TERRITORIAL MARKETING

Transcription

1 ART GOLD TERRITORIAL MARKETING Country: Albania Prefectures: Shkodra Durrësi Vlora Gjirokastra UNDP ART GOLD ALBANIA PROGRAMME GOVERNMENT LOGO UNDP LOGO REPUBLIC OF ALBANIA

2 PRESENTATION Index 1 PRESENTATION MAIN INDICATORS BY PREFECTURES UNEMPLOYMENT STATISTICS, 4 TH QUARTER MACRO-ECONOMIC PERFORMANCE CONSUMER PRICE INDEX, 4 TH QUARTER, CENTRAL GOVERNMENT SYSTEM AND THE LOCAL GOVERNMENT SYSTEM IN THE REPUBLIC OF ALBANIA LEGAL FRAMEWORK ON LOCAL GOVERNMENT SERVICES EDUCATION HEALTH SERVICES MAIN RULES AND REGULATIONS ABOUT INVESTMENT, COMMERCE AND ECONOMY PHYSICAL FEATURES OF SHKODRA PREFECTURE MAIN ECONOMIC AND SOCIAL ISSUES ECONOMIC DEVELOPMENT THE POTENTIALS FOR SOCIO-ECONOMIC DEVELOPMENT AGRICULTURE TOURISM THE ROLE OF TEULEDA, LOCAL ECONOMIC DEVELOPMENT AGENCY SERVICES EDUCATION HEALTH SERVICES PHYSICAL FEATURES OF DURRESI PREFECTURE MAIN ECONOMIC AND SOCIAL ISSUES: ECONOMIC DEVELOPMENT THE POTENTIALS FOR SOCIO-ECONOMIC DEVELOPMENT: TRANSPORT: AGRICULTURE: TOURISM THE ROLE OF TAULEDA, LOCAL ECONOMIC DEVELOPMENT AGENCY SERVICES EDUCATION HEALTH SERVICES PHYSICAL FEATURES OF VLORA PREFECTURE MAIN ECONOMIC AND SOCIAL ISSUES ECONOMIC DEVELOPMENT THE POTENTIALS FOR SOCIO-ECONOMIC DEVELOPMENT: AGRICULTURE TOURISM THE ROLE OF AULEDA, LOCAL ECONOMIC DEVELOPMENT AGENCY SERVICES THE EDUCATION SYSTEM IN VLORA REGION: HEALTH SERVICES PHYSICAL FEATURES OF GJIROKASTRA PREFECTURE MAIN ECONOMIC AND SOCIAL ISSUES ECONOMIC DEVELOPMENT THE POTENTIALS FOR SOCIO-ECONOMIC DEVELOPMENT: TOURISM AGRICULTURAL SECTOR SERVICES EDUCATION HEALTH SERVICES

3 1 PRESENTATION Total surface of Republic of Albania Total 28,748 km² Land 27,398 km² Water 1,350 km² Geographical position of Albania Northern Latitude Vermosh, Malesi e Madhe Southern Latitude Konispol, Sarande Eastern Longitude Vernik, Devoll Western Longitude Sazan, Vlore Population: Capital: Tirana Language: Albanian (part of Indo-European family) Political System: Parliamentary Republic Religion: Muslim, Orthodox and Catholic Airport: Rinas (Mother Teresa) Local time: GTM+1 (GTM+2 between the end April and the end of October) Exchange rate EUR/LEK 127,87; EUR/USD ; USD/LEK Border length in km: Total Length 1,094, Land 657, Sea 316, River 48, Lake 73 Main Rivers: Main natural lakes Length inside Alban. Territory km Area km² Altitude above sea level, meters Area km² Average Altitude meters Drini , Semani 281 5, Vjosa 272 6, Shkumbini 181 2, Mati 115 2, Ishmi Erzeni Source of information: Statistical Yearbook of Albania, 1989 Maximum depth, meters Shkodra Ohri Prespa Butrinti Source of information: Statistical Yearbook of Albania, 1989 Artificial lakes: Fierza 72.6 km²; Vau i Dejës 24.7 km², Ulza 12,5 km², Komani 13.0 km². Main Heigh Mountain District Mountain t(m) chain Korabi 2,751 Vargu lindor Dibër Jezerca 2,694 Alpet e Shqipërisë Shkodër Radohima 2,570 Alpet e Shqipërisë Shkodër Gramozi 2,523 Gramozi Kolonjë Gjallica e 2,487 Vargu lindor Kukës Lumës Nëmërçka 2,485 Dhëmbel-Nëmërçka Përmet Tomorri 2,417 Tomorri Berat Koritniku 2,396 Vargu lindor Kukës Mali i 2,288 Mali i thatë Korçë thatë Shebeniku 2,253 Kurrizi qëndror Elbasan Lunxhëria 2,155 Dhëmbel-Nëmërçka Gjirokastër Dhëmbeli 2,080 Dhëmbel-Nëmërçka Përmet Çika 2,045 Vargu detar Vlorë Source of information: Statistical Yearbook of Albania,

4 European and Euro-Atlantic integration, along with rapid and sustainable growth, remain overarching goals for Albania. Therefore, socio-economic development, strategic planning, sound public finance and external assistance management, anticorruption, powered by an increased use of Information and Communication Technology (ICT) for development, represent major national priorities. The Government remains committed to reform of the public administration in order to provide improved services to citizens. The long transition process in Albania has generated many social and economic problems, a fragile democracy persists, state and local government institutions are still weak and lacking essential resources and the foundations for sustainable growth are still tenuous. Albania has been subject to major economic and structural reforms over the past fifteen years. The country has made significant progress since its transition from a rigid form of communism to a quasi-market economy, and can point to many successes and a good record of economic and social progress since Albania offers today the picture of the second poorest country in Europe and not entirely by pure misfortune. While the Albanian political elite has shown little sign of a common strategic approach towards a people-centred form of development, the country has moved forward considerably in the past five years in interpreting the Millennium Development Goals from a regional and local perspective. UNDP responding to the national priorities has launched programmes contributing directly to democratic governance in the country. 1.1 MAIN INDICATORS BY PREFECTURES Shkodra Durresi Vlora Gjirokastra Tirana Country 1 Selected region s population 243, , , ,788 3,500,000 2 Distance from the capital 97 km 38 km 280 km 232 km Capital 3 Airports Rinas 4 Harbors Durresi Vlora Length of road network , , ,051 5 Total, km Depended by Road ,600 6 Directorate Total, km National ,655 Touristy Mines Forester Strategic Rural roads 1, ,451 7 Area (square km) 3, ,706 2,884 1,652 28,748 8 Density of population 69, Main ethnic groups Annual average population by 10 urban/rural zone Total 246, , , , ,387 3,142,065 Urban 96, , ,405 43, ,235 1,468,522 Rural 150, ,371 83,298 61, ,152 1,673,543 Annual average population by 11 sex Total 246, , , , ,387 3,142,065 Male 124, , ,439 52, ,248 1,565,316 Female 122, , ,264 51, ,139 1,576, Economically active 88,068 71,180 50,013 34, ,850 1,085,359 population 13 Unemployment rate Registered unemployed by age-groups Total 23,818 8,545 7,921 4,152 21, , ,841 1,058 1, ,203 37,678 4

