A Qualitative Assessment of Poverty in Ten Areas of Albania

This qualitative assessment of poverty
in Albania seeks to deepen the understanding of poverty in
the country, first, by involving poor Albanians in a process
of exploring the causes, nature, extent of poverty, and how
it affects their livelihoods. Second, it is intended to
support the Growth and Poverty Reduction Strategy Paper
(PRSP); third, it supports preparation of the Country
Assistance Strategy (CAS), and the Living Standards
Measurement Survey (LSMS) process; and, fourth, it supports
ongoing research on formal, and informal institutions in the
country that are relevant to poverty, and it identifies as
well, emerging areas of concern. Findings suggest that
poverty in the study sites, developed as a result of a weak
economic base at the beginning of reform (as of 1990),
worsened as the reforms continued, and accelerated during
the 1997 financial crisis. From household interviews, it is
perceived that the causes of poverty are a result of
unemployment, insufficient and low quality of land, absence
of formal institutions, and marketing mechanisms to support
industrial and agricultural development, and, the
government's inability to respond to infrastructure,
and basic needs. The study further examines the factors
depressing, and/or precluding (sector wide) the potential to
compete, sustain livelihoods, attain employment, and receive
economic, and social assistance. And it rightly identifies
the contribution from migrant remittances, accounting for a
significant percentage of GDP. Policy implications spell out
the need to improve administration of social security, and
services, by decentralizing legal and regulatory frameworks,
and equitably mobilizing fiscal revenues.