Integrating and Implementing PRSP, MDGs, and SAP in Albania

1. Integrating and Implementing the PRSP, MDG, and SAp Development Frameworks: the Albanian Experience

2. - Albanian Development Context - Review of the PRSP Process - Role of the MDGs - Links to the SAp

3. Development Context • Small country, between Italy and Greece • Legacy of Hoxha isolationism • Failed Pyrmaid Scheme • Neighboring Kosovo Crisis • Weak civil service • High corruption, organized crime • Large, informal and black economy • Weak energy, infrastructure

4. - From crisis, to recovery, to growth - Relatively stable macroeconomic indicators - 50% pop. live in rural areas - 25% living in poverty - 5% in extreme poverty, especially in rural and northern regions, women, youth, Roma - 1/3 lacking 2 or more basic needs - Young population, high fertility rates - High internal migration, emigration - Large flows of remittances

5. Low government ownership of reforms • Strong donor presence • Multilaterals, bilaterals • Weak aid coordination systems • Major development frameworks: • Poverty Reduction Strategy Process • Millennium Development Goals • EU Stabilization and Association Process • Stability Pact

6. Albanian PRSP Process • PRSP launched in late 2001 • First GPRS then NSSED • 3 changes in Government in 2002 • Extended to all line ministries • Inclusive economic growth • Education, health, infrastructure focus • 2003 First Progress Report prepared

7. PRSP Achievements • first Living Standards Measurement Survey • monitoring and evaluation in ministries • initial link to budget process • better government ownership • integration of Millennium Development Goals • EU Stabilization and Association process

8. PRSP Challenges Macroeconomics, fiscal framework, financing • lower GDP growth • no clear vision for sources of growth • low FDI levels • decision not to use fiscal incentives for specific regions or sectors • financing and revenue shortfalls

9. Structural and Sectoral Policies • Perceived corruption increasing • teacher and healthcare salaries increased • HIV/AIDS strategy developed • Less spending on education, healthcare • Pensions reforms have been made • Some progress in transport and water supply, energy

10. Monitoring, evaluation, data • more disaggregated data needed • more qualitative surveys • improve indicators and targets • stronger links between poverty diagnosis and priority actions are needed

11. Other Challenges • No long-term development vision • participatory process, ownership • capacities for policy formulation, budgeting, implementation, M&E, aid coordination • no gender, youth, Roma targeting • low region-specific strategies

12. Linking the PRSP and MDGs • MDG/PRSP advocacy linked • MDG included in PRSP • Provide part of long-term vision • Integrated M&E, reporting systems • MDG consensus process ongoing

13. Regional Reports, Development Strategies - Situation assessment and analysis, contextualized MDG indicators, local priorities - local, long-term visioning, accountability - participatory action planning - building capacities of local governments, communities (learning by doing) - resource mobilization - in cooperation with PRSP, ministries

14. Linking PRSP/MDGs to SAp • SAA initiated early 2003 • key long-term priority for Albania • re-enforcing political commitment • addresses key governance issues • EU social inclusion indicators • How to link the frameworks? • How will the EU integration process affect poverty levels?

15. Conclusions, Next Steps • National ownership • Long-term vision • Capacities to implement, monitor, evaluate, revise, and budget policies • Time, More effective partnerhships

16. Thank You