Sie sind auf Seite 1von 40

Foreword

The Western Balkan region is ranked high on the The goal of the Swiss Cooperation is to support the
Swiss foreign policy agenda for increased security, country in addressing remaining challenges in align-
stability and better prospects for European integra- ment with the priorities as dened by the Albanian
tion. Starting in 1992, Switzerlands support to Alba- Government for specic sectors. It focuses on four
nias transition shifted to a full-edged programme thematic domains: Democratisation, Decentralisa-
with the opening of a Cooperation Ofce in 1997 tion and Local Governance; Economic Development;
and the deepening of a trusted partnership based Urban Infrastructure and Energy; Health. Switzer-
on mutual interests. In 2011, Switzerland ranked 7th land has relevant expertise in all four domains and is
in Albanias list of trade partners. Some large Swiss condent that it can make an effective contribution
companies have been active in Albania for consid- to the development of Albania. The foreseen nan-
erable time and an increasing number of smaller cial commitments for the period 2014-2017 amount
businesses are discovering the Albanian market. In to 88.3 million Swiss francs.
2011, Switzerland was the 9th largest foreign inves-
tor in Albania. This document provides an overview of recent po-
litical, economic, social and environmental trends
The Cooperation Strategy 2014-2017 is rooted in in Albania. It also discusses the rationale for the
the spirit of the agreements of cooperation between Swiss Albanian cooperation before assessing the
the governments of Switzerland and Albania and achievements and experiences of past interventions.
was developed by the Swiss Agency for Develop- From this it draws implications for the Cooperation
ment and Cooperation (SDC) and the State Secretar- Strategy 2014-2017, followed by an outline of the
iat for Economic Affairs (SECO), in close consultation priorities and objectives for the upcoming period. It
with the Albanian Government and partners, includ- concludes with information about programme man-
ing the civil society. It represents a strong commit- agement, monitoring and steering.
ment to continue supporting the economic, social
The main actors on the Swiss side are the Swiss
and political transition processes in Albania, building
Agency for Development and Cooperation (SDC)
on Switzerlands long-term presence in the country
and the State Secretariat for Economic Affairs
and earlier achievements.
(SECO), represented by the Swiss Embassy in Tirana,
responsible for programme management and coor-
Over the years, the cooperation between Switzer-
dination. Both agencies will closely cooperate and
land and Albania has grown. Today Switzerland is
coordinate in the implementation of their respective
the 4th largest bilateral development partner in Al-
parts of the Cooperation Strategy.
bania after Italy, Germany and the USA. Albania has
achieved remarkable progress in political and mac-
We are condent that the strategic goals set out in
ro-economic stability as well as increasing awareness
this strategy are particularly relevant to the sustain-
of the importance of international relations in its Eu-
able development of Albania and the well-being of
ro-Atlantic integration path.
its people.

Berne, May 2014

Swiss Agency for Development and Cooperation Swiss State Secretariat for
(SDC) Economic Affairs (SECO)

Martin Dahinden Marie-Gabrielle Ineichen-Fleisch


Ambassador State Secretary
Director-General Director

1
Abbreviations

CHF Swiss Francs

CME Continuing Medical Education

CSO Civil Society Organisation

CSR Corporate Social Responsibility

DDLG Democratisation, Decentralisation and Local Governance

EU European Union

GIZ German Organisation for International Cooperation

IMF International Monetary Fund

IPA Instrument for Pre-Accession Assistance

ISSR Integrated Social Services Reform

LGU Local Government Unit

NALAS Network of Associations of Local Authorities of South-East Europe

NATO North Atlantic Treaty Organisation

NPL Non-Performing Loan

NSDI National Strategy for Development and Integration

ODA Official Development Aid

OSCE Organisation for Security and Cooperation in Europe

PEFA Public Expenditure and Financial Accountability

PFM Public financial Management

PHC Primary Health Care

PPP Public Private Partnership

SAA Stabilisation and Association Agreement

SDC Swiss Agency for Development and Cooperation

SECO State Secretariat for Economic Affairs

SME Small and Medium Enterprise

SWG Sector Working Group

TAP Trans Adriatic Pipeline

UN United Nations

USAID United States Agency for International Development

VET Vocational Education and Training

WB World Bank

WHO World Health Organisation

2
Table of Contents

Foreword................................................................................................................................................ 1

Abbreviations ....................................................................................................................................... 2

Executive Summary ............................................................................................................................. 4

1. Context ............................................................................................................................................. 6
1.1 Political Context ................................................................................................................... 6
1.2 Economic Benchmarks .......................................................................................................... 7
1.3 Social Development ............................................................................................................. 8
1.4 The Environment ................................................................................................................ 9

2. Rationale for Switzerlands Cooperation with Albania and Donor Landscape .......................... 10

3. Achievements of Swiss Cooperation in Albania 2010-2013 .................................................... 11


3.1 Democratisation and Rule of Law .........................................................................................11
3.2 Economic Development........................................................................................................12

4. Main Lessons Learned - Implications for the Cooperation Strategy 2014-2017 .................... 14
4.1 Main Lessons Learned ... 14
4.2 Implications for 2014-2017 ........ 14

5. Strategic Orientation 2014-2017 .................................................................................................... 16


5.1 Overall Goal ...................................................................................................................... 16
5.2 Democratisation, Decentralisation and Local Governance Domain....................................... 16
5.3 Economic Development Domain ......................................................... .............................. 17
5.4 Urban Infrastructure and Energy Domain ............................................................................ 18
5.5 Health Domain .................................................................................................................. 19

6. Programme Implementation and Steering .................................................................................... 20

Annex 1: Swiss Cooperation Strategy Albania 2014-2017 at a Glance .............................................. 22


Annex 2: Monitoring System ..................................................................................................... 23
Annex 3: Results Framework ................................................................................................................... 24
Annex 4: Map of Albania ....................................................................................................................... 35

3
Executive Summary

Switzerland provides support to Albania since 1992. Urban Infrastructure and Energy (formerly in the
A full-fledged programme started in 1997 with the Economic Development Domain)
opening of a Cooperation Office. It focused on a so- Health (new)
cially inclusive market economy, democratic political
systems providing access to essential services and Gender and Governance are transversal themes for
supporting regional and European integration. all projects and programmes.

Between 2010 and 2013, Swiss Cooperation sup- To further enhance the democratisation and de-
ported Albania with an average annual budget of centralisation process, Switzerland will continue to
13 million Swiss francs (CHF) in two priority areas: work with relevant stakeholders engaged in an ev-
Democratisation & Rule of Law and Economic De- idence-based policy dialogue and will advance the
velopment. The general orientation and approach- decentralisation agenda in a consensual manner. It
es applied so far appear to be appropriate to the will accompany the national territorial reform pro-
remaining challenges posed by Albanias economic cess and give additional emphasis to local economic
and democratic transition, therefore the main thrust governance and public financial management at the
of the Swiss Cooperation Strategy 2014-2017 re- sub-national level. Quality service provision, in an
mains similar to the former strategy. An analysis of effective, well planned and socially inclusive manner
the drivers of change for decentralisation, a health will be further promoted. Support will be provided
assessment and overall lessons learned lead to the for citizens to take a more active role in decision
conclusion that Swiss Cooperation is effective in the making and in exercising democratic control over
given circumstances. More emphasis must be given administrative and political processes.
to a socially inclusive market economy and the impe-
tus for a clearer strategic focus per domain of inter- In the area of economic development, support to
vention must be maintained. The main change will the improvement of the general macro-economic
be the addition of the Health sector as new domain environment will continue through strengthened
to the programme portfolio. public financial management capacities, a stronger
monetary policy environment, including financial
The Swiss Agency for Development and Cooperation sector regulation and supervision. The private sector
(SDC) and the Swiss State Secretariat for Economic will receive targeted support towards an improved
Affairs (SECO) are the main Swiss stakeholders of business environment in order to offer more jobs.
the Cooperation Strategy in Albania. The Swiss Fed- Adequate training will be provided to young women
eral Council Dispatch to Parliament on International and men and the private sector encouraged to par-
Cooperation 2013-2016 and the associated frame- ticipate in the establishment and the operation of
work credit build the overall domestic foundation for a labour market oriented vocational education and
the Cooperation Strategy with Albania. training system. Support will also be given to effec-
tive labour market mediation services meeting the
Switzerland adheres to the principles of the Busan needs of job seekers and employers.
Partnership for effective Development Cooperation
and fosters national ownership and aligns its pro- Regarding Urban Infrastructure and Energy, support
gramme to Albanias priorities, as laid down in the will continue and expand nationally in the water
draft National Strategy for Development and Integra- sector, fostering stronger public utilities to oper-
tion (NSDI) 2014-2020. There is a notable increase in ate in a cost effective, customer-oriented manner.
Swiss Cooperations foreseen financial commitments Programmes will target additional municipalities to
with CHF 88.3 million between 2014 and 2017, or provide their citizens with safe, reliable and afford-
CHF 22.1 million per year on average. able water supply and waste water treatment ser-
vices. A new engagement is foreseen to improve the
The four domains of the Swiss Cooperation Strategy management of solid waste. In the energy sector,
2014-2017 are: the focus will shift away from dam safety measures,
Democratisation, Decentralisation and Local concentrating more on energy supply diversification
Governance (formerly Democratisation and measures as well as on actions promoting increased
Rule of Law) energy efficiency.
Economic Development

4
The health sector will receive substantially more sup- This Results Framework will serve as a reference for
port than it received in the past, with a more sys- yearly progress monitoring and reporting as well as
temic support to the central government to improve for a mid-term review and a final assessment of the
the management and provision of quality services achievements of the Strategy.
through better qualified health professionals. The
health sector will benefit notably at the primary lev- Bilateral programmes in a large range of institution-
el, where citizens, especially the marginalised and al settings and adapted to the local context will be
vulnerable, are expected to have increased access to complemented by regional programmes in areas
more decentralised, affordable, quality primary and such as applied research, Roma inclusion, water and
secondary health services. Furthermore, interven- public financial management.
tions should help to generate more health conscious
citizens, who contribute through increased partici- Swiss Cooperation seeks complementarities be-
pation in health promotion and prevention to a more tween its programmes and the EUs Instrument for
accountable and responsive health system. Pre-Accession Assistance (IPA), harmonisation with
other donors activities and strives for added value
The Results Framework in Annex 3 summarizes and visibility of its activities.
the goals and the outcomes for the four domains.

5
1. Context

Albania is a Mediterranean country in the 1.1 Political Context


Western Balkans, where vast coastal zones
contrast with remote and mountainous ar- The historically polarised political climate finds some
eas. As elsewhere in the region, post-commu- unity behind EU accession aspirations, but remains
nist transition in Albania started in the early a major obstacle for deepening democratisation,
nineties, but unlike its neighbours, suffered functional decentralised institutions and a rigorous
less from long lasting episodes of violence application of the rule of law. Low and politically
and disturbance. After overcoming serious determined financial flows to local governments,
upheavals in the mid and late nineties, Alba- underdeveloped tax collection at all levels as well as
nia maintained political stability and demon- important capacity gaps, have led to an insufficient
strated progress both in economic and social coverage and a low quality of public services, and
terms. Environmental issues are slowly rising an insecure business environment. A lack of civic en-
on the citizens list of priorities. gagement results in a still very weak accountability
relationship between government and citizens. The
Data from 2013 shows a decreasing trend absence of a fully performing local governement
in the overall population and rising poverty association makes it difficult for local governments
levels. Many political, economic, social and to advocate with a powerful voice for necessary re-
environmental hurdles remain. Economic forms. There has been a virtual standstill in the pro-
transition, widespread corruption and or- cess of further defining the role of the regional gov-
ganised crime are among the challenges ernments known as Qarks, the governments
Albania faces. Democratisation must be fur- second tier. The fairly elected government in place
ther deepened and the rule of law better ap- since early fall 2013 has started promising steps to-
plied. Decentralisation needs renewed focus, wards major reforms to curb endemic corruption,
social gaps must be further addressed and enhance the territorial administration and foster ac-
economic growth more equally distributed. countability through increased civic participation. A
Opportunities for women and men must delay in the governments expected pace for change
be brought to balance and minorities given may however occur if civil servants ability to deliver,
more attention. Integration into the global both at the national and local levels doesnt meet
modern world is a persistent aspiration of expectations. De-politicisation in the public admin-
the Albanian people. After gaining NATO istration and a reduction of the high civil servant
Membership in 2009, Albania is increasingly turnover rates are highly needed to build and sus-
close to being granted EU candidate status. tain consensus on key reforms, to implement the
existing legislation and to strengthen administrative
capacities. Women, despite gaining recent electoral
successes, continue to generally suffer from limited
access to resources and decision making. The mul-
tiplicity of media has yet to unleash its potential to-
wards higher quality impartial analysis.

