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Albania
FY 2001 Program Description and Activity Data Sheets
>> Regional Overview >> Albania Overview FY 2001 Program
USAID’s portfolio in Albania is dominated by an emphasis on sustainable economic growth. USAID's assistance will continue to focus on the private sector and agriculture. The Albanian-American Enterprise Fund (AAEF) will continue to invest in Albanian firms. Support to farmer associations will continue in FY 2001, focusing more attention on women-owned and operated enterprises; expanding assistance to private associations; and integrating micro credit programs more fully into the private sector program. Support to land privatization will continue, focusing on institutionalization of a viable land market. Completing the restructuring of the state banking systems will be a high priority for the Government of Albania, and USAID expects to continue assistance in this area through bank supervision activities. USAID's support for capital market development will continue, addressing the trading, clearance, and settlement mechanisms needed to ensure proper regulation of the market.
Sustaining economic growth through prudent natural resource management will continue to receive attention through FY 2001. The watershed management activity – using a framework of community decision-making – will be a high priority. Community-based, private sector development activities will be linked to grassroots civil society strengthening efforts. In FY 2001, helping Albania to solidify the rule of law – including efforts to fight corruption and reestablish control over its borders – will be a major thrust of USAID’s democracy and governance programs.
USAID will continue to promote participatory and representative government, respect for diversity of beliefs and human rights, and effective administration of the law. Assistance to media, local government and NGO sectors will spotlight citizen awareness and participation in the democratic process. Support to local government will also encourage decentralization and the development of new civic intermediaries for the people of Albania. USAID will intensify anti-corruption efforts, working with selected NGOs to help citizens realize they have a right to information on government operations; mobilizing public concern about corruption; and encouraging government to take corrective action. This civil society effort will complement activities to upgrade law enforcement bodies and regulate financial institutions. Assistance to the Albanian Customs Department, in direct collaboration with the European Union, is an important component of USAID’s anti-corruption program.
USAID will continue efforts to improve access to and the quality of health services in Albania through training, and increasing public awareness and service delivery points in the country. In FY 2001, efforts will be expanded to four, additional, major cities. FY 2001 funding will provide financial management advisory services to support a hospital payment system, and to help achieve sustainable health insurance mechanisms. USAID also plans to help establish a wellness center for women and a national association of nurses.
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ACTIVITY DATA SHEET
PROGRAM: ALBANIA
TITLE: Accelerated Development and Growth of Private Enterprise, 182-013
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $14,290,000 SEED
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $15,730,000 SEED
STATUS: Continuing
INITIAL OBLIGATION: FY 1991 ESTIMATED COMPLETION DATE: FY 2003Summary: In Albania, the absence of experience in private business and the poor performance of state enterprises left a legacy of inappropriate institutions and a severe shortage of skills in both the public and private sector. Considerable portions of the public enterprises and assets have been privatized or terminated, but the private sector has not been effective in establishing active markets in most areas of production, distribution, or finance.
USAID activities associated with this objective are designed to accelerate development and growth of private enterprises. USAID’s strategy has been to operate primarily in the private sector, raising returns in the agricultural sector through more efficient production technology, improved collection of raw production, and higher quality final agricultural products. Agriculture, one of the first sectors to privatize, dominates the economy by providing over 50% of GDP and employment inadequate credit for agriculture – and small- and micro-business enterprises in general – still limit business opportunities.
USAID supports reform of the legal and regulatory environment for business and commerce in Albania, and is a major donor implementing the land titling and property registration system. The system will facilitate secure tenure to farm families and help establish a fledgling land market, which will allow for consolidation of small parcels into economically viable holdings. The small- and medium- enterprise sector is being supported through training activities implemented by a high quality technical high school (the Fultz School); the University of Nebraska MBA training program; and a network of Business Assistance Centers and Business Development Centers in Tirana and other urban centers. The Albania American Enterprise Fund (AAEF) is providing foreign and domestic investment in promising Albanian enterprises, and USAID supports lending to micro-enterprises through other mechanisms. To complement activities for improving the policy, legal and regulatory framework in support of the private sector, USAID is providing training for judges in issues related to business and commercial law, and in judicial administration. This training will continue through 2000.
Key Results: Three principal results demonstrate progress toward achieving this objective: (1) Commercial Business Regime Improved; (2) Business Support Services Improved; and (3) Trade Associations Active in Supporting Private Agriculture.
Performance and Prospects: Without the presence of the American staff for over half the year, producing results for this objective was difficult during 1999. With the help of Albanian staff and the return of U.S. personnel in May 1999, however, expected progress was made.
Albania’s disappointing performance in privatization in 1999 was more than balanced by good performance in the creation of new private enterprises, and in the improvement of the business regulatory and legal framework. USAID assistance with land titling laws and regulations, for instance, played a role in this improvement. Land titling and the recording of ownership by individuals and local community groups have moved ahead. To date, about 100% of agricultural land has been titled and about 32% has been recorded. When this activity is completed, there will be a legal basis for the sale of land and for collateral for farm credit. The USAID-supported, Land Tenure Center facilitated the recording of almost 330,000 registered land titles during 1999. This brings the total number registered under this program in excess of 1.75 million parcels. The targeted number of land registrations was not achieved principally because the evacuation of U.S. personnel in August 1998 resulted in delays.
