Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).
ALBANIA
FY 1997 FY 1998 FY 1999 Actuals Estimate Request Support for Eastern Europe Democracy $27,100,000 $30,000,000 $35,000,000 Economic Support Funds............. -- -- $10,000,000 P.L. 480 Title II........................... $2,114,400 -- -- Introduction
Supporting a peaceful and sustained democratic and economic transition in Albania contributes to the U.S. foreign policy objective of promoting stability in the Balkans. Beyond our support to the transitional processes common to other countries in Central and Eastern Europe, continued engagement in Albania is also leading us to focus on "sustainable development" objectives, such as those often encountered in other parts of the developing world. The flawed 1996 parliamentary election process, collapse of pyramid investment schemes in early 1997 and subsequent civil insurrection all underline the need for continued attention to democratic development and economic reform in Albania.
The Development Challenge
Albania faces all the challenges of an economy in transition from an authoritarian, command-driven system to one which is democratic and market-oriented. With an estimated per capita gross domestic product (GDP) of only $826 in 1996, Albania also faces the challenges common to many poor, developing countries. A reversal in 1996-97 of the Government of Albania's previously effective fiscal and economic management has generated major new economic reform challenges. Significant budget deficits, reductions in government revenues, high inflation, and the economic impact of the collapse of the pyramid investment schemes, have set economic reform efforts back substantially.
The process of establishing democratic practices and institutions has also seen significant regression in the past year and a half. Manipulation of the May 1996 parliamentary elections, the forced resignation of the former government and the loss of government control in many parts of the country in 1997 are all evidence of serious weaknesses in democratic development. Institutionalization of key democratic concepts -- rule of law, independence of the judiciary, executive oversight by the parliament, independence of the media, and decentralized governance -- is ever more critical at this stage of Albania's development.
The U.S. assistance program to Albania will support the goals of economic restructuring and growth, democratic development, social stability. USAID programs provide technical assistance, supplemented by credit and equity financing for private businesses and grant support to non-governmental organizations. In addition, the U.S. Government pledged $10,000,000 in balance of payments support in FY 1998 through a USDA grant of P.L. 480 Title I commodities, and proposes to provide a similar level of balance of payments support in FY 1999 using
Economic Support Funds............. (ESF).
Other Donors
USAID and the donor community pledged over $967 million in 1997 for immediate and medium-term financial and technical assistance activities in Albania, plus $100 million in balance of payments and budgetary support for the International Monetary Fund (IMF) emergency plan. Of this amount, the World Bank pledged $70 million in new projects including credit for the state's budget, technical assistance to improve the banking sector, health sector and rehabilitation of the seaports. The European Union (EU) pledged $107 million in credits for budget support, infrastructure, and the education and agriculture sectors. The United States is the third largest bilateral partner. Other major
contributors include Italy, Greece, Germany, the European Investment Bank, the European Bank for Reconstruction and Development, the International Monetary Fund, and the International Fund for Agricultural Development.
FY 1999 Program
The new strategy for assistance to Albania builds on prior program successes, includes "quick impact" activities developed in response to needs and opportunities in the post-crisis period, and introduces sustainable development concepts and program approaches. Under economic restructuring and growth, a major proportion of USAID's assistance will continue to focus on the agriculture sector which provides over 50% of GDP. Efforts have supported increases in agricultural production by assisting suppliers to obtain credit to import fertilizer, seeds and other vital inputs that cannot be produced locally. With USAID's assistance, over 92% of the land is in private hands. Private forestry development assistance addresses a critical resource. These efforts will be expanded in FY 1998 through a new natural resources management program, which will focus on watershed management to curb soil erosion and serious deforestation. With USAID assistance over 26,000 potential entrepreneurs have been trained in various fields. As of September 30, 1997, the Albanian-American Enterprise Fund (AAEF) has committed, in signed legal agreements, to invest $3,525,900 and has disbursed $3,102,300 to Albanian clients. The AAEF will open a new, model bank in 1998. Also in 1998, USAID will launch a four-year $3 million activity to provide microcredit to entrepreneurs and establish an Albanian credit institution. In close coordination with the IMF emergency program and the World Bank, U.S. post-crisis assistance in 1998 and 1999 will target privatization of larger state enterprises, capital markets development, banking sector reform, improved quality of urban and infrastructure services, and sound government policies relating to taxes, government budget and debt management. FY 1999 funding is requested for the following strategic objectives: private enterprise growth; financial sector development; and environmental management.
