Photo Credit: USAID/Albania   Albania’s “infrastructure gap” is a significant impediment to new investment and profitable enterprise growth and poses enormous challenges for the economy. USAID economic growth activities work alongside democracy activities through innovative partnerships to support a business–friendly environment and competitiveness of Albanian businesses.

CURRENT SITUATION
Albania remains one of the poorest countries in Europe and its per capita income is among the lowest in the Balkan region.  High levels of unemployment, low foreign direct investment (FDI), and a widening trade deficit are all causes for concern.  Despite some improvement in its ranking, Albania still trails most other countries in the region in the World Economic Forum global competitiveness index for 2010.  In addition, poor infrastructure (energy, communication, and transportation), disputable property ownership, and weak financial sector discourage domestic and foreign investments.

PROGRAM OVERVIEW
USAID programs focus on putting in place those reforms and regulations that will lead to a better business environment, more competitive enterprises, and a stronger financial sector. Activities seek to improve the dialogue between the GOA and the private sector through working with chambers and associations in order to identify and remove constraints to doing business. The effective use of public private partnerships (PPPs) helps to fill a serious resource gaps while addressing infrastructure (energy, roads, ports, etc.) and other constraints, for example in agro‐marketing. Carefully targeted technical assistance to the financial sector will further strengthen regulatory authorities.

PROGRAM FOCUS

• Improve conditions for private sector‐led growth by addressing legal and regulatory issues that impact the private sector including those dealing with paying taxes, registering businesses, and access to credit.
• Improving private sector competitiveness through effective use of public private partnerships and concessions that can mobilize private capital to address key infrastructure needs.

SUCCESSES

• On October 2011, USAID entered a public-private partnership with the GoA and leading international and Albanian private sector organizations to establish Albania’s first ICT training and resource center, PROTIK, that will support the development and use of ICT innovations for small businesses and promote ICT sector growth in Albania.
• Together with Carnegie Mellon’s Software Engineering Institute, USAID is supporting Albania’s 1st agency dedicated to cyber-security, ALCIRT, including developing ALCIRT’s initial planning and implementing strategies and establishing computer security incident response teams based on U.S. best practices in protecting, detecting, and responding to cyber-attacks.
• USAID, with the support of the Ministry of Agriculture, established a system for the collecting and disseminating daily prices for 22 agricultural commodities of different origin (imported and domestic), varieties and grades in four major Albanian agricultural wholesale markets, totaling 624 data points/day.