Editing Economy of Albania (section)

==Challenges and solutions==

{{Economy of Albania}}

Reforms in Albania are constrained by limited administrative capacity and low income levels, which make the population particularly vulnerable to [[unemployment]], [[Volatility (finance)|price fluctuation]], and other variables that negatively affect income.{{Citation needed|date=June 2016}} The economy continues to be bolstered by remittances of some of the labour force that works abroad. These remittances supplement GDP and help offset the large foreign trade surplus. Most agricultural land was privatised in 1992, substantially improving peasant incomes.{{Citation needed|date=June 2016}} In 1998, Albania recovered the 0.8% drop in GDP of 1997 and pushed ahead by 79% in 1999. International aid has helped defray the high costs of receiving and returning refugees from the [[Kosovo conflict]]. Large-scale investment from outside is still hampered by poor infrastructure; lack of a fully functional banking system; untested or incompletely developed investment, tax, and contract laws; and an enduring mentality that discourages initiative.{{Citation needed|date=June 2016}}

===Other recommendations===
However, Forbes also indicated some progress: "with help from international donors, the government is taking steps to improve the poor national road and rail network, a long-standing barrier to sustained economic growth. Inward FDI has increased significantly in recent years as the government has embarked on an ambitious program to improve the business climate through fiscal and legislative reforms. The government is focused on the simplification of licensing requirements and tax codes, and it entered into a new arrangement with the IMF for additional financial and technical support."<ref>{{cite web |url= https://www.forbes.com/places/albania/ |title=Best Countries for Business |date=December 2016 |work=Forbes |access-date=February 8, 2017 |url-status=live |archive-url= https://web.archive.org/web/20170211083456/http://www.forbes.com/places/albania/ |archive-date=February 11, 2017 }}</ref>

The [[International Monetary Fund]]'s January 24, 2017 report also offered some positive reinforcement: "Economic program remains on track, good progress in implementing structural reforms, [[Bank of Albania]]'s accommodative monetary policy stance remains appropriate". The IMF inspectors who visited [[Tirana]] provided the following action plan: "Going forward, the main priorities should be: to continue expanding revenue to strengthen public finances and to ensure debt sustainability, reduce NPLs to strengthen financial stability and support credit recovery and advance structural reforms to improve the business climate. Important progress has been made in these areas, and further efforts are needed to cement these gains. In this regard, strengthening tax administration, broadening the tax base, and introducing a value-based property tax remain important objectives. Improved public financial management will help ensure more efficient public spending and control of arrears. Rapid implementation of the strategy for resolving non-performing loans is needed to strengthen lending to the private sector. Structural reforms to enhance the business environment, address infrastructure gaps, and improve labour skills will be crucial to strengthen competitiveness."<ref>{{cite web |url= https://www.imf.org/en/News/Articles/2017/01/24/PR1717-Albania-IMF-Reaches-Staff-Level-Agreement-for-Completion-of-Ninth-Tenth-Reviews |title=IMF Reaches Staff-Level Agreement for Completion of Ninth and Tenth Reviews of Albania's Extended Arrangement |date=January 24, 2017 |work=International Monetary Fund |access-date=February 8, 2017 |url-status=live |archive-url= https://web.archive.org/web/20170211081307/https://www.imf.org/en/News/Articles/2017/01/24/PR1717-Albania-IMF-Reaches-Staff-Level-Agreement-for-Completion-of-Ninth-Tenth-Reviews |archive-date=February 11, 2017 }}</ref>

