Towards the path of economic recovery

economic recovery

Towards the path of economic recovery

Data published by official statistics agencies show that in the third quarter of 2020 some of the world’s largest economies have had economic growth that has managed to reach up to or above the level of 3-7%. 

The fact of the reopening of economies in these countries has not been similar to the opening of economies in developing countries, which do not have the economic structure and chain of circulation of goods and services to be put into operation immediately and effectively. 

This is a problem as the pace of economic growth cannot depend on current circumstances, foreign assistance and dysfunctional economic models, which bear only the name, but no stable element within them. 

This fate has befallen us with our economy. 

After the fall of this crisis and after we met face to face, all that remains is to say who is the medicine to cure the economy. 

Many countries have responded to the cessation of their economies with massive fiscal, monetary and regulatory support measures, the rate and speed of which are unprecedented. In Albania, these measures were taken according to the “quilt measure” that the government adjusted to cover those budget bills that could cost more if they were not liquidated. 

Meanwhile, if we can look at the values ​​of budget allocations in their real size, it must be said that this reality is related to fiscal management in all these recent years. 

From the revenue side, the mentality of their management, remaining in the realization of the budget plan and the poor direction and not according to the vision, is reflected in the change of the revenue plan, but not in the way how should be administered taxes based on narrowing evasion gap. The result of all that we discuss about revenue is the same as changing sails whenever the wind blows, but losing the race over time. 

On the expenditure side, it has happened that the excessive appetite to open projects and investments, which cannot be afforded precisely by this poor management of fiscal revenues, is shifted to the breaking of some political promises, e.g. the true birth of vocational education to provide the business with skilled workers and opportunities for it to thrive, as well as educating everyone according to talent and ability, turning the school into a true cultivator of gifts and opportunities! 

In summary, the government has opened many fronts and done little by little, but it still seems that remains a problem the stable standard and the structuring of the economy based on the new model, with low informality and no corruption. For example, the fight against informality started with a lot of energy from government, but in the meantime the problems have remained the same, adding as an over-tax also the “corruption tax”, which has already been further structured. 

Systemic problems and improper approaches to the consolidation of rule of law and the economy have been mentioned by many scholars and analysts in their presentations. 

The question that arises at the same time is whether the pandemic has helped to focus people’s minds on the importance of building a better future? 

This is a great transformative moment for achieving a smarter, clearer and more comprehensive recovery. 

Moreover, given the weaknesses accumulated by the governments yesterday and today, but given this situation we do not lose much if we try it, because the economic policy should take advantage of this moment and strengthen cooperation between each other. This should not be expected to be said by the leadership of the political spectrum.

The time of slogans and filling the mind that we have done a lot, but more we need to do should be replaced by sincerity, kindness and simplicity. We need people who take their responsibilities by being organized according to commonalities in conversation and communication. 

Overall, the economic recession in 2020 is not what was predicted at the beginning of the year. But those who do the calculations have to clarify and occasionally make a transparency of a higher standard regarding the economy where it is and where it will be oriented. 

– Which “body organs” of the economy are most affected? 

– Where should the funding and assistance therapy focus now after entering the second wave of the epidemic? 

– You can get these answers in the 2021 budget relation and the medium-term budget program! – could respond officials. 

In fact, the 2021 budget is a routine follow-up to recent years ’budgets. There is little analysis in this budget regarding approaches to how those most valuable sectors will be promoted.

On the other hand, the budget does not address approaches to further cover the difficult situation of businesses that this crisis has deepened effects to the limits of the historical level. While the year 2021 also depends on the political environment, the regulatory framework, the program and initiatives in process. Being many initiatives, they are of course at different stages of their implementation, but they must be completed and serve for local economic developments as well as in function of strategies, that look like informal documents as they have never had the importance, they deserve in all these years. 

A new and challenging post-pandemic start must fully maintain the continuity of macroeconomic policy support and consolidate recovery. Policy support must take precedence to achieve resilient and sustainable growth, including in particular a recovery of the energies of people inside and outside. But seizing the opportunity to start on the path to economic recovery requires more inclusive leadership, smarter and more honest. 

Recovery is a long process, uneven and insecure.
It will require some governing mandates, and consequently all new governing capacities will be needed. Current levels of governance capacity, both of the majority, but also of those who claim to become the majority are consumed, unbelievable in certain levels and not very necessary for the new stage dictated by time after the pandemic.

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