Improving Business Environment in Albania
Financed by the SlovakAid – Official Development Assistance of the Slovak Republic and implemented by Business Alliance of Slovakia in cooperation with Foreign Investors Association of Albania – FIAA, this 18-months project successfully concluded in May 2016.
The goal of the project was to improve the business environment as a key element for raising the Albanian economic growth and reducing poverty.
The project was implemented through the transfer of know-how and expert knowledge from Slovakia, encompassing several strategic components: the elaboration of a comparative analysis of business environment barriers; the sharing of insights on key reforms undertaken in Slovakia in recent years; and the development of effective tools for systematically monitoring and analyzing the quality of the business environment in Albania.
To foster a stronger pro-reform drive, the analytical capacities of the Albanian partner institute were significantly enhanced through:
- The elaboration of a comparative analysis of the business environments in Albania and Slovakia, utilizing data from leading international benchmarks such as the World Bank’s Doing Business report and the IMD World Competitiveness Yearbook.
- The identification of competitive advantages and disadvantages for both countries, providing a clear diagnostic of reform priorities.
- The formulation of targeted recommendations aimed at improving the quality and competitiveness of Albania’s business environment.
Key Activities and Achievements of the Project
The project delivered four in-depth sectoral analyses focused on critical areas for improving the business climate:
- Combatting the shadow economy
- Fighting corruption
- Reviewing major structural reforms implemented in Slovakia
- Identifying barriers to cross-border trade between Albania and Slovakia
To ensure continuous improvement and accountability, the project introduced quarterly monitoring of changes in Albania’s business environment through the Business Environment Index. This involved structured surveys among entrepreneurs to identify emerging trends and barriers, providing policymakers with timely insights and a clear diagnostic tool.
In parallel, the project established a system for quarterly impact evaluations of economic and social legislation passed by the Albanian Parliament. These expert assessments measured the influence of new laws and regulations on business conditions, helping to guide reform efforts.
To enhance transparency and ethical standards, the project also supported the implementation of a business ethics code, fostering a more trustworthy and predictable environment for investors and entrepreneurs.
All core activities were successfully implemented and promoted in Slovakia, where they had measurable impacts on legislative development and the overall business environment. The objective is to replicate these results in Albania by applying the same tools and methodologies, thereby creating more effective pressure on the Albanian government to enact reforms that promote economic growth and foster an employment-friendly climate.