Under the democracy goal, USAID will continue support for the development and institutional strengthening of non-governmental organizations (NGOs) involved in democratic processes, the environment, economic growth, and social safety nets. Rule of law issues, reform and training of the judiciary, and support to independent media will remain priorities. Key objectives for the FY 1998 to 1999 period include the drafting and passage of a national constitution for Albania to replace the interim governing framework laws passed in 1991 and 1992. Support to local government will also encourage the decentralization of governance and the development of new civic intermediaries for the people of Albania. FY 1999 funding is requested for the following strategic objectives: increased, better-informed citizen participation in political and economic decision-making; legal systems that better support democratic processes and market reforms; and more effective, responsive and accountable local government.
During FY 1999, USAID maintains its commitment to social stabilization as a key element of sustaining popular support for the often-difficult economic and democratic transition facing Albania. This country has some of the worst health indicators in Europe, e.g., high maternal mortality (40 per 100,000 births in '94) and high infant mortality (35.7 per 1,000 births in 1994). To lower maternal and child mortality rates, as well as reduce the prevalence of abortion, USAID in 1995 initiated a women's reproductive health care project with a focus on training public and private sector health care providers to provide counseling in child-spacing. A second emphasis in the health sector is improving the administration and management of health care in general, with a focus on financial management advisory services to a hospital payment system and sustainable health insurance mechanisms. Two hospital partnerships link US hospitals with Albanian hospitals in an effort to improve financial management, create policy analysis and educate health managers. FY 1999 funding is requested for the strategic objective: improved sustainability of social benefits and services.
ALBANIA
FY 1999 PROGRAM SUMMARY*
(in Thousands of Dollars)
Strategic ObjectivesEconomic Restructuring Democratic
TransitionSocial Stabilization Cross-cutting and Special Initiatives Total Privatization -- -- -- -- -- Fiscal Reform -- -- -- -- -- Private Enterprise 13,600 -- -- -- 13,600 Financial Reform 4,550 -- -- -- 4,550 Environmental Management 2,000 2,000 Energy -- -- -- -- -- Citizens' Participation -- 5,290 -- -- 5,290 Legal Systems -- 4,060 -- -- 4,060 Local Government -- 2,740 -- -- 2,740 Crises -- -- -- -- -- Social Benefits -- -- 1,000 -- 1,000 Environmental Health -- -- -- -- -- Cross-cutting/Special Initiatives -- -- -- -- -- - SEED -- -- -- 1,760 1,760 - ESF -- -- -- 10,000 10,000 TOTAL 20,150 12,090 1,000 11,760 45,000
*Support for East European Democracy (SEED) Act funds
USAID Representative: Dianne Blane
ACTIVITY DATA SHEET
PROGRAM: ALBANIA
TITLE: Private Enterprise, 180-S001.3
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $13,600.000 SEED Act
INITIAL OBLIGATION: FY 1991; ESTIMATED COMPLETION DATE: FY 2002
Purpose: Accelerated development and growth of private enterprises.
USAID Role and Achievements to Date: Agriculture, one of the first sectors to privatize, dominates the economy by providing over 50% of GDP and employment. USAID support has been vital in setting up a network of input supply dealers to provide fertilizer, seeds and other critical inputs. USAID has also taken the lead in implementing a property registration system to provide secure tenure to farm families and in establishing a fledgling land market, which will allow for consolidation of small parcels into economically viable holdings. In addition to work on private farm lands, assistance to private forestry is producing incentives for private leasing of public "refused" lands for sustainable forestry and grazing uses. The small and medium enterprise sector is also rapidly expanding. In other non-agricultural areas, over 26,000 potential entrepreneurs have been trained in English, computers, secretarial skills, cosmetology, auto mechanics, business and other areas. Many graduates have started their own businesses, while others have found higher paying jobs. The Albanian American Enterprise fund (AAEF) is increasing foreign (especially U.S.) and domestic investments in promising Albanian enterprises. Assistance has been provided to the Government of Albania (GOA) in establishing and improving the policy, legal and regulatory framework required to support the private sector. For example, in late 1997 a USAID assessment led to the design of a commercial law training program for judges, to be implemented as part of our FY 1998 economic reform assistance program.
