On behalf of the European Commission DG Employment, Social Affairs and Inclusion Social Impact of Emigration and Rural-Urban Migration in Central and Eastern Europe Final Country Report Albania April 2012 Authors: Ilir Gedeshi Elira Jorgoni Neither the European Commission nor any person acting on behalf of the Commission may be held responsible for the use that may be made of the information contained in this publication. Social Impact of Emigration and Rural-Urban Migration in Central and Eastern Europe VT/2010/001 Table of Contents 1. Socio-Economic and Political Overview .............................................................................. 4 2. Main international and internal migration trends and patterns ............................................. 5 2.1 Migration – a historical background ............................................................................ 5 2.2 Main international migration trends – post 1990 .......................................................... 6 2.3 Return migration ......................................................................................................... 9 2.4 Main internal migration trends ....................................................................................10 2.5 Main characteristics of migrants ................................................................................11 3. Nation-wide labour market and social development trends under the influence of migration ........................................................................................................................................12 3.1. Economic and labour market developments ..............................................................12 3.2. Brain drain .................................................................................................................14 3.3. Remittances ..............................................................................................................15 3.4. Potential Economic Role of Albanian Migration..........................................................17 3.5 Economic potential of returned migrants ....................................................................18 3.6 Impact of economic and financial crisis ......................................................................18 3.7 Social security ...........................................................................................................20 3.8 Poverty and Social Exclusion .....................................................................................22 4. Labour market and social development trends in net migration loss / gain regions ...............24 4.1 Identification of net migration loss / gain regions ........................................................24 4.2 Labour market development in net migration loss / gain regions ................................26 4.3 Poverty and social exclusion in net migration loss / gain regions ...............................26 5. Impact of migration on vulnerable groups ..............................................................................27 5.1. Women ......................................................................................................................27 5.2 Children .....................................................................................................................28 5.3 Elderly .......................................................................................................................29 5.4 Migration of ethnic groups in Albania – Roma and Egyptians ....................................30 5.5 Migration of other ethnic groups in Albania ................................................................32 6. Policy responses ................................................................................................................33 6.1.1 Social Inclusion agenda .......................................................................................33 6.1.2 National Strategy for Migration .............................................................................35 6.2 Encouragement of return migration and support of integration of returnees ...............36 6.2.1 Strategy on the Reintegration of Returned Albanians...........................................36 6.2.2 Brain Gain Programme ........................................................................................37 7. Key challenges and policy suggestions ..............................................................................38 7.1 Key challenges of the social impact of emigration and internal migration ...................38 7.2 Policies to be taken by different actors ......................................................................39 8. Bibliography ..........................................................................................................................42 9. Annex: Tables and Figures ...................................................................................................50 Final Country Report Albania 2 Social Impact of Emigration and Rural-Urban Migration in Central and Eastern Europe VT/2010/001 Abbreviations ADHS Albania Demographic and Health Survey ALSMS Albanian Living Standards Measurement Survey BoA Bank of Albania ETF European Training Foundation EU European Union GDP Gross Domestic Product GoA Government of Albania IMF International Monetary Fund INSTAT Albanian Institute of Statistics IOM International Organization for Migration ISTAT Italian Statistics Office MoES Ministry of Education and Science MoLSAEO Ministry of Labour and Social Affairs and Equal Opportunities NE Ndihma Ekonomike / Economic Aid NES National Employment Service OECD Organization for Economic Co-Operation and Development SII Albania Social Insurance Institute UNDP United Nation Development Program UNICEF United Nations Children’s Fund WB The World Bank Final Country Report Albania 3 Social Impact of Emigration and Rural-Urban Migration in Central and Eastern Europe VT/2010/001 1. Socio-Economic and Political Overview Albania was proclaimed independent after almost five centuries of Ottoman rule on the 28th of November 1912. After the Second World War, Albania became a Communist state driven by isolationist policies until the end of 1990. Differently from other countries of Central and Eastern Europe which initiated liberal reforms in the 60’s, this model was based on the absolute rule of social property and a centralized and planned economy driven by government’s autarchic economic policies. In December 1990, after the start of a student movement, the political pluralism and an open market economy were installed, marking the start of social and economic reforms. In April 2009 the Stabilization and Association Agreement of Albania with the European Union entered into force and immediately after Albania formally applied for membership in the EU. During the period 1945-1989, the population growth in Albania was the quickest in Europe with an increase from 1,1 million in 1945 to 3,2 million in 1989 (INSTAT, 2002a). At the end of this period, the average age was 25 while the population had more education years than other countries with similar income per person (WB, 2010). Almost 66% of the population lived in rural areas. In 2011 the population of Albania was 2.8 million, representing an 11.1% decline from the 1989 population (INSTAT, 2011a). Although the fertility rate of 2.1 is high, the decline in population during transition is due to the migration of Albanians since 1991. The population of Albania is ethnically homogeneous. According to the 1989 Census, ethnic Albanians represented 98% of the population while other ethnic groups such as Greeks, Aromanians, Macedonians, Montenegrins and Roma constituted about 2% in total (Statistical Yearbook, INSTAT, 1991). Independent sources state that these groups in Albania represent about 5% of the population (Bërxolli, 2005). At the beginning of the post-socialist transition period, Albania emerged as the poorest country in Europe, with one third of its population under 15 years old, and very few job opportunities and future prospects. GDP fell dramatically – by 10% in 1990, 28% in 1991, 7.2% 1992 – and only reached the level of 1989 again at the end of 90’s (INSTAT, 2002a). By 1992, inflation rose to triple digits. The liberal economic reforms, with shock therapy elements, were accompanied by a drastic fall in industrial production (over 40% in 1991, - 60% in 1992), which continued until the beginning of 1995 and was followed by a long-term stagnation period. Agricultural production also went through a quick decline due to the spontaneous dismantlement of the former agricultural cooperatives and reforms that led to a highly fragmented agricultural sector. All this was accompanied by massive unemployment which was 26% in 1992 and 22.6% according to the 2001 Census (INSTAT, 2002a). The real wage experienced sharp declines in the beginning and in the end of the 1990s. Consequently transition increased poverty and social inequality. Caroline van Rijckeghen (1994) of IMF showed that during the period 1991-1993 the urban population that lived at the margins of poverty increased from 6 to 25-30%. A World Bank study (2003) of the early 2000 showed that 26% of the population or close to 780.000 persons fell below the poverty line. Extreme poverty amounted to about 150.000 persons, or 4.7% of the population, who were unable to meet basic food requirement. In the end of the 90’s, 149.000 households or around 20% of the families lived