From year to year, the economic data of the 12 counties of the country are showing uneven development. According to INSTAT, in the last 10 years, the economy of the Center region has grown on average by 3.4% per year, the North Region grew by an average of 2.4% per year, while the South by 2.6%. 

The poorest region, Kukes, marked a decline in the economy over the decade by 2.7%, further impoverishing. The economic development of the regions has been negatively affected by high emigration, while development policies with a regional focus are lacking. Experts call for a new diagnosis of poverty and projects that ensure sustainable development of poor counties 

The country's economic growth in the last decade has been unevenly distributed in its regions. Year after year, the center of the country is strengthening economically, while the North and South regions have grown below the national average. Dibra and Kukes counties, which were rated as the poorest in 2011, have been further impoverished in the last decade. Economic and social policies are not ensuring social cohesion and because of this phenomenon, the counties of the country, especially the North, are rapidly depopulating by choosing emigration mainly, even though they have abundant natural resources. 

The Institute of Statistics recently published the changes in the Gross Domestic Product of the Regions in which it was found that in three counties the economy was declining in 2019, Dibra by 3%, Kukes by 2.8% and Berat by 2 %%. In contrast, the regions with high economic growth were Durrës with 4.3%, Gjirokastra with 4%, Fieri with 3.25 and Tirana over 2.5%.

Nationwide, the economy expanded by 2.1% in 2009. Divided by regions, the centers of Tirana and Elbasan grew above the national average by 2.2%. The Northern region with the regions of Dibra, Kukes, Durres, Lezha, Shkodra increased by 2.1% almost to the national average, mainly due to the expansion of the economy of Durres, which in 2019 was influenced by positive developments in tourism. The Southern region with the regions of Berat, Fier, Gjirokastra, Korça and Vlora grew 1.78% at lower rates than the national average, due to the negative impacts on the economy of Berat.

Over the last 10 years, the economy of the Center region has grown on average by 3.4% per year, the North Region grew by an average of 2.4%, while the South by 2.6. Merita Toska, from Co-Plan, a local finance expert, said that inequalities in the country are visible and deepen every day, to several levels. She stated that the differences at the economic level are being emphasized at the regional, county, municipal and urban and rural levels. The distribution of growth resources in the territory, according to her, is determinant of these differences, combined with other factors. Redistributive policies are lukewarm and fail to work to mitigate these inequalities. 

Although governments already have a regionalized and detailed map of poverty that in 2011 they have not been able to distribute economic resources fairly. For example, in the poorest region of the country, Kukes, in 2019 had a smaller economy than in 2009. 

Sherefedin Shehu, former Deputy Minister of Finance, an expert on regional policies, said that the main reasons for the deepening of poverty in poor counties are the lack of effective economic and social policies. "Social policies in Albania do not guarantee real support for the poor, as they provide a symbolic financial support, which has remained almost unchanged for more than 25 years and its indexation is disproportionate compared to the multiple increases in the cost of living," he said. Shehu.

10 years the economy of Kukës with decline, the poorest region, further impoverishes 

In 2012, in a special survey, INSTAT measured the level of poverty in the country. The poverty line was set at a per capita consumption of ALL 4891 (39 euros) per month. Families and individuals consuming below this amount were considered poor, as with their sources of income they could not ensure the consumption of 2200 calories per day. 

The results of the survey showed that Vlora and Gjirokastra counties had the lowest poverty rate, while Kukes county had the highest poverty rate, as more than 28% of the population in this county consumed below the limit of 39 euros per month. The poverty map was then to serve the Albanian governments in order to carry out interventions with a focus on the poorest areas. But today, 10 years after these results, the economy of the poorest county in the country has deepened further. 

According to INSTAT data, the economy of Kukes from 2009 to 2019 has declined by 0.3% each year, while the economy as a whole, in these ten years, has expanded by an average of 2.9% per year. During the decade 2009-2019, Kukës Region was the only one with a decrease in national scale, while other regions, some less and some more, have increased. 

The former mayor of Kukës, Sheqfet Bruka, a local affairs expert, said that economic policies and the revenue redistribution system have been to the detriment of Kukës. According to him, Kukes Region is rich in natural resources as it has mines, produces more electricity than any other, has endless forests and pastures, tourist resources, etc. Mr. Bruka said that the revenue distribution policy should be changed and economic policies should be rebuilt. He added that decentralization is needed and people should be involved in developing development policies.

Kukës needs 20 years to reach the national level and 37 years, Tirana 

In 2008, GDP per capita in Kukës was 67% of the national average, while in 2019, GDP per capita in this region was 60% of the national average. The difference in living standards has deepened for the worse. 

If the national economy stays in place, and the economy of Kukës grows by 2% per year, it will take about 20 years to reach the national level, while to reach the level of Tirana, it will take about 37 years. GDP per capita in Tirana is 74% higher than that of Kukes. 