Description: Over 45% of USAID/Albania's FY 1997 funding and 35% of proposed FY 1998 resources are in support of this activity. The importance of this objective for economic restructuring and growth is reflected in our proposal to devote 39 % of the FY 1999 SEED budget for these efforts. Given the importance of agriculture, a substantial proportion of these resources has been directed to this sector. U.S. firms and universities provide assistance to the GOA in agricultural policy, research, statistics, forestry and in changing university economics curricula to teach free market principles. Agribusiness support is provided directly to entrepreneurs by U.S. firms and NGOs, as is support to non-agricultural small and medium enterprises. U.S. universities lead support to the GOA in setting up a property registration system and in the establishment of Albania's first MBA program. In 1998, USAID will launch a four-year $3 million activity to establish an Albanian credit institution to provide microcredit to entrepreneurs. Credit during the first year will target women entrepreneurs. Also in 1998, support will resume, provided by the U.S. Department of Commerce, to the GOA in trade policy, trade association development and in accession to the World Trade Organization.
Host Country and Other Donors: Other major donors, especially the European Union (EU) and World Bank, are active in many of the sectors USAID supports. In some cases, USAID/Albania has activities which are closely linked with theirs. These include support to small and medium enterprises and implementation of a property registration system. USAID collaborates effectively with donors in other areas as well. In agriculture, USAID, Germany (GTZ) and the EU are the major donors. USAID and GTZ are collaborating in strengthening the faculties of the Agricultural University of Tirana, while the EU is working on the development of an extension service. In another example, EU has set up farm mechanization centers, while USAID has helped set up private wholesale dealerships and assists with agricultural imports such as fertilizer, animal feeds, seeds and pesticides. USAID support of private farm forestry is complemented by World Bank support to the Forestry Directorate. Government support is in the form of personnel, facilities and a demonstrated willingness to make policy and legal changes required to support the private sector.
Beneficiaries: Rural families, which make up approximately 60% of the population, are the major beneficiaries of this activity. USAID support to the agricultural sector and property registration system affects potentially all of them. Other significant beneficiaries of training and technical assistance are entrepreneurs engaged in small and medium enterprises in both Tirana and secondary cities.
Principal Contractors, Grantees, or Agencies: USAID implementors include: Department of Commerce, Chemonics, International Fertilizer Development Center (IFDC), Winrock International/VPI&SU, the University of Wisconsin Land Tenure Center, Volunteers in Overseas Cooperative Assistance (VOCA), Land O'Lakes, World Learning (TRANSIT), the Harry Fultz Educational Foundation, the Albanian-American Enterprise Fund (AAEF), the ORT Federation (Organization for Educational Resources and Technological Training), and the University of Nebraska.
Major Results Indicators: Baseline Targets Real GDP Growth -27.1% (1991) +5% (2000) % of labor force unemployed 27 % (1992) 8% (2000) New private sector enterprises (Number) 2,600 (1991) 90,000 (2000) Domestic investment (US$) $509 million (1993) $1,290 million (2000) Foreign Investment $10 million (1991) $120 million (2000) Membership of selected business 0 (1991) TBD (2000) advocacy groups (individuals) Accession to the World Trade Organization No (1997) Yes (1999) Development and passage of a Collateral Law No (1997) Yes (1998)
ACTIVITY DATA SHEET
PROGRAM: ALBANIA
TITLE: Financial Reform, 180-S001.4
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $ 4,550,000 SEED Act
INITIAL OBLIGATION: FY 1991; ESTIMATED COMPLETION DATE: FY 2002
Purpose: A more competitive and market responsive private financial sector.
