No one pays much attention to economic policy

economic policy

No one pays much attention to economic policy

An additional factor that stimulates Albania’s economic growth is the country’s rapid integration into the regional economy and the vision to have an open door to the European economy. 

Exports for the period 2009-2019 increased from US.D 1.2 billion in 2009 to US.D 2.6 billion in 2019.This is an increase of 2.2 times and shows that exports have increased in this direction more than economic growth. 

But an economy can thrive before a strong legal system has evolved. The weak judicial system has influenced the creation of poor business governance by hindering the evolution of financial markets. Without strong corporate governance legislation as well as a strong judicial system, business partners find it difficult to agree on how to resolve conflicts. When institutions are weak, doing business with foreigners is dangerous and distrustful of each other. 

Reform policy must be in constant motion, while ordinary policy is that which revolves around itself and change is small and not inherent.

Most economic reforms, as well as other social and political reforms, take place at the beginning of the governing term. Furthermore, the time to “plant” reform seedlings is not appropriate, as the government routine dilutes the will to carry out reforms. 

Given that time is so short and the policy-making capacity is limited, then the decisions need to be simple. Another reason for the simplicity approach is that the government apparatus is in favor of a passive stance, but usually reform policies can be actively sabotaged. 

In fact, it is not the administration that has the problem. The vision is unclear and the uncorrupted will does not function so well. 

A challenging economy has a transparent and competitive look, offering fewer advantages to those who follow the old model and relying on new technology and businesses. 

Financial stabilization must shift its power over economic policy. 

These basic conditions make it possible for Albania to generate this stable and high economic growth.However, if the barter exchange continues and spreads further, this could be a significant structural cause of the financial collapse. 

In general, a higher level of taxes than the one in force is neither justified nor beneficial for economic growth. Meanwhile, the collapse of public finances from 2019 is so severe that Albania is likely to maintain a balance of strong macroeconomic consolidation perhaps for a generation.  

The current macroeconomic policy is cautious, but it is overlooked that the economy requires that it precede the opening models of the economy with a consistent, clear and well-structured approach.

But this model of economic policy (not the one found in current official documents) requires the preparation of a group of technocrats and skilled and courageous experts to cope with these burdens that cannot be met by the current administration. 

Economists of all political colors must become preoccupied with modeling an all-accepted economic policy, as well as with full access and objectives to the expected effectiveness of economic growth. 

The pressure of expansionary economic policies from neighboring countries is strong. Their economies are at stronger levels of competitiveness than Albania. The whole region has grown steadily. Albania is actually relatively less dynamic.

From this situation, the current governing leadership can claim the focus on increasing and completing economic reforms. But economic growth indicators have shown that after last year half of the growth should already be addressed based on capital (formal and informal) and the other half should come from the increase in overall productivity of factors determined in the economic competitiveness ratio. Meanwhile, the work has made a small positive contribution and the expectation for the effectiveness of the workforce is a bit optimistic, as there is still no comprehensive approach to increase their capacity and training in technological challenge. 

People are tired of politics.

They want economic growth, albeit a small one, but on the condition that this growth is calm and without sudden changes and twists. 

Consequently, if a developed market for innovative and reformist ideas of economic policy is not created, the advantages will not be obvious either. This should have been present by the reformist leadership, with a technocratic approach. If economic reforms were to take place, it would seem that any political reformer had entered the government. Nor can parliamentary support mobilize when there is nothing to implement in this regard. No international organization is responsible for building a competitive economy in a democracy.

The current leadership continues to be everything to everyone, and he is an avid reader of opinion polls, and bases the next action based on their data. Meanwhile, it is difficult for any media (written, electronic and social) not to be part of the influence of this leadership. Publishers and editors, but also ordinary journalists are convinced that they have more longevity in the profession if they censor themselves. 

The Ministry of Finance should be the center of reform, protecting comprehensive economic market reform. But, surprisingly, some functions have been superimposed on a new Ministry. The main financial powers in the government lie in this Ministry, which at first glance has a liberal approach to the two financial hotspots of the crisis surrounding the country. This Ministry is considered the most important budget portfolio and the fear is that it is probably inclined to promote oligarchic interests. 

Countries usually evolve toward economic pluralism when their economies become richer, more open, and their populations more educated. A natural development would be that Albania at the right time would shed its barriers created by dirty politics and mature as an economy, even if it had to overcome a severe authoritarian legacy. 

But, careful! 

If you do not have the opportunity and do not know what to do, do not react because in the end you will not achieve anything

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