Business climate in Albania improves but corruption emaciated positives of progress

By Gjergj Erebara

Tirana, Nov. 6, 2008 (AENews) – Albania got an extreme number of black points in the annual report of the International Monetary Fund (IMF) on business climate conditions. As a whole, the rate of risk for investments has decreased but high level of corruption emaciated positives.

Albania registered some improvement in strengthening security of investments but is still the world’s most hazardous country. The index of corruption rate has doubled. The report was drafted by PRS Group INC in co-operation with Albanian authorities and was published by IMF.

The results for the period 1998 – 2001 are compared to the results for 2005 – 2007.

According to the information, the major risk in Albania has improved from 62% in 2001 to 70% in 2007. In comparison to other new EU member states conjuncture of Albania is better and progress is intense. Albania ranked with eight points before all the new EU member states that approach the level of a moderately developed countries.

Twice higher corruption

Albania’s weak points are traditionally bound to the supremacy and observing the law. In comparison to 2001 there is a slight improvement but deterioration of corruption is dramatic. In the period 1998 – 2001 Albania has got 38 points from a total of 100 points approaching states with average progress. Albania has hardly collected 17 points that means that corruption level has increased 2,2 times. These problems result in low level of foreign investments in the formation of the country’s GDP. The GDP of Albania has scarcely increased from 3% to 4%. All this reveals that the problems of Albania come from the political situation and conditions. On one hand, the quality of administration has improved twice, but on the other hand, corruption has increased 2,2 times that shows best that Albanians are close to the target of improvement of their self-government but their problem remains the political class.

Compared to other countries in the region and in Eastern Europe Albania exceeds almost all of them with some slight exceptions gathering an entire collection of “black” medals.

In relation to the major risk for investments three countries are behind Albania – Romania, Serbia, Belarus and Moldavian. Even Azerbaijan has lower indicator. Regarding quality of administration Albanians are in the middle of the rating. In return, Albania tops the corruption chart. There is a significant difference between Albania and the second state in the list – Kazakhstan, which is still governed by former Communist Party of Kazakhstan and one president for life.

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