USAID role and Achievements to Date: USAID's support includes assistance to the Ministry of Finance in privatization of the state banks, to the Bank of Albania in bank supervision and bank licensing and to both institutions in setting up the share registry for the stock exchange. A new Chart of Accounts for banks is being adopted, new private banks have received licenses, and the ability of the central bank to undertake prudential on-site examinations has been increased. Citizens can now register the shares in companies they received as part of the voucher privatization, thereby significantly reducing the potential for fraud and abuse in the privatization and capital market formation processes. Public awareness of financial sector and economic issues in the transition to a market economy continues being promoted through USAID assistance to the Albanian Center for Economic Research. We have participated in funding an effort led by the Government of Albania and the World Bank to place administrators and auditors in illegal pyramid investment scheme companies, with the intent of identifying and distributing any remaining assets and closing them down.
Description: The banking system in Albania remains at a very rudimentary stage of development and performs few of the basic functions essential to a market economy. Financial intermediation is limited at best. Three insolvent state-owned banks dominate the formal banking sector. A private banking sector is beginning to emerge; six licenses have been granted to banks which are primarily foreign-owned. Even with the collapse of the pyramid schemes, financial transactions, including the foreign exchange market, take place outside the formal banking system. There are few trained commercial bankers in the system, and at the state-owned banks, poor lending policies and procedures are prevalent. Bank supervision is very weak. The legal and regulatory framework supporting the banking sector is incomplete and not enforced, including laws relating to collateral and bankruptcy, further dampening lending to enterprises. Furthermore, capital markets are still in an embryonic stage and not capable of fulfilling their function. Though state assets are being divested to the public, there is no demand for newly privatized companies to be listed on the Tirana Stock Exchange or supply of companies wishing to raise capital to expand their businesses.
Assistance has been provided in establishing and improving the policy, legal and regulatory framework required to support a private financial sector. For example, USAID is providing technical assistance for the creation of a collateral law including the design and implementation of a public notice system for movable property. During 1997, USAID resumed assistance to the GOA in the restructuring and privatization of state banks and began providing technical assistance in the area of budget planning and formulation. In 1998, USAID will also provide assistance to the GOA in the areas of tax administration, government debt issuance and management, fiscal policy analysis strengthening bank supervision capacity at the Bank of Albania, and strengthening securities regulatory capacity through the Albanian Securities Commission. USAID will also help to develop capital markets through the promotion of a secondary market for government securities and short term assistance to the Tirana Stock Exchange.
Host Country and Other Donors: An International Monetary Fund advisor assists the central bank governor on monetary policy. The World Bank is responsible for the wind-up of the defunct pyramid schemes and the privatization or liquidation of the state-owned banks, continuing assistance in the implementation of the value added tax, and coordinating all donor financial sector assistance. 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. The EU is providing technical assistance in customs reform and will complete assistance in the establishment of a New Chart of Accounts for the banking sector.
Beneficiaries: Groups who benefit from this program include U.S. exporters and investors wishing to do business in Albania and who rely on the technical ability and soundness of the banks to carry out financial transactions, all depositors and borrowers who rely on the banking system, entrepreneurs seeking capital for development and expansion of private businesses, and institutional investors (domestically and abroad) seeking either to diversify risk or to invest in growing markets.
Principle Contractors, Grantees, or Agencies: USAID implements these activities through the U.S. Department of the Treasury, the U.S. Securities and Exchange Commission, the Financial Services Volunteer Corps (FSVC), the University of Maryland, Barents Group, World Learning and Chesapeake Associates.
Major Results Indicators: Baseline Targets Funds available in private sector $5 million (1995) $29.5 million (2000) Equity capital (public & private institutions) $58 million (1995) $140 million (2000) Public/private institutions with adequate 0 (1995) 12 (1999) capital and earnings (Number) Legally registered financial institutions 1 (1995) 10 (2000) actively making loans (Number) State-owned banks restructured 0 (1995) 3 (2000) (i.e., privatized or liquidated - cumulative number) Stock exchange operative No (1995) Yes (1996) Stock exchange transactions 0 (1995) 60 (2000) (average number per session)
ACTIVITY DATA SHEET
PROGRAM: ALBANIA
TITLE: Environmental Management Capacity, 180-S001.6
STATUS: Continuing
PROPOSED OBLIGATION AND
FUNDING SOURCE: FY 1998: $2,050,000; FY 1999: $2,000,000 SEED Act
INITIAL OBLIGATION: FY 1998; ESTIMATED COMPLETION DATE: FY 2002
Purpose: To increase public and private capacity to address critical environmental constraints to sustainable economic development and growth.