USAID has provided vital support to agriculture trade associations. For instance, help was given to set up a network of input supply dealers to provide fertilizer, seeds and other critical inputs. Results have been impressive. Nearly 100% of fertilizer is distributed by nearly 150 private dealers, who are also leading the distribution of farm chemicals and seeds. While the total number of fertilizer dealers decreased from last year (these were smaller, very low volume dealers) the total volume of fertilizer traded through the remaining dealers has risen. USAID supported the dairy sector by transferring new technology, organizing an active network of dairy producers, and by providing training. Different areas of agricultural activities were given substantial help by short-term consultants and support was provided to the largest association of farmers in Albania.
Association members have maintained about $4 million in revolving credit for operations, and a new, small and micro-credit lending activity began this year. AFADA, the preeminent agricultural trade association in Albania, was created with a focus on institutionalizing a private agricultural input network. AFADA is now a self-sustaining organization with 100% of its expenditures derived from domestic sources. Operating revenues exceed expenses by a comfortable margin. Association assets are more than $100,000 and they have established a national generic brand name associated with high quality and safe products. This success is well on the way to replication. A core of successful agricultural entrepreneurs in seven agribusiness sectors has formed nascent associations. They look to AFADA as a model in its success in advocacy and development of their markets.
Nevertheless, Albania’s problems with enforcing standards and licensing could impede potential growth of agricultural markets. Imported agricultural inputs are certified by foreign agencies, but domestically produced inputs, and agricultural products are not reliably standardized or graded. Several of our activities focus on improving these practices. Licensing is successful because it usually involves a small fee paid directly to a notary. On the other hand, grading, certification, and taxation are still encumbered by administrative weaknesses of a non-transparent framework that encourages corruption. Violators incur little risk or cost of non- compliance.
During its 45 years of isolation under communism, Albania did not benefit from investment in capital improvements that more open Eastern Block countries enjoyed. New investment is thus more crucial to the restructuring and development process in Albania than other former communist countries. Political instability and insecurity have adversely affected domestic investment. The Albania American Enterprise Fund with USAID assistance has proved an alternate source of investment and credit for Albanian enterprises. The Fund has invested $25 million in 30 projects. The American Bank of Albania, created by the fund, began operations this year and now has total deposits in excess of $39 million. With the change of government, adoption of a new constitution, and a focus on improving internal security and stability, the prospect for increased domestic and foreign investment should improve.
Business support centers services are important to Albanian economic development because the populace is not accustomed to market processes or institutions. Their services help overcome misconceptions. Revenue from service fees paid by customers of USAID-assisted centers was $90,000, against the target of $115,000. USAID will build upon its success with programs that provide credit through non-bank financial institutions, credit unions, trade associations and group micro-credit programs. These programs are expected to have loaned $22.6 million to around 4,600 clients by mid-year 2000.
USAID will continue its emphasis in promoting economic growth and enterprise development, with a special focus on Albania's important agriculture sector. In particular, USAID will continue to assist in liberalizing the business regime, expanding sources of credit, and supporting trade associations.
Possible Adjustments to Plans: The mission plans to undertake an in-depth agriculture sector review in mid-2000, and an economic and small business development analysis in late 2000. These reviews will serve as the basis for a major strategic strategy review and possible revision of the private enterprise sector strategy.
Other Donor Programs: The European Union (EU) and World Bank continue to be active in many of the sectors USAID supports. Indeed, linkages are deliberate. These include support to small and medium enterprises and implementation of a property registration system. USAID actively collaborates with donors in other areas as well. The major donors to agriculture include USAID, Italy, the German aid agency (GTZ), the World Bank, and the EU. USAID and GTZ collaborated in strengthening the faculties of the Agricultural University of Tirana, while the EU is working on the development of an extension service. The EU has set up farm mechanization centers, while USAID has helped set up private wholesale dealerships and has assisted with agricultural imports such as fertilizer, animal feeds, seeds and pesticides. USAID supports private farm forestry and the World Bank supports the Forestry Directorate with programs in high forest areas. This complementarity, together with Government support in the form of personnel, facilities and a demonstrated willingness to make policy and legal changes in support of the private sector, combine into a strong coordinated program. USAID is working directly with the EU to provide the Albania customs authority hands-on training in ethics and customs procedures.
Principal Contractors, Grantees or Agencies: USAID implements these activities through University of Wisconsin Land Tenure Center, American Albanian Enterprise Fund, Deloitte & Touche, Land O’Lakes, IFDC, Agricultural Cooperative Development Institute/Volunteers in Overseas Cooperative Assistance, Harry Fultz School, University of Nebraska, and East-West Mgt. Institute.
