The Social Safety Net in Albania

IMF Working Papers, August 1, 1996

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The Social Safety Net in Albania

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Bibliographic details

• Authors: Natasha Koliadina
• Published: August 1, 1996
• Series: IMF Working Papers

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.
• The social safety net system was quickly reformed, allowing 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 these issues.

Key findings and analysis

• Rapid reform of the social safety net enabled income transfers to needy groups.
• Low administrative costs coexist with overall financial unsustainability.
• Main drivers of fiscal imbalance:
  • Expenditures exceed revenues.
  • Poor targeting of benefits.
  • Administrative loopholes increasing spending.
  • Low compliance with social security contributions limiting revenue growth.

Policy implications and recommendations (as stated)

• The paper concludes with some suggestions for addressing the identified issues (specific suggestions are presented in the full paper).

Publication and metadata

• Title: The Social Safety Net in Albania
• Author: Natasha Koliadina
• Date: August 1, 1996
• Series: Working Paper No. 1996/096
• Issue: 096
• Volume: 1996
• Pages: 60
• ISBN: 9781451851861
• ISSN: 1018-5941
• Subjects: Expenditure, Labor, Pension spending, Social assistance spending, Social security contributions, Taxes, Unemployment, Unemployment benefits
• Keywords: base wage, Eastern Europe, flat rate, injury benefit, Pension spending, private sector, public enterprise, replacement ratio, severance pay, Social assistance spending, Social security contributions, state enterprise, Unemployment, Unemployment benefits, unemployment insurance, WP
• Citation preview (as provided): Natasha Koliadina. "The Social Safety Net in Albania", IMF Working Papers 1996, 096 (1996), accessed 9/15/2026

Source: IMF Working Paper — "The Social Safety Net in Albania" by Natasha Koliadina (Working Paper No. 1996/096).