WAS: Albania difficult business place

A report drafted by the US State Department's Economic and Business Affairs Office for Investment Climate notes that “despite the government's expressed desire to attract foreign investment, corruption in Albania is roving, especially in the judicial sector, while respecting private contracts and property remains low. The implementation of the Justice Reformation has just begun, but the investment climate remains problematic and Albania is perceived as a difficult place to do business”.

According to the report “investors voice concerns about legislation and rules that are difficult to interpret and are not consistent, used as instruments to discourage foreign investors and favour societies with political ties. Laws regulating activity and enterprises often vary and without any meaningful consultation with the business community. The biggest foreign investors denounced the pressure to sub contract companies with political connections. Denoncing for corruption in public tenders is common. Last year many American companies complained that they were disqualified from public competitions, though their offer had been lower, while the government had declared local company winner”.

According to the “property rights remains another challenge in Albania, after getting a clean title of ownership is difficult. Several factors include unscrupulous actors who manipulate the corrupt judicial system to get property titles over lands they do not belong to. Even compensation of properties listed during the communist regime is difficult to obtain and inappropriate”.

The report estimates that a turn of the situation could come from the implementation of the Justice Reform, particularly the fight against corruption “which undermines the rule of law and compromises economic development. Parliament approval in July 2016 of constitutional changes to reform the judicial system was a major step forward, and reform, after implementation, should make the country more attractive to international investors”.

According to the document “Reform in Justice, it has been described as the most significant development in Albania since the fall of communication. Nearly a third of the constitution has been rewritten. The reform also includes the adoption of laws that will ensure the implementation of constitutional changes”. The report singles out the process of reevaluating judges and prosecutors, who “will ensure that those who have unwarranted assets, an insufficient formation, or who in the past have made questionable decisions will be removed from the system. The reform envisions an independent prosecutor and a specialised investigation agency that will investigate and prosecute corruption and organised crime”. According to the “document, if fully implemented, reform will discourage corruption, boost foreign and domestic investments, enabling Albania to compete with a greater success in the global economy”./ VOA