Albania : Poverty Assessment

Despite the impressive performance of the economy in the last five years, however, poverty in Albania has remained high, and per capita income, at around US$1,230 in 2002, has remained one of the lowest among transition economies. In an effort to adopt policies to share widely the benefits of growth, and reduce poverty, the Government outlined a poverty alleviation strategy in the 2000 Interim Poverty Reduction Strategy Paper (I-PRSP), and developed it in detail two years later in the Growth and Poverty Reduction Strategy (GPRS), the precursor to the current National Strategy for Socio-Economic Development (NSSED). However, in recognition of the data limitations, the first round of a five-year Living Standards Measurement Survey (LSMS) program was launched in 2002. This survey provides valuable information on a variety of issues related to living conditions in Albania, including details on income and non-income dimensions of poverty in the country, and, forms the basis of the present assessment of poverty in Albania. The poverty line used for this assessment is the first absolute poverty line based on nationally representative, household level expenditure data ever estimated for Albania, and is based on an actual consumption data. Poverty in Albania has marked spatial and regional dimensions, with rural areas and the Mountain region being consistently poorer than rest of the country, stipulating the depth of poverty in the Mountain area is much more pronounced than in any other region, with a poverty gap index of over 11 percent. The study reviews the determinants of poverty, through the main characteristics of poor households, and labor market characteristics of the poor, noting widespread unemployment rate in urban areas. It then examines the non-income dimensions of poverty, health and education inequalities, and reviews the role of social transfers, determining pensions - and remittances from Albanian relatives - are the largest sources of transfer income. The results of the analysis point priority areas, namely, that coverage under health insurance needs to be increased; secondary school enrollments need to be increased, and quality of education at this level improved; provision of basic services and infrastructure should be improved, including access to quality health and education services and to basic sanitation services; and, it is imperative that the Government develops a rural development strategy focused on poverty reduction in the short run, since a large number of the poor live in rural areas. Agriculture is the key income generating activity in these areas, thus locally adapted rural extension service should be provided. In terms of future growth, attention must necessarily shift to the manufacturing sector, for stimulating the manufacturing sector could potentially create increased employment opportunities, while another area that deserves great attention is tourism.

Bibliographic Details

Main Author:	World Bank
Format:	Poverty Assessment biblioteca
Language:	English en_US
Published:	Washington, DC 2003-11-05
Subjects:	POVERTY ASSESSMENTS, ABSOLUTE POVERTY, POVERTY DEPTH, POVERTY ANALYSIS, TRANSITION ECONOMIES, HOUSEHOLD CONSUMPTION, RURAL POVERTY, HOUSEHOLD EXPENDITURE SURVEYS, POVERTY REDUCTION STRATEGIES, SOCIOECONOMIC CONDITIONS, LIVING STANDARDS INDICATORS, INCOME CHARACTERISTICS, NON-INCOME DIMENSIONS, POVERTY GAP, LABOR MARKET CHARACTERISTICS, UNEMPLOYMENT RATES, URBAN POVERTY, INEQUITY, ACCESS TO HEALTH CARE, ACCESS TO EDUCATION, SECONDARY EDUCATION, QUALITY OF EDUCATION, SOCIAL TRANSFERS, PENSION COVERAGE, PENSION VALUATION, BASIC SERVICES, INFRASTRUCTURE DEVELOPMENT, SANITATION, RURAL DEVELOPMENT, RURAL EXTENSION, MANUFACTURING DEVELOPMENT, EMPLOYMENT OPPORTUNITIES, TOURISM DEVELOPMENT, ANTENATAL CARE, AVERAGE CONSUMPTION, BASIC EDUCATION, CLIMATE, CURRENCY UNIT, DONOR COMMUNITY, DURABLE GOODS, ECONOMIC CONTEXT, ECONOMIC DEVELOPMENT, ECONOMIC PERFORMANCE, EDUCATIONAL ATTAINMENT, EMPLOYMENT STATUS, EXCHANGE RATE, EXPENDITURE DATA, EXTERNAL MIGRATION, EXTREME POVERTY, FINANCIAL SECTOR, HEALTH CARE, HEALTH CARE SERVICES, HEALTH CARE UTILIZATION, HOUSEHOLD HEAD, HOUSEHOLD LEVEL, HOUSEHOLD SIZE, HUMAN DEVELOPMENT, HUMAN DEVELOPMENT SECTOR UNIT, IMPORTS, INCOME LEVELS, INFLATION, INFORMAL SECTOR, INSURANCE, INVESTMENT CLIMATE, LABOR FORCE, LABOR FORCE PARTICIPATION, LABOR MARKET, LAND REFORMS, LIFE EXPECTANCY, LIVING CONDITIONS, LIVING STANDARD, LIVING STANDARDS, LIVING STANDARDS MEASUREMENT, MALNUTRITION, MANAGERS, MEAN INCOME, MEASURING POVERTY, MEDIUM TERM, MIGRANTS, MORTALITY, NATIONAL EMPLOYMENT, OUTPATIENT CARE, PER CAPITA EXPENDITURE, PER CAPITA INCOME, POLICY IMPLICATIONS, POOR INDIVIDUALS, POVERTY ALLEVIATION, POVERTY ASSESSMENT, POVERTY HEADCOUNT, POVERTY LEVELS, POVERTY LINE, POVERTY LINES, POVERTY PROFILE, POVERTY RATE, POVERTY RATES, POVERTY REDUCTION, POVERTY REDUCTION STRATEGY, POVERTY STATUS, PRIVATE SECTOR, PUBLIC EXPENDITURE, PUBLIC SECTOR, PUBLIC SPENDING, QUALITATIVE INFORMATION, QUANTITATIVE ANALYSIS, REGIONAL DIMENSIONS, RURAL AREAS, SOCIAL PROTECTION, SOCIAL PROTECTION PROGRAMS, SPATIAL DIMENSIONS, STRUCTURAL REFORMS, UNEMPLOYMENT, URBAN AREAS, WAGES, WORKERS,
Online Access:	http://documents.worldbank.org/curated/en/2003/11/2821186/albania-poverty-assessment http://hdl.handle.net/10986/14605
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