When the majority struggles and the minority grows wealthier, as an alarm for 2026

Why is the economic divide in Albania deepening and what should be done differently?

In Albania, a reality has become consolidated—one that everyone feels, but few articulate with the strength it deserves. Citizens face continuous economic hardship, while the wealth of certain public officials and their networks grows disproportionately.

According to the United Nations “World Social Report 2025,” Albania’s fiscal policies have a weak impact on reducing inequality, placing the country among those with limited fiscal effects, alongside Russia, Serbia, and Malaysia, where the market-income Gini coefficient changes minimally compared to disposable income after taxes and transfers.

This shows that the tax system and social programs fail to narrow the gap between the rich and the poor, unlike northern European countries such as Ireland or Belgium, where inequality decreases by over 12–16 percentage points thanks to effective fiscal mechanisms.

This contrast is no longer merely a perception but a pattern clearly observed in the analyses of local economic experts, in periodic reports of organizations monitoring governance, procurement, and public finances, in SPAK investigations, as well as in findings from independent civil society institutions.

For example, the World Bank’s Western Balkans Regular Economic Report for Fall 2025 highlights that Albania recorded economic growth of 3.4% in the first quarter of 2025, but overall unemployment remains at 9.4%, while youth unemployment reaches 18.9%, emphasizing that growth is not distributed evenly.

On the ground, citizens face prices rising faster than wages, public services that often remain limited and costly, and a labor market that offers low security and high challenges.

Conversely, data and monitoring show that a narrow segment linked to power continues to benefit from concentrated public contracts, preferential schemes, and an institutional control system that is often weak, formal, or not based on real outcomes.

According to the World Bank’s Public Finance Review for Albania (2025), public spending has increased year after year, but it does not translate into reduced living costs or improved service quality, creating a gap between budgetary potential and real social outcomes.

Furthermore, the IMF’s 2025 Article IV Mission Report forecasts real GDP growth of 3.5% for 2025, but notes that inflation will gradually rise to 2.2%, while the labor market remains tight with record-low unemployment, yet high informality that hinders youth entry into the workforce.

Inequality created not by the market, but by governance

Economic experts and organizations specializing in monitoring public finances have identified that many budget decisions and procurement procedures create structured advantages for a minority.

When tenders are repeatedly awarded to the same winners, when capital projects are announced without real competition, or when in-depth audits are absent, economic benefits do not flow toward citizens but toward networks connected to power.

The EU Enlargement Report for Albania 2025 highlights the need to strengthen the corruption-prevention system in public procurement, noting that persistent issues continue to impede the fair distribution of funds.

Meanwhile, citizens face rising basic costs—rent, food, energy—which are not offset by sustainable wage increases or targeted social policies.

The result is a shift of economic opportunities from the majority to the minority, as evidenced by the UN World Social Report, where Albania risks deepening social inequalities due to the state’s failure to protect vulnerable groups.

According to World Bank data, gender inequality worsens the situation, with women facing higher disparities in private credit and access to the labor market.

The enrichment of public officials is not an individual coincidence, but a systemic outcome

Good governance reports and institutional risk analyses show that the problem does not lie only with individuals, but with the mechanisms that allow them to benefit: low-transparency procurement, centralized decision-making, weak controls over conflicts of interest, lack of evaluation of project outcomes, and asset declarations that are superficially verified.

SPAK investigations in 2025 confirm this, with charges against high-profile figures such as former president Ilir Meta for corruption, money laundering, and tax evasion, as well as the suspension of Deputy Prime Minister Belinda Balluku for procurement violations.

In this environment, the enrichment of certain officials is not a deviation but a symptom of a system not designed to protect the public interest. The Chandler Good Government Index 2025 notes that while the National Anti-Corruption Strategy 2024–2030 has been approved, implementation remains weak, allowing corrupt practices to continue.

Citizens pay more, receive less

Albania has increased public spending year after year, but its effects on citizens are minimal. Expert analyses show that many funds do not translate into reduced living costs, improved service quality, real wage growth, or lower inequality.

Instead, spending is often channeled into projects that do not address citizens’ needs, creating a gap between budgetary potential and economic and social outcomes.

According to the IMF, although GDP is expected to grow by 3.5% in 2025, systemic risks in the financial sector remain contained, but informality and labor market barriers hinder the equal distribution of benefits.

The World Bank report emphasizes that corruption has a direct impact on economic growth, FDI, and service quality, making Albania less attractive for foreign investment.

What should be done differently in 2026?

The classic recommendations are well-known, but the problem does not lie in the lack of ideas—it lies in the approach. What is needed is a change in mindset, not just an increase in instruments.

The UN report suggests a fairer model of income distribution with a more active role of the state in protecting vulnerable groups, to prevent the deepening of inequalities.

A. From “cosmetic” transparency to functional transparency

Publishing data is not enough. They must be open, comparable, analyzable, and accessible to the public, media, and institutions. Transparency should serve as a control tool, not administrative décor.

The 2025 EU report calls for strengthening procurement systems to prevent corruption, emphasizing the need for open data.

B. From procedural control to results-based control

It is not enough to know whether a contract followed the rules. It must be known whether that contract produced value for citizens. The real focus should be on effectiveness, not forms. World Bank analyses show that in-depth audits are lacking, allowing misuse of funds.

C. From asset declaration control to asset-flow control

Individual declarations are not enough. The flow of wealth must be analyzed—economic links, involvement of third parties, and companies receiving public contracts. Wealth should not be viewed only in name, but in structure.

SPAK investigations in 2025, including those on the Tirana incinerator, have led to convictions of municipal officials, highlighting the need for deeper verification.

D. From temporary measures to structural protective policies

Policies that react only during crises do not solve the problem. A fiscal architecture is needed that automatically protects vulnerable groups, lowers the burden on consumers, and ensures that economic crises are not paid only by low-income families.

The UN report warns that without a more active state role, inequality will hinder sustainable development and human capital.

Albania has resources, but lacks direction

Today’s inequality does not stem from a lack of funds or opportunities, but from how they are managed and distributed. Citizens pay more than they receive, while some actors benefit more than they contribute.

This model is not only unfair—it is economically unsustainable and politically risky, as highlighted by IMF and World Bank reports that forecast medium-term growth moderation to 3.5% due to global uncertainties and internal issues such as corruption.

Albania has the potential for an economy that distributes value fairly and raises the well-being of the majority. But this can only happen when policy, procurement, and public finances are truly oriented toward citizens’ interests. The change is not technical, but it’s a matter of approach, and without this new approach, the gap between the hardships of the majority and the enrichment of the minority will continue to widen, undermining trust, stability, and the country’s long-term development.