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Functionality Parts of This Report Were Prepared by The Human Development Report Albania 2016 Empowered lives. Resilient nations. Functionality Parts of this Report were prepared by the: Albanian Media Institute Institute of Statistics Human Development Promotion Center Roma Active Albania and: Dr. Arolda Elbasani, Prof. Dr. Ardian Civici, Adriatik Hasantari, Afrim Krasniqi, Dritan Shutina, Enea Hoti, Dr. Gjergji Filipi, Prof. Dr. Gjergj Sinani, Gjergji Vurmo, Dr. Idlir Peçi, Ilda Londo, Kristaq Traja, Ledia Plaku, Milva Ekonomi, Naim Hasa, Orjana Arapi, and Dr. Selami Xhepa. Statistics Group Elena Polo Pranvera Elezi Majlinda Nesturi Etugert Llazi Anila Kasneci Facebook Survey Albanian Business Partner Translated from Albanian Robert Elsie English proofreading and editing Jalal Hussain Albanian language editing Prof. Dr. Xhevat Lloshi Graphic design Phoenix Design Aid A/S _____________________________________________________________ Notes: - This Report and the data contained therein deal with developments in the country in the transition period up to the end of May 2015. - This Report is based on official data. In addition to the cited sources, data have also been used from NPO studies and from individuals who have collaborated in the preparation of the report. - The report is an independent publication commissioned by UNDP. The views, analysis and policy recommendations expressed in this publication are those of the authors and do not necessarily represent those of the United Nations, UNDP, its Executive Board or its Member States. Human Development Report Albania 2016 Empowered lives. Resilient nations. Functionality Lead author Dr. Ylli Çabiri Core Team Dr. Elona Dhëmbo, Genci Kojdheli, Ismail Beka, Dr. Juna Miluka, Dr. Linda Rama, Piro Misha, Remzi Lani. UNDP management, coordination and technical support Yesim Oruc Kaya - UNDP Country Director, Eno Ngjela - Programme Specialist ABBREVIATIONS AIPR Albanian Institute of Public Relations BTI Bertelsmann Stiftung’s Transformation Index CPI Corruption Perceptions Index EBRD European Bank for Reconstruction and Development EA Economic Aid EC European Commission EI education indicator EU European Union EURALIUS Consolidation of the Justice System in Albania FAO Food and Agriculture Organization FDI foreign direct investment FES Friedrich Ebert Foundation GDI Gender Development Index GDP gross domestic product HDI Human Development Index HDPC Human Development Promotion Centre HI health indicator ICITAP International Criminal Investigative Training Assistance Program IDM Institute for Democracy and Mediation II income indicator ILO International Labour Organization IMF International Monetary Fund ISHM Albanian Media Institute LI longevity indicator LSE Life school expectancy LSMS Living Standard Measurement Survey MSWY Ministry of Social Welfare and Youth NHDR National Human Development Report NPO Non-profit organization NRC National Registration Center OPDAT Overseas Prosecutorial Development Assistance and Training OSCE Organisation for Security and Co-operation in Europe OSFA Open Society Foundation for Albania PACA Project against Corruption in Albania PACO Programme against Corruption and Organised Crime in South-Eastern Europe PLGP Planning and Local Governance Project in Albania PPP Purchasing Power Parity SEENPA South East European Network for Professionalization of Media SNA Skill Needs Analysis SPI Social Progress Index UNDP United Nations Development Programme VAT Value-Added Tax VTC Vocational Training Center WB World Bank 4 | HUMAN DEVELOPMENT REPORT 2016 FOREWORD Dear readers, It is my pleasure to write the forward of Albania’s 2016 Human Development Report on the theme of state functionality – a complex but essential subject for a country in transition. The 20th century was eventful for state building in Albania, outlined by two world wars, a lengthy totalitarian communist rule with a centrally planned economy and finally democracy and a free market. Though twice close to a state collapse in the 90’s, the new millennia brought a measure of stability and economic development. Albania is today classified as an upper middle-income country (though on the lowest end of that range) and ranks among countries with high human development levels. Macro level indicators for the core pillars of the index – GDP per capita, literacy and longevity – look good by global standards. The student movement in 1990 rallied around the slogan “we want Albania like the rest of Europe”. A quarter of a century later this aspiration still feels unfulfilled – despite the statistically visible progress. Opinions, analyses and editorials that touch upon state functionality can be widely found in Albanian mediums. UNDP commissioned this report with the intention to bring the issue of functionality to public attention in a structured way. The report argues how macro gains are struggling to be translated into tangible citizens’ satisfaction. Young Albanians continue to consider migration as a viable instrument for building their future. Corruption remains widespread, rule of law is not equally applied, policies seem to be perpetuating a sense of transition and trust in government continues to be deficient. All these, at a time when Albania’s human development indicators are on the rise and its economy weathered rather well the waves of global and regional crisis. This report is inspired by the book “Why nations fail?”