REPUBLIC OF ALBANIA COUNCIL OF MINISTERS NATIONAL STRATEGY FOR DEVELOPMENT 2015–2020 AND INTEGRATION EUROPEAN INTEGRATION GOOD GOVERNANCE, DEMOCRACY, AND RULE OF LAW MACROECONOMIC AND FISCAL STABILITY ENHANCING COMPETITIVENESS HUMAN DEVELOPMENT AND SOCIAL COHESION SUSTAINABLE USE OF RESOURCES MAY 2016 NSDI II 2015–20202 The Vision 2020 Albania: a strengthening democracy on the path toward EU integration, with a competitive, stable, and sustainable economy, and with guarantees of fundamental human rights and liberties. NSDI II 2015–20203 Acronyms AII Adriatic-Ionian Initiative FSA Financial Supervisory Authority VET Vocational Education Training WB 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 NSDI II 2015–20204 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 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 RCC Regional Cooperation Council SEECP South East European Cooperation Process SELEC Southeast European Law Enforcement Centre PEFA Public Expenditure and Financial Accountability NSDI II 2015–20205 SIGMA 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 2015–20206 The Ministries of the Government of Albania 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 Ministry of 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 Ministry of Local Affairs www.ceshtjetvendore.gov.al MoSRP Ministry of Relations with the Parliament www.marredhenietmeparlamentin.gov.al MoSWY Ministry of Social Welfare and Youth www.sociale.gov.al MoTI Ministry of Transportation and Infrastructure www.transporti.gov.al MoUD Ministry of Urban Development www.zhvillimiurban.gov.al NSDI II 2015–20207 Table of Contents PART I: STRATEGIC CONTEXT .................................................................................................. 11 1.0 NSDI II GOAL ............................................................................................................................... 11 2.0 ACHIEVEMENTS, LESSONS LEARNED,AND DRIVERS OF CHANGE ............................................. 16 2.1 Main achievements for 2007–2015, includingNSDI I .............................................................. 16 2.2 Lessons learned ....................................................................................................................... 27 2.3 Drivers of change .................................................................................................................... 29 3.0 NATIONAL DEVELOPMENT AND INTEGRATIONPRIORITIES ...................................................... 30 3.1 The national vision .................................................................................................................. 30 3.2 Pillars of nationaldevelopmentand integration policy............................................................ 31 3.3 Principles of national development and integration .............................................................. 36 3.4 A note on sustainable development objectives ...................................................................... 37 4.0 SUMMARY OF MACROECONOMIC TRENDS .............................................................................. 38 PART II:SIXGOVERNMENT PRIORITIES ............................................................................................... 45 5.0 GOVERNMENT’S PROGRAM CONTEXT ...................................................................................... 45 5.1 Delivery of innovative, citizen-centered public services ......................................................... 46 5.2 Recovery and financial consolidation of the power sector..................................................... 48 5.3 Integrated water managment ................................................................................................. 49 5.4 Improving innovation and enhancing competitiveness .......................................................... 50 5.5 Integrated land management ................................................................................................. 52 5.6 Fiscal structural reform ........................................................................................................... 53 6.0 NSDI II:CONCEPT AND APPROACH...................................................................................... 53 NSDI II 2015–20208 7.0 OVERARCHING GOAL: EUROPEAN UNION MEMBERSHIP .................................................... 54 8.0 FOUNDATIONS: GOOD GOVERNANCE, DEMOCRACY, AND RULE OF LAW ............................ 59 8.1 Justice system reform ............................................................................................................. 60 8.2 Strengthening legislative and electoral processes .................................................................... 4 8.3 Integrated border managment ................................................................................................. 8 8.4 Fight against organized crime, terrorism, and trafficking ....................................................... 10 8.5 Strengthening public order and preparedness for cases of civil emergencies ....................... 13 8.6 Strengthening human rights ................................................................................................... 17 8.7 Creating an enabling environment for civil society and its development .............................. 20 8.8 Public adminsitration and civil service reform ........................................................................ 24 8.9 Transparency and the fight against corruption ...................................................................... 28 8.10 Decentralizationand local governance reform ....................................................................... 31 8.11 Empowering Albanian statistics .............................................................................................. 33 8.12 The growing importance of foreign policy .............................................................................. 36 8.13 Consolidated defense ............................................................................................................. 39 9.0 PILLAR 1:GROWTH THROUGH MACROECONOMIC AND FISCAL STABILITY.............................. 40 9.1 Strengthening the financial system and monetary policy ...................................................... 41 9.2 Strengthening public finances and fiscal stability ................................................................... 44 10.0 PILLAR 2: ECONOMIC GROWTH THROUGH ENHANCED COMPETITIVNESS AND INNOVATION 49 10.1 Securingand protecting property rights .................................................................................. 50 10.2 Promotingof business and foreign direct investments .......................................................... 55 10.3 Expanding scientific research and innovation ........................................................................ 59 10.4 Investing in information communication technology ............................................................. 62 NSDI II 2015–20209 10.5Ensuring consumer protection and market surveillance ............................................................. 65 10.6 Protecting competition and ensuringcontrol of state aid....................................................... 69 11.0 PILLAR 3:INVESTING IN HUMAN CAPITAL AND SOCIAL COHESION .......................................... 71 11.1 More opportunities and betterquality in education ..............................................................