Territorial reform and decentralisation


Responding to current challenges and to electoral
promises, the Government is pushing towards a fast re-
form of the existing territorial and administrative struc-
ture. Optimism is allowed after renewed dynamism is
injected in the prospects for a more decentralised and
efficient delivery model for services at the local level.
Despite the governments intentions to proceed at
high speed before the 2015 municipal elections, the
outcome of this reform is also strongly linked with the
quality of the process, the ability to effectively integrate
existing models of excellence in service delivery at the
local level, and with an adequate redefinition and attri-
bution of roles at the local, regional and national levels
as well as of the means to achieve these roles.

6
growth rates of 2-3% predicted between 2014 and
2016. GDP per capita stood at 3,340 (30% of the
EU average) in 2012, among the lowest in Europe,
but income inequality is not a major concern1.

Public debt has increased beyond typical EU ceil-


ings and is expected to reach a 76% of GDP peak
by 2018, limiting the scope both for expansive fiscal
expenditure programmes and further fiscal decen-
tralisation if no widening of the tax base and no in-
crease of collection rates takes place. In that regard,
the significant level of informality in Albanias econ-
omy (>30%) represents a further hindrance to fiscal
equilibrium, because of tax evasion. Agriculture, at
roughly 20%, still accounts for a significant share of
the economy and employs almost half of the active
population.

Unemployment and the youth


Officially unemployment appears stable at around 13%,
yet with an uneven distribution with the North-East
bearing the highest rates. Changes in ILO labour statis-
tic standards elevated this figure to 22% in 2013 - 27%
if underemployment is added. Young women and men
are most affected, with 40% of youth being officially
unemployed. With a median age of only 31 years (Swit-
zerland: 42 years), the overall population is therefore
1.2 Economic Benchmarks widely affected by this phenomenon where the lack of
jobs is also rooted in the absence of widespread and
functional mechanisms and institutions to bring the dif-
Albania is now a middle income country, after twenty ferent actors of the economy together. Yet, the rather
years of deep transformations towards a more urban labour-intensive private sector - 80% of GDP / 82% of
and market oriented economy. In the past years, mac- employment - with a total of 75,000 enterprises where
roeconomic stability was broadly preserved despite 99 % are of small and medium size, offers reasonable
perspectives for future absorption of the unemployed
the global crisis, reduced economic growth and a
youth, in sectors with good potential such as agribusi-
rising public debt level. Albanias continued focus on ness and tourism.
its traditional main trade partners, Italy and Greece,
will sustain the current risks associated with its depen-
dence on few and economically weakened partners
over the next years, despite rising exports to alterna-
tive markets such as Spain and Kosovo. While some
migrants from within the region have returned home,
the long term effects on remittances are unclear for
the moment. The Central Bank is believed to have be-
come genuinely independent and well managed to
conduct a reasonable monetary policy. Inflation rates
are low and expected to remain below the 3% bench-
mark and active measures to alleviate borrowing costs
have been taken, with an Official Bank Rate set at an
all-time low of 2.75% at the beginning of 2014. The
business environment despite some improvements re-
mained restrained, for unsolved property issues, low
levels of law enforcement and lack of legal security,
evidenced by low foreign investment, further under-
mining economic activity. Important privatizations in
the oil and power generation sectors have failed. Im-
proving economic governance remains a major issue,
in order to fully embrace the principles of efficiency,
accountability and transparency.

The boom years of the mid 2000s with 6% average


GDP growth were followed by a marked slowdown.
1. E.I.U. Country report 3rd Q. 2013 and HDR 2013: Gini co-efficient currently stands at
A slow economic recovery is expected, with GDP 34.5, close to Switzerlands 33.3

7
Overall, the production base has remained risk governments. EU aspirations nevertheless led to
prone, for its focus on sectors either adding little val- the design of an integrated social services reform,
ue or vulnerable to fluctuations in global commod- providing a good working basis, going beyond the
ity prices, such as textiles, footwear and minerals. improvement of existing social safety nets. This more
Currently, the industry sector accounts for 11%, comprehensive approach will however also require
construction for 9% and services for almost 60% of the development and strong involvement of a civil
GDP. society defending citizens rights. Prospects for
such increased involvement have recently improved.
1.3 Social Development Gender inequality has remained relatively high.

The emigration of many young Albanians and the


Poverty on the rise?
reduced fertility rate are believed to be the main rea-
sons for the populations 10% decrease since 1989 After generally trending downward since 2002,
according to the 2011 census. Estimates indicate poverty saw an increase, according to the 2011
that about half as many Albanians live abroad as census data. The significant decrease of 25%
in the country, mostly in Italy - where 47% of all since 2002 is now partly offset, with new data on
Albanian emigrants live - and Greece (43%). Some poverty revealing levels of 14.3% (from 12.4%
Albanians are believed to have moved back to Al- in 2008) and the doubling of extreme poverty
bania after some time abroad, with approximately since 2008 to 2.2%. More poor people are now
25,000 returning migrants from 2001 to 2011. The registered as urban, shifting disparities away from
now roughly 2.8 million inhabitants are mainly ur- rural remote areas, with now Kuks, Lezha and
ban and young. Social exclusion is suffered mostly Fier as the poorest regions.

Health and education: progress but lacking


means
Despite remaining largely underfinanced, there is
some progress in legal compulsory and pre-uni-
versity education, in reforms of higher education,
and with the development of legislation on voca-
tional education and training. Progress in public
health care is slow due to pending implemen-
tation of regulations. Capacities in public health
remain weak. Substantial efforts are required to
upgrade the health system management and the
quality of services. Low awareness of providers
and patients about the health promotion and pro-
tection system hampers its transparent function-
ing. Of the 5.5% health GDP, only 40% (or 420 /
capita) are public expenditures, the lowest figure
among neighbouring countries, leaving the re-
maining 60% to patients as direct contributions.
2,450 Primary Health Care (PHC) facilities exist
by groups such as the Roma, the disabled and inter- with poor infrastructure and 50% of district hos-
nal migrants, affected by continued high unemploy- pitals function only partly, leaving the gatekeeper
ment, poor housing and high illiteracy, but quan- role of the PHC non-functional. About 20,000
tification has so far proven difficult. While poverty health workers, including medical and nursing
has decreased overall, economic improvements have staff as well as pharmacists and dentists represent
failed to benefit equally the population of Albania. a limited coverage: when compared with neigh-
Mountain and sub-urban areas lag behind. Regional bouring countries, the overall density of doctors
economic and social disparities have widened. and nursing staff is well below average, including
an unequal rural-urban distribution. Professional
Social development improvements in areas such
qualifications of health workers are often not up-
as health and education have been marginal and
to-date and below regional and EU standards.
domestic violence, affecting almost exclusively
women and children, has remained a serious issue.
The absence of political consensus limited the
scope of implementation of essential reforms and
proper resource allocation and led to confusing
roles and responsibilities between central and local

2. Human Development Report 2013: Albania ranks #41 of 186, below Croatia or Mace-
donia, but one rank ahead of the USA

8
1.4 The Environment Trans Adriatic Pipeline may provide additional en-
ergy diversification in the medium term, if the gas
Environmental problems have remained acute, such market is developed and secondary legislation for
as visible air pollution in the capital, unaddressed the gas sector is approved. Further potential exists
hotspots and untreated solid waste on display. Im- within the National Energy Efficiency Action Plan
plementation of legislation remains generally weak 2011-2018 once its implementation is agreed upon.
also on water quality, noise pollution, wild fires, Electricity distribution has entered an institutional
erosion, overgrazing, illegal logging, overfishing, crisis still waiting to be solved, after the brusque
and loss of biodiversity. A systematic integration 2012 dismissal of the private company in charge of
of environmental aspects in other sectors remains distribution.
poor. Waste has remained a major source of pollu-
tion and has yet to receive full attention from the Coverage with water and sewerage service points
central government. Recycling is mostly done by improved moderately with an average water supply
private companies. Progress was made on increased of 11 hours per day. As elsewhere in the region,
public awareness about solid waste management, non-revenue water losses still stand at high levels
notably in some municipalities, but no integrated (ca. 67%), impeding water utilities to fully recov-
system exists, despite the approval of a Law on Inte- er costs. Progress was made with the elaboration
grated Waste Management. Regarding energy, the of the water master plan, including a prioritisation
high dependence of Albania on hydropower per- system and investment plan until 2040, requiring
sists, despite the building of a few thermo plants to 100 million annually to reach short term targets
enhance capacities. The security of energy supply is by 2018.
still fragile. Looking ahead, the construction of the

9
2. Rationale for Switzerlands Cooperation
with Albania and Donor Landscape

The Swiss Agency for Development and Co- enhanced relations with its neighbours would con-
operation (SDC) and the Swiss State Secre- tribute to boost its economy and positioning, further
tariat for Economic Affairs (SECO) are the fostering regional stability. The current context of
main Swiss stakeholders of the Cooperation uncertain recovery in Europe speaks for continued
Strategy in Albania. The Swiss Federal Coun- support, to avoid the region being caught in a vicious
cil Dispatch to Parliament on International circle of austerity, low growth, high debt and risks of
Cooperation 2013-2016 and the associated social upheaval. Overcoming these risks in light of
framework credit build the overall domes- Albanias economic potential, strongly supported by
tic foundation for the Cooperation Strategy a relatively young working force, fully justifies addi-
with Albania. tional support to structural reform efforts, especially
in public sector governance, the investment climate
Albania is one of five priority countries of the Swiss and labour markets.
international cooperation in the Western Balkans to-
gether with Bosnia and Herzegovina, Kosovo, Mace- Donor coordination mechanisms put in place by
donia and Serbia. Swiss support to Albania started in the Government of Albania are well established
1992 and aims at sustaining the countrys efforts in and functional. The donor community is organised
its transition to democratic and free-market systems; in sector working groups by the Prime Ministers
an agenda that is largely driven by the EU accession office. Where relevant, Switzerland leads or joins in
process and is translated in the Albanian National these sector-wide efforts with other donors. Cur-
Strategy for Development and Integration (NSDI), rently, the Albanian Government and Switzerland
itself broken down into individual sector specific co-chair the sector working groups on Decentral-
sub-strategies. The Government is currently review- isation and Regional Development and on Voca-
tional Education and Training.
ing the existing framework towards the elaboration
of a mid-term budgetary framework supported by
Switzerland is among the top ten donors in Albania,
the donor community. The thrust of the Swiss Coop-
together with the EU, Italy, Austria, Germany, the US
eration Strategy matches well with the priorities ex-
and the World Bank. It accounts for 4.2% of total
pressed by the Government, which has emphasised
ODA in the country. Contrary to others, its aid vol-
continued focus on decentralisation and territorial
ume is growing and likely to reach 6.5% of ODA and
reform, water and waste, youth employment, and
should help Switzerland enter the top five donors
agriculture.
to Albania over the strategy period. Combined with
the otherwise declining trend of overall aid volumes
The fundaments of cooperation with the region lie
from bilateral donors, the partnership and leverage
on the countries mutual interest in reconciliation,
of Switzerland should be considerably strengthened.
stability and security, and EU integration. Albania
Several European bilateral donors have already
plays an important role for the stability of the region:
phased out (UKs DFID, the Netherlands and Den-
mark) or may intend to do so. Remaining tradition-
al key donors with a clear bilateral focus on Albania
for the coming years are the US, Germany, Italy and
Sweden. New donors are appearing: Turkey, Ja-
pan, the Arabic States and China. The UN system,
including the Bretton Woods institutions, is also
present, with a UN Delivering as One approach in
place. Switzerland maintains close coordination with
specific partners such as ADA from Austria, USAID
and Sweden, as well as German GIZ, and KfW with
whom it has a good and long-standing partnership
in the water sector. At the same time it has also in-
creasingly engaged through strategic contributions
to multilateral partners as main entry points to an
enhanced policy dialogue, through their individual
convening power: the Council of Europe, OSCE, the
World Bank, UNICEF, UNDP and the UN System as
a whole.