5 25+ 12,977 7,487 6,794 3,363 17, ,572 Source: INSTAT Indicators by prefectures Shkodra Durresi Vlora Gjirokastra Tirana Country 14 Registered unemployed by sex Male 13,626 4,241 3,603 1,540 10,367 79,219 Female 10,192 4,304 4,318 2,612 11,190 74, Distribution of employment by economic activities Total 64,247 62,635 42,092 30, , ,102 Public sector 11,781 12,872 10,997 7,570 55, ,015 Private non agriculture 8,079 19,712 10,576 4, , ,935 Private agric. sector 44,387 30,051 20,519 18,190 57, , Employed in public local administration Total ,817 10,068 Commune ,595 Municipality ,075 4,035 Council of prefec Prefectures Average monthly wage in public sector (in leks) 24,854 25,835 28,049 26,508 31,071 26, Unemployment in % of Labour Force Unemployment % Long term unemployment % Active non-agriculture 2,269 7,663 5,234 2,649 24,651 64,710 enterprises Active enterprises by economic activities Agriculture Industry ,165 7,076 Construction ,025 Transport ,512 6,485 Trade 1,011 3,210 2,756 1,296 13,166 31,785 Services 493 2, ,771 15,793 Source: INSTAT Indicators by prefectures UNEMPLOYMENT STATISTICS, 4 TH QUARTER 2006 During the fourth quarter 2006, the number of registered unemployed persons decreased in 149,486 thousand, influencing in the level of unemployment which is percent. The level of registered unemployment is decreased with 2.8% compared with the same period of the previous year. In the group of registered unemployment, persons who profits unemployment benefit consist 7.4%. This number is growing compared with first quarter, from 10,794 unemployed treated; the number is 11,045 persons in unemployment benefit. 5

6 Thousand 155 Registered unemployement Q4,05 Q1,06 Q2,06 Q3,06 Q4,06 Source: INSTAT Quarterly Statistical Bulletin Number 4 March MACRO-ECONOMIC PERFORMANCE Immediately after transition, the real GDP of Albania contracted sharply by a cumulative 39 % between 1990 and Albania s impressive performance began in 1993 till 1996 with a rapid annual economic growth rate of 9.3 %. This rapid economic growth came to a halt during the large-scale civil disturbances of The well-publicised collapse of fraudulent pyramid schemes underscored the fragility of the country s institutions, which brought widespread anarchy and a sharp contraction in real output by 7%. After the crisis the country restored maintained macroeconomic stability and put structural reforms back on track. Despite the Kosovo conflict and the massive influx of refugees in early 1999, the Government remained committed to implementing structural reforms, aided by generous external assistance. Between 1998 and 2001, the economy grew at an average annual rate of 7.4%, and in 1999 real GDP exceeded its level in 1990 for the first time. The growth was driven during by the improved performance in manufacturing and services. Between growth has been fuelled by high volumes of remittances from large number of Albanians who migrated in the 1990s or work temporarily abroad. The agriculture sector has accounted for about half of the country s GDP. Fiscal consolidation reduced the deficit from 12% of GDP in 1999 to about 5% in Nevertheless, the fiscal deficit, financed primarily through domestic borrowing, remains high. Continuous remittances, external assistance, and foreign direct investments have been important factors in strengthening the country s balance of payments position and in reducing the current account deficit to 7.5% in However, concerns remain about Albania s fragile external position and fiscal sustainability, as well as its widespread poverty. Trends of GDP Growth per capita (in USD)

7 Structure of GDP by economic activities at current prices 2004, in % 23% 22% 4% 5% 1% 9% Agriculture, hunting and forestry Extracting Industry Manufacturing Industry Construction Trade, Hotel and Restorants Tranportation Post and Communication Other Services 22% 14% Source: INSTAT Social Indicators Yearbook 2005 Poverty figures for Albania have improved in recent years, from 25.4% in 2002 to 18.5% in Approximately 5% of Albanians continue to live in extreme poverty. There are significant disparities between urban and rural areas. The current poverty profile includes large and young families with small children, often with the head of household unemployed. Poverty is widespread in rural and mountainous areas. The Government is addressing regional disparities and the needs of vulnerable groups through new strategies at the national level, and is making great strides in linking poverty programmes with national economic and financial policies. Annual and monthly consumption expenditure per household e per capita for 2005 Main groups expenditure Total annual Total annual hh Total monthly Average consumption consumption consumption monthly hh expenditure(i expenditure(in expenditure(in consumption n thousand leks) thousand leks) expenditure (in leks) leks) leks 205,484, ,005 17,123,678 23,334 5,556 Food & non-alcoholic beverages Alcoholic beverages & 17,794,757 24,248 1,482,896 2, Tobacco Clothing 16,851,024 22,962 1,404,252 1, Housing 28,693,950 39,100 2,391,163 3, Durables 7,591,434 10, , Transportation 16,233,153 22,120 1,352,763 1, Communication 15,063,001 20,526 1,255,250 1, (phone) Internet 259, , Entertainment 4,199,952 5, , Education 11,159,803 15, ,984 1, Services 1,601,216 2, , Cleaning &personal 24,208,311 32,988 2,017,359 2, care Personal equipment 738,336 1,006 61, Ceremonies 11,697,479 15, ,790 1, Other 2,808,381 3, , Total 364,384, ,531 30,365,349 41,378 9,850 Source:LSMS 2005 Total HH s Average capita expenditure consumption(in per 7