Selected Performance Measures:
Baseline Actual
(1998)Target
(1999)Target
(2000)Target
(2001)Real GDP Growth
-27.1%(1991)
+8% +5% +5% +5% Percentage of labor force Unemployed 27%(1992) 17.6% 18.2% 8% 7% New private sector enterprises Number
2,600(1991)
56,000 82,000 90,000 * Domestic Investment (USD)
$509 m(1993) $75m ** Membership of SelectedBusinesses 0(1991) 18,650
17,580
20,640 * Foreign Investment (USD) $10 m(1991) $45m $110m $120m $120m Accession to the World Trade Organization
No(1997)
No No Yes *** *Performance indicator expires in FY2001.
** Performance indicator will not be used for reporting in future due to changes in data availability.
*** If achieved in 2000, target is met and will not be tracked further.
ACTIVITY DATA SHEET
PROGRAM: ALBANIA
TITLE: A More Competitive and Market-Responsive Private Financial Sector, 182-014
STATUS: Continuing
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $1,100,000 SEED
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $1,600,000 SEED
INITIAL OBLIGATION: FY 1991 ESTIMATED COMPLETION DATE; FY 2002Summary: This objective assists Albania in developing the fundamental institutions and elements of a private financial sector. USAID's small capital market development program is designed to reflect the realities of the country. On the public sector side, the task has been one of restructuring and privatizing the remaining state banks, while encouraging expansion of private banks and ensuring proper regulation of the banking system. USAID has joined other donors in supporting the winding down of the pyramid schemes, with the intent of liquidating assets and distributing proceeds to depositors. Beneficiaries include foreign investors wishing to do business in Albania, all depositors, borrowers and entrepreneurs who rely on the banking system.
Key Results: The principal results necessary for achieving this objective are: (1) sound, regulated and efficient banking system established, including restructuring of publicly owned banks; and (2) component capital markets institutions in place; (3) collateral law implemented; and (4) pyramid schemes liquidated.
Performance and Prospects: Security threats necessitated the withdrawal of all, American implementers from Albania from August 1998 to May 1999. Implementation was maintained by conducting training and workshops in neighboring countries and by utilizing third-country staff. The U.S. Treasury assistance program terminated in November 1998, but the World Bank and the International Monetary Fund (IMF) have continued to support the Government of Albania through their fiscal and financial programs. USAID expects the Treasury program to resume in 2000 and focus on banking privatization.
USAID's efforts in establishing a sound, regulated and efficient banking system continued to make progress, as measured by the declining percentage of non-performing loans – down from 69% in 1998 to 34% in 1999. USAID helped to increase the capacity of the Bank of Albania's (BOA) supervision department to regulate and monitor the banking system, enforce banking laws and regulations, and strengthen the BOA's bank licensing and bank liquidation policies. The Albanian Center for Economic Research (ACER) has conducted intensive public education efforts to inform the general public about the need for sound regulated private banking system. ACER estimates it has reached two-thirds of Albania’s newspaper readers and 30% of the people involved in bank-related issues. USAID banking supervision assistance will continue to comprise a significant portion of this objective. These activities are planned to strengthen Albania’s ability to assess for risk and to ensure a steady growth of the banking system.
USAID continues to support the liquidation of insolvent, non-Bank financial (Pyramid) schemes. Most of the schemes collapsed in 1996 and early 1997. The five remaining schemes were placed under Government of Albania administration in November 1997. In 1999 USAID contributed to the World Bank organized multi-donor effort to complete the remaining audits and wind down the funds.
Because Albania's capital market is still in a very early stage of development, USAID has concentrated assistance on developing the institutional and regulatory capacity of the Albanian Securities Commission and the Tirana Stock Exchange. Due to the evacuation of 1998-1999, this activity did not meet its targets. However, the Albanian Securities Commission received extensive training and as a result improved its institutional and regulatory capacity. The Tirana Stock Exchange has not become fully functional, and the Share Registry continues to be an entity of the Ministry of Privatization. USAID expects to provide these two with limited institutional support in FY 2000.
With USAID assistance, the Government of Albania completed a draft collateral law, which was vetted with key decision-makers and widely publicized. Despite the evacuation of American personnel, this program was able to continue. USAID expects Parliament to pass the Collateral Law in 1999, and place it in force in early 2000.
Possible Adjustments to Plans: No major strategic changes identified at this time.
Other Donor Programs: The International Monetary Fund (IMF) has been the lead donor on fiscal and macroeconomic policy advice, and the World Bank coordinates donor financial-sector assistance. An IMF advisor currently advises the central bank governor on monetary policy. The World Bank has been responsible for the wind-up of the pyramid schemes and the privatization or liquidation of the state-owned banks. The World Bank assists in the implementation of the value-added tax. The German aid organization, GTZ, has provided technical assistance to the National Commercial Bank and will provide training in bankruptcy procedures as well as expertise in drafting commercial laws. Bank of Ireland provided technical assistance on restructuring the Savings Bank prior to its privatization. The European Union is providing technical assistance in the establishment of a new Chart of Accounts for the banking sector.
Principle Contractors, Grantees, or Agencies: USAID implements these activities through the U.S. Securities and Exchange Commission, the Financial Services Volunteer Corps (FSVC), the University of Maryland/IRIS Center, Barents Group, World Learning and Chesapeake Associates.
