Publication: Albania Public Finance Review : Part 2. Improving the Efficiency and Quality of Public Spending
Loading...
Published
2014-05
ISSN
Date
2014-10-16
Author(s)
Editor(s)
Abstract
Albania's rapid growth in the decade up to the 2008 global financial crisis propelled it to middle-income status and helped to reduce poverty. The global financial crisis in 2008 slammed the brakes on Albania's largely domestic-demand-driven growth. The government has accumulated sizable arrears in payments for public works and value-added tax (VAT) refunds. In a baseline scenario of no policy reforms, Albania's public debt-to-gross domestic product (GDP) ratio is projected to reach 73.5 percent in 2015 and stay above 72 percent over the medium term. Empirical evidence confirms that high public debt depresses economic activity and significantly increases the probability of default. This report examines closely the opportunities for fiscal consolidation on both the revenue and expenditure sides. Combined effect of structural reforms will reduce Albania's public debt to GDP ratio significantly over the medium term. It can in parallel rebalance its capital spending, particularly in transport, toward maintenance to support growth. Albania needs to strengthen its institutions to reinforce financial discipline and strengthen fiscal policy. Institutional reforms are particularly needed with regard to public financial management (PFM) and introducing a fiscal rule to anchor policy over the medium term.
Link to Data Set
Citation
“World Bank. 2014. Albania Public Finance Review : Part 2. Improving the Efficiency and Quality of Public Spending. © http://hdl.handle.net/10986/20442 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Bulgaria : Improving the Quality and Relevance of Education for All(Washington, DC, 2009-09)Bulgaria has recently introduced sweeping reforms of its secondary education system to promote more autonomy and accountability of schools for better learning outcomes. Positive results are already showing but more remains to be done to reap the full benefits of the reforms. Per-student-financing and delegated budgets have led to a wave of school closures that had become essential in the wake of a dramatic decline in student numbers. As opposed to the previous centralized system, school-based management with a considerable degree of decision-making power of the school principal has set the stage for schools to better adjust to local needs and opportunities for a better education. External student assessments are now routinely conducted, which have substantially improved the evidence base for education policy-making. However, concerns remain as to the accountability of schools to the local community. While principals are accountable to the municipal authorities for the use of financial resources, parents have little formal ways of holding principals accountable for learning outcomes. The reform was launched in the face of dramatic challenges in terms of unsatisfactory learning outcomes, early school leaving and considerable inequities in the education system. Moreover, Bulgaria s vocational education and training system remains un-reformed, and there are concerns with regard to the quality and relevance, with few formal communication channels to the labor market. The higher education system, meanwhile, is characterized by low participation relative to other new EU Member States, and the system of occupationally-oriented colleges, an important part of higher education across the EU, remains underdeveloped relative to academically-oriented universities. The economic crisis and associated fiscal pressures should not lead to cuts in the education budget. Promoting accountability for learning outcomes and results is the key policy direction for both secondary and tertiary education. Teachers are the key determinant of the quality of education.Publication Universal Secondary Education (USE) in Guyana(Washington, DC, 2008-06)In 2002, Guyana adopted a broadly-based five year plan (2003-2007) to achieve universal secondary education (USE), with a strategy to convert secondary classes in primary schools and grade 7-10 community high schools into General Secondary Schools (GSS) in which all students could present for the Caribbean Examination Certificate (CXC) or an alternative competency-based Certificate. Current status of secondary education (chapter one) summarizes the performance of public schools in Guyana against the Ministry of Education (MOE) policy on universal secondary education (2002), trends evident in the annual statistical digests, and the broad issues presented to Senior MOE officers on 13 December and to the Minister on 19 December 2007. Improving secondary student participation (chapter two) examines national and regional trends in population, enrollment, low levels of apparent transition from primary to secondary schools, poor secondary school entry examination (SSEE) results and issues related to the "size" of secondary schools. Upgrading and qualifying teachers (chapter three) identifies small school enrollment issues in earlier chapters with the enrollment required to offer a viable secondary curriculum, improve teacher qualification/training and reduce attrition rates. Student learning outcomes (chapter four) links poor student attendance, poor primary (SSEE) examination outcomes, limited secondary curriculum offerings, low rates of survival from grade 7 to grade 11 to the reported CXC results for Guyana. Schools and infrastructure (chapter five) presents the assessment that low student "demand" and a shortage of qualified teachers prevents Guyana achieving USE. Increasing the "supply" of secondary school places would not achieve USE unless other investments are made to improve the pool of suitably qualified students. Secondary education resources and budgets (chapter six) reviews education expenditure as aproportion of budget and the salary/non-salary recurrent expenditure for primary ("Tops") and secondary schools.Publication The Education System in the Russian Federation : Education Brief 2012(Washington, DC: World Bank, 2012-04-03)This study is intended for non-Russian researchers wanting to get familiar with the education system of the Russian Federation and more generally for all those involved in education and education policy. It does not represent exhaustive information on the Russian education system and all problems and challenges existing there, but briefly describes its main features. The report has the following structure. The opening chapter provides an overview of the education system in Russia and briefly reviews the most evident emergent trends. Chapters two through five are devoted to description of education system by level. The chapters are arranged by ascending