The Social Safety Net in Albania

Author/Editor:

Natasha Koliadina

Publication Date:

August 1, 1996

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper reviews the developments in the social safety net system of Albania since the beginning of its economic adjustment program in mid-1992 through the third quarter of 1995. It shows that the social safety net system was quickly reformed, and that this allowed Albanian authorities to support the most needy groups of the population with income transfers. Notwithstanding the low administrative costs, the social safety net system is not financially sustainable. Expenditures are not balanced with revenues, and the gap cannot be closed in the short-run. Poor targeting of the benefits and administrative loopholes spur expenditures. Revenue growth is hindered by low compliance with the social security contributions. The paper concludes with some suggestions for addressing this issues.

Series:

Working Paper No. 1996/096

Subject:

Expenditure Labor Pension spending Social assistance spending Social security contributions Taxes Unemployment Unemployment benefits

English

Publication Date:

August 1, 1996

ISBN/ISSN:

9781451851861/1018-5941

Stock No:

WPIEA0961996

Pages:

60

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