10
3. Achievements of Swiss Cooperation in
Albania 2010-2013

Looking back as far as 2006, the focus of Swiss


Cooperation has remained strongly centred
around the current priorities, with democ-
ratisation and decentralisation, economic
development and basic infrastructure at the
core of the mandate. This continuity is based
on the high recognition of Swiss Cooperation
and its comparative advantage providing
Switzerland with a certain edge, reflected in
the entrusted co-chairing of Sector Working
Groups by the government and other donors.
The relevance of the Swiss programme to Al-
banias national priorities has increased over
time, along with the national capacity for
policy formulation. Over the last few years,
the Swiss Cooperation programme has be-
come increasingly effective and has adopted
a more programmatic approach. The former
Cooperation Strategy 2010-2013 focused on and financial management are recognised by the
two domains: Democratisation & the Rule of Albanian Government and promoted countrywide,
Law and Economic Development - including thus yielding a sensible increase of the programmes
infrastructure, with a geographical emphasis impact. Overall, successful bottom-up models have
on Albanias North West. been disseminated at the national level and fed
into the elaboration of national strategies (e.g. sol-
id waste management strategy and related law); in
addition, absorption capacities for available funding
3.1 Democratisation and Rule of Law - have been enhanced, which is of paramount im-
provision of instruments and working on portance in view of substantial financing provided
strategies. through the EUs Instrument for Pre-Accession As-
This domain was divided into two sub-clus- sistance. Switzerland assisted in the formulation of
ters, each following a specific objective. the national policy framework for decentralisation
through technical contributions. It maintained a
Democratisation and decentralisation: for this leading role in the coordination of decentralisation
cluster, the main objective consisted in enhancing and regional development, as co-chair with the Al-
the capacities of municipalities, communes and the banian Government of the related Sector Working
regional governments (Qarks) in Shkodr and Lezh Group, and provided consolidated and substantial
Regions, with an increased participation of citizens in donor feedback on relevant NSDI chapters.
local and regional decision-making and a strength-
ened performance and role of civil society organisa- A new partnership with the Council of Europe in-
tions (CSOs). At the mid-term of the strategy, some creased Switzerlands programmatic influence and
adaptations took place in light of the weakness of promoted policy dialogue and evidence-based dis-
CSO development and slow progress in citizen par- cussions between local and central governments,
ticipation. As of today, good results achieved include resulting in tangible impacts such as (i) enhancing
the improved performance and provision of services capacities and preparedness for stakeholders to
delivered by roughly 60 local government units (LGU) contribute to territorial reform efforts and (ii) an
- out of a total of 373 LGUs, reaching 15% of the improvement of the civil service legislation, through
total population - on targeted issues such as (i) higher support provided to the reform of the public admin-
coverage and quality of waste management, (ii) trans- istration. The linkages between the different levels
parent and efficient fiscal and financial management, of government have received a renewed emphasis
(iii) promotion of regional development initiatives and by the executive power. Close cooperation with local
(iv) proactive and regular information and communi- stakeholders, central government and donors has
cation with citizens. Manuals and instructions devel- further promoted the reflection on the future func-
oped jointly with the local administration in waste tions and role of the regions (Qarks). Swiss attention

11
to both local and regional development is mirrored A strategic partnership with UNICEF has contribut-
in the donor coordination and is increasingly taken ed to improve the social protection and inclusion of
up by the EU. Roma and provides continuous inputs to feed and
inspire the Integrated Social Services Reform. The
As a main contribution to knowledge and informed ISSR is now appropriately designed to bring it closer
decision-making, the provision of nationally pro- to European standards. Efforts for policy coherence
duced reliable data was fostered through targeted were made together with the UN to address the still
budget support to the national institution for sta- weak institutional capacities.
tistics as an essential element for upcoming nation-
al strategic developments. The active promotion of
women in politics generated good results, notably
with more women from Northern Albania elected to 3.2 Economic Development
the national parliament and an overall better perfor- This domain was also divided into two sub-
mance of women in the last elections. clusters, each with its own specific objectives.

Social inclusion: for this cluster, the main objective Economy and Employment: this clusters focus
consisted in providing Roma with improved access was (i) on improved framework conditions, through
to public services and participation in local decision an enhanced business environment and easier access
making, as well as in applying adequate training to finance to promote entrepreneurship, and (ii) on
pedagogy and promoting advocacy for disabled chil- an improved Vocational Education and Training (VET)
dren. Over the period of the strategy, the focus on system to foster employability and income opportu-
social inclusion was widened, taking into account nities especially for the youth, women and Roma.
the slow development of civic mobilisation and the Support to the framework conditions contributed
decision not to reduce exclusion to an ethnic group. to the following examples of achievements: (a) it
Over the period, ongoing programmes continued to strengthened the governments institutional capacity
provide hands-on contributions, such as the support to better link key policy objectives and budget allo-
for increased schooling of Roma, with the view to cations through a well-established Integrated Plan-
pave the way for municipalities in targeted areas to ning System, highly valued by the public expenditure
take over the programmes role, as foreseen under
and financial accountability assessment of 2011.
the current Swiss supported Integrated Social Ser-
This contributed to the elaboration of the Public
vices Reform. In the four targeted regions of Kora,
Financial Management strategy 2013-2020; (b) it
Elbasan, Berat and Tirana, school enrollment rates
improved the business environment in three pilot
for Roma are estimated to have doubled to 40%
municipalities - Shkodr, Durrs and Vlor - tracking
from the baseline of 2010 and had a remarkable
changes to business regulation and recording 300
gender impact.
simplified and improved administrative procedures.
Transparent and accessible rules for business in
these municipalities resulted in time and tax savings
for entrepreneurs to the equivalent of $6 million per
year. This model was later replicated in the Tirana
municipality; (c) Support to the private sector led to
facilitated competitiveness of organic and environ-
mentally-friendly products in the market which gen-
erated seasonal employment of 3,700 poor farmers
(of which 3,300 women), with an up to ten-fold
monthly income increase; (d) it improved economic
governance. It supported the improvement of cor-
porate financial reporting with amendments made
to the International Accounting Standards and Inter-
national Financing Reporting Standards (IFRS), both
approved as national standards.

Switzerland substantially contributed to strengthen


the national VET and Corporate Social Responsibil-
ity (CSR) policy and to approximate it to EU stan-
The Swiss Programme supported the introduction of dards. Flexible, market relevant and institutionalised
specifically designed pedagogy to allow the integra- systems of qualification were introduced; human
tion of the disabled in the regular classroom activi- resources were developed and the continuing edu-
ties. The paradigm that the disabled only need med- cation/skills development for teachers and instruc-
ical treatment was challenged. The new perception tors was introduced or enhanced, as in the case of
of - and respect for - disabled persons is expected to the health sector; curricula now combine theory and
promote their social inclusion and disability is now occupational skills; exam procedures and evaluations
addressed as part of the social inclusion strategy. were standardised in collaboration with the private

12
sector and some VET schools were renovated; a de- the preparation of a frame for the development of a
bate on the role of the private sector for VET and on natural gas market and the conclusion of two inter-
CSR practices was launched; and the National Em- national agreements allowing for the implementa-
ployment Service slowly starts to implement labour tion of socially and environmentally compatible large
market measures, with the number of benefitting gas infrastructure projects. Switzerlands support
youth nearly doubling in targeted regions in one significantly contributed to establish the necessary
year since 2012 with 40% of women participation. conditions in Albania for the realisation of the Trans
Overall, the enrollment rate of VET schools increased Adriatic Pipeline, securing important investments for
by more than 5 percentage points to 23%. While Albania in the coming years and paving the way for
a comprehensive VET strategy is still in the mak- energy diversification.
ing, clusters in targeted schools evidence both the
impact of Swiss intervention and the potential for The water sector was sustained by continued sup-
further strengthening: for instance in the Swiss-sup- port to the public water utilities in targeted areas,
ported VET school in Durrs, 70% of students are through investments and institutional strengthening
employed, compared to a national average of 20%. for a safer, more reliable and cost efficient supply
of drinking water and for more adequate sanitation
Infrastructure: this cluster had two main objectives, and wastewater treatment. Substantial input was
related (i) to the energy sector, with the aim to con- given to the elaboration of the water and sewer-
tribute to increased efficiency and reliability of the age strategic framework, including the master plan.
sector and (ii) to the water sector, with the objec- Access to clean water improved further, securing
tive to contribute to increased reliability and safety supply almost around the clock in focus areas with
of water supply and waste water services. A third a total population of roughly 120,000. Water utili-
intervention line related to a gradual engagement ties managed to further reduce water losses, which
into the field of environment was not further pur- nevertheless remained at high levels and progressed
sued after the strategy mid-term review found that moderately towards cost coverage targets. Gover-
further strategic sharpening was warranted. nance issues were the most important challenges in
this area, impeding the completion of activities as
In terms of achievements in the energy sector, Swit- planned in one major municipality.
zerland supported Albanias efforts to sustainably
operate energy assets through the dam safety pro-
gramme: an initial 1 million feasibility study laid
the basis for a multi-donor funded programme
worth 65 million to ensure the safety of the Al-
banian hydro-energy production infrastructure. In-
creased energy security was promoted by supporting

13
4. Main Lessons Learned - Implications for
the Cooperation Strategy 2014-2017

The future orientation of the programme is a strong result orientation. Elections did not affect
based on experiences and lessons learned, on Switzerlands appreciated and valued status. The
general and specific context analysis and on continued institutional support of Swiss Cooperation
the mutually recognised value added of Swiss to the Albanian Government through building the
Cooperation. It is consistent with the Alba- management capacities of strategic projects contrib-
nian National Strategy for Development and uted to the final decision to favour the Trans Adriatic
Integration and with the Swiss Federal Coun- Pipeline. In the governance domain, slow progress
cils Dispatch to Parliament. with civic movements does not hinder the develop-
ment of other capacity-building components.

Importance of leadership: Switzerlands lead role in


4.1 Main lessons learned the donor-government dialogue on issues such as
Decentralisation, Regional Development and Voca-
Focus and identification: past intervention lines were tional Education & Training have proven instrumen-
managed under domains too broad to remain mean- tal to a continued trusted relationship among donors
ingful. A sharper, more streamlined programme and relevant governmental bodies, to foster the pol-
sustains improved operational delivery and a better icy dialogue and to increase the potential impact of
perception of other development actors, eases the Swiss Cooperation.
policy dialogue and fosters the basic principles of Aid
Effectiveness: in the past years the Swiss programme
was managed towards a reduction in the number
of interventions, aiming in parallel at an increase 4.2 Implications for 2014-2017
of the financial volume of individual operations. At
the same time, better denominated future domains Continuity of Swiss cooperation should prevail as the
would help to improve Swiss Cooperations effec- main thrust of the strategy, both as a consequence
tiveness through better identification. Synergies with of past achievements and the priorities set out by the
different components have substantially improved Albanian administration. Its current mandate - since
the interaction between existing actions at the cross- September 2013 - covers almost exactly the period
roads of the Swiss priority lines of intervention. of the present strategy.

Flexibility and new partnerships: the strategy period Rule of law and democracy will remain a focus area
has benefitted from the needed flexibility for oper- for Swiss Cooperation, now under a new heading,
ations to remain on track, and, while keeping their including programmatic support to social inclusion.
initial focus, pragmatically adapting the delivery of The efforts to improve local public service delivery will
specific elements to country conditions, such as for be deepened, new ways will be sought to strengthen
example delayed direct support to local government cooperation among the different government levels
associations, because no common grounds of coop- and civic engagement will be fostered. Economic
eration could be found within a given timeframe. Development will remain an important and better
New partnerships, especially through contributions defined field of intervention for Swiss Cooperation
to multilateral organisations, such as the Council of and existing, respectively future infrastructure pro-
Europe and the UN family, have helped to raise the grammes will be grouped in a separate domain of
level of influence in given sectors, notably in Decen- intervention. Based on an assessment conducted in
tralisation and Social Inclusion. For economic devel- 2012, Switzerland will engage in the health sector,
opment, beyond support to the VET sector, it has beyond human resource strengthening with Swiss
become strategically important to endorse a more priorities matching the countrys extraordinary needs
comprehensive view, which has led to the adoption and limited support provided by other donors.
of a three pronged approach beyond VET develop-
ment, also addressing the demand side of labour, as Synergies between the different action lines will be
well as the linkages between supply and demand. further strengthened to allow for a comprehensive
programme and well intertwined individual actions.
Perseverance as a virtue: Swiss Cooperation is well- In that sense, in the future, actions related to
positioned in the country thanks to an inclusive, po- Public Financial Management at the local level
litically neutral and predictable approach as well as will be hosted by the domain Democratisation,

14
Decentralisation and Local Governance. The strategy administrative reform, which can provide a better
is to retain a mix of approaches and instruments basis for improved service delivery at the local level.
as well as flexible solutions in view of future The Swiss engagement will take into account the re-
developments. newed optimism and steer the programme accord-
ing to realistic and politically neutral assessments of
To further nourish the policy setting and dialogue the developments. A strengthened monitoring of
with bottom up approaches, continued importance general governance issues, notably in the infrastruc-
will be given to local capacity building in targeted ture sector, will aim at improved delivery of cooper-
areas and diversified partnerships, notably with larg- ation endeavours and at an adequate collaboration
er institutions with a high convening power; this between municipal powers and public utilities.
will remain particularly relevant in the case of social
inclusion, which follows a broader approach, as al- The government has declared both youth employ-
ready initiated in 2013, including support to promis- ment and VET and its dual delivery mode as a priority
ing mechanisms such as UNs concept of Delivering for its tenure. Against this background, the develop-
as One, to which the Government of Albania has ment of an improved national framework for em-
fully adhered. ployment and VET integration should enhance the
overall formal setting and allow for the integrated
Changes of government bring risks and opportu- Swiss approach to employment in Albania to further
nities, at both the local and/or the national level. gain space. A capitalisation of 20 years of experience
The national changes provide new momentum supporting VET in Albania will provide the Swiss fu-
in a number of areas, such as the territorial and ture support with additional insights.