USAID Role and Achievements to Date: 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 NGOs has begun to inform the public of issues in environmental quality, conservation, and sustainable development.
Description: The immediate and long-term health and productivity of streams and hillsides in Albania is threatened by low-yield activities that destroy the vegetative cover, exposing soils to erosion and initiating long-term degradation of the entire ecosystem. Over-grazing and illegal logging are the immediate problems; absence of land management systems is the greater issue. Productivity of rich farmland in the coastal plain and river valleys is diminished by poor water management practices. Degraded and poorly managed watersheds fail to retain groundwater for use in dry summers, and impede or destroy irrigation reservoirs and canal systems through excess siltation.
A new watershed management activity is being designed to build local technical capacity and develop institutional and community structures necessary for sound land-use management. Social and environmental baseline conditions will be determined for project planning and performance monitoring. Integrated watershed and water resources programs will be developed to promote best management practices and reconcile competing needs for forestry, pasturage, agriculture, and conservation of land and water resources. Intended results include: (1) increased local capacity for management and planning through education, extension, and training of students and established professionals; (2) increased central and local government capacity for management, planning, enforcement, and extension, through training in essential concepts and tools; (3) increased managerial and technical capacity of NGOs and other associations; and (4) increased integration of social and biophysical monitoring into land-use policy.
Host Country and Other Donors: The World Bank is near the mid-point of a $45,000,000 project to restore irrigation facilities and hydrological monitoring systems. 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.
Beneficiaries: Current and future rural people relying on natural resources of forests, soils, and freshwater will benefit from stabilizing watersheds and shifting production from destructive practices to those that yield sustainable higher values. Indirect beneficiaries will include farmers and municipalities provided with more abundant and higher-quality water supplies.
Principal Contractors, Grantees, or Agencies: This is a new strategic objective and implementors have not been chosen. Those being discussed are private firms, universities, and U.S. government agencies.
Major Results Indicators: As this is a new strategic objective in FY 1998, baseline and targets are still being developed. Proposed indicators follow.
Number of farmers implementing "best management practices" to control erosion.
Hectares of land where "best management practices" to control erosion are implemented.
Number of trained extension agents working in districts or komunas.
Hectares of land under komuna or district management.
Kilometer of stream corridor restored.
Concentration of suspended sediments in targeted streams and rivers.
Protocols established to communicate hydrometeorological and socioeconomic data from scientific to management staff.
ACTIVITY DATA SHEET
PROGRAM: ALBANIA
TITLE: Citizens' Participation, 180-S002.1
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $5,290,000 SEED Act
INITIAL OBLIGATION: FY 1991; ESTIMATED COMPLETION DATE: FY 2002
Purpose: Increased, better-informed citizens' participation in political and economic decision-making.
USAID Role and Achievements to Date: USAID efforts over the past year have largely focused on the impact on democratic processes and institutions of the governmental crisis of late 1996 and early 1997, the civil insurrection of 1997, and the breakdown in government control and legitimacy as a result of that crisis. Activities have included voter education and campaign monitoring in the June run-up to the October 1996 local elections and July 1997 parliamentary elections; election monitoring and sponsorship of multiparty round table discussions prior to the 1996 local elections which promoted reforms in GOA electoral management processes; direct technical assistance to the Central Election Commission prior to the local elections; and substantial support to the OSCE-led (Organization for Security and Cooperation in Europe) international election monitoring program for the June/July 1997 parliamentary elections.
In addition, USAID has supported the Society for Democratic Culture (SDC), an Albanian election-monitoring and democracy-promoting organization, since 1991. USAID advisors have sponsored public opinion polls. An assessment of the nature, problems and needs of the Albanian NGO community has been completed, and institution-building grants have been awarded to 17 NGOs. To assure a sound legal foundation for the NGO community, USAID advisors have researched, published and distributed a handbook on Albanian NGO law and been instrumental in supporting the GOA and NGOs in drafting a new law for social service NGOs. The transparent process, based on public meetings to encourage debate, was very successful and is now being applied to the drafting and vetting of other new legislation. Political party spokespersons have been trained in campaign management, and a group of journalists has been trained in election coverage.