order of educational level and each chapter's present information in a progression from the most general to the most specific. First, data on the current state of education system is provided. They characterize the human and financial resources allocated to education; describe the network of educational institutions across the country, and show regional disparities of spending on education. Next in each section key problems and challenges are examined; the focus is mainly made on access to and quality of educational services. Third, information on recent and ongoing reforms in the education sphere addresses each subsector separately and defines features typical for each of them. Fourth, there is discussion of policy options and analysis of what can be improved in the Russian education sphere. Finally, section six is devoted to lifelong learning. First, the section focuses on the condition of and development trends in lifelong learning. Then it examines the state of policy, staff training including financing and coverage, and learning for socially deprived groups of people. The section concludes with policy options and possible measures for improvement.Publication Out of the Ashes(Washington, DC, 2011)This Country Status Report (CSR) for Liberia is part of an ongoing series of country specific reports being prepared by the World Bank in collaboration with governments and development partners. The series aims to enhance the knowledge base for policy development. This report is intended to help engage a diverse audience on issues and policies in the education sector and to develop a shared vision for the future of Liberia. It is the first sector-wide report produced on the education system in Liberia since the end of the war. A policy options matrix follows the executive summary, which will provide government and partners with guidance on the key priorities to tackle. Besides consolidating information in a policy-relevant manner, this CSR makes a unique contribution to the education knowledge base by documenting not only traditional and basic indicators, such as gross enrollment rates and retention, but also examining the performance of the education system in terms of access, quality, equity, and resource allocation and utilization. The report also includes chapters on education governance and teacher management. This report highlights the country's significant education progress since the end of the 14-year civil war in 2003 and the challenges that need to be addressed.Publication Vietnam(World Bank, Washington, DC, 2011-06)This study examines the changes in Vietnam's primary and secondary education over the past 20 years as well as key factors that affect such critical educational outcomes as attendance, grade attainment, and student achievement in order to derive implications for public education policy. It is divided into an analytical report and shorter overview/policy report. The study finds significant improvement in attendance, attainment, and achievement across all populations. Nonetheless, vulnerable populations (in particular the poorest and ethnic minorities) continue to fare poorly as a result of persistent, and in some cases, increasing inequalities in educational attainment and poor student achievement. Educational attainment and achievement are also shown to be complementary to a large extent. Despite the methodological limitations, evidence consistently confirms that certain characteristics of schools and teachers are significantly related to both educational outcomes. This opens the door for public policy and provides multiple (potential) policies 'entrance points' for addressing the remaining challenges. Some measures have implications for public funding, its priorities and/or efficiency, and others are more closely related to the management of public institutions. Some of the main policy implications derived from the analytical findings are re-asserting or expanding priorities for public funding through expanding support for the Fundamental School Quality Level (FSQL), and supporting full day schooling and conditional cash transfers for vulnerable groups; improving spending efficiency through better targeted fee exemptions and the strengthened application of teacher standards; and improving the management of public sector schools through higher principals' management capacity, strengthened accountability of schools to their communities and better information.
Users also downloaded
Showing related downloaded files
Publication Morocco Economic Update, Winter 2025(Washington, DC: World Bank, 2025-04-03)Despite the drought causing a modest deceleration of overall GDP growth to 3.2 percent, the Moroccan economy has exhibited some encouraging trends in 2024. Non-agricultural growth has accelerated to an estimated 3.8 percent, driven by a revitalized industrial sector and a rebound in gross capital formation. Inflation has dropped below 1 percent, allowing Bank al-Maghrib to begin easing its monetary policy. While rural labor markets remain depressed, the economy has added close to 162,000 jobs in urban areas. Morocco’s external position remains strong overall, with a moderate current account deficit largely financed by growing foreign direct investment inflows, underpinned by solid investor confidence indicators. Despite significant spending pressures, the debt-to-GDP ratio is slowly declining.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication Digital Africa(Washington, DC: World Bank, 2023-03-13)All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.Publication Europe and Central Asia Economic Update, Spring 2025: Accelerating Growth through Entrepreneurship, Technology Adoption, and Innovation(Washington, DC: World Bank, 2025-04-23)Business dynamism and economic growth in Europe and Central Asia have weakened since the late 2000s, with productivity growth driven largely by resource reallocation between firms and sectors rather than innovation. To move up the value chain, countries need to facilitate technology adoption, stronger domestic competition, and firm-level innovation to build a more dynamic private sector. Governments should move beyond broad support for small- and medium-sized enterprises and focus on enabling the most productive firms to expand and compete globally. Strengthening competition policies, reducing the presence of state-owned enterprises, and ensuring fair market access are crucial. Limited availability of long-term financing and risk capital hinders firm growth and innovation. Economic disruptions are a shock in the short term, but they provide an opportunity for implementing enterprise and structural reforms, all of which are essential for creating better-paying jobs and helping countries in the region to achieve high-income status.