15
5. Strategic Orientation 2014-2017

5.1 Overall Goal is to be intensified. The quality of local governance


and notably the fight against corruption require an
Switzerland supports Albanias transition efforts and increased engagement. Improved services for the
contributes to effective democratic systems and a population, including marginalised groups such as
socially inclusive, competitive market economy in the Roma, are fundamental for the overall sustained
support of its European integration. development of the country. Special measures to
ensure social inclusion are deficient despite being
an EU accession criterion.

5.2 Democratisation, Decentralisation and Main goal: better provision of socially inclusive ser-
Local Governance (DDLG) Domain vices through an advanced decentralisation reform
and strengthened local democracy.
Why? The rationale for engagement lies in past
experience, promising developments and a strong What? Switzerland will continue to contribute
EU integration agenda. Even though the past years to the policy dialogue for the DDLG agenda; yet,
had shown some signs of slowing, the decentralisa- even more attention will be given to the linkages
tion reform has regained momentum after the June between the different levels of government, to im-
2013 general elections. Strong leadership towards prove communication and cooperation between
a profound territorial and administrative reform has them. As a complement, support to political pro-
emerged, providing a good potential baseline for cesses will gain relevance and platforms of dialogue
improvements. In parallel, the transfer of compe- will be promoted to foster the reform agenda be-
tences to local units still requires support in view of yond political affiliations. More emphasis will be put
even more delegated tasks and improved capacities on public financial management at the sub-national
in sub-national Public Financial Management. LGUs level, transparency as well as on the participation
need to federate, the role of regions is to be further and responsiveness of civil society actors. Quality
clarified and strengthened, and civic participation and access of the population to local public services

16
will be addressed through policy dialogue and con-
sensus building. The horizontal dimension will target
quality service delivery, by rolling out and scaling up
tools, possibly through earmarked municipal budget
support in view of fostering governance principles
and performance. To ensure socially inclusive mea-
sures, a multidimensional and programme-based ap-
proach will support ongoing national reforms.

5.3 Economic Development Domain

Why? The rationale for renewed involvement lies in


past successes of Swiss support and current needs
and challenges, as main justifications for continuity
of focus on economic development through macro-
economic support and private sector development
and the promotion of employment opportunities
and skills development, including through formal
VET systems. The business environment and overall
framework conditions need further improvements in
support of private sector development.

Main goal: the Albanian economy benefits from im-


proved framework conditions to follow an inclusive
growth path, with increased employment opportu-
for all will be further promoted. Promising drivers of nities, especially for the youth.
change for decentralisation will be supported, and
emphasis will be given to reaching political consen- What? Switzerland will favour a holistic approach,
sus and a reduction of politicisation of the public addressing different areas of support, including
administration. New elements will be identified to public financial management at the central level,
strengthen local governance and democracy and the financial sector, the private sector at large and
promote regional development also seizing the op- a comprehensive package to address youth unem-
portunities provided by Albanias territorial reform. ployment.

The main intervention lines should contribute (i) The main intervention lines should contribute to (i)
for relevant stakeholders to engage in an evi- an improved macro-economic environment through
dence-based policy dialogue and to advance the strengthening public financial management capaci-
decentralisation agenda allowing for political con- ties, the monetary policy environment and financial
sensus building, (ii) to strengthen local economic sector regulation and supervision (ii) enabling the
governance and public financial management at the private sector, through an improved business envi-
sub-national level, (iii) for central, regional and local ronment, to offer more jobs, including through en-
government to plan, allocate resources appropriate- hanced entrepreneurial skills, improved corporate
ly, implement and monitor socially inclusive service governance practices and increased transparency
according to more clearly attributed functions and and accountability in corporate financial reporting
responsibilities, and (iv) for citizens to take a more as well as through facilitated access to finance and
active role in decision making and to exercise dem- enhanced competitiveness of SMEs internationally,
ocratic control over administrative and political pro- and (iii) more adequately trained young women and
cesses. Elected representatives and citizens engage men for available jobs, whereby employers, notably
in a constituency relationship fostering continuous from the private sector participate in the establish-
responsiveness and accountability. ment and the operation of a labour market oriented
education and training system. Effective labour mar-
How? Successful bottom-up approaches will be ket mediation services meet the needs of young job
fostered to address the major reform issues, includ- seekers and the private sector.
ing fiscal decentralisation through the transfer of
competences and finance to local government units How? Switzerland will contribute to the improve-
(LGUs). For the improvement of democracy, cooper- ment of macro-economic stability through support
ation will be sought through different means includ- of planned reforms via technical assistance and ca-
ing the media, to improve participation, with a spe- pacity building in partnership with International Fi-
cial emphasis given to youth elected representatives, nancial Institutions and development partners draw-
as potential drivers of change. Vertical dimensions ing on Swiss expertise when possible and relevant.

17
Swiss interventions in private sector development quality and sustainability of public services and the
will combine a bottom-up approach with policy di- focus on municipalities.
alogue, bilateral, multilateral and regional initiatives
and will further strengthen existing partnerships. Main goal: enhanced urban infrastructure and relat-
Youth employment will be tackled in a program- ed services as well as reliable energy supply improve
matic approach, including a deeper interaction with the living conditions of the Albanian population.
the private sector, involving the three dimensions
of youth employment support: the VET system and What? Key areas include the promotion of afford-
adequate skills development, increased employment able, safe and cost efficient water supply, disposal
opportunities and better matching services between and treatment of waste water and solid waste; the
the demand for - and the availability of - a skilled improvement of energy security through diversifica-
labour force. Interventions will privilege comprehen- tion - including the development of the gas market
sive, inclusive approaches and make use of Public - and energy efficiency.
Private Partnerships whenever appropriate.
The main intervention lines should contribute to (i)
strengthened public utilities operating in a cost ef-
fective and customer oriented manner, (ii) citizens
5.4 Urban Infrastructure and Energy Do- in the targeted areas being provided with safe, en-
main vironmentally sound, reliable and affordable water
supply, waste water and solid waste services and
Why? Urban infrastructure and energy supply are (iii) improved energy efficiency and diversification of
important pillars for economic growth. The need to supply.
improve basic infrastructure and associated services
remains high, alongside the need to continue to en- How? Swiss cooperation in urban infrastructure and
hance the administrative management capacities of energy will develop along three main complementa-
local governments. The Swiss Cooperation has pro- ry lines of action: (i) policy dialogue at the national
duced recognised results since 1992. Also, the in- and local levels, (ii) financing of infrastructure - re-
tegrated approach on public services combining in- habilitation and upgrade - and (iii) capacity build-
stitutional strengthening and investment measures, ing of public utilities. In the water sector, whenever
especially at the local level is an important contri- possible Swiss grants and partners soft loans will
bution to Albanias development. The potential for be combined for increased effectiveness, whereby
synergies with intervention lines under the domain funding of infrastructure investments may be subject
democratisation, decentralisation and local gover- to reaching predefined performance targets.
nance is important, with a common concern for the

18
5.5 Health Domain

Why? Albanias health system is undergoing a re-


form process and presents good opportunities for
continued engagement and expansion to health
management issues. Overall, the health system is
neither effective nor efficient and suffers from wide-
spread corruption and a non-functional referral sys-
tem. In 2011, public health contributed to only 2%
of Albanias GDP in addition to the private contri-
butions of 3.5% of GDP. Quality services are inac-
cessible especially for marginalised groups and imply
high out of pocket expenses and under the table
payments. Health is receiving little support from do-
nors, including the EU. In rural areas, where half of
Albanias population lives, access to health services
becomes even more problematic.

Human resources of the health system need to be


further developed. Switzerlands engagement in
the health sector has been limited but dates back
to 1993 and builds on a solid and recognised net-
work, notably thanks to its ongoing and successful
support in strengthening capacities and promoting
continuing medical education in the country. There is
an important synergy potential with other Swiss in-
terventions in Albania, notably those that aim at im-
proving local governance, urban infrastructure, skills From the main intervention lines, it is expected that
development and social inclusion and protection. (i) the central government, donors and other relevant
actors engage in the health system reform leading
Main goal: the Albanian population, including the to better management and provision of services, (ii)
most vulnerable, benefits from better health thanks citizens, especially the marginalised and vulnerable,
to improved access to higher quality and better man- have increased access to more decentralised, afford-
aged health services. able, quality primary and secondary health services.
More health conscious citizens contribute through
What? The portfolio, aligned with the SDC health increased participation toward a more accountable
policy and with the Government priorities and re- and responsive health system.
form in the health sector, will build on the existing
experience and network developed in the sector. It How? Primary health care is to be the main focus of
will respond to the need to strengthen the capacities Swiss support to the Albanian health system where
of professionals working in the health sector - doc- most of people receive their services from. This will
tors, nurses and managers - to decrease the burden be realised by having a systemic approach and pi-
of non-communicable diseases and to strengthen lot regions for reaching out to promote social inclu-
prevention measures and health promotion. A spe- sion and reduce inequities/inequalities. Exchange
cific target will be the training for better financing and learning will be sought within the Region and
and management of the health system and for im- through SDCs Health Network. The Swiss support
proving the responsiveness of the primary health will be provided in full coordination and cooperation
care in selected regions. Interventions can be com- with other remaining active donors in the health sec-
plemented by limited hardware investments if nec- tor namely the WB, WHO (co-chairing SWG in health
essary. Modern techniques such as telemedicine and and involved in policy dialogue), and USAID.
distance learning will be explored.

19
6. Programme Implementation and Steering

Partners, synergies and geographical focus: The Sector Working Groups for specific fields of devel-
Swiss Cooperation Strategy for Albania will consist opment. Swiss Cooperation will either continue to
of contributions by SDC and SECO, working to- lead strategic forums or closely follow upon other
wards joint objectives and being jointly represent- relevant ones, including through existing strategic
ed by the Swiss Embassy in Tirana, responsible for partnerships such as with the UN system, which op-
programme management and coordination. In order erates under a Delivering as One scheme in Albania.
to maximise the coherence and impact of Swiss in- Given the important role the EU plays for Albanias
terventions, close coordination of activities will be policy and strategy formulation, through the IPA Pro-
ensured by both institutions, especially in areas such gramme and the pre-accession agenda, close coop-
as public financial management and private sector eration will be sought to enhance and leverage Swiss
development, which have the highest potential for contributions.
synergies. Implementing partners are governmental
bodies, multilateral organisations, NGOs and private Transversal themes: The mainstreaming of gender
sector entities, with most of them based on trust- to achieve equal opportunities and rights for wom-
ful relationships built over the past. New strategic en and men and notably to make best use of the of-
partners will join according to open tendering pro- ten underutilised resources of women for develop-
cedures, which will continue over the strategy pe- ment will continue. Accordingly, a culturally sensitive
riod. Due to the size of the country, there will be gender analysis will prevail to feed the implementa-
no specific geographic focus for Swiss Cooperation tion of programmes and projects, with the minimal
intervention; cooperation targets the whole of Alba- pre-requisite of the do no harm principle for any
nia but for SDC the poorer regions will remain of Swiss financed endeavour. Besides being addressed
particular interest. specifically through programmes in one domain, gov-
ernance will also be promoted transversally, along the
current principles of Swiss Cooperation. Specific em-
phasis will be put on the principles of participation,
accountability and anti-discrimination as an integral
part of the strategic goal of social inclusion.