Selected Performance Measures:
Baseline Actual
(1998)Target
(1999)Target
(2000)Target
(2001)
Percent of financial sector funds to private enterprise
5%(1995)
83.7% 85% 90%* 95%
Non-performing loans/public sector (90 days past due)
25%(1997) 69 % 50% 35% 20% State-owned banks restructured (i.e., privatized or liquidated - cumulative number) 0 (1995)
1 1 2 3 Trading mechanism in place that is financially viable
No (1996) No No Yes Yes
Percent of insolvent, non-bank schemes liquidated
0 (1997) 95 %
100%**
__
* Target value increased for 2000 because performance in 1998 exceeded the original 2000 target.
**This indicator will not be tracked once the 100% target is reached.
ACTIVITY DATA SHEET
PROGRAM: ALBANIA
TITLE: Increased Environmental Management Capacity to Support Sustainable Economic Growth, 182-016
PLANNED FY 2000 OBLIGATION AND FUNDING SOUCE: $ SEED
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $ SEED
STATUS: Continuing
INITIAL OBLIGATION: FY 1998 ESTIMATED COMPLETION DATE: FY 2002
Summary: Nearly two-thirds of Albanians rely on agriculture, forest and pasture land for their livelihood, but the country’s natural resource base has been undergoing severe deterioration in the last decades, threatening sustained economic growth. Currently, 76% of total forest area is classified as having low productivity. What was once forested land for timber is now reduced to shrubs and coppice, good only for fuel wood and fodder. Mismanagement and over grazing of pastures has also contributed to deterioration of natural resources. Albania is estimated to be losing on average 20 tons per hectare of soil annually because of erosion.
Given the magnitude of the environmental problem in Albania, and concerned with its impact on agriculture, employment and economic growth, USAID established its objective to effect better management of natural resources in Albania in mid 1998. Ordered evacuation off USAID’s American personnel delayed launching the comprehensive, 5-year program originally envisioned. Currently, two principal activities support efforts for this objective: Albania Private Forestry Development Project (APFDP), and a comprehensive watershed assessment and related training activity implemented by the U.S. Department of Agriculture’s Forest Service. In addition, a pest management activity is being implemented under the Collaborative Research Support Program (CRSP). Despite the evacuation, the objective is considered to be performing satisfactorily, primarily due to the strength of the APFDP, which has completed its fourth year of activity.
Key Results: Two principal results are deemed critical to achieving this objective: (1) increased local and private participation in natural resources management; and (2) increased use of environmentally-friendly, sustainable natural resources technology.
Performance and Prospects: Despite the inability of the U.S. contractor to provide in-country oversight during the first six months of the year, two key results capture the progress in this strategic objective: in the agro-forestry program, every participating village within target areas had at least one case of collaboration between the local authority and the private sector; and the agro-forestry program also had more than ten times the independent replications of its demonstration activities than were targeted. Support to community forestry resulted in the production and marketing of seedlings as a new source of rural income and developed information essential to restoring productivity to rural lands. Support to new non-governmental organizations (NGOs) has started to inform the public about environmental quality, conservation, and sustainable development. Nascent producer associations are becoming aware of the importance of sound environmental management practices. Growers are adopting sound practices with respect to the use of crop control chemicals. Several research institutes and the universities are working with the worldwide USAID crop research support program to develop and implement integrated pest management procedures which are both environmentally friendly and support internationally marketable olive oil and other food products. Despite its slow start-up the U.S. Forest Service program is now making progress and has generated enthusiasm within the Government.
Possible Adjustments to Plans: The mission will undertake a review of this objective over the next year. Of particular concern, is the need to explore the relationship with, and impact of this objective on the democracy, economic growth, and health objectives in the country strategy.
Other Donor Programs: The World Bank has two projects – a $45,000,000 project to restore irrigation facilities and hydrological monitoring systems, and a forestry support program in high forest areas of Albania. Germany is providing technical training for new extension officers. The EU has funded some watershed and land-use assessments and may expand its programs in the near future.
Principal Contractors, Grantees or Agencies: Chemonics, U.S. Forest Service, U.S. Resources Conservation Service, Colorado State University, Regional Environment Center (REC)/Albania, Integrated Pest Management Collaborative Research Support Program, Virginia Polytechnic Institute.
Selected Performance Measures:
ActualTargetTargetTarget
Baseline 1998 1999 2000 2001
% increase in villages within
USAID agro-forestry target
areas in which there is at least
one case of local and private
participation 0 (1995) +2.75% +1.5% +1.5%+1.5%
Number of villages in USAID Agro-forestry
target areas with at least one independent
replication of USAID-introduced
packages 0 (1995)77 95 72 *
Local requests for USAID-promoted
extension services10(1996)42 25 30 *
Environmental activities actually
undertaken 0 (1996) 6 6 8 *
Protocols established to communi- 0 (1998) **
cate hydro-meteorological and
socio-economic data from
scientific to management staff
__
* Target for 2001 will be set during upcoming review of this objective.
**Due to delay in implementation as a result of evacuation, activities supporting this indicator were not initiated. Performance targets that were to be developed were not.
