November 8 (SeeNews) - High unemployment levels and lack of foreign investment due to poor infrastructure and concerns over corruption curb Albania's economic quality, London-based Legatum Institute said.
Albania ranks 74th in the institute's latest Legatum Prosperity Index even though it has one of the highest GDP per capita growth among the European countries. The index tracks the performance of 149 economies in nine subcategories - Economic Quality, Business Environment, Governance, Education, Health, Safety and Security, Personal Freedom, Social Capital, and Natural Environment.
Women's participation in Albania's labour market is well below the EU average, at 51.7%, Legatum Institute commented last week upon the release of the ranking.
Albania's performance in the Business Environment sub-index improved significantly over the last nine years - the country jumped 40 positions and ranked 67th, outdoing its regional peers Bulgaria, Croatia and Serbia.
Between 2008 and 2011, the country's government, assisted by the World Bank, initiated a Doing Business reform programme, which was aimed at promoting start-ups, obtaining credit, paying taxes, and resolving insolvency. Albania made significant efforts to improve its infrastructure and to attract foreign investment. It is far easier to start a business, get credit, and resolve insolvency now than in 2007.
Another area in which Albania has improved significantly is governance, where it moved 20 places higher compared to 2007. "Policymaking has become more transparent and since the election [in 2013], confidence in the government has jumped by 17% and voter turnout is the highest in the Balkan region," the report said.
Corruption in Albania continues to hinder its economic and business development, the report said, adding that it has registered only a slight improvement in the corruption perception, compared to nine years ago.
Albania is the worst performer in the region in the Education sub-index with far fewer secondary vocational and university-educated students than its regional peers. A growing business environment will require skills that are relevant to the more service-based economy, the report said.
According to the report, Albania's health care sector continues to be underfunded.
The country seems to be particularly ineffective in coping with environment issues, as the ranking indicated putting it on 121th place.
The Legatum Institute is an international think tank and educational charity focused on understanding, measuring, and explaining the journey from poverty to prosperity for individuals, communities and nations.