The economic expert, Sherefedin Shehu, said that the economic decline in Dibra Region in 2019 and the deepest economic decline in Kukes Region where Gross Domestic Product (GDP) in 2019 was lower than in 2009, show more clearly, its cause is the lack of effective economic and social policies. Although these two counties have more natural resources compared to other counties, they have the highest level of internal and external migration as a result of deepening poverty, he said. 

In recent years, Kukes has faced unusual emigration, with thousands of citizens emigrating seeking economic asylum, mainly in France and Germany. While in 2019, the tax collection on Rruga e Kombit came into full force, ALL 100 for each vehicle in the district and 5 euros for other vehicles. 

Throughout the decade, the economy of Kukes, in five years suffered a decline and in another five, growth. The strongest decline was in 2014 by -14.5%, as a result of the mass exodus of thousands of citizens, where entire neighborhoods were emptied.

The number of economically declining counties increases in 2019, causing emigration 

In 2019, the number of regions that experienced economic decline increased to three in total (Dibra, Kukes and Berat) compared to 2018, where only Dibra and Berat were declining. The economy of Berat region marked a decline of 2% in 2019. This was the second year of decline. Although the county has potential for the development of agriculture and tourism, it seems that the reason for the decline is the high emigration that is leading to a decline in consumption. Dibra region decreased by 2.8% in 2019, after a systematic increase from 2012-2019. 

INSTAT data show that there is a direct link between emigration and the economic performance of the regions. For example, in 2019, the counties with the largest economic downturn also had the largest population losses. 

Compared to January 2020, in January of this year, the largest population declines were recorded in Gjirokastra counties (-2.3%) due to aging, Berat (-2.1%) and Diber (-1.9 %) as a result of emigration. 

The population in number marked the largest decline in Berat, with a decrease of 2500 people, while Tirana had a higher increase, with about 6.000 people plus in 2021. The population of the country as a whole, at the beginning of 2021, was 0,6% lower than on January 1, 2020. 

Mr. Shehu said that, if the Regions of Dibra and Kukes or other regions will be left a certain percentage of revenues provided by concessions of hydropower plants and mines or large tourist resorts, they would be transformed into more regions rich of the country.

Decades of change 

During 2008-2019, per capita income in relation to the national average increased the most in Diber because the economy of this region experienced strong growth in 2015, where due to local elections it was invested, changing for the first time, seen the political direction from Democrats to Socialists. 

In 2008, Dibra had a per capita GDP of 55% of the national average, while in 2019, about 73% with an increase of 17 percentage points over the decade. Fier and Gjirokastra improved per capita income over the decade relative to the national average, narrowing the gap by 19 and 29 percentage points each. In contrast, Tirana deteriorated with the national average in GDP per capita. 

In 2008, Tirana's GDP per capita was 165% of the national average and in 2019 it was 135% of the national average. This change has come as a result of the capital's population growing at a faster pace than its economy. Tirana and Durres are the only two counties in the country with positive population growth over the last three decades. As can be seen, population growth has not been productive enough to keep GDP per capita levels at the national average rates as it was ten years ago. 

Co Plan expert Toska says the first step in smoothing out regional disparities is an in-depth study of the country's inequalities, causes and alternatives for intervention. Further clear investment programming should be applied, at least in the medium term (clear and published investment plan), to anchor business expectations and reduce the level of uncertainty created by public policy volatility. It would be worthwhile to undertake redistributive economic policies (but always having a long-term vision), she added. 

GDP Per Capita Percentage of National Average Albania 100 991 

The structure of GDP, in the South increases the share of agriculture; in the North, industry 

The structure of GDP of the regions during 2014-2019 has not changed significantly. In the North, the weight of industry has increased, in the South the weight of agriculture and in the center, professional activities. According to INSTAT data, in the North region, agriculture was the sector with the largest share in the GDP of the region with 25.3% of the total in 2019. The share of the agricultural sector in GDP fell by 5 percentage points since the year 2014. The share of services in the North increased by almost 3 percentage points, due to the development of tourism in the Valbona area. In the Northern region, the sectors that dominate the economy are agriculture, services and industry. 

In the central region, the sectors with the largest share are services with 22% of total GDP in 2019 and public administration activities, with 15.4% of the total, due to the concentration of central government institutions and the highest activity of public administration. In the Center region, the structure of the economy has remained almost the same as in 2015, with a slight decrease in the weight of agriculture, a slight increase in the activity of public administration and industry. 

In the South region, the largest sector in 2019 was agriculture, which occupied 40% of the economy of this region, with an increase in weight by 4.3 percentage points compared to 2014. 

The services sector was the second largest in the South with 14.6% of the total, followed by industry with 14% of the total and public administration activities with 10%. From 2014-2019, the share of the industrial sector in the Southern economy fell by 6 percentage points. In the Southern Region of the country, although it has a high potential for tourism, agriculture remains dominant due to the high concentration of agricultural production in Lushnja, Fier and Berat.

(Source: Monitor)