. Though not a failed state, Albania’s democracy and free market are still struggling to create an enabling system for a prosperous society. Political connections and party affiliations have inhibited the creation of functional and inclusive institutions. The state is struggling to earn the respect of its citizens and this argument goes well beyond left or right wing policies. So far, citizens are not demonstrating that they have faith in the state to provide public goods fairly, inclusively and predictably into the future. The subject of state functionality is politically charged. The social media engagement campaign that accompanied this report’s preparation triggered open and spirited discussions, reflecting Albanians’ passions and concerns. The transition in Albania will be over when the country’s political and economic leadership will be addressing the symptoms of dysfunctional institutions. An open and transparent interface between the state and society will be crucial in transforming institutions that function for human development. In the post-2015 global agenda, good governance has been recognized as essential to development. Rule-of-law, political freedoms, inclusive institutions and reducing corruption are governance issues ascribed to Sustainable Development Goal 16 that provides an anchor for any future policy orientation, as well as for engagement of the United Nations. We are very well aware that certain things are easier said that done. The long process of justice reform is a prime example. A functional state that inspires hope and delivers prosperity will be necessary for Albania’s European Union accession agenda. As Albania’s democracy and market economy are maturing – the time has also come for its citizens to fully and equally enjoy the benefits. Brian J. Williams United Nations Resident Coordinator & UNDP Resident Representative in Albania Foreword | 5 SUMMARY OF CONTENTS Why “functionality”? There is total lack of confidence in the justice system. The majority of people are convinced The Human Development Report, is a that justice is carried out on a selective useful tool for political leaders in Albania basis, or to put it differently, that there is a because of the political, economic and social factual inequality of citizens before the law. analyses it presents. Even though each report Structurally speaking, it is still very unclear concentrates on a specific subject, they are which institution is responsible for legal reform. all known for their analyses, as well as for the As such, justice is regarded as “abandoned comprehensive debate they encourage. They property.” Everyone criticizes it, but no one have also become points of reference for the accepts responsibility for correcting it. It is a many reports prepared by other international sector that is, so to speak, autonomous, but also organisations. self-governing, self-acting and self-defending. International organisations do not know where The Human Development Report – Albania to turn, and this explains the astounding fact 2016 addresses itself to functionality of that legal reform is the only sphere of reform in democratic, economic and development the country over the last 25 years that has not endeavours to grasp the reasons behind the been assisted by the international community protracted nature of Albania’s post-communist with a serious and well-prepared strategy. transition. Albania has been faced with greater One thing is clear: there can be no integration difficulties than other countries that emerged into the European Union without a thorough from communism and most Albanians are reform of the justice system. dissatisfied with the actual state of democracy in the country and with the lack of progress in Corruption is ubiquitous in Albania, in carrying out social and economic reforms. particular in government institutions. It is regarded as the country’s main problem, overshadowing other problematic issues such The Challenges of a as unemployment, crime and low wages. Some Dysfunctional Democracy positive steps have been taken over the last few years but they have not been enough and laws With regard to its progress in democracy, must be
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