Description: Current plans are influenced by the crisis of 1996-97 and its aftermath. A key focus is to begin to establish public trust and confidence in governmental and judicial institutions and processes. A new effort will focus on pedagogical training for primary and secondary school teachers will "bring democracy into the classroom". Advisors continue to support citizen participation, voter education and democracy-building activities of the SDC. USAID advisors also support the Albanian NGO community by encouraging the institutional strengthening of public policy-oriented NGOs involved in four priority sectors: democracy, the environment, economic growth and social safety nets. USAID advisors are helping to provide a solid basis to the NGO community through effective legal advice. As a catalyst for permanent collaborative linkages between Albanian NGOs and their counterpart organizations in other countries, a series of NGO internships, exchanges, and information-sharing opportunities are being offered. Assistance is being provided to the press and broadcast media to encourage their independence, professionalism and viability.
Host Country and Other Donors: Some of the political parties are receiving support and assistance from their equivalent party organizations in Western Europe. Denmark's Dialogue for Development is supporting the Albanian Civil Society Foundation which, in turn, is supporting Albania's NGO community. The Organization for Security and Cooperation in Europe has been very active in the past year in a range of programs supporting electoral processes.
Beneficiaries: These efforts will benefit the broad spectrum of politically active citizens by strengthening the organization of political parties, the network of NGOs, and the print and broadcast media. New generations of Albanians will be taught critical thinking and the importance of diversity
of opinions and compromise.
Principal Contractors, Grantees, or Agencies: USAID implements these activities through the National Democratic Institute, the International Republican Institute, the National Forum Foundation, the International Center for Not-for-Profit Law, the International Research and Exchanges Board (IREX), and the American ORT Federation.
Major Results Indicators: Baseline Targets Free and Fair Elections No (1996-97) Yes (2000) Political parties more representative (number 20 (1992) 40 (2000) of women who run for parliament - 4 selected parties) Number of 25 selected municipalities with 0 (1995) 14 (2000) public participation in annual budget process NGOs participating in public policy-making 4 (1995) 185 (2000) and implementation (cumulative total) Private, independent media (cumulative 0 (1995) 57 (2000) number of TV and/or radio stations Number of public hearings by parliamentary 0 (1994) 58 (2000) commissions (cumulative total)
ACTIVITY DATA SHEET
PROGRAM: ALBANIA
TITLE: Legal Systems, 180-S002.2
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $ 4,060,000 SEED Act
INITIAL OBLIGATION: FY 1991; ESTIMATED COMPLETION DATE: FY 2002
Purpose: Legal systems that better support democratic processes and market reforms.
USAID Role and Achievements to Date: 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. A law library at the Court of Cassation has been established, and the collection of donated books continues to grow. USAID advisors are also assisting in drafting the governing statute and code of ethics for the National Chamber of Advocates. The USAID advisors assisted the European Law Students Association in publishing the inaugural edition of the University of Tirana Law Review. They have continued to work with the Council of Europe on distribution of over 10,000 copies of various new codes and regulations throughout Albania. The advisors have also presented workshops on the private practice of law, contracting, etc.; supported and participated in a study tour for judges and legal professionals; and offered legal assessments on draft local government, agricultural land tax, media, collateral and family laws
Description: A clear lesson from the crisis of 1996-97 is that governmental legitimacy and authority are seriously undermined when people believe that their government regularly flouts the rule of law and when the judiciary is perceived as corrupt, incompetent, and politically motivated. A key element of the process of overcoming these doubts and fears is the transparent development and popular approval of a constitution, and this will be a focus of our efforts in 1998 and 1999. In addition, four areas of continuing emphasis help assure that laws and legal institutions support democratic processes: 1) Judicial: an ongoing program to support the Albanian Association of Judges to become a respected and effective representative of the country's judges; 2) Legal: Continuing efforts to help the national and regional bar associations and a women's bar association and a new effort to focus on criminal justice reform and court administration; 3) Legal Education: Support to the Magistrates School for training law school graduates to become competent judges and 4) Commercial Law: the presentation of courses in commercial law for judges, lawyers and law students; the preparation of a handbook on women's legal and commercial rights; and the development and implementation of modern commercial laws. In parallel with our emphasis on judicial training and related rule of law issues, we will provide modest assistance to police training programs as part of an important multi-donor effort. Following an assessment in early 1998, we may collaborate with other donors in a common approach to addressing corruption issues.
