Explanation The target audience of this presentation consists on students at university level. Since Albania is e developing country in urgent need for sustainable development and there is very limited information circulating regarding sustainable development and SDG’s, it is of crucial importance to raise awareness among the youngest for these important goals for their future. The aim of this presentation is to provide with an overview of the current situation of the country regarding the accomplishment of the MDG’s and present the challenges regarding the finance & achievement of the SDG’s, with possible policies and actions to be taken for the successful achievement of the goals.

1. SUSTAINABLE DEVELOPMENT
Sustainable Development Goals
Creating Awareness Among
Students-The Case of Albania
Prepared by:
Anisa Vrenozi
December 2015
Tirana, Albania

2. Aim of Sustainable Development

3. Sustainable Development
NormativeDefinition:
• Development that meets the needs and aspirations of the
current generation without compromising the ability to
meet those of future generations.
In-Contestof AlbaniaDefinition:
• Development which enables individuals
and communities in developing regions
of the world to raise living standards
through profitable products, consistent
with minimizing adverse environmental
effects.

4. Albania
Upper middle income
cluster with a GNI per
capital of $4,460 in 2014
Weak institutional capacity
High vulnerability in different sectors
such as energy, agriculture, climate,
etc.

5. Albania - Statistics
Units 2013
Geography
Surface area thousand sq. km 28.75
Population
Population, ages 15-64 in thousands 1,903.90
Population growth % (1.01)
Urban population % of total population 55.38
Economic development
GNI, Atlas method current USD in millions 13,064.77
GNI per capita, Atlas method current USD 4,710.00
GNI per capita, PPP current international $ 10,400.00
GDP growth % 1.42
GDP per capita growth % 2.44
Poverty
Infant mortality rate per 1,000 live births 13.30
Data was retrieved from: http://www.aidflows.org/

6. Official Development Aid
• The amount of ODA amounts received and current sources and
uses of ODA for Albania are presented as follows:
Net ODA Disbursements by year in US $ million
Year Net ODA Disbursements IDA Disbursements
2003 482 79
2004 371 78
2005 383 35
2006 376 47
2007 327 46
2008 361 20
2009 363 27
2010 379 16
2011 372 12
2012 362 14
2013 269 (5)
Total 4,045 370
Data was retrieved from: http://www.aidflows.org/

7. WORLD BANK
Gross Commitments
Year IFC IBRD MIGA TFs
2009 81.7 83 0 2.14
2010 2.28 0 0 1.52
2011 0.4 25 24.98 3.42
2012 112.74 71.6 159.37 5.93
2013 61.86 40 0 9.82
2014 45.18 305.3 0 2.88
2015 0.45 160 0 7.96
Total 304.61 684.9 184.35 33.67
Data was retrieved from: http://www.aidflows.org/

8. Sectors Financing
• ODA, 2014
32.6%
1.2%
5.5%
0.7%
7.6%19.6%0.1%
32.8%
Economic infrastructure
and services
Education
Health and population
Multisector/cross-
cutting
Other social sectors
Production sectors
Program assistance
unallocated/unspecified

9. Sectors Financing
• World Bank, 2015
43.6%
42.8%
11.7%
1.1%
0.3%
0.2%
0.2%
Public admin, Law
Finance
Energy & mining
Water/sanit/fld
prot
Agriculture
Transportation
Health & social
serv

10. Allocation among Sectors…
The allocation of resources should be done based on the
current availability of resources of the country and the
current development needs.
High concentration of investment in Public & Administrative
Law and the Economic/Finance sector.
This distribution is quite logical considering the current
situation of Albania as a country requiring immediate
improvement in the legal framework and
infrastructure in order to attract private
investors and FDI.

11. More to be done….
• Despite the relative high life expectancy (77.16 years) and the
high adult literacy (96.85%), Education & Health system
should be considered with high priority considering:
• Immediate need for improved health system, especially in the
perspective of further decreasing the current rate of infant
mortality (14.2
• Need for specialized labor force, especially trained through
vocational and professional training which is currently at very
low levels.

