Says World Bank report
Albania ranks in the 82nd place in the world in the new report of the World Bank “Doing business in 2010”, released this week. The report was largely echoed in the local media (Alsat, News 24, 9.09.2009). The World Bank report asserts a certain improvement in business climate in the country. Albania has shortened its distance from the top-ranks, moving from the 89th to the 82nd place.
While analyzing the development of business facility schemes and action taken over the last years, the local media emphasize that the most substantial improvements were carried out during the former years. Those were improvements allowing for a real leap forward in world ranking. The rhythm of business facilitating reforms has slowed since, but has not dropped altogether, allowing for a certain progress.
Combined data
Besides improvements in the ease of doing business in Albania, a set of other data from the European Entity of Statistics, showing price indexes across Europe, make the country an attractive place for doing business. Albania was in 2008 one of the 3 cheapest places in Europe concerning the majority of the articles and the most expensive one regarding house appliances and electronics (see former Tirana Times issues). If the country were to develop full-range national production perspectives of improving export capacities might be enhanced by an improving business climate.
Regional Race
Though Albania has progressed from year to year, the county finds itself in a regional race. Adjacent Former Yugoslav Republic of Macedonia (FYROM) seems to have outperformed other regional economies as regards the number of reforms and ranks in the top 40 places. FYROM ranks globally on the 32nd place, just behind France, being the best-ranking Balkan country. FYROM best score is in Starting a business category, where the country ranks 6th and its worst score is in Dealing with construction permits, where the country ranks 137th.
Albania’s best scores are in Getting credit and Protecting investors, on which categories the country ranks 15th in the world. Albania’s worst scores are in Closing a business and Dealing with construction permits, where the country ranks 183rd (last) and 173rd respectively. Bad scores are also registered in Paying taxes (138th rank) and Employing workers (105th rank).
Lagging behind
While Albania is reported to have carried out reforms only in 3 listed categories: Starting a business, Trading across borders and Closing a business, FYROM is reported to have carried out reforms in 7 listed categories: Starting a business, Dealing with construction permits, Employing workers, Registering property, Getting credit, Protecting investors and Paying taxes. Though Albania is reported to have implemented reforms in the Closing a business category, the country still ranks last in this respect. Albania is 183th out of 183 surveyed countries. It is easier to start a business in Albania (46th place) than to close one.
This is reverse to Kosovo’s positioning as 164th country in the list as regards Starting a business and 28th regarding Closing a business. Kosovo ranks globally on the 113th place and has satisfying results in Employing workers (34th position) and Getting credit (43rd position).
All 10 Western Balkan countries included in Doing Business 2010 improved their respective business environments. Former Yugoslavian Republic of Macedonia ranked best at 32d, while Bosnia trailed the list in the 116th place.
Bulgaria held 44th position, while Slovenia improved its ranking from 58 to position 53. Romania dropped down ten positions to 55th place on the list. Montenegro was ranked 71st, Albania 82d, and Serbia 88th. Croatia was placed at 103d, while Kosovo was positioned 113th.
The report completes the seventh in a series of surveys conducted by the World Bank and the International Finance Corporation. Although these reports do not measure all aspects of the business environment – such as security, macroeconomic stability, corruption, skill level, or the strength of financial systems – they are broadly seen as one of the most accurate gauges of the constantly changing business environment worldwide
Ease of… Doing Business in Albania
DB 2010 rank DB 2009 rank Change in rank
Doing Business 82 89 +7
Starting a Business 46 68 +22
Construction Permits 173 170 -3
Employing Workers 105 105 0
Registering Property 70 62 -8
Getting Credit 15 12 -3
Protecting Investors 15 14 -1
Paying Taxes 138 145 +7
Trading Across Bord. 66 83 +17
Enforcing Contracts 91 90 -1
Closing a Business 183 183 0