Host Country and Other Donors: The Organization for Security and Cooperation in Europe is assisting in the preparation of a new Constitution. The Council of Europe is providing legal expertise, training, furnishings and equipment for the Magistrates' School in Tirana to train and retrain the Albanian judiciary. The Government of Albania is refurbishing the building to house the School and courts at a cost of $1 million. Additional donors to Albania's legal reform process are the Soros Foundation, Danida (Denmark) and GTZ (Germany).
Beneficiaries: The direct beneficiaries of these activities are a significant percentage of the Albanian judges, lawyers, prosecutors and law students, and indirectly every member of the public who comes in contact with the legal system.
Principal Contractors, Grantees, or Agencies: USAID/Albania 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.
Major Results Indicators: Baseline Targets Adoption of a democratic constitution No (1991) Yes (1999) Cumulative number of judges, lawyers 0 (1991) 710 (2000) professionally trained Strengthened legal associations, as No (1991) Yes (2000) illustrated by various measurements such as revenue generation
ACTIVITY DATA SHEET
PROGRAM: ALBANIA
TITLE: Local Government, 180-S002.3
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $ 2,740,000 SEED Act
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2002
Purpose: More effective, responsive, and accountable local government.
USAID Role and Achievements to Date: Advisory support in housing policy, planning, infrastructure, urban development, and public administration has resulted in important achievements. The City and District of Tirana, the Ministry of Public Works and Transport and the National Planning Institute formed a task force to develop a 70-hectare site, identify new sites for development, and address legal and policy issues related to residential upgrading. The Concession Law for Public Services was passed in July 1995. Procurement procedures for contracting solid waste disposal were adopted by the Government of Albania (GOA); the municipality of Tirana contracted with two private firms for solid waste collection while Korca and Durres have started the procurement process. The GOA agreed to privatize its water services and, subsequently, established a regulatory body for public utilities (power, water, telecommunications) within the Ministry of Public Works and Transport. Other results include public-private initiatives in the municipality of Pogradec to cleanup river-solid waste, and in Shkodra to open a civilian airport.
Description: The breakdown in governmental control during the civil insurrection of 1997 involved and affected both national and municipal authorities. In part because there is no tradition of decentralized authority in Albania and as the public has had no experience with a local government able to act on its own authority, local government, whether elected or appointed, is viewed as simply representatives of the central government in Tirana. Popular frustrations, grievances, and violence were vented directly at the more accessible local authorities throughout 1997. In the absence of a decentralized tradition, the public still expects most decisions to be made in Tirana, not by officials at the local level. In addition, current law and practices leave the local governments overly dependent on central government financial transfers. The urban development program is providing advice in utilities management, land use planning and infrastructure development, emphasizing the roles of public-private partnerships. This focus on improving local management of municipal services is expected to enhance the legitimacy of local governments. The public administration project targets ten municipalities with an economic development potential which can be fostered through better public management, and it also aims to develop a training capacity in local institutions to transfer knowledge gained in working with the pilot municipalities to cities throughout the country. The two projects are complementary, working together to achieve the objective of stronger management capabilities at the local level. Training and technical assistance continue to be provided to the central government as well as to local administrations in infrastructure privatization and regulation, and urban land use planning. Advisors will also support the drafting of new legislation related to decentralization.
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 EU is providing material support, principally computers, and some technical assistance to selected municipalities. USAID support is focused on major secondary cities which do not receive similar assistance from other donors. GOA support is principally in the form of personnel and facilities.
Beneficiaries: By disseminating the results of successful activities in pilot cities, local authorities in all municipalities will benefit. The citizens they serve, residents of Tirana and secondary cities, will benefit from improved local administration and municipal services. The central government will benefit by turning over to the municipalities many of the duties for which it is currently responsible.
Principal Contractors, Grantees, or Agencies: USAID implements this activity through DAI/Mendez-England and the Urban Institute.
