innovation

The economic engine of Western Balkans’ is shutting down and the gap with Europe is widening

The Western Balkans has always been a region closely linked to the fate of Europe and global developments. After decades of efforts to overcome the legacy of conflicts and to integrate into European structures, the engine of economic convergence that has...

Overview of Public Investments and Priorities in light of the draft budget for 2026

The public investment budget for 2026 is structured around a combination of domestic and foreign funds, primarily supporting infrastructure, energy, and urban/rural projects. The following analysis shows that real priorities are often dominated by the continuation of existing projects, while the...

Productivity and the challenge of Reforms in a collaborative perspective

Albania’s economic history shows that the country has gone through different periods of growth, often closely linked to new political spaces and economic opportunities. After 1991, economic liberalization and large-scale privatizations created an initial boost in productivity, but it was...

Well-being is not enough to compare with the past

We often hear politicians, analysts, or even professionals and individuals with a comfortable standard of living say, “We are now better off than before.” This kind of comparison is not just flawed; it is mostly dangerous and intellectually inappropriate. It creates...

Structural gaps on the path to the EU

A critical analysis based on the IMF Framework on Regional Economic Development and Convergence with the EU In 2024, Albania remains significantly behind the European average in terms of income per capita, particularly when measured by purchasing power parity (PPP).According...

EU Membership is not enough: Lessons from CESEE for Albania

From the illusion of proximity to the real challenge of internal transformation – Albania on the verge of a decisive path 1. The long and fragmented journey of integration For more than three decades, the countries of Central, Eastern, and Southeastern Europe...

Time for a strategic leap on industrial policies in Albania and Kosovo

A global turning point that calls for reflection At a time when industrial policies are experiencing a global resurgence, a recent IMF paper, "Do Industrial Policies Increase Trade Competitiveness?" (May 2025), offers an in-depth analysis of the effects of such policies...

Employment growth as a challenge of a non-political economy

In a developed economy with healthy growth, employment increases as a result of:✔ Increased public and private investment,✔ Development of value-added sectors,✔ Improvement of the business and innovation climate,✔ Well-oriented policies on vocational training and workforce mobility. For example, countries like...

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