8 1.1.3 CONSUMER PRICE INDEX, 4 TH QUARTER, 2006 The Consumer Price Index during the fourth quarter 2006 resulted percent against December 2001(December 2001=100). In the fourth quarter the index signed an increase by 1.6 percent against the fourth quarter The highest quarterly raises are notice in the groups Alcoholic beverages and tobacco by 4.9 percent and the Education service by 4.8 percent. While highest quarterly falls by 2.3 percent it was notice in the Communication group. The Food and alcoholic group that is the group with big weights of family expenditure, the highest quarterly raises of the price is notice in the subgroups vegetables included potatoes by 18.2 percent. Meanwhile the fruit subgroup signed a decrease prices by 10.8 percent. In the other groups quarterly changes various from -0.2 percent to +2.8 percent. 2.5 in % Quartely Changes of Consumer Price Index Q4,05 Q1,06 Q2,06 Q3,06 Q4,06 Source: INSTAT Quarterly Statistical Bulletin Number 4 March 2007 Trade Balance Mln leks Import Export During the fourth quarter 2006 the export of goods in value is 20,686 million lek, or 28% more, compared with the same period of the previous year and 10% more than the previous quarter. The import is 84,560 million lek, 11.4% more than the same period of the previous year and 15.2% more than the previous quarter. 8

9 The percentage of coverage of exports by imports is 24.5%. In this quarter 52.7% of exports and 11.9% of imports were realized by the group Textiles and Shoes. The group Machinery and equipments, represents 19.9% of imports. The main trade partners remain Italy and Greece, whose represent respectively 29 and 15.6% of imports and 71.9 and 7.5% of exports. With the EU Community countries there is performed 86% of exports and 60.3% of imports. Flow of goods in foreign trade 102,000 82,000 62,000 42, lek 22,000 2,000 Export Trade Balance Import -18,000-38,000-58,000-78,000 Q4,05 Q1,06 Q2,06 Q3,06 Q4,06 Source: INSTAT Quarterly Statistical Bulletin Number 4 March CENTRAL GOVERNMENT SYSTEM AND THE LOCAL GOVERNMENT SYSTEM IN THE REPUBLIC OF ALBANIA (see Organigramma A3) 2.1 LEGAL FRAMEWORK ON LOCAL GOVERNMENT 1. Constitution, Part IV, Article 108, 109, 110, 111, 112, 113, 114, 115. According to the Constitution, the local government in the Republic of Albania is established on the principles of decentralization of power, which is exerted based on the principle of local autonomy. The local government bodies are: Regions Municipalities Communes Pursuant to Article 114 of the Constitution, the Council of Ministers appoints the Prefect as its representative in every Region. The activity of the Prefect is provided by Law 8927, dated On the Prefect. The prefect has the right to verify of the acts issued by the local government units bind to the law, but has no right to intervene in the decision-making of the local government. The Prefect does in no case impede the implementation of the local government acts of a normative character. Regarding the administrative procedures, the prefect might ask the local government to review the act, but it is the local government body the one who decides. If the Perfect remarks violations of the Constitution and laws by the local bodies, he addresses the court. The Prefect has no competence on the local government acts. 1.1 Legislation The main laws that regulate the relation of the public administration with local government are: Law 7971 of year 1995 On public Procurement, Law no 8224 of year 1997 On the Organization of Municipality 9

10 and Commune Police, Law 8433 of year 1999 On the Tax system, Law no 8405 of year 1998 On town-planning, Law no 8652 of year 2000 On organization and functioning of local government, Law no 8653 of year 2000 On the Administrative and Territorial Division, Law no 5654 of year 2000 On the organization and functioning of the municipality, Law no 8743 of year 2001 On the state immovable property, Law no 7776 of year 1993, amended by Law no 8399 of year 1998 On the Local budget, Law no 8652 of the year 2000 On the organization and functioning of local government which sanctions the competencies, rights and obligations of local government units, Law 8744 of year 2001 On the transfer of the state public immovable property to the local government units. In 1998 the Council of Ministers decides on approval of the European Charter of Local Autonomy. An important step was achieved with the signing of this document, while a decentralization committee and the technical group of experts on decentralization was established. An inter-ministerial committee on decentralization was established and a considerable work was done to transfer the competencies from the central government to the local government. The inter-ministerial committee on decentralization managed to fully transfer the small business tax to the local government. In 2004 it was decided that the local government units have competencies on the supply of population with potable water, as well as competencies related to cleaning, education, social care, etc. After the approval of the Law no 8991 of the year 2003 On Some Amendments to the Law on Urban- Planning the local government bodies received competencies on the establishment and functioning of the KKRT-se and implementation of legality in constructions. This competency is delegated to the regional councils. Upon a special decision by the Council of Ministers, classification of rural, regional and communal roads is over and they have been transferred to the full administration of local government. The Law no 8308 of year 1998, On the Road Transport contains the local government competencies on the public urban transportation and issuance of licenses by the municipalities, communes and the regional councils. Upon a decision by the Council of Ministers, a policy document on the transfer of the potable water supply and sewage service in the local government units was approved. The Decentralization Committee enabled undertaking of important steps for the transfer of local taxes, such as for instance the small business tax, vehicles registration tax and others and in 2003 it covers 60% of the state budget. Important steps were also made in the field of culture, youths and sports, in the field of environmental protection, agriculture and food. The decentralization process has so far recognized important achievements, but it is a process in development until the full transfer of local government units according to the local autonomy principles is realized. Competencies, tasks and rights of the Region, Municipality and Commune 1. The Region is composed of some municipalities and communes, according to Article 100 of the Constitution; the region is sub-divided in districts. The functions of the Region are: To draft and implement regional policies and harmonize them with the state policy; To carry out every function delegated by the municipalities and communes, as assigned; To exert the competencies delegated from the central government according to Article 12 of the Law no 8652, of year The tasks and authority of the Regional Council are stipulated by the Law no 8652 of It Decides on the level of the compulsory financial aid of every commune and municipality that is a part of the regional budget; Approves the budget, decides on the level of tasks and fees, decides on loans and paying of obligations to the third parties, decides on establishment of joint institutions with other local government units and protects and guarantees the public interest in the regional level; The rights and authority of the Regional Council: It has the fiscal right and authority, as per Article 72 of the Law no 8652 of year 2000; The right to undertake initiatives of interest to the relevant municipality; To exert any right or authority assigned by a special law; The region owns the property rights on public utilities, according to the terms defined in the relevant law. According to the provisions of Law 8652, year 2000, it can establish legal entities; 10

