Albania continues to face poverty and regional inequality, but economic development and public investment have helped improve opportunities for many households. Fortunately, some efforts are in place to work toward poverty reduction in Albania.

Beating the Odds

Albania has pursued reforms and development programs intended to reduce poverty. Over the past two decades, poverty has declined. However, the decline has not been without delays. Albania’s economy suffered from the 2008 financial crisis, and poverty rose in the years following the crisis.

World Bank estimates place 0.3% of Albania’s population below the international $3-per-day extreme-poverty line in 2020, measured in 2021 purchasing-power-parity dollars. Economic growth and poverty reduction are related but distinct measures.

Stronger labor markets, wage growth and reforms have accompanied Albania’s declining poverty rate, according to the World Bank. Additionally, the increase in economic stability is a result of private consumption, tourism and construction. By strengthening relationships with the European Union and focusing on structural reforms, Albania is bringing better living conditions to its people.

Rural Migration

In the rural areas of Albania, people lack economic opportunities, leading to emigration. Emigration from these rural areas is high because there is a lack of education, training and low infrastructure development in rural zones.

The migration patterns from rural areas to other cities and nations are important, for around 54% of Albania’s population lived in urban areas in 2011. The population steadily increased to 63% in 2021, and the United Nations estimates that it will reach 80% by 2050.

A World Bank report indicates that Albania has some of the highest per capita emigration rates in the region.

The World Bank-supported Regional and Local Roads Connectivity Project aims to improve road access in rural areas, helping communities access basic services and markets.

Albania’s Future

Albania’s development strategy includes investments intended to strengthen connectivity, employment and public services.

National programs have begun to prioritize investment in farmer training, infrastructure and regional markets. One major program created by the World Bank Group, endorsed by the Board of Executive Directors on March 16, 2023, is the World Bank’s Country Partnership Framework for Albania (2023-2027). This program focuses on helping Albania create better jobs for its population and increase human capital. The 2023–2027 Country Partnership Framework sets out an indicative financing envelope of $900 million for programs supporting jobs, human capital and resilience.

Current programs aim to support jobs, human capital and resilience. Their long-term contribution to poverty reduction will depend on implementation and outcomes.

– Kelly Thomas

Kelly is based in Tallahassee, FL and focuses on Good News for The Borgen Project.

Photo: Flickr