Regional Report, Albania Shows Highest Form of State Capture

In Albania, opportunities for state capture by stakeholders are greater than anywhere else in the region, according to a recent study published by the Leadership for Integrity and Development in Southeast European Countries (SELDI) "On the dangers of state capture and policy reforms in the Western Balkans 2020".

Business and public institutions in Albania have a high predisposition in relation to other Balkan countries to use public functions from services to laws in favor of the interests of certain groups. 

The report that took into account the study of indicators and perceptions until 2020 showed that Albania and Serbia are ranked worse than the other six countries, as they possess most of the factors that enable the capture of the state. These factors include the ineffectiveness of anti-corruption policies, the lack of integrity, the lack of impartiality, and the selective unilateral enforcement of private interests. 

Ineffective anti-corruption policies at the level of public organizations are a problem in all these countries, but at higher levels in Albania. The study shows that in Albania and Serbia are widespread practices when the imposition of sanctions is done selectively. Public administrations impose sanctions pursuing the interests of private individuals. This indicator signals the highest level of state capture. 

Using public entities not only to profit but also as a tool or weapon against competitors is the biggest use of state capture, the study notes. Anti-corruption policies are considered particularly ineffective in public institutions related to the construction sector in Albania and North Macedonia, in labor inspectorates in Bosnia. 

The results of the study show that none of the Balkan countries is close to full state capture, but there are critical impairments in the functioning of democratic and economic controls and balances. The findings show that inefficient public entities, which lack integrity, impartiality and strong anti-corruption protocols, have become overwhelming. 

The study also shows increasing pressure on state capture by business, i.e. monopolization that occurs at the national, sectoral or institutional level. The pressure of monopolization is highest in Albania and Kosovo. 

In the Western Balkans, public procurement is a major risk area for corruption, as it is used not only to procure goods and services but often to transfer public funds into private pockets. Tenders are often designed to favor specific bidders. The supervision of contracts is weak and negotiated procedures are widely used and a large number of tenders have only one bidder, etc.

(Source: Monitor)