Regional cooperation is an essential element of


Swiss Cooperation Strategies in terms of solving
region-specific problems through cooperation be-
tween countries, improving relations and enhancing
mutual trust. In addition to existing cross-border
initiatives and regional programmes, possibilities for
simultaneous and coordinated programme develop-
ment, joint programmes and learning in different
countries will be explored. Regional initiatives to fos-
ter water associations and applied research will be
further supported.

Synergies for increased regional cooperation will be


Aid modalities, donor coordination: In line with sought among neighbouring Youth Employment
the Paris and Accra Declarations and the Busan Part- programmes whereas exchange will be promoted
nership for effective Development Cooperation, in with health programmes in other countries of the
view of increased effectiveness and sustainability region. Other regional cooperation efforts will tar-
of cooperation, alignment with the countrys own get experiences on economic governance and tax
strategies is actively sought by Switzerland and well reforms as well as on decentralisation processes,
reflected in the strategys priorities. Swiss Coopera- through the Network of Associations of Local Au-
tion will promote donor harmonisation and mutual thorities of South East Europe and the Open Re-
learning in overall cooperation, seeking whenev- gional Fund, managed by Germanys GIZ. In addi-
er possible joint endeavours with other bilateral or tion to this, global and regional initiatives to improve
multilateral organisations. Donor coordination to- the understanding of public financial management
gether with the Government will continue within and develop shared knowledge and experience on

20
public financial management reforms, e.g. through effectiveness and efficiency of the Swiss programme
peer learning, capacity building and support to the and easier accounting for results. The monitoring
design and development of reform action plans, will process is the overall responsibility of the Director
be continued via the Public Expenditure Manage- of Cooperation. For the progress assessment of the
ment Peer Assisted Learning Initiative and the World Swiss portfolio, implementing partners, as well as
Banks SAFE Trust Fund. other stakeholders relevant for a particular domain
of intervention, provide the Swiss Embassy with the
Resources: The Swiss Programme will be managed relevant data as needed. As reflected in more de-
by the Director of Cooperation and his/her Deputy. tail in Annex 2, the monitoring of the Programme
A Regional Advisor (Health) with operational du- is carried out at three levels: (i) at the country level
ties (50%) will be available from 2015. In addition to assess progress made in delivering the expected
up to 5 local staff (NPO) will be in charge for the results as stipulated in national sector strategies;
programme implementation. New commitments in (ii) at the Swiss portfolio level to keep track of the
the cooperation with Albania will average CHF 22.1 achievements in the different domains and to assess
million per year, i.e. an increase by more than 30% their contribution to national level policies; and (iii)
from the previous Cooperation Strategy. As Switzer- at the Swiss Embassy level to measure and verify the
land chairs the OSCE in 2014, special measures to performance in terms of application of aid modali-
ensure complementarities will be taken including for ties, cooperation with partners, allocation of finan-
supplemental financing for specific projects. cial resources and other management dimensions.
The Swiss Embassy will engage at least twice a year
Steering and Monitoring: The steering of indi- in different components of strategic monitoring, in-
vidual programmes will in most cases be delegated cluding the analysis of the country context. A mid-
to a Committee of relevant Ministries, stakeholders term review will gather data and reflect the need for
and Swiss Cooperation, with implementers acting potential adjustments to the strategy. Annual reports
as secretariat of the Committee. Overall, the Coop- will provide helpful data for the mid-term steering of
eration Strategy will be subject to systematic, ongo- the strategy.
ing monitoring to contribute to ensuring relevance,

Budget 2014 2017

Domain of intervention Planned disbursements Planned disbursements Planned commitments


2014-2017 2014-2017 2014-2017

(in CHF million) (in percentage of total planned (in CHF million; including
disbursements) new commitments that entail
disbursements beyond 2017)

SDC SECO Total SDC SECO Total SDC SECO Total

Democratisation, Decentralisation, 23 1 24 27% 1% 28% 25 1 26


Local Governance

Economic Development 13 7 20 16% 8% 24% 13 9 22

Urban Infrastructure & Energy 25 25 30% 30% 25 25

Health 10 10 12% 12% 10 10

Programme Management and


3.4 1.3 4.7 4% 2% 6% 4 1.3 5.3
Other Costs*

Total 49.4 34.3 83.7 59% 41% 100% 52 36.3 88.3

* Includes: Progamme Management (CHF 3.5 million) and Global Credit (CHF 1.8 Million)

21
Annex 1: Swiss Cooperation Strategy
Albania 2014-2017 at a Glance

Overall Goal
Switzerland supports Albanias transition efforts and contributes to effective democratic systems
and a socially inclusive, competitive market economy in support of its European integration

Democratisation, Urban Infrastructure


Economic
Decentralisation Health
Development and Energy
and Local Governance

Objective: Objective: Objective: Objective:


Better provision of socially The Albanian economy ben- Enhanced urban infrastruc- The Albanian population, in-
inclusive services through an efits from improved frame- ture and related services cluding the most vulnerable,
advanced decentralisation work conditions to follow as well as reliable energy benefits from better health
reform and strengthened lo- an inclusive growth path, supply improve the living thanks to improved access
cal democracy. with increased employment conditions of the Albanian to higher quality and better
opportunities, especially for population managed health services.
the youth.

Outcomes: Outcomes: Outcomes: Outcomes:


Relevant stakeholders en- The macro-economic envi- Strengthened public utilities Central government, donors
gage in an evidence-based ronment is improved through operate in a cost effective and other relevant actors
policy dialogue and advance strengthening public financial and customer oriented man- engage in the health sys-
the decentralisation agenda management capacities, the ner. tem reform leading to better
allowing for political consen- monetary policy environment Citizens in targeted areas management and provision
sus building. and financial sector regula- are provided with safe, envi- of services.
Local economic governance tion and supervision. ronmentally sound, reliable Citizens, especially the mar-
and public financial manage- Private sector, through an and affordable water supply, ginalised and vulnerable,
ment at sub-national level are improved business envi- waste water and solid waste have increased access to
strengthened. ronment, offers more jobs. services. more decentralised, afford-
Central, regional and local Enhanced entrepreneurial Energy efficiency and diver- able, quality primary and sec-
government plan, allocate skills, improved corporate sification of supply are im- ondary health services. More
resources appropriately, im- governance practices and proved. health conscious citizens
plement and monitor socially increased transparency and contribute through increased
inclusive service according to accountability in corporate participation toward a more
more clearly attributed func- financial reporting, facilitated accountable and responsive
tions and responsibilities. access to finance as well as health system.
enhanced competitiveness of
Citizens take a more active SMEs internationally.
role in decision making, exer-
cise democratic control over Young women and men are
administrative and political adequately trained for avail-
processes. Elected represen- able jobs. Employers, notably
tatives and citizens engage from the private sector par-
in a constituency relationship ticipate in the establishment
fostering continuous respon- and the operation of a labour
siveness and accountability. market oriented education
and training system. Effec-
tive labour market mediation
services meet the needs of
young job seekers and the
private sector.

Transversal Themes: Gender and Governance

Regional Cooperation

22
Annex 2: Monitoring system

The Monitoring of the Cooperation Strategy will to monitor developments in the transversal themes
involve the gathering, analysis, synthesis and docu- gender and governance.
mentation of data from different sources of informa-
tion. It will be carried out at three levels: At the management level, 3 to 4 instruments are
used to monitor the management dimension: the
The country context will be monitored by an exist- Internal Control System and the Office Management
ing well established Monitoring System for Develop- Report as internal steering mechanisms. It allows
ment-Related Changes (MERV). The Swiss Embassy for monitoring the implementation of objectives
regularly monitors the overall context development related to the allocation of financial resources, aid
to allow timely responses to changes impacting the modalities, donor coordination, human resource de-
Swiss programme. velopment and knowledge management. The exter-
nal audit serves as additional means of verification.
Results of the Swiss Portfolio will be monitored Besides these annually used instruments, internal
based upon the Results Framework (Annex 3) to un- audits are carried out on a regular, but unplanned
derstand and steer programme developments. The basis. They seek to foster general accountability
instrument is used by Swiss Embassy staff with infor- principles and round up and verify the other existing
mation received from project staff. It will also serve control mechanisms.

Monitoring System of the Swiss Cooperation Strategy Albania 2014-2017

Level Monitoring field Mechanism Frequency Responsibility


Overall country context
Swiss Embassy
Country Context relevant to Swiss Country MERV Annually
+External feedback
Strategy

Swiss Portfolio outcomes Results Monitoring and


Annually Swiss Embassy
Annual Report

Country Development Results Monitoring and


Results of Swiss Portfolio Annually Swiss Embassy
Annual Report

Transversal Themes: Results Monitoring and


Annually Swiss Embassy
Gender and Governance Annual Report

Office Management Report Annually Swiss Embassy /HQ

Internal Control System Annually Swiss Embassy /HQ


Swiss Embassy efficiency
Management
and compliance
External Audit Annually Swiss Embassy

Internal Audit Unspecified HQ

23
Annex 3: Results Framework

Overall Goal: Switzerland supports Albanias transition efforts and contributes to effective democratic systems and a socially inclusive,
competitive market economy in support of its European integration.

Domain of Intervention: Democratization, Decentralisation and Local Governance (DDLG)


Objective: Better provision of socially inclusive services through an advanced decentralisation reform and strengthened local
democracy

(1) Swiss Portfolio Outcomes (2) Contribution of the Swiss Programme (3) Country Development Outcomes3

Outcome statement 1 Link between (1) and (3), Intermediate re- Outcome statement 1 To be revised upon
sults/sequence completion of NSDI
Relevant stakeholders engage in an evidence
based policy dialogue and advance the decen- Switzerland: The vision for local government conforms to
tralisation agenda allowing for political con- the provisions of the Constitution, the princi-
sensus building. Supports vertical integration of the de- ples of the European Charter of Local Self-Gov-
centralisation reform through facilitating ernment, and the objectives in the framework
Fields of observation: platforms for political compromise and of the SAA (NSDI 2007-2013: p.40).
evidence based policy making.
Number of priority issues of decentralisa- The vision (for regional development) is a bal-
tion/regional development agenda voiced Will co-lead with Gov. of Albania the sec-
tor working group on decentralisation and anced and sustainable socio-economic growth
and brought up in national platforms to among the regions of Albania, in general, and
the attention of central government. regional development.
of mountainous and remote areas in particular,
Number of existing mechanisms/arenas aimed at supporting the rapid development of
where local elected representatives can the entire country (NSDI 2007-2013: p.78).
work for and reach consensus with central Risks and Assumptions
government and across party lines. Assumptions: Fields of Observation:

Baselines: The government revitalizes the vision for a Fulfillment of principles of European Char-
decentralisation agenda and effective ad- ter of Local Self-Government.
No common voice of local government
ministrative reform. Funding of local government corresponds
units to advocate their interests at the cen-
Elected representatives and bodies at lo- better with decentralised responsibilities
tral level.
cal and regional levels are accountable to (in 2013 local government are underfund-
Debates at national level are not evidence ed also in regional comparison).
based and especially the data on fiscal de- citizens (rather than only to their political
party). Better correspondence of regional budget
centralisation is not reliable and difficult to
Gradually, reformed associations of LGUs with regional development polices pro-
access.
become functional again in the advocacy, moting regional potentials and reducing
Regional Expert Groups established for disparities.
waste management, financial manage- expertise and capacity development.
ment and strategic planning but not sys- New Law on Public Administration is im- Baselines:
tematically consulted by central govern- plemented efficiently also at the local level.
Weak and fragmented local government
ment.
Risks: associations.
Targets: Unreliable statistical system no systematic
Main political parties may continue to con-
tribute to the divide among LGUs, further local data gathering.
Multi party platforms of LGUs advocating
for decentralisation reform and regional weakening the role of local government High inefficient number of local govern-
development are effective and address key associations. ment layers and of LGUs.
issues (i.e. territorial reform, fiscal/financial
Targets:
autonomy, etc.).
Shkodr and Lezh models (and possibly Stronger platforms to ensure participation
others at a later stage) enrich the national on decentralisation reforms.
discussion on regional development. Improvement of the quality and profes-
Research and data feed into professional sionalism of public administration through
expertise and lay the basis of policy pa- implementation of the new Civil Servant
pers. Law.
Regional Expert Groups are taken into Government starts the reform process on
account by central government. the second layer of governance (Regions
i.e. Qarks).

3. Sources for all domains: (i) EU Progress Report 2013 for Albania, (ii) draft Albanian National Strategy for Development and Integration 2014-2020 (NSDI) and (iii) sector specific strategies (mostly unfinished at the time of
publication, such as the VET and Employment Sector Strategy 2014-2020.