ACTIVITY DATA SHEET
PROGRAM: ALBANIA
TITLE: Increased, Better-informed Citizens' Participation in Political and Economic Decision-Making, 182-O21
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $3,550,000 SEED
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $4,000,000 SEED
STATUS: Continuing
INITIAL OBLIGATION: FY 1991 ESTIMATED COMPLETION DATE: FY 2002Summary: Albania’s society continues to reflect the country’s polarized environment. However, citizen participation, a critical element for the political process of a democracy has increased. Non-governmental organizations (NGOs), independent media, and democratic political parties were unknown before the fall of communism. USAID's strategy for improving citizens’ participation focuses on strengthening Albanian civil society organizations that are independent of the conflicting political parties, and that have the potential of working throughout the countryside as well as in the large cities.
These efforts benefit a wide range of politically active citizens by strengthening the organization of NGOs, as well as the linkages between them, young party leaders, and the print and broadcast media. A new program will emphasize the importance of the diversity of opinions, of resolving conflict without resorting to violence, and of public participation. Another initiative will support citizen organizations as watchdogs in the struggle against widespread corruption in the courts and in the public administration across a broad spectrum of society. Finally, with local elections to come in 2000, all civil society implementers will contribute to the mass education effort to promote voter registration and participation.
Key Results: Five principal results are essential to achieving this objective: (1) more effective political parties as demonstrated by outreach of major parties at the regional level; (2) free and fair elections ensured through transparent, effective operation of the Central Elections Commission, and as verified through monitoring of local and national elections; (3) improved capacity of non-governmental organizations (NGOs) to participate in political, economic and social decision-making, particularly as demonstrated in their advocacy performance; (4) institutionally strengthened, professional and independent media, increasing public access to information; and (5) increased Parliamentary transparency and effectiveness.
Performance and Prospects: In spite of the evacuation of USAID’s American staff, USAID advisors continued to work very closely with their Albanian counterpart organizations. The November 1998 referendum on the new constitution was very important and was supported by USAID programs. In terms of performance measures, passage of the constitution is considered an indicator of success in the electoral process. The number of NGOs participating in policy formation and implementation has increased much more rapidly than targeted. In 1999, the number of NGOs was more than double the target. The legal and regulatory framework for media improved. The law on broadcast media passed in 1998 was a major success associated with the USAID program. There was slow progress in establishing a permanent professional staff in Parliament, a measure of the continuing problem of partisan dominance of issues within the legislative branch.
In 1999, USAID also turned available resources to helping their Albanian counterparts provide support to the Kosovo refugees during the summer. Following initial assistance and with the return of U. S. staff, efforts to address the refuge crisis and other civil society needs have doubled. The momentum of implementing civil society activities that were difficult to manage from a distance during the evacuation has increased – in part out of necessity to respond to the refugee crisis. These activities will continue, with an emphasis on rural and locally based activities, as well as expanding their scope beyond Tirana as the security situation is eased for U.S. citizens. The new programs will engage NGOs in conflict resolution, and in anti-corruption activities. Civil society organizations are expected to take a very active role in up-coming elections. Work on such crosscutting issues is being coordinated by several organizations in this sector, as well as with the implementers of the local government programs.
Possible Adjustments to Plans: No changes in strategic plans identified.
Other Donors Programs: Denmark, Norway, the Dutch and the UNDP continue to offer support to local NGOs. The Organizations for Security and Cooperation in Europe (OSCE) now has a full-time person designated to work directly on NGO support throughout the country. The OSCE, UN Development Program, USAID (International Foundation for Electoral Systems) and some of the Embassies are coordinating efforts in the election laws and voter registration. Soros, the British Broadcasting Corporation and individual Embassies are putting their efforts together in several media projects. The Council of Europe and the OSCE supports Parliamentary and party activities.
Principal Contractors, Grantees, or Agencies: USAID implements their on-going activities through the National Democratic Institute (NDI), the International Republican Institute (IRI), the International Center for Not-for-Profit Law (ICNL) the International Research and Exchanges Board (IREX), the International Foundation for Electoral Systems (IFES), and the American ORT Foundation.
Selected Performance Measures:
Baseline Actual
(1998)Target
(1999)Target
(2000)Target
(2001)More women run for office
20%(1992)
5%
20% 30% 40%
Free and Fair Elections
No (1996) No Yes Yes Yes NGOs participating in making public policy decisions
0 (1995)
0 70 185 300 Independent media strengthened making an impact
0 (1995) 0 17 20 35
Improved effectiveness of Parliamentwith professional staff hired
0 (1994) 0 5
58 * Participatory practices in the Education system (# of classrooms) 0 (1997) 0** ** ** ** __
* Target for 2001 will be set during upcoming review of this objective.
**Indicator linked to cancelled activity, and will not be tracked in future.
ACTIVITY DATA SHEET
PROGRAM: ALBANIA
TITLE: Legal Institutions that Better Support Democratic Process and Market Reforms, 182-022
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $2,050,000 SEED
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $4,000,000 SEED
STATUS: Continuing
INITIAL OBLIGATION: FY 1991 ESTIMATED COMPLETION DATE: FY 2002
Summary: USAID has been tracking the extent to which the legal framework and viable legal institutions are in place. Albania has far to go before its legal systems can be considered to support democratic processes and market reforms. The Albanian people perceive their judiciary to be corrupt, incompetent, and politically motivated. USAID advisors focus on strengthening governmental legitimacy and authority. The popularly approved constitution was a beginning, but attention now must focus on its implementation.
