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Albania

What’s proactive governance?

Ravi Kumar's picture
See the inforgraphic in high resolution here. Designed by Boris Balabanov, World Bank

Let’s say on a dark, cold day, electricity supply to your house is suddenly interrupted. With no heat and light, you furiously walk to the nearby government energy administration office to file a complaint.
 
As you file your complaint, an official also asks for your mobile number and tells you that within the next 24 hours, you will receive help. A day later, you get a text message or robocall asking you whether you have been helped and how the service was.  
 
This process—when government proactively seeks feedback directly from citizens about the quality of its services and makes it mandatory for service providers to use smartphones and creates dashboards for citizens to view real-time information on service delivery—is called proactive governance.
 
Proactive governance was first introduced in 2011 in Punjab, the most populous province of Pakistan.

Building trust in the government one text at a time

Jana Kunicova's picture
English translation of the text message.
English translation of the text message that the government sends to citizens to in an attempt to prevent corruption.

Albanian citizens who recently received treatment at a state-run hospital are likely to receive a text message that reads something like this: “Hi, I am Bledi Cuci, Minister of State responsible for anti-corruption. Our records indicate that you recently received care in a state hospital.

Could you kindly tell me if you were asked to pay a bribe? Reply is free. Thank you for your time.


The SMS campaign, supported by The World Bank and implemented by the Ministry of State for Local Issues and Anti-Corruption, was launched on March 9, 2015.

As of early June, it has reached more than 33,500 citizens in a country of three million. About 20 percent have responded, reporting many service delivery problems.

The doctors are always late and the corruption continues as always. Without giving away money, no one takes care of you,” read one response. Others complain of lack of cleanliness or the absence of medicines: “No, they didn't ask for bribe, but we had to buy the drugs outside of the hospital because they didn't have any.” 

​Stories from the field: World Bank-IFC collaboration on new PPP legislation in Albania

Christina Paul's picture
There is a wide range of issues to address when initiating and implementing a country’s national program for public-private partnerships (PPPs). One of the first priorities is providing an adequate legal and institutional framework to help create and/or develop a market for PPPs. In the recent case of Albania, this involved an assessment of the country’s current PPP legislation, especially in terms of its ability to attract private sector investment and generally move its PPP agenda forward.
 
IFC advised on Albania's Ashta
hydropower plant. Photo: © Energji Ashta

Particularly over the last decade, Albania has seen a number of PPP projects being implemented, most of them in the energy sector; for example, the Ashta hydropower plant on whose development the International Finance Corporation (IFC) advised. Given, however, that the country’s overall capacity and readiness to carry out PPPs has been assessed as only slightly above average (Source: Infrascope for Central and Eastern Europe 2012, The Economist Intelligence Unit), there is an apparent need to further build up and strengthen its institutional and implementation ability vis-à-vis PPPs. To this end, the Government of Albania is now focused on the further streamlining of its legal and regulatory PPP framework as one area of reform.

In February, a joint team from the World Bank and the IFC therefore participated in a review of the country’s current PPP legislation as well as the changes proposed to it, and organized a workshop for the Government of Albania. The latter focused on the institutional and legal/regulatory context essential for carrying out PPPs. Two colleagues and I represented the World Bank’s PPP group during our visit.

The three transitions of the Western Balkans

Ivailo Izvorski's picture
The small, open economies of the Western Balkans* are at various stages of progress on three transitions: the transition to market economy, the transition to EU membership, and the transition to high-income status. The first transition started in the 1990s and its ultimate completion will help advance the second. Progress on the second transition, the EU integration, will unleash the EU convergence machine that has seen all but two countries in Europe achieve and sustain high income status.

Managing EU Funds – What We Can Learn from Slovenia

Maya V. Gusarova's picture
Effective management of European Union (EU) funds is not only high on the agenda of the new EU member states but also of the Western Balkan countries that are progressing in the EU integration process. As such, these countries face several important challenges and questions today.

On becoming an EU member, how much will the budget calendar and its preparation need to change? How best to plan and execute projects which are pre-financed? How to record unspent EU funds in the next fiscal year? To what extent should the Ministry of Finance be involved in the process before the signing of financial agreements with the EU? These and other questions arise in relation to the impact on a country’s fiscal position, co-financing obligations, pre-financings and bridging resources, and payment of errors.

Managing EU Funds – What We Can Learn from Slovenia

Maya V. Gusarova's picture
Effective management of European Union (EU) funds is not only high on the agenda of the new EU member states but also of the Western Balkan countries that are progressing in the EU integration process. As such, these countries face several important challenges and questions today.

On becoming an EU member, how much will the budget calendar and its preparation need to change? How best to plan and execute projects which are pre-financed? How to record unspent EU funds in the next fiscal year? To what extent should the Ministry of Finance be involved in the process before the signing of financial agreements with the EU? These and other questions arise in relation to the impact on a country’s fiscal position, co-financing obligations, pre-financings and bridging resources, and payment of errors.

The Best School for Entrepreneurship is on the Job, Not in the Classroom

Wolfgang Fengler's picture

This has been a very engaging debate and I want to thank Omar as well as the organizers and contributors. In this concluding statement, I’d like to highlight both those areas where we agree and those where we still end up with different perspectives.

We can agree on the following:
 

Skills Gaps and Jobs Strategies

Omar Arias's picture
Working at a call center in Romania The blog I posted to debate with my Bank colleague Wolfgang Fengler the chicken-and-egg question of which comes first, skills or jobs, generated a rich exchange and contributions. While the question was framed around tackling the problem of unemployment in the Western Balkan countries, it naturally applies to almost any country. I want to thank all of those who took the time to write, whether or not they agreed with my main thesis: that countries should invest and strive to develop the basic skills that lay the foundation for the technical or job-specific skills that should be in turn acquired a la par with the changing needs of labor markets.
 

How to Break the Curse of Unemployment: Jobs First or Skills First?

Omar Arias's picture

Some Skills should Come Before Jobs, Others Develop with the Job
 
Students work on an engine at Sisli Vocational High School To be clear from the onset: I will not oversimplify the unemployment (or inactivity) problem in the Western Balkan countries as solely due to a lack of skills in the population. Low employment rates result from both insufficient creation of jobs by enterprises and too-high a fraction of the workforce that is ill-equipped to take on the jobs that a modern economy creates. Both issues are intertwined. Solutions, therefore, require efforts on several fronts to enable a more vibrant private sector –including improvements in the business environment, enterprise restructuring, integration in global markets and promoting entrepreneurship— as well as to prepare workers for new job opportunities.

Why Jobs Need to Come Before Skills

Wolfgang Fengler's picture

The Western Balkans Case

When I travel to the Balkans for work, the journey typically begins with a cab ride to the airport from my home in Vienna. The taxi company I use is run and operated by Serbs living in Austria. It’s a great company: very reliable, clean cars and friendly drivers who are always keen to discuss the politics and economics of the Balkans. When I arrive in Belgrade, I’m picked up by drivers who have very similar skills to those of their compatriots in Vienna. However, the former have better salaries and opportunities simply because the company they work for operates in an environment that is much more conducive to nurturing and growing a business. In Austria, unlike in Serbia, a company can operate efficiently, is subject to a relatively fair tax treatment and knows the industry standards it needs to comply with. In turn, this explains to a large extent why workers, at any given levels of skills, are more productive in Austria – a basic intuition which William Lewis develops in his book The Power of Productivity, projecting the gains that Mexican construction workers make when moving to the USA.


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