24
Outcome statement 2: Link between (1) and (3), Intermediate re- Outcome statement 2 To be revised upon
Local economic governance and public financial sults/sequence completion of NSDI
management at sub-national level are strength- Switzerland: Ensure prudent and sustainable fiscal frame-
ened. Improves PFM capacities of targeted lo- work to improve fiscal resource mobilisation
Fields of observation: cal government units. Currently, effective and public expenditure management (strategic
sub-national PFM is also limited by central goal 1: public finance).
Sub-national budget cycle and inter-govern-
mental finance system. government reform gaps with ongoing fis- Ensure realistic, well integrated and efficient
cal decentralisation reform. While the focus planning and budgeting: upgrade the capacity
Sub-national PFM assessment (e.g. accord- is on improved sub-national PFM, interven- of the public and civil service for transparent,
ing to PEFA methodology). tions can thus not be reduced to sub-nation- accountable and effective performance and ser-
Baselines: al government level only and need to take vice delivery (strategic goal 2: public finance).
Proven need and increasing demand for PFM national PFM reforms into account. Fields of Observation:
reform a) insufficient, unpredictable and Ensures that PFM reforms strike a balance Predictability and transparency of an equita-
non-transparent central to local government between the objectives of macroeconomic ble municipal and regional finance system.
transfers; b) inadequate priority setting in stability, sufficient funding for public service
capital investment; c) lacking financial man- delivery and an attractive business environ- Other fields of observation to be defined
agement and procurement skills and proce- ment. Therefore, close cooperation between based on NSDI 2014-2020 strategy once
dures; d) unclear tax policy. the interventions for Outcome 2 (Govern- drafted/approved by government.
Municipal finance and expenditure review ance Domain) and Outcomes 1 and 2 (Eco- Baselines:
(WBI 2013 t.b.c.). nomic Development Domain) is required. Formula on unconditional grants lacking
No full-fledged sub-national PEFA assess- transparency and predictability.
ment and no sub-national PFM action plans Risks and Assumptions Weak fiscal autonomy of local government
available. Assumptions: (revenue structure at 30/70 with majority
Targets: from State budget).
Political willingness of the government to-
Increased financial predictability at the wards public financial management reforms. Targets:
sub-national level. Risks: More transparent formula for unconditional
Strong demand for increased financial trans- Severe economic situation hinders the ongo- grants leading to more predictable transfers,
fers to and overall funding levels of local gov- based on the principles of proportionality,
ing reforms. fairness and equality.
ernments.
Budget discipline, inadequate strategic allo- Local finance and budgeting is consolidated
Enhanced PFM capacities and increased tax cation of funds, quality and effectiveness of
collection (along clarified tax policy)/own lo- by increase of own revenue.
PFM procedures.
cal revenue in targeted areas.
PEFA sub-national assessments conducted
and discussed.

Outcome statement 3: Link between (1) and (3), Intermediate re- Outcome statement 3 To be revised upon
Central, regional and local government plan, al- sults/sequence completion of NSDI
locate resources appropriately, implement and Switzerland: Effective local government bringing services
monitor socially inclusive services according to closer to citizens, ensuring their participation in
more clearly attributed functions and responsi- Supports the coherence of policies, struc- decision making and transparency (NSDI 2014-
bilities. tures and capacities at central, regional and 2020).
Fields of observation: local levels (i.e. through integrated planning
system, support to Public Administration Re- Fields of Observation:
Provision of quality services to citizens by lo- form and Integrated Social Services Reform)
cal government. and in line with EU standards. Inclusive service provision to the citizens.
Progress in municipal Waste management Supports roll out and up-scaling of good Civil Servant Law implementation.
reform. practices in waste management, mid-term Other fields of observation to be defined
Inclusive reform at the municipal level social budgeting, strategic planning and e-govern- based on NSDI 2014-2020 once drafted /ap-
services. ance and others. proved by the government.
Baselines: Strengthening regional development.
Baselines:
Low citizens satisfaction with service delivery. Ensure synergies with the domain Urban In-
frastructure and Energy and primary health Unclear functions for service provision
Already disseminated good practice guide- among levels of government.
care delivery.
lines in planning municipal waste manage-
ment. Uneven quality and access to basic services
Risks and Assumptions for citizens.
Social inclusion of Roma in education and
health, and respective decision making is low. Assumptions: Limited funding and technical capacities of
local governments to deliver services.
Responsibilities of Qarks in service delivery
and monitoring under constant dispute. Financial resources of LGUs will increase and Regional policies unable to address internal
their distribution will be more transparent migration and widened social disparities.
Targets: and predictable. Targets:
Higher citizens satisfaction with municipal The citizens increase their demand for quali-
service delivery. A professional, modernised and impartial
tative services from their LGUs. administration, capable of offering transpar-
Country wide implementation of guidelines ent and quality services to the public (Public
in planning municipal waste management. Risks: Administration Reform).
Increased responsiveness of LGUs to satisfy Political party polarisation continues to un- Implementation of the Integrated Social Ser-
the marginalised groups demand and the dermine progress in service delivery reform. vices Reform (ISSR).
exercise of their rights to equal access to ser-
vices (sustained efforts to achieve MDG and Strengthened regional development and re-
EU standards). duced regional disparities.
Services provided by incapacitated Qarks/
larger LGUs generate a widely acknowledged
added value for regional development.

25
Outcome statement 4: Link between (1) and (3), Intermediate re- Outcome statement 4 To be revised upon
Citizens take a more active role in decision mak- sults/sequence completion of NSDI
ing, exercise democratic control over admin- Switzerland: Strengthen the fight against corruption through
istrative and political processes. Elected repre- Supports constituency building processes of reinforced integrity of institutions, good gover-
sentatives and citizens engage in a constituency locally elected representatives and promotes nance, consolidation of the check-and-balance
relationship fostering continuous responsive- local democracy principles. system, as well as further development of sys-
ness and accountability. tems that provide high transparency in public
Encourages the role of identified drivers (i.e.
Fields of observation: service delivery (NSDI 2014-2020, 2.1).
media, youth groups) at the local level to
Accountability and transparency as basic foster civic mobilisation and public debates. Fields of Observation:
principles of local democracy exercised at Fosters transparency of local decision mak- Transparency of decision-making and service
LGU level. ing processes (i.e. budgetary processes, elec- delivery at the local governance.
Interaction with and engagement of citizens, tions for instance through e-governance) as Level of participation of citizens in deci-
civil society groups and media in improving well as the accountability of locally elected sion-making processes at the local level.
governance at local level (i.e. decision-mak- people.
Womens empowerment, representation
ing/budgetary processes, information to cit- and participation in political and public de-
izens). cision-making at the local level.
Risks and Assumptions
Baselines: Assumptions: Baselines:
Engagement of citizens and civil society in The power of citizens and civil society when Civic mobilisation is non-existent.
decision making processes at local level is it comes to keeping accountable their elect-
limited or non-existent. Local government decision-making lacks
ed officials is very much underutilised. transparency and consultation with civil so-
There is a lack of trust of citizens toward Establishment of a check-and-balance sys- ciety organisations and other relevant stake-
their elected representatives and govern- tem at local level is crucial for having a genu- holders.
ment structures at any level. ine democracy and good governance. Civil society plays a limited role in the fight
LGUs processes and mechanisms are not Risks: against corruption.
transparent and sharing of power at local
level is asymmetrical. Unwillingness of LGUs to open up and to co- Targets:
operate along principles of transparency and Develop e-governance and offer interactive
Targets: accountability. Limited possibilities to foster public services via internet for the citizens
Municipal administrations respond better to integrity in public administration. and the businesses.
the citizens demand for quality services and Next local elections may have negative im-
enforce dialogue with citizens. Strengthen the fight against corruption
pact (i.e. turn-over, increased political ten- through reinforced integrity of institutions,
Municipal Assemblies exercise their over- sions). good governance, consolidation of the
sight functions, hold municipal administra- Not a strong or non-existent civil society at check-and-balance system, as well as further
tions accountable and report transparently local level. development of systems that provide high
about their efforts and findings. transparency in public service delivery.
Continuous political tension and weak dia-
Public information about LGU decision mak- logue might limit the positive energy direct- Enhance professionalism and integrity of
ing and performance is enhanced. ed at national policies and their implemen- public administration to meet the EU integra-
Civil society is better organised, increasingly tation. tion and national development challenges.
takes part to decision-making processes and Albania, a country with a low corruption
fosters accountability and transparency at level and integrity institutions that promotes
the local level. the values of good governance.

(4) Lines of intervention (Swiss Programme)


Outcome 1:
Promote donor coordination and policy dialogue.
Support different platforms for achieving political consensus among local elected representatives and with the central government.
Support research and institutionalisation of expertise/know-how in key areas relevant for (decentralisation-related) policy developments.
Outcome 2:
Support to sub-national public financial management reform, taking national PFM reform into account (e.g. budget planning, execution, procure-
ment, reporting and audits according to good governance standards).
Increase municipal own revenues and advocate for higher predictability and reliability of central to local government transfers.
Improve public financial management at the local level by participating in the World Bank Multi Donor trust Fund for public financial management
(Integrated Planning System) in combination with support for analytical work and approaches to reform (e.g. local PEFA).
Outcome 3:
Strengthening of public administration at the sub-national level
Disseminate and scale-up of methodologies and management standards.
Capitalise and roll-out models developed in pilot regions (i.e. waste management).
Earmarked budget support on a performance basis.
Supporting capacity development in view of accessing IPA funding/upcoming structural funds.
Support knowledge generation for evidence-based social inclusion policies.
Increase horizontal, vertical and across sectors policy management capacity of central govt. level to coordinate, monitor and evaluate the imple-
mentation of social inclusion and protection policies.
Support the implementation of designed inclusive policies at regional and local levels.
Enhance LGUs capacity to respond to the marginalised groups rights to equal access to services.
Outcome 4:
Enhancing public information.
Build constituencies at local level, using interaction opportunities and public platforms for increasing transparency and accountability.
Identify and utilize drivers of changes that can enhance democracy and foster civic mobilisation at the local level.
(5) Resources, Partnerships (Swiss Programme)
Budget: CHF 26 million: 25 Million SDC; 1 Million SECO
Main partners: Ministry of Finance, Ministry of Local Issues and associated Ministries to decentralisation processes, MSWY (Ministry of Social Welfare
and Youth), Regional Structures, Municipalities, Municipal councils, LGUs and region Associations; Civil society Organisations; UN Agencies, Council
of Europe (incl. Congress of Local and Regional Authorities).
Coordination with other donors: USAID, ADA (also in delegated cooperation), Italian Cooperation, SIDA, GIZ and OSCE mainly.

26
Domain of Intervention 2: Economic Development
Objective: The Albanian economy benefits from improved framework conditions to follow an inclusive growth path, with
increased employment opportunities, especially for the youth.
(1) Swiss Portfolio Outcomes (2) Contribution of the Swiss Programme (3) Country Development Outcomes

Outcome statement 1 Link between (1) and (3), Intermediate re- Outcome statement 1
The macro-economic environment is improved sults/sequence Maintaining a stable and predictable macroeco-
through strengthening public financial man- Switzerland supports: nomic environment.
agement capacities, the monetary policy en-
vironment and financial sector regulation and Improvement of macroeconomic stability (Draft NSDI 2014-2020)
supervision. through support for planned reforms and
policy dialogue with respective key institu- Fields of Observation:
Fields of observation:
tions (e.g. Ministry of Finance). Support will Macroeconomic stability inflation, ex-
Key public financial management (PFM) in- focus on strengthening public financial man- change rates etc.
dicators according to PEFA in the following agement capacities and strategic planning at
areas: a) credibility of budget b) comprehen- the national level. Financial sector stability non performing
siveness and transparency c) policy-based loans etc.
budgeting d) predictability and control in Enhancement of financial sector regulation
budget execution d) accounting, recording and supervision and strengthening of institu- Baselines:
and reporting e) external scrutiny and audit. tional capacities for an efficient, robust and Public debt has reached 67% in 2013
Number and type of relevant measures to inclusive financial sector;
Financial markets are underdeveloped and
strengthen the monetary policy environment
potentials are not fully used.
and financial market regulation and super-
vision. Risks and Assumptions Targets:
Baselines: Assumptions: Public debt is stabilized and later reduced
National PEFA 2011. Positive attitude of the government towards Developed financial markets and improved
Need to maintain financial stability in the macroeconomic stability reforms. financial supervision.
face of different challenges (Eurozone spill
overs, increase in NPLs, monitor capital and Risks:
liquidity levels; IMF Art. IV consultations Slow progress in macroeconomic stability re-
2012). forms due to a lack of support from the gov-
Targets: ernment. Severe economic conditions which
Improvement on key PFM indicators accord- hinder the implementation of reforms.
ing to PEFA.
Maintain monetary and financial stability;
contribute to financial sector development
and strengthening of financial market regu-
lation and supervision.