11 Funding by taxes, fees and other revenues is determined by the funds transferred by the local government. The central government allocates funds to the Region when it delegated authority and functions as prescribed by Article 15 of the Law 8652 of the year 2000 Funding sources for the Region, according to Article 18, Law 8652, of year 2000, are: Own-revenues from local resources and division of national revenues Unconditional transfers, municipality and commune membership fees Conditional transfers for carrying out the function and competencies respectively delegated by the municipalities and communes; Taxes and fees imposed by the region The budget of the region, according to Article 19 of Law 8652, year 2000 Includes all the revenues and expenditures to pay debts The budget approval is made according to Law 8379 of the year 1998 The regional council establishes the finance commission, according to Article 21 of the Law no 8652, of year 2000 The chair of the regional council The chair represents the regional Council in relations with the state bodies and other local government bodies, ensures implementation of decisions of the Regional Council, and guarantees the completion of functions according to the Law no 8652 of year The decisions of the Region s bodies cannot infringe the autonomy of the competent municipalities and communes. The municipality Municipalities are responsible for carrying out the following functions: - to build, rehabilitate and maintain roads, sidewalks and public squares, - to light public spaces, to carry out the public urban transportation service, to administrate grave courts and to guarantee the burial service, to offer the landscape service, to administrate parts and green spaces, to collect, remove and process solid wastes, to preserve and maintain the local cultural and historical values, to organize sports and recreational activities. The administration of such institutions as kindergartens, asylums, the orphanages, preparation of the local economic development programs, establishment of public markets, development of small business, fairs, etc. which are provided in Article 7 of Law 8652 of year 2000 are part of its responsibilities. The municipality council approves the administrative chart of the municipality, and of the budget institutions according to Article 32 of Law 8652 of year 2000 Approves the foundation acts of enterprises, commercial companies, etc. Approves the budget Approves the alienation and usage of the property under the municipality jurisdiction Decides on the level of local taxes and fees, decides on loans, on establishment of joint institutions with other local government units, according to Article 16 of the Law. To realize these competencies the municipality council establishes committees, boards and commissions The mayor Exerts all the competencies that ensure a proper functioning of the municipality, plus the competencies given by the municipality council; The commune The commune is responsible for the following functions: - to built, rehabilitate and maintain roads, sidewalks and public squares; to light public spaces, to carry out the urban public transportation service, to administrate grave courts and to guarantee the burial service, to offer the landscape service, to administrate parts and green spaces, to collect, remove and process solid wastes, to preserve and maintain the local cultural and historical values, to organize sports and recreational activities. Part of its functions is also the administration of such institutions as kindergartens, asylums, the orphanages, preparation of the local economic development programs, establishment of public markets, development of small business, fairs, etc. which are provided in Article 72 of Law 8652 of year The commune council approves the organigramme of the commune administration structure, of budgetary institutions answerable to the commune, according to Article 32 of Law 8652 of year 2000 Approves the foundation acts of enterprises, commercial companies, etc. Approves the budget Approves the alienation and usage of the property under the commune jurisdiction Decides on the level of local taxes and fees, decides on loans, on establishment of joint institutions with other local government units. To realize these competencies the commune council establishes committees, boards and commissions 11

12 The commune mayor Exerts all the competencies, which ensure a proper functioning of the commune, plus, the competencies given by the commune council. 2.2 SERVICES EDUCATION The year 2003 is the year of drafting the Strategy document for the Pre-University Education. The objective is that all children should start and complete the basic education with curricula, programs and appropriate textbooks, as well as with qualified teachers. The secondary education should have new curriculum contents and its goal is attendance of 80% of pupils that finished basic education and also adapted of vocational education program to the labour market needs. The Reform in the tertiary education aims at transforming it into a modern and diversified system, its structural and contents reforming on the basis of Bologna Declaration. The tertiary education is characterized by an emphatic degree of autonomy, especially academic area. In 2003 MoES drafted the standards for independence of faculties and universities. Basic characteristic of the Albania education in the last two years are. Increase of the number of pupils registered in Professional and Technical High Schools and profiling of public High Schools in 3 directions after some years of successful testing: Increase of new arrivals in Universities in response to the enormous requests of the students finishing the high school. Improvement of school and curricula Opening for the first time of private universities Schools in Albania are mainly public, but many private schools have started their activities mainly in the bigger towns of the country. In pre-elementary education the number of children registered during the five last years has decreased. Only 48% of little children go to kinder-gardens. The university education still suffers problems of teaching and modernization, in its efforts to acknowledgement and evaluation of Albanian University Diplomas abroad. In the last years, at the decision of Council of Ministers, 3 Universities of Tirana offered a possibility for post university education. Management The Ministry of Education and Sciences (MoES) has authority over the formulation of teaching programs and curricula, the establishment of a uniform student evaluation system, the compilation and approval of supporting textbooks, and the qualification of teaching personnel. At the regional level MoES exercises its authority through the Education Regional Directorates (ERD), whereas at the district level through the Education Offices (EOs), which are directly subordinated to the ERDs. On the other hand, the municipalities and communes have full authority over the maintenance of the pre-university education institutions HEALTH SERVICES The transition period caused difficulties and problems with the health care system in Albania. Nevertheless, the main indicators show a consistent trend of improvement both for the primary health care and for the hospital services. A positive characteristic of the Albania population is that it is a young one of an average age of 29 years with longevity of 74 years for women and of 68 years for men, which are almost the same as of the average indicators of the neighbouring countries. The total number of public institutions of primary health care like: health care centres, ambulatories, policlinics, woman and child consultancy centres, family planning centres, etc.., and the intensity of their main activities has dropped during the last decade. This is due to reorganization of these services, creation of new and more appropriate facilities, improvement of the quality of services, as well as the creation and consolidation of the private sector. Recently the private sector is massively expanding. The drug stores and dental clinics are almost all private, but private clinics are increasingly present in the medical analysis and diagnostic services. The public hospitals and the data collected through these services provide important information serving as the starting point for assessing health indicators, epidemiology, death statistics, human resources, etc. The ongoing reform in the sector of hospital services is improving the quality and diversity of the services through concentrating these services in the main regional hospitals was modern facilities and equipments are available. Nevertheless, the situation is not satisfactory as far as certain groups of diseases (respiratory, gastrointestinal, infective, urogenital, blood circulation problems, heart and cerebral attacks are concerned. 12