USAID's rule of law program in Albania is aimed at promoting reform in the judiciary, supporting the legal profession, offering continuing legal education and improving the commercial law regime. USAID's program emphases which are intended to ensure that laws and legal institutions support democratic processes, include: (1) Support to help the Albanian judiciary become respected and effective, including efforts related to court administration; (2) Assistance to the national and regional bar associations; (3) Support to the Magistrates School, which trains law school graduates to become competent judges; and (4) Training in commercial law for judges, lawyers and law students. USAID programs in other objectives directly support the legal reform efforts through their emphasis on fighting corruption. These activities are operating to strengthen civil society and heighten the public's awareness of corruption and its impact on society. USAID's support for the Albanian Customs Department, in collaboration with the European Union, is also a means of addressing the problem of corruption in Albania.
In parallel with USAID's legal reform and related rule of law issues, the U.S. Department of Justice (DOJ) continues to implement two programs under SEED auspices. The Overseas Prosecutorial Development and Training (OPDAT) program trains prosecutors and defense attorneys in the Albanian criminal code and criminal procedures. New activities are focusing on the collaboration between the police and prosecutors. The second DOJ program, the International Criminal Investigations Training and Assistance Program (ICITAP), has been training the Albanian police, collaborating where possible with similar EU programs. ICITAP also has provided advisors to the Ministry of Public Order to help develop its institutional capacity
Setbacks occurred during the governmental crises of late 1996 and early 1997, and again in September 1998. The Kosovo Refugee Crisis in 1999 was a further impediment. Despite these difficulties, the Albanians adopted a constitution by popular referendum in November of 1998 and continue to implement it, albeit haltingly. The direct beneficiaries of these activities are the Albanian judicial system, and indirectly, every member of the Albanian public.
Key Results: Three key results are needed to achieve this objective: (1) more competent legal professionals as a result of training and better access to information on laws and legal reform issues; (2) restructuring of the legal system in line with international norms; and (3) promoting an environment in which citizens have legal recourse through the justice system.
Performance and Prospects: Performance for this SO suffered as a result of the absence of U. S. staff for half the year due to the evacuation. Progress did not meet expectations. USAID advisors assisted in drafting the governing statute and code of ethics for the National Chamber of Advocates. USAID continues to work with the Council of Europe (COE) to establish a National Judicial Association and to create better court administration throughout Albania.
The new constitution gives the Government of Albania a strong framework for building democracy and civil society. The challenge is to bring the document to life and implement its provisions through legal drafting and law enforcement. USAID activities in the rule of law sector will adjust to focus on these issues as appropriate given the changing emphases of the Government.
Possible Adjustments to Plans: No change in strategic plans identified at this time.
Other Donor Programs: The Organization for Security and Cooperation in Europe was instrumental in the preparation and passage of the new Albanian Constitution, and serves as a focal point for legal reform and anti-corruption activities. The COE provides legal expertise and training for the Magistrates School in Tirana, and for the judiciary. Additional donors to Albania's legal reform process are the Soros Foundation, Danida (Denmark) and GTZ (Germany).
Principal Contractors, Grantees, or Agencies: USAID implements this activity through the American Bar Association's Central and East European Law Initiative (ABA/CEELI) Project and the U.S. Department of Justice (DOJ). USAID's work is coordinated closely with the law enforcement and anti-corruption efforts of DOJ/OPDAT and DOJ/ICITAP.
Selected Performance Measures:
Baseline Actual
(1998)Target
(1999)Target
(2000)Target
(2001)Magistrates School functioning
No (1995)
Yes
Yes Yes Yes Number of professionals trained
0 (1995) 0 25 50 * Constitution adopted by referendum No (1995) Yes ** Citizens have legal recourse and are trained in legal issues 0 (1995) 0*** ___
*Target for 2001 will be set during upcoming SO review.
**Once achieved, there is no need to continue reporting on this indicator.
***This indicator was reviewed and determined not valid in 1999. New measure to be developed.
ACTIVITY DATA SHEET
PROGRAM: ALBANIA
TITLE: More Effective, Responsive, and Accountable Local Government, 182-023
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $1,400,000 SEED
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $1,760,000 SEED
STATUS: Continuing
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2002
Summary: Although in the past, local governments have been simply the extension of the central government, the potential for enhancing the devolution of power was increased by the passage of the new constitution in November 1998. The process of decentralization is being managed by a bi-partisan task force, which considered a wide spectrum of issues in weekly meetings throughout 1999.
USAID's local government programs are being implemented to support decentralization, and effective execution of newly devolved authorities and responsibilities of local officials, in about a dozen pilot cities. Citizens of these cities have found their quality of life improved through strengthened local administration and municipal services, according to recent citizen surveys. In some cases the cities have opened the decision-making process up to citizen participation, especially for economic development; and a few cities have broadly publicized their budgets. During the Kosovo Crisis in the summer of 1999, the necessity for local governments to participate in providing shelter and basic social services for large numbers of refugees emphasized the importance of increasing their management and service delivery capacities, and the need to enhance their decision-making authority.