Outcome statement 2: Link between (1) and (3), Intermediate re- Outcome statement 2
sults/sequence A competitive economy, with dynamic entrepre-
Private sector, through an improved business
environment, offers more jobs. Enhanced en- neurship and productive industries. (Draft NSDI
trepreneurial skills, improved corporate gover- Switzerland: 2014-2020, World Bank Business Indic).
nance practices and increased transparency and Provides support to making business en-
accountability in corporate financial reporting, Fields of Observation:
vironment more conducive, increasing en-
facilitated access to finance as well as enhanced trepreneurial skills and improving access of Number and type of successful reforms.
competitiveness of SMEs internationally. SMEs to financing and international markets Contribution of private sector to GDP.
Fields of observation: which should over time strengthen their
competitiveness, thereby creating jobs. Baselines:
Number of start-ups and entrepreneurs Contribution of private sector to GDP is
trained, male and female, still in business Risks and Assumptions 80%.
after one year.
Contribution of private sector to employ-
Number of SMEs with greater access to fi- Assumptions: ment is 82%.
nance and international markets / volume of Positive attitude of the government towards Targets:
exports. business environment and economic com- Improved business climate.
Baselines: petitiveness reform. Developed export market (regional/EU).
The new entrepreneurship programme will Risks: Contribution of private sector to GDP in-
determine baselines. creases.
Heated political climate may undermine Contribution of private sector to employ-
Increase rate of SMEs with access to finance: SMEs investment in Albanian economy. ment: number of jobs created and/or re-
11% (2012) (from low level but no official
Dependence on the global economy/recov- tained.
data available).
ery. Promote a culture of entrepreneurship
Targets: through qualification and training for 2,000
young potential entrepreneurs.
To be determined by new entrepreneurship
programme. Increase the level of lending and create
schemes to support 100 women-led busi-
Annual Rate of increase of SMEs with access nesses and 1,000 new businesses (start-ups).
to credit remains at 5-15%, as long as it is
below reaching 60% of SMEs.

27
Outcome statement 3: Link between (1) and (3), Intermediate re- Outcome statement 3
sults/sequence
Young women and men are adequately trained Life-long access and employment opportunities
for available jobs. Employers, notably from the Swiss Cooperation: for all.
private sector, participate in the establishment
and the operation of a labour market oriented Supports labour market oriented education (Draft NSDI 2014-2020 and Government of Al-
education and training system. Effective labour and training including both soft and techni- bania Programme 2013-2017; draft strategy for
market mediation services meet the needs of cal skills in economic sectors with potential VET and employment 2014-2020).
young job seekers and the private sector. to generate employment, such as: agro-pro-
cessing, tourism, garment and ICT. Fields of Observation:
Fields of observation: Job creation.
Supports the coordination of skills develop-
Number of companies in the relevant sectors ment with employers from sectors with a National Employment Services.
satisfied with skills and work attitudes of good potential for providing jobs.
VET schools and university graduates. Skills development.
Stimulates self-employment/entrepreneurship.
Size of gap between school exit and labour Baselines:
market entry. Supports the scaling up and institutionalisa-
tion of existing job matching services. 1 million unemployed.
Number of private sector companies engag- Poor satisfaction of businesses and job seek-
ing/entering the matching service market. Stimulates the private sector to enter this
matchmaking service market. ers with National Employment Services.
Number and quality of certified VET opera- Skills providers and human resource consul-
tors entering or established in VET market. tancies do not work closely with businesses
Number of jobs created through improved Risks and Assumptions to equip young women and men with ade-
business and financial services as well as re- Assumptions: quate skills that meet the needs of the pri-
formed policy and regulation. vate sector.
Economic growth enhances private sector
Baselines: absorption capacities on a labour market Targets:

22,000 jobs posted in 2012; very low infor- provided with skilled labour. Matching ser- 300,000 jobs by 2017: 155,000 in agricul-
mation level for the young unemployed; per- vices are used for formalising employment ture and livestock; 11,000 in tourism; 4,000
centage of young women and men satisfied and business. Youth employment, VET, skills in ICT, while 52,000 in productive industry;
by labour market services and information to development remains a priority for the gov- 15,000 in maritime industry, 62,000 through
be defined. ernment. reform social assistance scheme.

More baselines to be determined with start Risks: Modernize National Employment Services,
of new programmes. Perceptions, attitudes and stakeholders will- strengthen National Labour Council and es-
ingness to cooperate are detrimental to the tablish National Agency of Employment by
Targets: 2017 which improves considerably the satis-
involvement of young people in the labour
Jobs created: 4,000 in agribusiness, 4,500 in market. Replacement by skilled demand ori- faction of businesses and job seekers.
tourism and 2,500 in ICT, by 2017. ented labour from VET schools by higher ed- All job seekers under 25 are trained by 2015.
ucation degrees.
Young people increasingly enter into the
job market in the selected sectors through
increased access for youth to job intermedia-
tion services, including the media.
30,000 jobs posted by 2017; 100,000 young
people, out of them at least 50% women,
have access to job opportunities through la-
bour market information and better policies.

(4) Lines of intervention (Swiss Programme)


Outcome 1:
Support strengthening of management of public resources at national level (tax policy, tax administration, internal audit, budget, treasury and
public debt operations).
Improve monetary policy capacities through the bilateral programme with the Bank of Albania.
Support strengthening of financial sector regulation and supervision as well as development of financial markets.
Outcome 2:
Improve the business environment through increased transparency, accountability and reporting.
Improve access to finance and international markets for SMEs.
Foster entrepreneurship with a view to encouraging new business start-ups, help the growth of existing ones and (formal) job creation..
Outcome 3:
Strengthen labour market oriented education and training in sectors with growth potential and which are attractive to the youth, thus increasing
the likelihood of providing jobs.
Facilitate the set-up of quality services and access to finance to private enterprises in sectors with good employment generation potential.
Improve and enhance existing public and private job matching and employment services.

(5) Resources, Partnerships (Swiss Programme)


Budget: CHF 22 million: 13 Million SDC; 9 Million SECO
Main partners: Ministry of Finance, MSWY (Ministry of Social Welfare and Youth), Central Bank of Albania, private sector associations and actors.
Coordination with other donors: WB, IFC, GIZ, ADA, UN.

28
Domain of Intervention 3: Urban Infrastructure and Energy
Objective: Enhanced urban infrastructure and related services as well as reliable energy supply improve the living conditions of
the Albanian population.
(1) Swiss Portfolio Outcomes (2) Contribution of the Swiss Programme (3) Country Development Outcomes

Outcome statement 1 Link between (1) and (3), Intermediate re- Outcome statement 1
sults/sequence
Strengthened public utilities operate in a cost Orientate utilities towards full cost recovery and
effective and customer oriented manner. Swiss Cooperation: control.
Water and Wastewater management ser- Supports strengthening of public utilities to (NSDI 2014-2020; National Action Plan on En-
vices improve their performance (efficient, reliable ergy Efficiency Growth; Energy Sector Strategy,
and affordable water supply and sanitation National Water Supply and Sewerage Services
Fields of observation: services) and financial sustainability. Sector Strategy 2011-2017; Water Supply and
Technically sustainable operational and Sewerage Master Plan for Albania 2013-2040).
maintenance cost coverage. Risks and Assumptions Fields of Observation:
Collection efficiency. Assumptions: Maintenance and operation costs in utilities.
Baselines: Positive attitude of the managers of utilities. Level of non-revenue water.
Cost coverage: Berat-Kuova >100%; Delvi- Positive attitude of government towards im- Collection rate.
na ~50%; Gjirokastra 110%; Kamza 80%; proving performance of public utilities.
Librazhd 82%; Lushnja 77%; Lezha 58%. Baselines (average for all 58 utilities):
Risks:
Collection efficiency: Berat-Kuova 74%; Operational cost coverage: ca. 65%.
Delvina 85%; Gjirokastra 85%; Kamza 85%; Weak management capacities.
Librazhd N/A; Lushnja 80%; Lezha 90% (ur- Non-revenue water is 57.5%.
ban) and 30% (rural). High energy cost.
Collection rate is 75%.
Targets*: Deficient regulatory framework.
Targets:
Cost coverage: Berat-Kuova >100%; Delvi- Operational cost coverage reaches 100% by
na >90%; Gjirokastra >110%; Kamza >90%; 2020.
Librazhd >90%; Lushnja >90%; Lezha
100%. Non-revenue water is lowered to 30% by
2020.
Collection efficiency: Berat-Kuova >85%;
Delvina >=85%; Gjirokastra >90%; Kamza Collection rate/willingness to pay reaches
>90%; Librazhd >90%; Lushnja >80%; 100%.
Lezha 80%.
* For some cities targets are modest as they are
confronted with new cost structures.

Solid waste management services


Fields of observation, baseline and target values
will be defined in the design of the solid waste
management programme.

29
Outcome statement 2: Link between (1) and (3), Intermediate re- Outcome statement 2
Citizens in targeted areas are provided with sults/sequence Water, sewerage, waste water treatment:
safe, environmentally sound, reliable and af- Switzerland: Ensure high quality and affordable water supply
fordable water supply, waste water and solid Supports improvement of urban infrastruc- and sewerage services and waste water treat-
waste management. ture, with a strong customer oriented focus, ment, based on financial efficiency and sustain-
Water and Wastewater management ser- which is guaranteed by financially sustaina- able environmental development.
vices ble utility companies. (National Water Supply and Sewerage Services
Fields of observation: Sector Strategy 2011-2017; Water Supply and
Sewerage Master Plan for Albania 2013-2040).
Number of citizens having access to im- Risks and Assumptions
proved public services (water and waste). Fields of Observation:
Assumptions:
Supply rate: additional connections to water Continuation of fruitful cooperation with Urban water supply network coverage to
services. 100%, and in rural areas 95%, by 2020
municipalities and public utilities leads to
Tariffs are socially affordable. successful completion of interventions. Sewerage network coverage in urban areas
at 89% and 60% in rural areas
Hours of water service continuity. Risks:
Increased percentage of population con-
Baselines: Political difficulty in setting tariffs towards nected to waste water treatment service to
Lezha 90% in urban area and 30% in rural full cost recovery, affordability and will- 50%
areas and other TBD. ingness to pay for waste water and solid
waste management are challenges still to be Baselines:
Additional connections to improved sewer- solved. Customer satisfaction is poor.
age disposal (from 0).
Hours of service: 11 hours per day (2013).
Baseline of tariffs will be defined at pro-
gramme start. Water quality not in line with WHO stand-
ards.
Berat-Kuova ~8h/d; Delvina ~6h/d; Gjiro-
kastra ~2h/d; Kamza ~3h/d; Librazhd ~24h/d; Targets:
Lushnja ~3h/d; Lezha 21h/d. Customer satisfaction improved
Targets: Continuity of water supply service reaches
450,000 citizens in seven targeted munici- 20 hours per day in all the country by 2020.
palities; Lezha 94% (urban) and 45% (rural) Water quality is line with WHO standards.
(4,000 new connections). Other: TBD. Integrated waste management (to be de-
Berat-Kuova 40,000; Delvina N/A; Gjirokas- veloped further) efficient and safe collection,
tra 5,000; Kamza TBD; Librazhd TBD; Lushn- storage, and treatment system that relies on a
ja N/A; Lezha 70%. high awareness of the community on recycling
Targeted municipalities average household and recovery.
water and sewerage expenditures compared Fields of observation:
to minimum wage per month are below 5%. Dispose 45% of landfill waste and recycle
Berat-Kuova TBD; Delvina TBD; Gjirokastra 55% of urban waste.
TBD; Kamza TBD; Librazhd 24h/d; Lushnja Develop regional waste management plans.
TBD; Lezha 24 h/d water (city center).
Develop and operate regional landfills ac-
Solid waste management services cording to EU standards.
Baseline and target values will be defined in
the design of the solid waste management pro-
gramme.