13 The public health care system is still not able to satisfy the needs for qualitative services because it lacks of proper facilities and equipment. In addition, in rural areas and particularly in remote areas the situation is more critical, not only for facilities but even for qualified personnel. Most of the properly qualified personnel have moved to Tirana and to other important urban centres. Management The primary health service in Albania is made up of a network of medical and health centres. In cities and urban areas the number of medical and health centres should be proportional to the number of people/density of the area. At the commune level, there should be at least one health centre that meets the standards set by the Ministry of Health. Each village should have at least one medical centre subordinated to the health centre of the respective commune. Each health centre should have at least one general practitioner, have a nurses and/or midwives. Their functioning and maintenance are a responsibility of the local government. Professional training, preventive and educational activities, and the supervision of services quality are responsibilities of the Ministry of Health which carries out its tasks through the Public Health Directorates at the district level. The primary health care is organized through the Department of Primary Health Care located in the Region s centre and Public Health Departments in each district. 3 MAIN RULES AND REGULATIONS ABOUT INVESTMENT, COMMERCE AND ECONOMY Protection of private property, free initiative and foreign investments has been sanctioned and regulated based on Law No. 7512, dated For sanctioning and protection of the private property, of free initiative, and of independent private activity and privatization and amendments made to this law till the year 2006 by the Assembly of Albania. Based on the Law No 7764, dated o For Foreign Investments, based on the article 16 of Law No.7491, dated On the main constitutional previsions, Article 2, foreign investments in the Republic of Albania are not conditioned upon prior authorization. They are permitted and treated based on conditions not less favourable than those afforded to domestic investments in similar circumstances, except land ownership, which is regulated by special law. In all cases and at any time, investments have an equal and impartial treatment and enjoy complete protection and security. In any case, foreign investments have treatment not less favourable than the one provided by generally accepted norms of international law. Law No 9663, dated Law on concessions for the purpose to create a favourable framework for promoting and facilitating the implementation of privately financed concession projects enhancing transparency, fairness, efficiency and long-term sustainability, in development of infrastructure and public service projects. For the promotion of investments pointed out in point 1 of Article 4 of this Law or for other priority sectors for the economic development of the country, in line with strategic objectives, Council of Ministers may offer to local or international investors concessions for the symbolic price of 1 Euro. Council of Ministers, upon the proposal of the Minister responsible for economy, approves the list of assets that will be given on concession, to the effect of applying this point. Decision No. 27, dated , on The adoption of the rules for the evaluation and granting of concessions. Pursuant to Article 100 of the Constitution and point 4, Article 5, of Law No. 9663, dated 18. December Law on concessions on the proposal of the Minister of Economy, Trade and Energy, the Council of Ministers of the Republic of Albania, decided the adoption of the rules for the evaluation and granting of concessions. 13

14 4 PHYSICAL FEATURES OF SHKODRA PREFECTURE The prefecture of Shkodra consists of three districts: Shkodra district has 2 cities (Shkoder, Vau-Dejes), Malesi e Madhe district has 1 city (Koplik), Puka district has 2 cities (Puka, Fushe-Arrez), grouped into 5 Municipalities( Shkodra Municipality, Vau- Dejës Municipality, Koplik Municipality, Puka Municipality, Fushë-Arrëz Municipality) and 270 villages grouped in 28 communes. The district of Shkodra has 15 communes (Ana-Malit Commune, Bushat Commune, Bërdicë Commune, Dajç Commune, Gur i Zi Commune, Hajmel Commune, Postribë Commune, Pult Commune, Rrethinat Commune, Shalë Commune, Shllak Commune, Shosh Commune, Temal Commune, Vig-Mnele Commune, Velipojë Commune), the district of Malësi e Madhe has 5 communes (Gruemirë Commune, Kastrat Commune, Kelmend Commune, Qendër Commune, Shkrel Commune), the district of Puka has 8 communes (Gjegjan Commune, Rrapë Commune, Qafë-Mali Commune, Qelëz Commune, Blerim Commune, Iballë Commune, Fierzë Commune, Qerret Commune). The region s administrative centre is the city of Shkodra. The region of Shkodra is spread over 3,562 km² and has a population of 243,000 inhabitants. The territory includes three lakes. Lake Shkodra, the largest lake in the Balkans, has a surface area of 369 km², of which 149 km² lie in Albania with the rest in Montenegro. The average depth of the lake is 10 m and the average water temperature 16.5 C, which helps to moderate the climate of the city. The lake is very rich in fish, with an annual harvest of 50kg/ha. The shoreline extends 14.5 km around the lake, of which 10 km are rocky and 4.5 km flat land, mostly bordering fields. The two other lakes in the Region of Shkodra are artificial: the lake of Vau-Dejes, 20 km east of Shkodra, occupies an area of 27 km², while that of Koman, 40 km east of Shkodra, and is 17km² in size. Both these lakes are located on the River Drin and were created to supply the two largest hydroelectricity power stations in Albania: Vau-Dejes has an installed power of 250 MW per hour, while that of Koman has an installed power of 600 MW. To the north of Shkodra, in the highlands, reside yet more water resources. The mountain valleys are on average 800m above sea level and have potential electricity reserves of 400 MW per hour, allowing for the construction of small power stations. Geographically the city of Shkodra is located in Northwest Albania, at longitude ë and latitude N. The city and its immediate surrounds lie in a depression resulting from tectonic shift during the Pliocene. This depression is partly filled by deposits from the rivers that have flowed through the depression to the Adriatic Sea. The climate is Mediterranean, with a continental and maritime mixture. Mainly the city lies in an alluvial plain. Its altitude above sea level, in a line running from south-west to north-east, ranges from 9.5m to 24m. To the north and west of the city lies Lake Shkodra, from which the River Buna 44 km long, flows south into the Adriatic Sea. The lower part of the river constitutes a border with Montenegro, just 2 km southwest of the city lies the confluence of the River Buna to Drin. The east of the city is bordered by the River Kir 43 km long, a seasonal river that flows from the northern highlands into the River Drin just south of the city. The flat part of Shkodra extends across an area of 1,150 ha, while there are some 350 ha of hills in the city. Shkodra includes three peripheral neighbourhoods: Baçallek in the south, and Shiroka and Zogaj in the west, which occupies an area of 180ha. Shkodra is partly encircled by a range of hills that rise to an altitude of 110m, by the Rrenci Hills to the east and the Tepe Hills to the south. Immediately southwest of Shkodra is located the rocky hill of Rozafa Castle, 130m above sea level and enclosing an area of 3.6 ha. To the north and northwest lie the fields of Mbishkodra, beyond which the Albanian Alps begin. In the other direction, about 30 km south of the city, lies Velipoja, a popular beach resort on the Adriatic coast. 14

