United States Agency for International Development - Albania

Since 1992, the U.S. Government has delivered foreign aid to support Albania’s development, stability and integration into Europe. U.S. aid has helped Albania transition from the most isolated and repressive communist state in Europe to a democracy with a market-oriented economy. The current program works with the Government of Albania and the private sector on transformational reforms to strengthen democratic institutions and sustain economic growth. Specifically, USAID helps Albania to: - Strengthen rule of law by building the skills of lawyers and judges, and ensuring that courts function properly - Increase the ability of local governments to raise revenue and provide more effective services to citizens in areas ranging from health care to clean water - Improve business competitiveness while strengthening the financial sector to better support economic development and financial security HISTORY Albania was the last of the central and eastern European countries to embark on democratic and free market reforms, and it started from a disadvantaged position due to communist leader Enver Hoxha's catastrophic economic policies. The democratically elected government that assumed office in April 1992 launched an ambitious economic reform program meant to halt economic deterioration and put the country on the path toward a market economy. However, the collapse of the infamous pyramid schemes in 1997 and the instability that followed were a tremendous setback. The country subsequently recovered and is now pursuing its Euro?Atlantic integration agenda. Albania joined NATO in 2009 and is a potential candidate for EU accession. Although Albania's economy continues to grow, the country is still one of the poorest in Europe, hampered by a large informal economy and high levels of corruption which impede reform efforts. Positively, in October 2013 the EU Assessment Report announced that Albania would be granted candidate status on the condition it continued robust political and economic reforms. OUR WORK Since 1992, USAID has invested more than $500 million in Albania to support political pluralism; civil society; effective local governments; independent media; the rule of law; the energy and health sectors; free-market economic systems; and sustainable economic growth, including through the development of tourism, and micro-enterprise partnerships. This assistance over the past 28 years has led to significant political and economic reforms in Albania. Today, Albania is advanced in its journey to self-reliance for a middle-income country, having demonstrated its commitment and capacity to plan, finance, and implement solutions to its own development challenges. These achievements show Albania is well-positioned to take on more ownership of its development challenges. USAID is proud to have reached this turning point together with Albania, and is now strategically transitioning its relationship with Albania, moving from the traditional donor-beneficiary relationship to one increasingly defined by partnership. As part of its strategic transition, USAID has been gradually shifting from supporting a multi-sector portfolio to a more focused approach that addresses some of Albania’s central development challenges by strengthening the rule of law, promoting economic growth, and supporting the energy sector. While all current bilateral programs will conclude by March 2021, USAID will continue to address a significant developmental challenge – countering corruption – that is critical for the country’s success in improving transparency and governance on its path of EU integration. To advance this objective, in August 2020 USAID launched a new multi-million dollar project: The U.S.-Albania Transparency Academy (aka the Transparency Academy). The Transparency Academy will seek to change a pervasive culture of corruption that undermines economic growth and citizen confidence, and conflicts dramatically with EU standards of transparency, accountability, and decentralization of authorities. The Transparency Academy will be a recognized center of excellence and innovation where experts on anti-corruption convene, prominent public events attract senior government, business, and political stakeholders, and civil society and grassroots activists participate in dialogue and advocacy efforts.