and 18 Western Balkan Chambers have been working over the past ten months to help attract and retain FDI in the region.
The survey by Eurochambers was presented in the presence of the European Commission and EU Missions to the Western Balkan countries at the closing of the PARTNERS for Investment Promotion Conference, an Eurochambers’ initiative, supported by the European Union, aimed at developing a favorable environment for attracting and retaining foreign investments in Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Montenegro and Serbia.