15 Thus within 30 km of Shkodra lie a whole range of natural attractions, from the mountains of High Albania to the Mediterranean coastline of the Adriatic, from the shores of the largest lake in the Balkans to the rocky outcrop of Rozafa Castle, which stand majestically above the city and which one hundred years ago had a navigable river bringing merchant and passenger vessels into its heart. Demography Population free and uncontrolled movements have affected the change of ration of urban population and that of rural population. In Albania in 2004 the urban population has grown to 45% and the rural population is decrease from 57.3%. Urban population in 1989 population census consisted in 35.8% of the total population (INSTAT Statistical Yearbook 1995/2004). Population and density by districts: Districts Population/in Area/in km² Density Households Members/households numbers Shkodra 184, , Puka 32, , Malesi e Madhe 37, , Source: INSTAT Statistical Yearbook Population by districts, group ages, 1 January 2004 Group Ages Districts Shkodra 49, ,586 14,782 Puka 10,394 20,010 2,218 Malesi e Madhe 10,002 24,307 2,980 Source: INSTAT Statistical Yearbook MAIN ECONOMIC AND SOCIAL ISSUES Albania during the period implemented the opposite of market economy: was prohibited the property ownership and all the economic activity was state controlled. The country became unique with regard to isolation and economic centralization. In Shkodra the main activities were the processing of tobacco and manufacture of cigarettes, production of conserved foods, sugar-based products, soft and alcoholic drinks, and pasta, bread, rice and vegetable oil. The main activities of the textile industry were focused on garments and silk products. The most important mechanical engineering industries concerned wire manufacturing, elevator manufacturing, bus assembly and the Drini plant two important hand craft enterprises were the Artisan Products Enterprise and the Straw and Reed Enterprise, in this period Shkodra had the fifth largest economy in Albania. In 1992 the Albanian government undertook a number of reforms and approved a number of laws concerning property ownership, private activity, competition, bankruptcy, foreign investments, customer protection, privatization of small and medium enterprises, and many other elements involved in modern trade. As result of these reforms, big changes took place in the economic structure of Shkodra, so that some nine-tenths of the former state-owned enterprises in the city were privatized, the majority of these privatized businesses didn t continue their original production lines, particularly in the mechanical engineering industry, which had been unique in the country and had a guaranteed national market. Food processing, wood processing and the artisan products industry, which were among the largest producers, were dissolved into a large number of small and medium enterprises. Meanwhile, tobacco processing and the cigarette manufacturing industry were completely destroyed: incapability to invest in technological renovation and competition from imported products caused its bankruptcy. Labour Force Employment in the private sector from Year No. of 7,391 8,483 8,190 4,141 4,034 3,802 4,972 5,223 5,496 5,611 6,529 employees 15

16 Source: Regional Office for Employment in Shkodra Labour Force 9,000 8,000 7,000 6,000 No. of employees 5,000 4,000 3,000 2,000 1, Year The employment by sector and economic activity for 2004 Private sector Public sector Total Activity No. of No. of No. of No. of No. of No. of Employees subjects employee subjects employee subjects employees as % s s Agriculture, hunting, silviculture Mining Manufacturing Food Processing Garment and clothes 21 1,059 Leather and shoes Others Total manufacturing 165 2, , Generation and use of electricity, water etc Construction Trade, car repairs and 747 1, , home products Hotel and restaurants Transportation and telecommunications Financial activities Public administration , , Education , , Health and social , , activities Collective and personal social services International institutions Total 1,633 6, ,691 1,746 15, Source: Regional Office for Employment in Shkodra The public sector is the largest employer in Shkodra, with 57% of the total workforce. Public administration is the largest single employer, with 20% of the total. Other large employers are the education sector 17%, 16

17 manufacturing 16%, trade 11%, health and social activities sector 9%, processing and distributing water products 7% and construction 6%. Unemployment Year No. of 13,177 17,596 21,585 22,026 21,309 18,922 18,263 18,263 17,097 unemployed Source: Regional Office for Employment in Shkodra Unemployment 25,000 20,000 Number of unemployed 15,000 10,000 5, Year In 1996, about one and half times as many people were unemployed than were employed, while in 2004, this ratio was two and a half times. The highest level of unemployment was recorded in 1998 and The level of unemployment falls with increased level of education. Total Femal e Head of house hold According to age group Middle school According to educational level High Vocati school onal 17,097 6,907 7,601 2,919 7,360 1,488 5,330 7,989 6,187 2, Percenta ge Source: Regional Office for Employment in Shkodra Registered unemployment, unemployment rate Average number Q4,05 Q1,06 Q2, 06 Q3, 06 Q4,06 Unemployment rate (Albania) Shkodra Prefecture 23,983 23,746 23,102 22,955 22,748 Source: INSTAT Quarterly Statistical Bulletin Number 4 March 2007 Registered unemployed who receive Unemployment Benefit Average number Q4, 05 Q1, 06 Q2,06 Q3,06 Q4,06 Shkodra Prefecture 1,148 1,058 1, Source: INSTAT Quarterly Statistical Bulletin Number 4 March 2007 Families on social assistance and kind of social assistance Number Families Total Partial fam. Prot. Full fam. Prot. Total Municipal Commune Total Municipal Commune Shkodra 17,753 11, ,541 6,367 6,367 0 Univ ersit y 17