Key Results: The following key results are needed to achieve this objective: (1) Central government transfers responsibility and authority to local governments; (2) Local government capable in budgeting, managing, planning, implementing and reporting on use of resources; (3) local governments provide improved services; (4) transparency and openness of local governments increased; and (5) local governments empowered to engage constituents in planning and implementing local, economic development plans.
Performance and Prospects: USAID advisors have worked with the Government of Albania at a ministerial level and through the decentralization task force to foster an informed, non-partisan dialogue on decentralization. At the same time, intensive work has continued to strengthen the capacity of administrations in pilot cities. The Association of Municipalities, a core group of city mayors, continues to be trained by USAID advisors in the modern budgeting process, public management, citizen participation and economic development.
Two of the three cities targeted to use formal priorities as a basis for actual spending met that objective. They were particularly successful in attracting funds from non-governmental sources, validating the effectiveness of a transparent budget process. The increase in municipal expenditures on services greatly exceeded the targeted increase, even after accounting for inflation. Increased expenditures were possible in large part due to donor assistance in response to the civil unrest in 1998 and the Kosovo crisis in 1999.
USAID advisors have worked to improve service delivery as an essential component of building public confidence. Land management and water delivery by local authorities have improved, although gains continue to be mitigated by internal migration and were severely taxed by the influx of Kosovo refugees in the summer of 1999. During the crisis, USAID was instrumental in helping coordinate multi-donor infrastructure rehabilitation activities within the model cities. Implementers continue to work to ensure that as many as possible of these essential projects are completed.
The progress made in this sector has been considerable, especially given the historically limited role of local government in Albania, the setbacks from unrest in 1996-97, and the evacuation of U.S. citizens in August of 1998, and the Kosovo crisis of 1999. Decentralization and municipal capacity building are important Government of Albania priorities, and USAID activities receive strong Government support. The challenge is to maintain the momentum to implement the National Decentralization Strategy and, at the same time, to maintain the gains in citizen participation, especially given the coming local government elections in 2000. It will be necessary to streamline the local government activities while combining the efforts of USAID in this sector with those in the civil society programs.
Possible Adjustments to Plans: No strategic change in this objective has been identified.
Host Country and Other Donors: The World Bank and a bilateral Italian program provide support in major infrastructure (water, sewerage, etc.). The German Government has provided some technical assistance and training. The Netherlands is active in local government development. The Council of Europe provides equipment to selected municipalities and supports the decentralization efforts. Government of Albania contributions to the activities are principally in the form of personnel and facilities.
Principal Contractors, Grantees, or Agencies: USAID implements this activity through DAI/Mendez-England and the Urban Institute.
Selected Performance Measures:
Baseline Actual
(1998)Target
(1999)Target
(2000)Target
(2001)
Central government transfers responsibility and authority to local government (law allowing devolution of power in place )
No (1995) No Yes * * Local government capable of budgeting, Planning and managing (cities Implementing) 0 (1995)
0 7 8 16 Local government provides improved service 0 (1995) 0 5 8 16 Local government supports economic development (cities with implemented economic development plans) 0 (1995) 0 4
5 10 __
*Once "yes" achieved, this measure will no longer be reported .
ACTIVITY DATA SHEET
PROGRAM: ALBANIA
TITLE: Improved Sustainability of Health and Social Benefits and Services, 182-032
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $1,000,000 SEED
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $2,240,000 SEED
STATUS: Continuing
INITIAL OBLIGATION: FY 1991 ESTIMATED COMPLETION DATE: FY 2005
Summary: Albania has the least developed public health system in Central and Eastern Europe. Many of its health care facilities are seriously dilapidated and outdated. The health delivery system still emphasizes curative services over primary care and preventive services. It suffers from weak planning and management capacity. The influx of refugees from Kosovo added strain. The country's prior isolation, official pro-natalist policy, poor information, and lack of family planning alternatives have resulted in high mortality and morbidity rates for women. Abortion has been the predominant form of family planning.
This objective seeks to improve the sustainability of health benefits and services in Albania with an emphasis on women's health. Improved health services will fortify the productive capacity of Albania's human resources. Increasing the efficiency and lowering the cost of health services will reduce the social investment required to maintain a healthy population. Medical professionals (doctors, nurses, technicians and managers) are the channels through which projects are functioning, with the primary beneficiaries being Albanian citizens seeking quality health care. Women in Albania are gaining access to family planning information and services.
Key Results: Three principal results are necessary to achieve this objective. (1) Improved Reproductive Health Practices: Reliance on abortion and lack of familiarity with modern reproductive health methods contribute to the high maternal mortality rates. USAID's program emphasizes information dissemination, family planning counseling, improved access to services, and provision of higher-quality services. (2) Improved Hospital Services in Tirana: Albanian hospitals need to modernize their administrative procedures, clinical methods, and financial management. Through partnership arrangements USAID's program introduces improvements in administration, nursing, maternal and childcare, emergency medicine, and infection control. The participating Tirana-based hospitals will serve as models for replication to other hospitals. (3) Improved Health Administration and Management: It is especially important to improve health management, performance budgeting, and cost control in Albania, which has a low level of health expenditures. USAID's program helps improve management skills and training, both at the ministerial and at the health provider levels.
