Integrating and Implementing the PRSP, MDG, and SAp Development Frameworks: the Albanian Experience

- Albanian Development Context - Review of the PRSP Process - Role of the MDGs - Links to the SAp

Development Context Small country, between Italy and Greece Legacy of Hoxha isolationism Failed Pyrmaid Scheme Neighboring Kosovo Crisis Weak civil service High corruption, organized crime Large, informal and black economy Weak energy, infrastructure

- From crisis, to recovery, to growth - Relatively stable macroeconomic indicators - 50% pop. live in rural areas - 25% living in poverty - 5% in extreme poverty, especially in rural and northern regions, women, youth, Roma - 1/3 lacking 2 or more basic needs - Young population, high fertility rates - High internal migration, emigration - Large flows of remittances

Low government ownership of reforms Strong donor presence Multilaterals, bilaterals Weak aid coordination systems Major development frameworks: Poverty Reduction Strategy Process Millennium Development Goals EU Stabilization and Association Process Stability Pact

3 changes in Government in 2002 Extended to all line ministries Albanian PRSP Process PRSP launched in late 2001 First GPRS then NSSED 3 changes in Government in 2002 Extended to all line ministries Inclusive economic growth Education, health, infrastructure focus 2003 First Progress Report prepared

PRSP Achievements first Living Standards Measurement Survey monitoring and evaluation in ministries initial link to budget process better government ownership integration of Millennium Development Goals EU Stabilization and Association process

PRSP Challenges Macroeconomics, fiscal framework, financing lower GDP growth no clear vision for sources of growth low FDI levels decision not to use fiscal incentives for specific regions or sectors financing and revenue shortfalls

Structural and Sectoral Policies Perceived corruption increasing teacher and healthcare salaries increased HIV/AIDS strategy developed Less spending on education, healthcare Pensions reforms have been made Some progress in transport and water supply, energy

Monitoring, evaluation, data more disaggregated data needed more qualitative surveys improve indicators and targets stronger links between poverty diagnosis and priority actions are needed

Other Challenges No long-term development vision participatory process, ownership capacities for policy formulation, budgeting, implementation, M&E, aid coordination no gender, youth, Roma targeting low region-specific strategies

Linking the PRSP and MDGs MDG/PRSP advocacy linked MDG included in PRSP Provide part of long-term vision Integrated M&E, reporting systems MDG consensus process ongoing

Regional Reports, Development Strategies - Situation assessment and analysis, contextualized MDG indicators, local priorities - local, long-term visioning, accountability - participatory action planning - building capacities of local governments, communities (learning by doing) - resource mobilization - in cooperation with PRSP, ministries

Linking PRSP/MDGs to SAp SAA initiated early 2003 key long-term priority for Albania re-enforcing political commitment addresses key governance issues EU social inclusion indicators How to link the frameworks? How will the EU integration process affect poverty levels?

Conclusions, Next Steps National ownership Long-term vision Capacities to implement, monitor, evaluate, revise, and budget policies Time, More effective partnerhships

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