Major Results Indicators: Baseline Targets Municipalities with public participation in 0 (1995) 5 (2000) annual budget process (number of 5 pilot cities) Increased Autonomy & Home Rule (local 12%-20% (1995) 23%-31% (2000) revenues as % of total budget in 5 pilots) Cumulative number of municipalities that 0 (1995) 18 (2000) have adopted capital investment plans Local government implementation of budget No (1995) Yes (2000) procedures & economic development planning Improved local government services: -water- cumulative number of cities with 0 (1995) 26 (2000) 50% increase hours of service -garbage- cumulative number of cities affected 0 (1995) 19 (2000) by garbage collected and deposited in landfill
ACTIVITY DATA SHEET PROGRAM: ALBANIA
TITLE: Social Benefits, 180-S003.2
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $ 1,000,000 SEED Act
INITIAL OBLIGATION: FY 1991; ESTIMATED COMPLETION DATE: FY 2002
Purpose: Improved sustainability of social benefits and services.
USAID Role and Achievements to Date: 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. Two hospitals, the Durres Hospital and the University Hospital Center of Tirana, have implemented hospital operations improvement techniques and now serve as models for the rest of the hospital system. The number of hospital beds, reflecting vacancies, has consequently 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 hospital partnership program has carried out exchanges of medical personnel, sponsored an obstetrics conference in Tirana, and opened a maternal and child health resource center at the Tirana Maternity Hospital. A partnership in health management education was initiated, and two Albanian health offices started Master's degree programs in health policy and management. The first returned to Albania in January 1998 and is now the Minister of Health's health policy advisor. All health care providers in the Tirana and Durres districts have been trained in family planning counseling and contraceptive technologies.
Description: Albania has the least developed public system of social infrastructure among the Eastern European nations. Many of its health care facilities are seriously dilapidated and outdated. The GOA is quite aware of the urgent need to revitalize and modernize its health care system. Moreover, due to the lack of alternatives brought on by isolationism, an official pronatalist policy and poor information, abortion has been the predominant form of family planning, resulting in high mortality and morbidity rates for women. For women carrying to term, prenatal delivery and postnatal services are woefully inadequate. USAID is focusing its efforts in the areas of health management and administration and women's reproductive health. A partnership between the Butterworth Hospital in the Grand Rapids, Michigan, and four hospitals in Tirana has a focus on emergency medical services, women's health care, and health administration and management, all key areas of need in Albania. The partnership between New York University's Robert F. Wagner Graduate School of Public Service and the University of Tirana's Faculty of Economics and Medical School will introduce a post-graduate health management degree program. Modest assistance to Albania's Health Insurance Institute will allow the Institute to study the possibility of including hospital services in the proposed health insurance program. The effort to improve the knowledge of physicians, nurses, midwives and pharmacists in providing quality family planning services and counseling, increasing the number of service delivery points in both the public and private sectors, and enhancing the ability of Albanian families to make informed decisions regarding fertility and family planning through information, education and communication activities will be expanded nation-wide.
Host Country and Other Donors: The World Bank is supporting the reconstruction of rural hospitals throughout Albania and 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 (UNDP) is providing health care manuals to medical facilities. Switzerland is providing assistance to the nursing school. The EU has a Public Health Facilities Maintenance project and has
supported capacity-building at the Ministry of Health. United Nations Population Fund (UNFPA) is providing contraceptive commodities.
Beneficiaries: Medical professionals (doctors, nurses, technicians and managers) are the channels through which our projects are functioning, with the primary beneficiaries being Albanian citizens in need of medical care. Women throughout Albania will benefit from access to family planning information and improved counseling and care.
Principal Contractors, Grantees, or Agencies: USAID implements these activities through the American International Health Alliance, John Snow, Inc., and the U.S. Department of Health and Human Services.
Major Results Indicators: Baseline Targets Health Services Improved: Infant mortality (deaths per 1,000 live births) 35.7 (1994) 25 (2000) Maternal mortality (deaths per 100,000 births) 40.6 (1994) 20 (2000) Access to health education improved: -cumulative # of primary school 255,600 (1996) 500,000 (1999) students educated about health Access to quality health services improved: -cumulative # of primary health care clinics 199 (1995) 516 (1999) complying with quality standards -clinics providing family planning services 2(1995) 40(1998)
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