18 Prefecture Source: INSTAT Quarterly Statistical Bulletin Number 4 March 2007 Private Businesses in Shkodra Shkodra Region accounts for three per cent of all businesses active in Albania. Tirana has the largest number of enterprises, with 39%, while more than 60% of all activity takes place in the Tirana-Durres-Fier corridor. In comparison, the whole northern half of Albania, this includes the regions of Shkodra, Lezha, Kukes and Dibra accounts for only 7% of businesses. The largest number of businesses in Shkodra Region is recorded for years 1994 and 1995, a result of economic reforms and privatisation of state-owned enterprises, which became small and medium enterprises. There followed however a drastic reduction in the number of businesses between years Year No. of 2,310 2,594 1, , ,431 1,582 1,654 1,652 1,633 businesses Source: INSTAT Business Register by Prefecture 2003 During the decline resulted partly from the closure of the border with the former Yugoslavia, Montenegro, which sharply reduced the economic exchange between the two states, and subsequently the activity on either side of the border. In addition, there was in Albania the crisis of 1997, during which the businesses of Shkodra were badly damaged, being forced to close or reduce their activity as much as possible. Furthermore, during this period and ever since, the situation with regard to electricity supply (on average just 6 or 7 hours a day) and infrastructure of the city has been critical. In 2000 there was an increase in the number of businesses of 487 compared to the previous year, and the number has increased slightly since then, stabilising at about 1,600. Structure of the types and sizes of businesses Economic Micro Small Medium Large Total activity Agriculture Industry Construction Transportation Trade Services Total 1,397 Source: Regional Directorate of Taxes ,579 Trade is in the first place with 54%, industry in second place with 14%, services 13%, construction 11%, transportation 7% and agriculture only 1% Structure in % 11% 7% 1% 13% 54% Trade Industry Services Construction Transportation Agriculture 14% For the businesses in Shkodra with revenues larger than 8 million lek, called large businesses, the following structure obtains. Economic activity Number Percentage Trade Construction Production Transportation

19 Phone service 2 1 Other 14 4 Total Source: Regional Directorate of Taxes 4.2 ECONOMIC DEVELOPMENT THE POTENTIALS FOR SOCIO-ECONOMIC DEVELOPMENT The most important mineral resources are to be found at the copper mine of Palaj Karme, 45 km from Shkodra city. This mine became effective in 1981 and its reserves are estimated to be more than 1 million tons, with 2,5% Cu. Other copper ore sources are located in Turrec, 40 km from Shkodra. In addition, there are reserves of Titanium oilmen at Ungre, 55 km from the city, and Bauxite(aluminium ore) reserves at Villgar, 13 km from Shkodra. Non-metal minerals are found at the following places: Kaolin white clay used to make porcelain and some medicines in Domen-Postribe 13 km and Vig 45 km from Shkodra Silica source of Vilza 21 km Dolomite resource in Rrasek 11 km from Shkodra Rriolite resource in Guri Zi 6 km In the periphery of Shkodra city reside resources of raw materials used for the production of constructed materials, including cement, lime, bricks, tiles, ceramics, marble, decorative stone, etc AGRICULTURE The land around Shkodra comprises approximately 19,220 ha or 64% flat land, 7,450 ha or 25% hills and 3,590 or 11% mountain. The land and much of hills are farmed. According to recent agrochemical studies, depth of soil under the fields is large. Dominating types of land are SAM and SAR, of neutral meadow ans alluvial meadow types. According to the land registry the region of Shkodra has in total 151,427 ha land, of which 30,243 ha are agricultural, 54,510 forest, 10,454 meadows and pastures, and 56,220 ha other types. Of the agricultural land 29,289 ha are fields, 184 ha orchards, 561 ha olive groves and 208 ha vineyards. According to the Regional Agricultural Office, the dominant cultivated crops are as follows: Fodder 10,321 ha Grain and corn 6,076 ha (grain 2,544; corn 3,532) Total vegetable 2,755 ha Potato 231 ha Kidney bean 597 ha Tobacco 213 ha TOURISM Tourism in Shkodra Region is an age old tradition. The products of the region have been much valued by both foreign and national tourists, particularly by the local people. Although the produce has been mostly designed for national or local consumption much of it is attractive to foreign tourists as well. The larger region around Shkodra, encompassing Malesia e Madhe, has a very geographical position compared to any other region in Albania with regard to the development of four major types of tourism: City tourism, based on the attractions offered by Shkodra itself, with its religious artefacts (there are three different main religions practised in Shkodra city), cultural monuments, Rozafa Castle. The Castle is situated at the southern entrance of the city. According to the legend Rozafa Castle was built by three brothers. To ensure that the walls would stand, they had to wall in the wife of the youngest brother. The Castle is one of the most ancient residential areas in the Shkodra basin. It was inhabited in the Bronze Age, approximately 4000 years ago. Shkodra is well known for its 40 characteristic traditional houses with their open foyers (çardak). Houses of this kind belong to the middle of the XIX-th century. Some of them had the open foyer at the front of the house, others at the side. The historical museum is situated in a traditional house once owned by the popular hero Oso Kuka, it was built in the last quarter of the XIX-th century and bears great architectural and historic value. The Mosque of Lead in the medieval quarter of the city, close to the Rozafa castle, built in 1773 by Mehmet Pashe Bushati. Migjeni Theatre is well known for its traditions. 19

20 Mountain tourism, based on the attractions offered by Malësia e Madhe, in the village of Razëm situated by the Veleciku mountainside, is one of the most beautiful resorts of the Albanian Alps, 41 km from the city. Razma is a very good place for alpine excursions, sport matches and hunting. The village of Boge and the picturesque village of Thethi which lies north west Shkodra city, approximately 80 km from it. The road winds among wonderful forests and landscapes. The mountains ridges and peaks rise above the narrow valleys full of waterfalls. The surface area of the national park in Thethi is 2300 ha. Thethi is a virgin tourist centre. Seaside tourism, based on the attractions offered by Velipoja Beach, only 30 km from the city. The beach 14 km long and 300m wide offering great advantages to the development tourism. Lake tourism, based on the attractions of the villages of Shiroka and Zogaj, and the lake itself It must be pointed out that the geographical position of the region of Shkodra is undoubtedly the most important premise for the development of tourism in the region. In addition, the human, cultural and historical values and traditions of Shkodra city add more dimensions to such development THE ROLE OF TEULEDA, LOCAL ECONOMIC DEVELOPMENT AGENCY (See attached TEULEDA doc.) 4.3 SERVICES EDUCATION Preschool education- public kindergartens and children registered, : Total kindergartens in Shkodra Region = 132, urban area 32, rural area 100 Total children enrolled= 4,561, urban area 2,111, rural area 2,450 Total nursemaids= 230, urban area 118, rural area 112 Total children per nursemaid 21, urban area 19, rural area 23 Source: INSTAT Indicators by prefectures Primary education Total public and private schools=193, urban area 36, rural area 157 Total pupils enrolled=40,179, urban area 16,228, rural area 23,951 Source: INSTAT Indicators by prefectures Secondary education Total pupils enrolled =19,816, female 9,584 Source: INSTAT Indicators by prefectures Public upper secondary schools Total= 32, rural area 19, Total general 25, rural area 19, Total vocational 7, rural area 0 Source: INSTAT Indicators by prefectures University education Total student enrolled in public tertiary education 10,089, female 6,165 Source: INSTAT Indicators by prefectures HEALTH SERVICES Health establishments Shkodra Region 2005 Public Hospitals 2 No. of beds 710 Hospitalized 17,670 Health centres 78 Ambulances 107 Policlinics 2 Children s care centres 97 Wife s care centres 85 Beds per 1000 inhabitants Source: INSTAT Indicators by prefectures 40 20

