Albania has climbed thirteen positions in the ranking on the economic freedom published by the Heritage Foundation, one of the best think tanks based in the United States. However, the report defines the Country of Eagles still as a "moderately free" country.
The climb in the standings, according to the foundation, came thanks to the improvement for the second consecutive year in fiscal health and the highest scores for judicial effectiveness, work, freedom and public spending.
On the other hand, despite the progress made in the last quarter of a century in terms of democracy and market economy, the report describes Albania as one of the poorest countries in Europe, characterized by slow economic growth, high unemployment and a new migration trend.
The Albanian problems
The issue of property rights, a weak and reformed judicial system, a tax burden among the highest in the region, are some of Albania's drawbacks identified by the Heritage Foundation report.
Due to the poor connectivity and small size of regional economies, Albania leads only one tenth of its trade with the CEFTA countries of the region. In addition, foreign direct investments in Albania - which in the last decade have averaged one billion euros per year - focus mainly on low-value projects related to energy, such as hydroelectric, oil, and the like. mining and, more recently, natural gas (thanks to the construction of the trans-Adratico gas pipeline).
In addition, experts argue that a weak rule of law has led to unfair competition and monopoly operations, such as the distribution of electricity (in the hands of the state) and services managed by private sector operators under monopoly concessions or under public-private partnerships.
Not surprisingly, in fact, the latest World Bank Doing Business report included Albania at 63th place (on 190 total positions) with regard to ease of doing business, continuing to lag behind most of its regional neighbors which are all in the top 50.
Follow Albania News on Google News