Higher FDI in 2009

TIRANA, Sep 21؁lbania ranks second among economies in transition for attracting foreign direct investments (FDI). This was the conclusion of the World Investment Report 2009, presented by the United Nation Office in Albania, and which is annually prepared by UN Conference for Trade And Development (UNCTAD). The report keeps a close on account on foreign investments worldwide before and after the global economic crisis, and the impact of such investments in economic sectors such as agriculture.
WIR 2009 notes the foreign direct investments have shrunk worldwide as a result of the crisis. Global FDI in 2007 amounted to 2 trillion USD. In 2008 it dropped to 1.7 trillion USD and The report expects FDI growth to recover slightly in 2010 and reach their peak in 2011. Another interesting fact is that the crisis changed the trend regarding FDI’s and type of economies. Developing economies and those in transition experienced an investment growth of 43%, while the developed saw a shrunk in general investment in their own countries or abroad.
“In South East Europe, Albania and Montenegro have enjoyed a positive development in foreign direct investments in 2008. Compared to other economies in transition worldwide, Albania ranked second, only behind Armenia, in FDI growth in 2008 with 45%,” the UN report states.
Such a significant growth in FDI in Albania, similar to those experienced in other countries in the region have resulted from “privatization of big state owned companies and the general improvement of the business environment,” continues the report in its chapter focusing on SEE countries. The biggest challenge for Albania and the rest of the region is the future of such privatizations and their effect in employment and economic performance of the country.
“The latest reforms implemented by the government, such as the privatization of state owned companies were made with the intent to attract more foreign investment in the country and has helped Albania record a significant growth for 2008. The challenge ahead is to keep a stable FDI growth level with the right policies and the creation of the right environment. The United Nations will continue to support the government in its efforts to create the right environment to stimulate the sustainable growth of foreign direct investments in the country,” Gulden Turkoz-Cosslet said, the UN Resident Coordinator to Albania and Resident Representative of PNUD.
The United Nations Development Programme has just launched a Regional Trade and Investment Project in Albania. The project aims to enhance capacity of national agencies in Albania to collect, analyze, and disseminate data on FDI and Trans National Corporations’ activities. With proper information, sound policies can be formulated conducive to sustainable development and the country’s participation in the world economy. Relevant and timely data on FDI and TNC activities and sufficient capacity to analyze such information will allow policy-makers to make appropriate decisions and formulate development oriented policies on FDI.