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Rural poverty approaches, policies & strategies in Albania

The Government of Albania's approach to poverty reduction is outlined in the National Strategy for Socio-economic Development (NSSED), which analyses requirements for medium-term priorities in public investment and includes a long-term vision for national development. The strategy points to economic growth as the chief mechanism for reducing poverty, and emphasizes that economic stability favours creation of a suitable environment for sustainable growth. A key national goal is the fullest possible integration of Albania into the economic and political mainstream of Europe.

Specifically, the government's strategy includes creating and maintaining a favourable business environment and promoting employment opportunities for poor people. It also supports increased investments in education and health, and empowering poor people by involving them in the political process to a greater extent. The NSSED is seen as a dynamic process rather than as a static document, and it is evolving as Albania moves closer towards integration with the European Union.

As an operational tool for the NSSED, the government has adopted a medium-term economic framework and a public investment programme, which are updated annually and which can be used to promote pro-poor allocation of public funds consistent with policies for sustainable growth.

The Policy Agenda for Socio-Economic Development adopted by the government in 2001 addresses issues such as governance and institutional development, including improved public order, decentralization to local levels of government, anti-corruption measures and legal reform. It also includes measures directing increased resources towards education and health and sustaining the social safety net. Policies encouraging private sector development, particularly small and medium-size enterprises, and policies supporting improved public infrastructure are an important part of the government's agenda.

The Mountain Areas Development Agency (MADA), financed by IFAD through the Mountain Areas Development Programme, began operations in 2000 and has been instrumental in ensuring that the NSSED now incorporates a specific mountain areas perspective. MADA has fostered participation in an overall plan for mountain area development and has helped develop strategic investment programmes.

The Mountain Areas Finance Fund (MAFF) was established in 1999 to serve as a sustainable financial institution to provide needed rural credit services in mountain areas. Through the Mountain Areas Development Programme, MAFF received funds to cover part of its investment and operational costs, as well as most of its portfolio growth. Technical support from Rabobank and financing from IFAD have contributed to development of a long-term strategy and business plan for MAFF for the period 2005-2010 that includes the progressive restructuring of MAFF into a self-funding, private rural bank with the characteristics of a cooperative, providing a full range of rural financial services.

Gender inequalities

Although Albania 's constitution guarantees the equality of men and women, and a national action plan calls for attention to gender issues in government initiatives, significant gender inequalities persist in the absence of related policies. Because of those inequalities, the heaviest burdens of poverty are borne by women, particularly rural women and particularly those who are head of households.

National strategy for socio-economic development (NSSED)

Source: IFAD