Outcome statement 3: Link between (1) and (3), Intermediate re- Outcome statement 3
Energy efficiency and diversification of supply sults/sequence An energy system based on market principles
are improved. Switzerland: able to cover energy demand for sustainable
Improved diversification of energy supply Supports the improvement of reliability of development of the economy, ensuring envi-
through the development of the gas market in electricity provision to households and in- ronmental protection and social welfare at min-
the frame of the Trans Adriatic Pipeline project dustries and the reduction of constraints to imum social cost.
(TAP). Improved energy efficiency through al- private sector growth. (Energy Sector strategy and Action Plan).
location of counterpart funds to strategic pilot
projects. Risks and Assumptions
Fields of Observation:
Fields of observation: Assumptions:
Timely realisation of Trans-Adriatic Pipeline Level of domestic gas consumption.
Capacities of national institutions to manage
large infrastructure projects relating to alter- (TAP). Number of measures to improve energy ef-
native energy resources. Energy efficiency promotion becomes a pri- ficiency.
Level of energy savings (kwh). ority topic and Government-led allocation of
Baselines:
counterpart funds follows this trend.
Baselines / Targets: will be developed in the
Risks: Gas consumption level in 2013: TBD.
new programme.
Insufficient capacity of Government: Dispute Level of energy efficiency. TBD.
with land owners, involvement of munic- Targets:
ipalities/regional councils and insufficient Increase natural gas consumption of total
funding secured for the development of the energy consumption by 15% until 2020.
Albanian domestic gas market.
Improve energy efficiency by 200% until
Delayed implementation and construction 2018.
of TAP.
No gas available or allocated for Albanian
gas market after finalization of TAP construc-
tion works.

30
(4) Lines of intervention (Swiss Programme)
Outcomes 1 and 2:
Corporate development and technical assistance
Investments in infrastructure and equipment
Public information and awareness raising
Empowerment (institutional capacity development) of public utilities, municipalities, regulatory entities and central government in performing
their designated tasks and functions
Outcome 3:
Technical assistance/Support in developing a domestic gas market
Promoting energy efficiency and renewable energy production through pilot projects

(5) Resources, Partnerships (Swiss Programme)


Budget: CHF 25 million SECO
Main partners: Albanian Energy Corporation (KESH), Ministry of Energy and Industry, Ministry of Economic Development, Trade and Entrepreneur-
ship, Ministry of Transport and Infrastructure, Ministry of Finance, Municipalities, Public Utilities.
Coordination with other donors: EU, KfW, GIZ, WB, IFC, EBRD, ADA, USAID.

31
Domain of Intervention 4: Health
Objective: The Albanian population, including the most vulnerable, benefits from better health thanks to improved access to
higher quality and better managed health services

(1) Swiss Portfolio Outcomes (2) Contribution of the Swiss Programme (3) Country Development Outcomes

Outcome statement 1 Link between (1) and (3), Intermediate re- Outcome statement 1
sults/sequence
Central government, donors and other rel- The multidisciplinary health reform focuses on
evant actors engage in the health system re- Switzerland: improving governance and capacity building
form leading to better management and pro- to ensure effective management of health ser-
vision of services. Offers Technical assistance to Health Min- vices and institutions, health system financing,
istry and/or other important central in- public access to quality health service and ex-
Fields of observation: stitutions for core reforms such as CME, pansion of social protection services. Reform
health governance and financing and financial mechanisms and tools which ensure
Functioning and coverage of the continu- health professional development.
ous medical education system. efficient financial coverage of the rising costs
Support to a newly created School of in the health system (Draft NSDI 2014-2020).
Function of health financing scheme. Health Management (or other training Due coordination with the Integrated Social
Availability of management skills in health institution) to be operational and fully
Services Reform.
system and health financing. equipped with necessary resources and
expertise. Fields of Observation:
Baselines:
Key managers of the health system will be Improve clinical and administrative man-
CME system is still in early steps and not trained in health management and financ- agement of health institutions at all levels.
fully accessible by all professionals. ing issues.
Basic and continuous education and of
There is a shortage of professionals with Due coordination with the Integrated So- health services managers.
management and financing skills and kno- cial Services Reform and social inclusion
whow, leading to gaps in key aspects of programme will be ensured. The gap of health professionals between
the reform implementation (i.e. health fi- known best practices and inadequate, out-
nancing, restructuring plan etc.). dated practices still used.
A school of Health Management has been Risks and Assumptions Continuous strengthening of the finan-
created recently but is not yet functional cial and managerial autonomy of Primary
Assumptions:
and operational. Health Care Centers.
The Government will remain committed to
Targets: Standardise norms and procedures for in-
the current health sector reform and pos-
stitutional management.
A better coverage of CME system for at sibly increase its funding (share of GDP).
least 80% of health professionals especial- Baselines:
Public administration will increasingly pro-
ly in targeted remote regions. mote the appointment of health profes- Problematic CME system performance in
Sound curricula are prepared and institu- sionals and skilled professional managers remote areas. 1300 health professionals
tionalised for health managers. in the health system. The newly created have no credits and most of them are from
school of health management will be remote areas.
The % of trained health professionals with supported and given the proper attention
management and financing skills is in- from the government. Shortage of health professionals with man-
creased at least twice (tbd); they feed the agement and financing skills.
system at both central and regional levels Risks:
Targets:
(i.e. MoH, regional directorates, hospital The government doesnt maintain the set
and health centres directors). priorities and approaches. The number of health professionals with-
out any credit at all and from remote areas
Financial resources for the entire health diminishes to 20%.
system can be reduced in the current fi-
nancial context. Number of credits received especially by
the groups of professionals that have
stayed behind increased.
Reorganised management and financing
of public hospitals and outpatient centers
aiming to increase their autonomy.
Standardised norms and procedures for the
management of institutions.
Creation of spaces required for the efficient
use of income.

32
Outcome statement 2 Link between (1) and (3), Intermediate re- Outcome statement 2
sults/sequence
Citizens, especially the marginalised and vul- Protect and improve public health through
nerable, have increased access to more decen- Switzerland: reachable and equal services for all; establish a
tralised, affordable, quality primary and sec- qualitatively new health service; provide services
ondary health services. More health conscious Focuses on improving the functioning of and with standards comparable to the EU countries,
citizens contribute through increased participa- access to primary and secondary health care for all Albanian citizens.(Draft NSDI 2014-2020).
tion towards a more accountable and respon- in selected regions, building exemplary cases
sive health system. of a functioning referral system. Fields of Observation:

Fields of observation: Intends to decrease health related out of Managerial autonomy of Primary Health
pocket payments for poor and marginal- Care Centres, the clear definition of the ser-
Variety of health services available and ac- ised people. vice package and treatment protocols, and
cessible at local level. infrastructure investment.
Supports improved management capacities
Number of trained health professionals at lo- at primary and secondary levels to foster the Quality of services through improved clinical
cal level; the quality of working conditions in autonomy of regional structures, a more ef- and institutional management.
order to ensure a conducive environment for ficient management of resources and more
supporting health professionals. accessible / responsive needs-based services, The gap of health professionals between
incl. the poorest. known best practices and inadequate, out-
Level and number of transparency and ac- dated practices still used.
countability mechanisms established at the Strengthens capacities of health profession-
local level. als at primary level, incl. limited provision of Structures and mechanisms to receive, re-
equipment and infrastructure, as needed for view and address patient complaints.
Baselines: them to work in decent conditions. Baselines:
Referral system does not work. Bad quality Strengthens health promotion in the re-
of services at primary level do oblige patients Inadequate and inefficient referral system.
gions, targeting key professionals (i.e. Gen-
to seek care directly in the better equipped eral Practitioners, nurses) and communities, Marginalised groups are the most penalised
policlinics, leading to inefficiencies, informal service users and disadvantaged groups, groups from accessing health services.
payments and decreased access to basic ser- leading to more health literacy.
vices for the poorest. Out of pocket payment for receiving health
Fosters measures that increase citizens in- services is very high.
12,000 nurses are not part of Continuous teraction with health institutions to enhance
Medical Education system. Health profes- Targets:
transparency and accountability mecha-
sionals lack the most basic skills and because nisms. Improved chronic disease prevention and
of also unattractive environment, lack the control programmes through mechanisms
motivation to perform. Ensures coordination/cooperation with re- that identify and address risk factors such
gional/local governments, when shared as smoking, alcohol abuse, drug abuse,
Non-communicable diseases are on the ris- functions are involved.
ing trend in Albania causing 2-3 times more unhealthy nutrition, physical inactivity, un-
deaths than in Western Europe. Preventive healthy living style and developed efficient
measures are missing and the focus is still on health promotion strategies and policies.
curative care. Risks and Assumptions
Supported and enabled participation of or-
Corrupted practices are very high with health Assumptions: ganisations advocating patients rights in
professionals being ranked second in the list The dysfunction of the referral system starts cross-sector coordination mechanisms, in
of the most corrupted public officials. at primary care level with deficient infra- boards of health institutions, in forums that
structure, lack of professional capacities and discuss on health policies, and in policy for-
Targets: mulation, implementation and monitoring.
medicines, and need of professional manag-
% of vulnerable groups benefiting from ers. Reduced citizens direct out of pocket pay-
service of primary and secondary level is in- ments to obtain necessary health services,
creased by 50% in selected regions. Situation of primary care level deprives es-
pecially marginalised groups from accessing especially for poor and marginalised people.
In selected regions, CME activities are pro- quality services. Identified and addressed socio-economic
vided for all health professionals that are out factors and those related to the organisa-
of the system, such as nurses and midwives. Non-communicable diseases are the leading
cause of morbidity in Albania and the cur- tion of the health system to improve social
Basic infrastructure in selected primary rent focus on curative care should change protection mechanisms and specific care to
health care institutions in at least 2 Qarks is toward a preventive one. the elderly, to prevent and manage chronic
established and functional. morbidity and improve survival across the
The high level of corruption penalises espe- social gradient.
Citizens in at least 2 Qarks are made aware cially the marginalised groups from accessing
of risk factors and health promotion takes quality services at local level.
place with at least two campaigns per year.
Risks:
Introduce mechanisms where citizens can
offer their feedback on access and quality of High corruption level can impede the perfor-
services received at primary level in at least mance of primary and secondary levels and
2 Qarks. consequently access to quality services.

33
(4) Lines of intervention (Swiss Programme)
Outcome 1:
Technical assistance provided for CME system and health governance and financing.
Trainings in management and financing of the health system (incl. potentially assistance to the newly created health management school).
Health system is strengthened by targeting primary and secondary health care levels. Due coordination with the Integrated Social Services Reform
is ensured.
Outcome 2:
Develop a show-case for a functioning referral system.
Strengthening of human resources at primary/regional level, incl. management skills.
Improvements of basic infrastructure at selected locations.
CME system supported for health professional in selected regions, with focus on General Practitoners, nurses.
Fostering health promotion with citizens more conscious of disease risks and their lifestyle.
Supporting mechanisms for a greater accountability and transparency of the health sector at the local level.
Reduce out of pocket payments; Ensure due coordination/cooperation with regional local governments when shared functions are involved.

(5) Resources, Partnerships (Swiss Programme)


Budget: CHF 10 million SDC
Main partners: Ministry of Health and related institutions at central and regional levels, Faculty of Medicine, the School od Health Management,
Health Insurance Institute, health professional associations others.
Coordination with other donors: WHO, USAID, WB, Italy, Save the Children, if possible according to the Providing for Health (P4H) approach.

34
Annex 4: Map of Albania

35
36
Imprint

Editor:
Federal Department of Foreign Affairs FDFA
Swiss Agency for Development and Cooperation SDC
3003 Bern
www.sdc.admin.ch

Federal Department of Economic Affairs, Education and Research EAER


State Secretariat for Economic Affairs SECO
3003 Bern
www.seco-cooperation.admin.ch

Swiss Cooperation Ofce Albania


c/o Embassy of Switzerland
Rr. Ibrahim Rugova 3/1 1019 Tirana - Albania
www.swiss-cooperation.admin.ch/albania/

Design:
petanidesign
E-Mail: info@petanidesign.com

Photographs:
Jutta Benzenberg
Holger Tausch
Leonard Qylafi

Print:
Gent grafik
E-Mail: info@gentgrafik.al

Orders:
Information FDFA
Tel.: +41 (0)31 322 44 12
E-Mail: info@eda.admin.ch

Contacts:
Swiss Agency for Development and Cooperation SDC
Western Balkans Division
E-Mail: info@eda.admin.ch

State Secretariat for Economic Affairs SECO


Economic Cooperation and Development
E-Mail: info.cooperation@seco.admin.ch

This publication can be downloaded from the website www.swiss-cooperation.admin.ch/albania/

Bern, May 2014

Das könnte Ihnen auch gefallen