Stabilization Policies and Structural Reforms in Albania Since 1997: Achievements And Remaining Challenges
IMF Policy Discussion Papers, February 1, 2002
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- Stabilization Policies and Structural Reforms in Albania Since 1997: Achievements And Remaining Challenges
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Bibliographic details
- Authors: Volker Treichel
- Published: February 1, 2002
- Series: IMF Policy Discussion Papers
- DOI: https://doi.org/10.5089/9781451974508.003
Summary
- This paper assesses the effectiveness of stabilization policies and structural reforms in Albania since 1997 and seeks to identify the remaining key challenges in various policy areas.
- It draws lessons for other transition economies from the recent Albanian experience.
- While progress has been made toward macroeconomic stability and the establishment of a modern institutional framework, much remains to be done to enhance the sustainability of the recent favorable macroeconomic performance and reduce unemployment and poverty.
- Crucial areas of reform highlighted are:
- the creation of functioning institutions, notably in the judicial field;
- the establishment of a reliable supply of electricity, which has recently become an obstacle for rapid growth.
Key Findings
- Progress toward macroeconomic stability has been achieved since 1997.
- A modern institutional framework has been established, but gaps remain that affect sustainability of macroeconomic gains.
- Unemployment and poverty remain issues requiring further policy action.
- Electricity supply reliability has become a binding constraint on rapid growth.
Policy Recommendations and Reform Priorities
- Strengthen institutional capacity, with particular emphasis on the judicial field, to support sustainable macroeconomic performance.
- Establish a reliable supply of electricity to remove a key obstacle to rapid growth.
- Continue structural reforms aimed at reducing unemployment and poverty and consolidating macroeconomic stabilization.
Subject Areas and Keywords
- Subjects: Balance of payments, Economic sectors, Expenditure, Inflation, Prices, Privatization, Remittances, Revenue administration
- Keywords: Albania, company kesh, demand shock, Eastern Europe, electricity company kesh, enterprise, fiscal consolidation effort, Global, government, growth performance, Inflation, macroeconomic stabilization, medium-size enterprise, monetary policy, PDP, poverty-reduction objective, Privatization, privatization receipt, reform agenda, Remittances, structural reform, tourism potential, transmission mechanism, water supply company