Best Practice Options: Albania
Authors: Martin Philip , Martin Susan , Pastore Ferruccio 
Published: March 2003

The Cooperative Efforts to Manage Emigration (CEME) site visit to Italy and Albania – organized in cooperation with the Centro Studi di Politica Internazionale (CeSPI), an Italian independent research institute – took place in June 2002. Albania is a country of 3.1 million people with a GDP of $4.1 billion that switched in the early 1990s, after 45 years of communism, from economic autarky to a peculiar form of market economy, and experienced some of the world’s highest emigration rates in the 1990s. Some 600,000 to 700,000 Albanians, or almost one–fourth of Albanians, and half of Albanian professionals, emigrated. As a result, the labour force is only 38 per cent of the population, versus 50 per cent in most industrial countries (UNDP, 1996, 2000).

The major destinations of Albanian migrants in the 1990s were Greece, which had 400,000 to 600,000 Albanians in 2002, and Italy, which had 144,000 legal residents and probably some tens of thousands illegals at the end of 2001. Many Albanians have become legal residents of Greece and Italy as a result of regularization–legalization programmes. Albania is also a transit point for third country nationals attempting to reach the rest of Europe via Albania. Of particular interest to the CEME members were efforts by the Italian and Albanian governments to cooperate in managing the flows of Albanian and transit migrants.

When the CEME visit was made, Albania was experiencing rapid, yet unbalanced economic growth as a result of $615 million in remittances from Albanians abroad (estimates: Bank of Albania annual report, 2001), and aid from the European Union (EU) and other sources. The spending of remittances and aid has fuelled a building boom, but there was no clear sense of how Albania would use the window of opportunity opened by remittances and aid to develop a viable economy. The optimistic scenario is that remittances and investments from Albanians abroad will produce an economic take off based on value–added food production and tourism in the “Switzerland of the Balkans”. The pessimistic scenario is that corruption and divided government will prevent the development of a successful economic strategy, and that low wages, high unemployment, and inadequate services such as health care and education will prompt the continued emigration of young and educated Albanians.

Potential best practices include: joint Italian–Albanian marine patrols to discourage smuggling and trafficking in small “fast boats”; Italy granting Albania at least 6,000 work visas a year to publicize that there is a legal way to work in Italy, helping to discourage illegal migration; and bilateral and international assistance to enable Albania to develop laws and institutions to deal with foreigners transiting Albania, and foreigners requesting asylum in Albania.

Albania does not, on the other hand, appear to be a best practice in managing the use of remittances to aid economic development. Although remittances play an important role in basic subsistence and construction of housing, there have been fewer efforts to encourage investment of these funds in infrastructure or productive activities. The banking system needs substantial reform to become a venue for transfer of remittances and source of credit for enterprise development. Albania would benefit from a more systematic examination of the lessons learned in other countries about the investment of remittances for economic development.