CONTACT US Further information can be found on the ETF website: www.etf.europa.eu For any additional information please contact: European Training Foundation ETF Communication Unit Villa Gualino Viale Settimio Severo 65 I – 10133 Torino ALBANIA E [email protected] REVIEW OF HUMAN RESOURCES DEVELOPMENT F +39 011 630 2200 T +39 011 630 2222 TA-30-10-645-EN-C HOWTO OBTAIN EU PUBLICATIONS Our priced publications are available from EU Bookshop (http://bookshop.europa.eu), where you can place an order with the sales agent of your choice. The Publications Office has a worldwide network of sales agents. You can obtain their contact details by sending a fax to (352) 29 29-42758. Europe Direct is a service to help you find answers to your questions about the European Union Freephone number (*): 00 800 6 7 8 9 10 11 (*) Certain mobile telephone operators do not allow access to 00 800 numbers or these calls may be billed. More information on the European Union is available on the Internet (http://europa.eu). Cataloguing data can be found at the end of this publication. Luxembourg: Publications Office of the European Union, 2010. ISBN: 978-92-9157-595-4 doi:10.2816/1478 © European Training Foundation, 2010. Reproduction is authorised provided the source is acknowledged. © Cover photos: Printed in Italy 1, IFDC Photography - 2, gabork - 3, net_efekt Made of paper awarded the European Union Eco-label, reg.nr FR/011/002,supplied by International Paper . ALBANIA REVIEW OF HUMAN RESOURCES DEVELOPMENT EVELYN VIERTEL AND MARGARETA NIKOLOVSKA, ETF October, 2010 3 FOREWORD This report is about the future of Albania. What are the choices that should be made regarding the education of young people, how can the education system better match labour market needs, what should be done as regards lifelong learning, and how should Albania deal with unemployed people or those disadvantaged in the labour market? I welcome this interesting and valuable document which I am sure will make an important contribution to Albania’s efforts towards accession to the European Union (EU). This report, prepared by the European Training Foundation (ETF) at the request of the Employment, Social Affairs and Equal Opportunities Directorate General of the European Commission, seeks to set out an objective picture, harsh at times, of the situation as regards human resources development in Albania. The analysis is comprehensive and clear and consistently based on facts and figures. The review also aims to provide options and recommendations for a future human resources development strategy. The report underlines the difficulties faced by Albania, while confirming its great potential. As such the report presents the challenges and requirements for (further) change. We believe this report will help Albania, which has not yet received candidate country status, to progress towards a medium term operational programme for human resources development, addressing its current weaknesses and preparing it for the challenges of tomorrow. Any such programme should be elaborated in partnership with all relevant stakeholders, the social partners in particular. Since 2007, the Instrument for Pre-Accession Assistance (IPA) supports five policy areas, including human resources development (Component IV). It helps candidate countries to fulfil EU requirements and in particular to prepare them for the use of the European Social Fund. I believe this independent review will help Albania in its preparations for the IPA. It will make programming, and related choices, concrete. Progress on programming will soon make clear that resources are essential for delivery. The establishment of a modern administration, applying accountability and transparency as key principles, is vital. Real progress on these elements – programming, partnership and institutional capacity for management of the European Social Fund – would indeed constitute a very positive signal to the European Union. I hope that this excellent report will assist Albania in doing exactly that. Robert Verrue Director General for Employment, Social Affairs and Equal Opportunities European Commission 5 PREFACE Over the past 15 years, the EU enlargement process has provided solid evidence that human resources are extremely important in the wide-ranging reforms launched by countries on their road to EU membership. At present, the Western Balkans and Turkey invest huge efforts in harnessing the potential of their human capital and maximising its contribution to economic and social welfare. The Employment, Social Affairs and Equal Opportunities Directorate General of the European Commission asked the ETF to draft a human resources development country review for Albania. This has given the ETF the opportunity to look at the development of human resources as both an aim and a means of EU driven reforms. This review reflects the ETF’s understanding of the major human resources development challenges faced by the country vis-à-vis its overriding objective of EU accession and its endeavours to achieve sustainable growth, increase prosperity and enhance social cohesion. It is my hope that the findings and conclusions of the review will inform the IPA programming exercise of the European Commission and the national policy-making process. The review has been prepared by the ETF country team for Albania. It focuses on the interplay between two major aspects of human resources development: education and training in a lifelong learning perspective and employment. The review also reflects on the importance of equal opportunities in society for the quality of human capital development and takes into consideration the inclusiveness of Albania’s education, training and employment systems. Relevant national and international documents, research papers and studies have provided a solid frame of reference for the review. In the process of collecting up-to-date information and the verification of the main findings and conclusions, ETF experts have consulted and involved key national stakeholders. During a series of missions to Albania in 2009 and 2010, the ETF team conducted interviews and discussions with representatives in the Ministry of Education and Science, the Ministry of Labour, Social Affairs and Equal Opportunities, the Ministry of Economy, Trade and Energy, the National Agency for VET, the National Employment Agency, education institutions and employment offices, the main social partners and civil society organisations, as well as bilateral and international donors. The draft version of the review was discussed at a national workshop held on 14 September 2010 in Tirana. On behalf of the ETF, I wish to thank the Employment, Social Affairs and Equal Opportunities Directorate General of the European Commission for entrusting us with the preparation of the review. I would also like to extend my thanks and appreciation to all experts and institutions in Albania for their responsiveness, involvement and valuable contributions to this paper. I am convinced that this report can be used effectively to better inform decisions and actions at both European and national levels. At the same time, I would like to underline the importance of continuity in the policy-making process at national level, in all its phases – policy formulation, implementation, monitoring and evaluation – and to assure Albania that the ETF will continue to provide support for fostering the development of the human resources in the country. Madlen Serban Director European Training Foundation 7 CONTENTS FOREWORD 3 PREFACE 5 EXECUTIVE SUMMARY 11 1. POLITICAL AND SOCIOECONOMIC BACKGROUND 15 1.1 Historical and political contexts ............................................15 1.2 Demographic developments and trends, including migration .....................15 1.3 Economic developments, trends and effects of the economic crisis................16 Tables and figures ...........................................................18 2. KEY POLICY ISSUES, STRATEGIES AND CHALLENGES IN EDUCATION AND TRAINING IN A LIFELONG LEARNING PERSPECTIVE 25 2.1 Investment in human capital...............................................25 2.2 Lifelong learning strategies, broadening education and training supply and recognising qualifications .................................................27 2.3 Early school leavers .....................................................29 2.4 Access to and quality of secondary and post-secondary vocational education and training ...............................................................29 2.5 Access to and quality of higher education ....................................31 2.6 Learning and teachers ...................................................33 2.7 Vocational counselling and guidance ........................................33 2.8 Capacities of ministries and their agencies, social partners and civil society organisations...........................................................34 Tables and figures ...........................................................36 3. KEY POLICY ISSUES, STRATEGIES AND CHALLENGES IN EMPLOYMENT 51 3.1 A well-functioning labour market ...........................................51 3.2 Fighting the grey economy ................................................53 3.3 Job creation ...........................................................53 3.4 Youth unemployment ....................................................54 3.5 Employment and unemployment of the elder workforce.........................55 3.6 Inactive population and long-term unemployment ..............................55