12. Millennium Development Goals
Units 2013
Goal 1: Halve the rates for extreme poverty and malnutrition
Poverty headcount ratio at $1.25 a day PPP, % of population n/a
Poverty headcount ratio at national poverty line % of population n/a
Share of income or consumption to the poorest quintile % n/a
Prevalence of malnutrition % of children under 5 n/a
Goal 2: Ensure that children are able to complete primary
schooling
Primary school enrollment % net n/a
Primary completion rate % of relevant age group n/a
Secondary school enrollment % gross n/a
Youth literacy rate % of people ages 15-24 n/a
Goal 3: Eliminate gender disparity in education and
empower women
Ratio of girls to boys in primary and secondary education (%) % n/a
Women employed in the nonagricultural sector % of nonagricultural employment n/a
Proportion of seats held by women in national parliament (%) % 17.9
Goal 4: Reduce under-5 mortality by two thirds
Under-5 mortality rate per 1,000 14.9
Infant mortality rate per 1,000 live births 13.3
Measles immunization (proportion of one-year olds immunized,
%) % 99

13. Millennium Development Goals
Goal 5: Reduce maternal mortality by three-fourths
Maternal mortality ratio
modeled estimate, per
100,000 live births 21
Births attended by skilled health staff % of total n/a
Contraceptive prevalence % of women ages 15-49 n/a
Goal 6: Halt and begin to reverse the spread of HIV/AIDS and other major diseases
Prevalence of HIV, total % of population ages 15-49 0.1
Incidence of tuberculosis per 100,000 people 18
Tuberculosis case detection rate (all forms) 81
Goal 7: Halve the proportion of people without sustainable access to basic need
Access to improved water source % of population n/a
Access to improved sanitation facilities % of population n/a
Forest area % of land area n/a
Terrestrial protected areas % of total surface area n/a
CO2 emissions metric tons per capita n/a
GDP per unit of energy use
constant 2005 PPP $ per kg of
oil equivalent n/a
Goal 8: Develop a global partnership for development
Telephone mainlines per 100 people 8.86
Mobile phone subscriptions per 100 people 116.16
Personal computers per 100 people n/a
Internet users per 100 people 60.1

14. …2016-2030

15. Domestic Mobilization of Resources
• Focus more in its Domestic Mobilization of Resources.
• European Commission in its report regarding the
economies of the Balkan region has stated that the Tax
revenue to GDP ratio in Albania is 27.8% in 2015.
• The same level is expected in the upcoming year, with a
modest expected increase to 27.9% in 2017.
In the meantime, as stated in the
same report, the countries of the
region have higher Tax-GDP ratios
with FYROM -31.6%, Montenegro-
42.9%, Serbia-40.3%, Bosnia-
Hercegovina-38.9%, leaving
behind only Kosovo with the ratio
of 26.8%.

16. • Although the situation has been improving during the last
decade, some of the main reasons for this situation as
presented in the Doing Business in Albania report are as
follows:
• a) Tax bases are mainly limited by the size and persistence if
the informal sector with much of the country’s GDP out of the
formal framework,
• b) Persistent corruption and lack of transparency which
inhibit the citizens not to comply with laws and,
• c) lack of accountability to taxpayers on how money is spent
which requires a higher oversight from the civil society on the
parliamentarians.
DMR ~ Tax Revenues

17. Taxes~ What has been done…
• Albania, as a transitional country in the
1990’s, has been able to improve the
previous erroneous tax system forwarded from the
centralized economic system of the dictatorship.
• Considerable improvement in the facilitation of compliance
by providing a clear tax regulatory and legal framework,
identifying all the taxpayers, collecting the taxes and
providing adequate taxpayer services.

18. Taxes~More to be done…
• More focus should be dedicated in enforcing compliance so
nonpayment of taxes does not become a cheap source of
finance and also an adequate penalty structure should be
enforced for non-paying subjects.
• More efforts should be done in improving
governance and assure the honesty of the tax
collectors.

