Sorting out the BoA mess

Albania faces a major challenge in rebuilding trust in the central bank’s governance.
TIRANA TIMES EDITORIAL
As Albania’s parliament officially sacked the central bank governor — who is now under house arrest and criminal investigation for not doing enough to prevent a multimillion dollar theft at the central bank – the country’s political elite has moved on to face another major challenge: Rebuilding public trust in the governance of the central bank.
The prime minister has made a public call to Albanians working at international financial institutions to apply to fill the empty seats left behind in the governor’s office as well as the central bank’s supervisory board.
The move came as proposals flowed in on how to best deal with the central bank’s governance in light of the scandal that led to the sacking and arrest of the governor and a slew of other bank employees.
Proposals have included hiring a foreign governor – as if Albanians are simply unable to handle their own money – which they have successfully done since the central bank was established in the 1920s.
But even seeking help from Albanians outside the country attracted mixed views. Many people view these open calls as a smokescreen to legitimize a process that has little to do with merit and everything to do with political calculations.
Politicians act in similar fashion in other countries too. The system is not perfect in the West, but it works far better than in Albania, because there is accountability supervised by the right people. And it works because excellence and merit are rewarded.
It is clear the prime minister and the president – the latter gets to propose the new governor – are already involved in tough negotiations – each looking to propose a candidate that will be palatable to both the governing Socialists and the opposition Democrats.
The candidate that ultimately wins over will likely be local – one that like outgoing Governor Adrian Fullani is able to offer favors for Albania’s political class.
Yet, since the government has made this international call, in addition to being a story about the central bank, this is also now a story about brain drain or gain.
One challenge the government faces – if it is sincere in its call – is to convince Albanians who work overseas to give up their six figure salaries in New York, Vienna or London – and return home to fix the central bank mess.
In addition to financial concerns, successful Albanians abroad who reject coming home are skeptical because they are worried that those in leadership positions in Albania are often at best unable to recognize and reward excellence and high standards that come with placing internationally trained and experienced people at top positions – and at worst reject them for fear they will expose the locals’ own shortcomings.
Many of the systemic failures in Albania are due to brain drain – the people that could have made a difference are simply not here.
And it’s not that there aren’t Albanians out there with all the right qualifications to great things in Albania. Attend professional networking events in big financial or government centers in Europe and North America, and you will find them: People born in this country – smart, bright, well-educated, well-employed. One feels proud for them – and sad for Albania.