Performance and Prospects: The implementation of this objective was set back by the August 1998 evacuation and travel restrictions. Program implementers responded by transferring training programs to locations outside of Albania, increasing the use of third country (non-American) technical consultants, and delegating greater responsibility to Albanian staff. With the return of the American staff, normal operations have resumed.
The Government of Albania is aware of the urgent need to revitalize and modernize its health care system. Working with USAID advisors, key health care administrators have acquired the knowledge and skills needed to manage more efficiently and effectively at the central level (the Ministry of Health) and at the district, hospital and polyclinic levels. Durres Hospital and University Hospital Center of Tirana have implemented techniques to improve hospital operations. They serve as models for the rest of the hospital system. Because of high vacancies, the number of hospital beds has been reduced. At the Durres Hospital, where the main hospital building collapsed in 1995, a strategic planning process has matched available resources with a long-range plan for a replacement hospital. At the University Hospital Center, administrative and medical records were computerized. In both hospitals, pharmaceutical and medical supply purchasing and distribution were computerized. Several national conferences have been held to share the information and management techniques developed at the pilot hospitals with over eighty hospital managers and administrators from all over Albania.
The planning capacity of the Ministry of Health has been improved through management training, computerization and a hospital facilities survey. A Learning Resource Center, which has been opened at the National Institute of Public Health with USAID support, provides access for students and faculty to modern management literature and research through the Internet. Health management courses were designed and are now being taught at the University of Tirana. Four Tirana hospitals have received extensive training in emergency medical services through a partnership program with Spectrum Health of Michigan. Albanian nurses from across the country are receiving in-service training opportunities to improve their skills and status in the health care system.
More than 1,400 service providers who were trained in five districts of Albania are now providing upgraded women's reproductive health services at 296 upgraded service sites. Training of additional providers is well underway, and the program will be expanded nationwide. In addition, information, education, communications and logistics management activities contribute to strengthening the service delivery points and private pharmacies throughout Albania. An intensive countrywide multimedia campaign especially focused in the five program districts was started in 1999. The campaign launched the presentation of the National Quality Family Planning Services logo. This campaign has the dual objectives of increasing public awareness of where to seek reproductive health/family planning services, and increase public usage of these services. Contraceptives are being provided throughout the country by the United Nations Population Fund (UNFPA) with assistance from USAID in logistics management.
Possible Adjustments to Plans: No strategic change in objective has been identified at this time.
Other Donor Programs: The World Bank is supporting the reconstruction of rural hospitals throughout Albania. The University of Montreal and the Paris Hospital System are providing planning assistance and management training to the Ministry of Health. The United Nations Development Program has provided health care manuals to medical facilities. Switzerland is strengthening the nursing school capacity. The European Union has a Public Health Facilities Maintenance project, and has supported capacity building at the Ministry of Health. The UNFPA is providing significant contraceptive commodities.
Principal Contractors, Grantees, or Agencies: USAID’s current implementers are the American International Health Alliance, John Snow, Inc., and the U.S. Department of Health and Human Services.
Selected Performance Measures:
Baseline Actual
(1998)Target
(1999)Target
(2000)Target
(2001)
Health Services Improved:
--infant mortality (deaths/1,000 live births)
35.7(1994) 20.4 27 25 23 --Maternal mortality (deaths/100,000 births) 40.6(1994)
39 23 20 19 Access to Quality Health Services Improved:
--cumulative number of primary health care clinics in compliance with quality standards
199 (1995) 513 625 625 * --clinics providing family planning services 2 (1995) 108 220
250** *
*Performance measurement period currently ends in 2000.
**Target revised downward in light of program slowdown during evacuation.
EXPLANATION FOR SPECIAL INITIATIVES and CROSS-CUTTING OBJECTIVES
Title: Special Initiatives, 182-041
Planned FY 2000 Obligation and Funding Source: $7,560,000 SEED
Proposed FY 2001 Obligation and Funding Source: NONE PROPOSED
Summary: This objective includes most 632 (a) transfers to other USG entities. The majority of funding in this objective goes to the State Department for public diplomacy and police training.
USAID activities under this objective meet criteria outlined in Agency guidance for special objectives or interests. That is, they are of limited scope and/or duration and respond to particular windows of opportunity. For USAID/Albania, these activities include limited support to educational reform and local infrastructure rehabilitation.
Title: Cross-cutting Programs, 182-042
Planned FY 2000 Obligation and Funding Source: $1,505,000 SEED
Proposed FY 2001 Obligation and Funding Source: $2,670,000 SEEDSummary: This objective is designed to accommodate activities that make significant contributions to more than one objective. The activities included in this objective for Albania address participant training, and program development and support requirements.
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Last Updated on: February 01, 2001 |