19. Taxes ~ Sustainable Reforms
• Therefore, we may state that since Tax Policy in
Albania is already established, more efforts should
be dedicated in improving Tax Administration.
• The improvement of this situation can be achieved by :
Eliminating unproductive activities,
Focusing more efforts to larger business taxpayers and
Implementing a modern IT infrastructure to facilitate tax collection,
internal management & control of the system, audit selection system,
legal structure & procedures and provide for lower compliance costs.
• This would not only increase tax collections but also would
aid in tackling illicit financial flows.

20. DMR ~ The Private Sector
• The private sector plays a pivotal role in development financing since it
underpins economic growth, know-how, technology transfer, and job
creation and productivity gains.
• In this perspective, to increase private investment, both national and
international, the Government should decrease the perceived risk
associated with the investment in Albania or increase the anticipated
returns to compensate for high risk expectations.
• This positive investment climate can be achieved through supportive
governance structures, competition policy, hard & soft infrastructure and
instruments that provided sustainable markets.

21. DMR ~ Capital Markets
• In addition, it would be very effective to work on developing a capital
market with a variety of financial institutions apart from banks, which
actually compromise 98% of the country’s financial system.
• More attention should also be provided in establishing more pension
funds and developing the existing ones (2 modest pension funds)
• Pension Funds may highly contribute in the private sector investments
in those fields that require higher rates of investments and provide also
higher future returns, such as infrastructure.

22. How to Mobilize ODA?
Multilateral and bilateral donors channel ODA funds in order
to promote both stronger DRM and more transparent, tax-
payer friendly environment by providing technical assistance,
capacity-building and commodities, especially in the areas of
tax administration and illicit flows administration.
In addition, they can bring in global experience in measuring
the DRM gaps and results.
Country’s leadership demonstrates the
political will to implement the necessary
institutional and tax policy reforms.

23. Albania’s Development Finance
Mix of development finance based on its economy indicators
• According to World Bank, Albania is classified in the Upper middle income
cluster with a GNI per capital of $4,460 in 2014, with weak institutional
capacity and with high vulnerability in different sectors such as energy,
agriculture, climate, etc.
• Considering this situation, the country’s development priorities should be
financed with a mixture of concessional and non-concessional loans when the
investment can potentially generate an economic return.

24. Investment in Infrastructure
• Immediate need to invest in INFRASTRUCTURE
• Consistency on a cross party, cross-government basis to make
investment in infrastructure account and deliver the outcomes
aimed for
• Competitive pressure: defend and to protect the user and the
tax payer in terms of ensuring that infrastructure is efficiently
delivered
• Manage the individual risks and to mitigate them, and then to
allocate those risks to those parties that can manage, bear, and
mitigate those risks best
• Affordability: Avoid Vanity Projects
• Improvement in the legal system

25. Conclusions….
• In conclusion we may state that the distribution of ODA in
Albania is quite accurate considering the current situation of
the country and further investments should be dedicated to
the sectors of Health & Education.
• Focus more in further improving its Domestic Mobilization
of resources and further develop and enhance new ways of
financing development-private & public.

26. Albania ~ The FinancingRole of the Multilateral
DevelopmentBanks
• Leverage and multiplying and mobilizing resources across the
development landscape for greater impact.
• Investments are in roads, they're in energy, they're
in health systems, they're in education, in agriculture,
and climate-smart technology and water and cities
• IBRD serves primarily middle-income developing countries and it helps
them invest in their major development needs by giving them loans and
also advice and guidance and advisory services.
• IFC provides advisory services for the Government
and it works in the private sector with loans and equity
grants and other investments.

27. References:
• AIDFLOWS: http://www.aidflows.org/
• EU Commission: http://ec.europa.eu/index_en.htm
• World Bank: http://data.worldbank.org/country/albania
• Doing Business Albania:
http://www.doingbusiness.org/data/exploreeconomies/alb
ania/
• INSTAT-Institute of Statistics Albania:
http://www.instat.gov.al/
• Ministry of Finance, Albania: http://www.financa.gov.al/
• Bank of Albania: https://www.bankofalbania.org/
• Coursera: https://www.coursera.org/