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. 3 changes in Government in 2002 Extended to all line ministries
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