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GPRS - November 2001 NSSED – December 2002

Recent progress in NSSED implementation in Albania Adrian Civici Ministry of Finance. Conference on labour markets, growth and poverty reduction strategies 28 May 2005  Thessaloniki. GPRS - November 2001 NSSED – December 2002.

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GPRS - November 2001 NSSED – December 2002

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  1. Recent progress in NSSED implementation in AlbaniaAdrian Civici Ministry of Finance Conference on labour markets, growth and poverty reduction strategies 28 May 2005  Thessaloniki

  2. GPRS - November 2001NSSED – December 2002 PRINCIPALS OF NATIONAL STRATEGY • Objective harmonization / main agenda • Prioritarisation of public actions • Albanian ownership

  3. Priority fields (i) improved health and educationservices and (ii) improved infrastructure Pillars (iii) institutional reform (iv) economic growth Conditions for implementation (v) macroeconomic stability (vi) social support

  4. Steering Committee (Chaired by Prime Minister) Inter- Ministerial Group (Chaired by Minister of Finance) MoF/ DoNSSED Technical Sector Working Groups in line Ministries NSSED M&E in line Ministries Other Institutions involved in the process: (Bank of Albania, INSTAT, etc) NSSED Institutional structure

  5. Public expenditure in priority sectors, 2002-2004

  6. Capital investment in priority sectors, 2003-2004

  7. NSSED goals and achievements

  8. Measuring progress in poverty reduction The poverty monitoring system is built on the Living Standards Measurement Survey: • 2002 – Estimation of poverty indicators • 2003 and 2004 – No consumption module Poverty trends in 2003 monitored through a model: how did variables correlated with consumption poverty in 2002 change in 2003?Results of FAO research team suggest that poverty rate has fallen in 2003 – more so in urban than in rural areas

  9. Labour market in Albania Labour force participation according to the Census

  10. Age of population Pyramid

  11. Labour market indicators No Labour Force Survey Unemployment rate is estimated from the records of the registered unemployed at Employment Offices Evidence from the Living Standards Measurement Survey confirms that unemployment is falling Men rather than women are more likely to benefit from new jobs

  12. NSSED labour market policy objectivesStrategy of employment and vocational training Build capacity of Regional Employment Offices 8000 job mediations in 2004 Strengthen vocational training system by expanding capacity and modernising curricula Two vocational training centres constructed in 2004, co-financed by the budget and the CARDS programme

  13. NSSED labour market policy objectivesStrategy of employment and vocational training Employment promotion projects • Salary and social contribution subsidies over 5-7 months; • The company has to keep at least 50-70% of subsidised persons as permanent staff • 3385 jobs created in 2004 at a cost of $1,070 each

  14. Current challenges for the NSSED  Link strategic priorities to the budget  Harmonise and streamline existing planning systems: poverty reduction, European integration, decentralisation;  Monitoring of progress and transparency;  Establishment of an integrated planning system

  15. Future challenges for NSSED Role of NSSED in Integrated Planning System • identify pathways to national goals and set indicators • oversee sector and crosscutting strategies,including indicative costing • continue monitoring poverty for policy purposes • advise on policy implications for MTBP

  16. Future challenges for NSSED • Revision of NSSED in 2006 • Ensuring sustainable growth supporting new sources of growth; • National consensus building / assembly • Maintain Albanian Ownership and donor’s coordination and development partners.

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