===Application of Albania to the European Union===
{{Main|Accession of Albania to the European Union}}
Albania applied for membership in the [[European Union]] in 2009. It is expected such membership would benefit Albania's economy. The country received official candidate status in 2014, but was twice denied full membership.<ref>{{cite web |url= https://www.bbc.com/news/world-europe-17679574 |title=Albania country profile |date=December 15, 2016 |work=BBC News |access-date=February 8, 2017 |quote=The [2013] election was closely monitored by the European Union, which has twice rejected Albania's membership application and warned that the poll would be ''a crucial test'' for its further progress towards integration in the bloc. |url-status=live |archive-url= https://web.archive.org/web/20170103201731/http://www.bbc.com/news/world-europe-17679574 |archive-date=January 3, 2017 }}</ref> The [[European Parliament]] warned Albanian government leaders in early 2017 that the [[2017 Albanian parliamentary election]] must be "free and fair" before negotiations could begin to admit the country into the EU. The MEPs also expressed concern about the country's "selective justice, corruption, the overall length of judicial proceedings and political interference in investigations and court cases" but the EU Press Release expressed some optimism: "It is important for Albania to maintain today's reform momentum and we must be ready to support it as much as possible in this process".<ref>{{cite web |url= http://www.europarl.europa.eu/news/bg/news-room/20170131IPR60322/foreign-affairs-meps-assess-reform-efforts-in-albania-and-bosnia-and-Herzegovina |title=Foreign affairs MEPs assess reform efforts in Albania and Bosnia and Herzegovina |date=January 31, 2017 |work=European Parliament |access-date=February 8, 2017 |quote=Albania needs to implement EU-related reforms credibly, and ensure that its June parliamentary elections are free and fair, if it is to start EU accession negotiations |url-status=dead |archive-url= https://web.archive.org/web/20170211080700/http://www.europarl.europa.eu/news/bg/news-room/20170131IPR60322/foreign-affairs-meps-assess-reform-efforts-in-albania-and-bosnia-and-Herzegovina |archive-date=February 11, 2017 }}</ref><ref>{{cite web |url=http://www.express.co.uk/news/world/761758/Albania-Bosnia-Herzegovina-European-Union-membership-democratic-values |title=Albania and Bosnia fail to impress at EU membership meeting over democratic value concerns |last=Culbertson |first=Alix |date=February 1, 2017 |work=Express Newspapers Ltd., UK |access-date=February 8, 2017 |quote=Albania and Bosnia have stumbled at the first hurdle of becoming fully-fledged European Union (EU) members after MEPs questioned the credibility of their democratic values. |archive-date=May 12, 2021 |archive-url=https://web.archive.org/web/20210512122552/https://www.express.co.uk/news/world/761758/Albania-Bosnia-Herzegovina-European-Union-membership-democratic-values |url-status=live }}</ref> In May 2019, European Commissioner [[Johannes Hahn]] recommended that the EU open membership talks with Albania.<ref name="European Western Balkans Start Talks">{{cite web |title=EC: Albania and North Macedonia to open the negotiations |url=https://europeanwesternbalkans.com/2019/05/29/ec-albania-north-macedonia-open-negotiations/ |work=European Western Balkans |access-date=2 June 2019 |date=29 May 2019 |archive-date=31 May 2019 |archive-url=https://web.archive.org/web/20190531174227/https://europeanwesternbalkans.com/2019/05/29/ec-albania-north-macedonia-open-negotiations/ |url-status=live }}</ref>

Albania also needs to continue to improve its infrastructure, particularly highways within its borders and connecting the country to its neighbours. Once there is evidence of significant progress on this front, the country's chances of acceptance into the EU should improve. Discussions took place during 2015 to secure funding to do so.<ref name="Rapoza"/>

By 2016, China became one of the major investors in Albania having purchased drilling rights to the oil fields of Patos-Marinzë and Kuçovë (from a Canadian company) and Tirana International Airport SHPK. China Everbright and Friedmann Pacific Asset Management will operate the airport until 2025. As of March 2016, China was the country's main trading partner, with 7.7% of the country's total international trade; that is far more than the trade with Greece and Turkey.<ref name="Mejdini">{{cite web |url=http://www.balkaninsight.com/en/article/chinese-investments-raise-eyebrows-in-albania-05-02-2016 |last=Mejdini |first=Fatjona |date=3 May 2016 |title=Chinese Investments Raise Eyebrows in Albania |work=Balkan Insight |access-date=10 February 2017 |archive-date=2 July 2017 |archive-url=https://web.archive.org/web/20170702101439/http://www.balkaninsight.com/en/article/chinese-investments-raise-eyebrows-in-albania-05-02-2016 |url-status=live }}</ref>

A 2018 analysis of six key categories indicated that Albania continues to experience infrastructure problems that present challenges to businesses and further economic opportunities.<ref>{{cite journal |last1=Bahhouth |first1=Victor |last2=Ziemnowicz |first2=Christopher |title=Meeting the Global Challenges of Doing Business in the Five Candidate Countries on the Road to Join the European Union |journal=Journal of the Knowledge Economy |date=March 2018 |volume=10 |issue=3 |pages=1297–1318 |doi=10.1007/s13132-018-0531-3 |s2cid=158074120 |quote=Albania failed to show any strength on the six dimensions.}}</ref>