REPUBLIC OF ALBANIA COUNCIL OF MINISTERS NATIONAL STRATEGY 2015 FOR DEVELOPMENT 2020 AND INTEGRATION EUROPEAN INTEGRATION GOOD GOVERNANCE, DEMOCRACY AND RULE OF LAW MACROECONOMIC AND FISCAL STABILITY ENHANCING COMPETITIVENESS HUMAN DEVELOPMENT AND SOCIAL COHESION SUSTAIANBLE USE OF RESORUCES MAY 2016 NSDI-II 2015 - 2020 2 The vision 2020 “Albania – a strengthened democracy, on the path towards EU integration, with a competitive, stable and sustainable economy, guaranteeing fundamental and human rights” NSDI-II 2015 - 2020 3 Acronyms AII Adriatic-Ionian Initiative FSA Financial Supervisory Authority VET Vocational Education Training WB The World Bank EU European Union BSEC Black See Economic Cooperation BoA Bank of Albania CEI Central European Initiative DDFFA Department for Development, Financing, and Foreign Aid SEE South East Europe FDIs Foreign Direct Investments ECHR European Court of Human Rights IPMG Integrated Policy Management Group GRECO Group of States against corruption Ghg Greenhouse gas SWG Sector Working Groups HEC Hydropower Stations HEI Higher Education Institutions INSTAT Albanian Institute of Statistics IPA Instrument of Pre-Accession UN United Nations EC EUROPEAN Commission CEC Central Elections Committee SPC Strategic Planning Committee MARRI Migration, Asylum, Refugees Regional Initiative SAA Stabilization and Association Agreement NATO North Atlantic Treaty Organization NE Social (cash) assistance LGU Local Government Unit WHO World Health Organization ODIHR Office for Democratic Institutions and Human Rights OSCE Organization for Security and Cooperation in Europe SDG Sustainable Development Goals MDG Millennium Development Goals MTBP Medium-Term Budget Programming GDP Gross Domestic Product PIP Public Investments Program NPEI National Plan of European Integration NPER National Program for Economic Reform PPP Public Private Partnership PAR Public Administration Reform NSDI-II 2015 - 2020 4 RCC Regional Cooperation Council SEECP South East European Cooperation Process SELEC Southeast European Law Enforcement Centre PEFA Public expenditure and financial accountability SIGMA Program of “Support for Improving Governance and Management of Administration” NSDI National Strategy for Development and Integration PFMS Public Finance Management System IPS Integrated Planning System ICT Information and Communication Technology UNDP United Nations Development Program DCM Decision of the Council of Ministers NSDI-II 2015 - 2020 5 The Government of Albania - Ministries MoARDWA Ministry of Agriculture, Rural Development and Water Administration www.bujqesia.gov.al MoC Ministry of Culture www.kultura.gov.al MoD Ministry of Defense www.mod.gov.al MoEDTTE Ministry of Economic Development, Tourism, Trade and Entrepreneurship www.ekonomia.gov.al MoES Ministry of Education and Sports www.education.gov.al MoEI Ministry of Energy and Industry www.energjia.gov.al MoE Ministry of Environment www.mjedisi.gov.al MoEI Ministry of European Integration www.integrimi.gov.al MoF Ministry of Finance www.financa.gov.al MoFA Ministry of Foreign Affairs www.punetejashtme.gov.al MoH Ministry of Health www.shendetesia.gov.al MoSIPA Minister of State for Innovation and Public Administration www.inovacioni.gov.al MoI Ministry of Internal Affairs www.punetebrendshme.gov.al MoJ Ministry of Justice www.drejtesia.gov.al MoSLA Minister of State for Local Affairs www.ceshtjetvendore.gov.al MoSRP Minister of State for Relations with the Parliament ww.marredhenietmeparlamentin.gov.al MoSWY Ministry of Social Welfare and Youth www.sociale.gov.al MoTI Ministry of Transports and Infrastructure www.transporti.gov.al MoUD Ministry of Urban Development www.zhvillimiurban.gov.al NSDI-II 2015 - 2020 6 Table of Contents PART I: Strategic context ..........................................................................................................9 1.0 NSDI-II Goal................................................................................................................................... 9 2.0 Achievements, lessons learned and drivers of change ............................................................. 15 2.1 Main achievements for 2007-2015, including NSDI-I ............................................................. 15 2.2 Lessons learned ....................................................................................................................... 26 2.3 Drivers of change .................................................................................................................... 27 3.0 NATIONAL DEVELOPMENT AND INTEGRATION PRIORITIES ..................................................... 30 3.1 National Vision ........................................................................................................................ 30 3.2 National Development and Integration Policy Priorities ........................................................ 30 3.3 National Development and Integration Principles ................................................................. 34 3.4 Note on Sustainable Development Goals ............................................................................... 35 4.0 SUMMARY OF MACROECONOMIC TRENDS .............................................................................. 37 PART II: THE SIX PRIORITIES OF THE GOVERNMENT ......................................................................... 43 5.0 GOVERNMENT’S PROGRAM CONTEXT ...................................................................................... 43 5.1 Innovative and citizen-centered public Service Delivery ........................................................ 44 5.2 Recovery and Financial Consolidation of the Power Sector ................................................... 46 5.3 Integrated Water Managment ................................................................................................ 47 5.4 Improving innovation and enhancing competitiveness .......................................................... 48 5.5 Land Management Systems .................................................................................................... 50 5.6 Fiscal Structural Reform .......................................................................................................... 50 6.0 NSDI-II: CONCEPT AND APPROACH .................................................................................... 51 7.0 OVERARCHING GOAL: EU ACESSION................................................................................... 52 8.0 FOUNDATIONS: GOOD GOVERNANCE, DEMOCRACY AND RULE OF LAW ............................. 57 8.1 Justice System Reform ............................................................................................................ 58 8.2 Strengthening legislative and electoral processes .................................................................. 62 8.3 Integrated Border Managment ............................................................................................... 65 8.4 Fight against organized crime, terrorism, and trafficking ....................................................... 68 8.5 Strengthening public order and preparedness for cases of civil emergencies ....................... 71 8.6 Strengthening of human rights ............................................................................................... 73 8.7 Creating an enabling environment for the civil society, and its development ....................... 77 NSDI-II 2015 - 2020 7 8.8 Public adminsitration and civil service reform ........................................................................ 81 8.9 Transparency and the fight against corruption ...................................................................... 84 8.10 Decentralization and local governance reform....................................................................... 87 8.11 Empowering Albanian statistics .............................................................................................. 89 8.12 Growing importance of foreign policy .................................................................................... 91 8.13 Consolidated defense ............................................................................................................. 94 9.0 PILLAR 1: GROWTH THROUGH MACRO-ECONOMIC AND FISCAL STABILITY .......................... 96 9.1 Strengthening of financial system and monetary policy ........... 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Bookmark not defined. 9.2 Strengthening of public finances and fiscal stability ............................................................... 99 10.0 PILLAR 2: ECONOMIC GROWTH THROUGH ENHANCED COMPETITIVNESS AND INNOVATION 104 10.1 Assuring and protecting property rights ............................................................................... 106 10.2 Promotion of business and Foreign Direct Investments ...................................................... 110 10.3 Expanding scientific research and innovation ...................................................................... 113 10.4 Investing in Information Communication Technology .......................................................... 116 10.5 Ensuring consumer protection and market surveillance ..................................................... 119 10.6 Protecting competition and ensuring control of state aid .................................................... 122 11.0 PILLAR 3: INVESTING IN HUMAN CAPITAL AND SOCIAL COHESION ...................................... 125 11.1 More opportunities and more quality in education ............................................................