21 5 PHYSICAL FEATURES OF DURRESI PREFECTURE The prefecture of Durresi consists of two districts: Durresi and Kruja, divided into 6 Municipalities: (Durres Municipality, Shijak Municipality, Sukth Municipality, Manez Municipality, Kruje Municipality and Fushe- Kruje Municipality) and 10 Communes: (Rrashbull Commune, Xhafzotaj Commune, Gjepalaj Commune, Katundi i Ri Commune, Maminas Commune, Ishem Commune, Bubq Commune, Koder Thumane Commune, Nikel Commune, Cudhi Commune). The region s administrative centre is the city of Durres. Geographically Durres Region is situated in the central part of the Western Plain of Albania. It is spread over 766 km² of which 430 km² belong to the district of Durresi, 335, 4 km² to Kruja district. The District of Durres is situated from 41 degrees 36 minutes to 41 degrees 15 minutes northern geographical latitude and from 19 degrees 38 minutes eastern geographical longitude. It spreads from the Rodoni Cape in the northwest up to Kavaja Rock in southwest, in the medium amplitude 6 m above the sea level. The district of Durres is wet on the west from Adriatic Sea, with a broken coast-line, where are evident the Elbow of Currila, Kallmi area with a steep relief, Porto Romano, the Tail of Palla, Bay of Lalez and the Bay of the Rodoni Cape. There are sandy beaches alternated with rocky cape. There are two types of coasts along the coastline of 61,8 km long; high type (abrasive) as that of Currila, Porto-Romano and the low type ( collecting) with vast sandy beaches. The relief is low, where result fields of vast surface as that of Durres, hills as (hill range Rodon- Vore-Erzen of 40 km in length), the Durres Mountain 178 m height. All these make Durres to have favourable geographic position transforming Durres city in the greatest city port of the country. Climatologically the district of Durres is included in the central climatic Mediterranean field area. The average temperature of the aria is 16 grades Celsius. The coldest month is January with average temperature 8.2 grades Celsius; the hottest months are July-August with average temperature of 23.8 grade Celsius. The average annual humidity of the aria is 70 %, with 2026 annual sunny hours. The dominant wind is breeze that is present 191 days/year. The Erzen and Ishem rivers traverse Durresi district. Erzen river is 109 km in length of which 31 km are in Durresi district, the Ishem river is 74 km in length. The land round Durresi district is alluvial, salty and marshy. Flora is represented by Mediterranean bushes like hornbeam, white thorn, brier, laurel, heather, forest plants such as pine wood, wild pine etc. Among the cultivated plants, there are wheat, maize, white bean, olive, sunflower, greens. As far as fruit trees there are present vineyard, peach-tree, date-tree and citrus. The district of Kruja spreads from 41 degrees 36 min. to 41 degrees 24 min. northern latitude and from 19 degrees 55 min. to 19 degrees 35 min. eastern longitude. It is bordered with district of Lezha, district of Tirana and district of Mat. Being in the cross-road of the main routes, which connect the north to the south Kruja enjoys a favourable geographic position. The field relief is presented by the southern part of district known as field of Kruja, the mountainous relief is presented by mountain of Kruja (1422 m). The annual average temperature is 14 grades Celsius; in winter the average temperature is grade C, while in summer it is 23 to 28 grades C. Flora is represented by berry- tree, heather, from the altitude m oak, hornbeam, ash-tree. There are cultivated the olives, vineyards, fruit trees, measles, tobacco etc. Fauna consists on: boar, wildcat, fox, marten and scarcely the grey dark bear, gazelle. The water reserves are plentiful. Regarding the underground waters, there are some thermal waters in Kruja district. Durres Region Municipalities 6 Urban roads 124 km Communes 10 Regional Roads 136 km Urban Population 54% Communal Roads 582 km Rural Population 46% Males 49% Number of Households 90,939 Females 51% 21

22 Agriculture Land Forests, pasture and meadows 41,654 ha 19,723 ha Source: Statistical offices of Durres and Kruja districts Demography Durresi Region with a population of about 351,899 inhabitants ranks third after the Region of Tirana and Fier. Age structure of Durresi Region population shows that 11% consists of children under 6 years old, 30% children up to 14 years old, 63% of the population is in the active labour force (15-60 years of age). The current population of Durresi Region represents 12% of the total population of Albania. After the 90s internal and international migration became a major factor influencing demographic changes, Durresi has been the final station before emigration toward western countries and at the same time target of internal migration from the poor, mainly north-eastern areas of the country. 5.1 MAIN ECONOMIC AND SOCIAL ISSUES: Employment, unemployment, poverty: At the beginning of 1990s, Durresi region development was affected by the economic reform that took place in Albania after the demise of the communist regime. Market economy replaced centralized economy. The creation of the private sector, weak in the beginning of 90s, actually has created job opportunities for about 78% of labour force thus markedly contributing in soothing or mitigating unemployment. Sectors such as fishery, industry and transport, which were of significant economic importance to the inhabitants of the region, have been replaced by sectors such as construction, trade and services, which provide employment to about 30% of labour force. As viewed from the standpoint of geographical distribution, the impact of the transition has not been equally distributed. Structure of employment by districts: Durresi Kruja Labour Force 48,138 20,320 Employed 42,038 (87%) 17,283 (85%) Unemployed 6,100 (13%) 3,037 (15%) Source: INSTAT, Labour Market 2003 Employment by economic branches in % 48% 2% 3% 4% 5% 10% 7% 10% Hotel & Restaurants Health Construction Education Transport Trade Others Processing Industry Agriculture, forest and fishery 11% It is accepted that not all the unemployed of Durresi Region have been registered at the employment offices as such. Registered unemployment, unemployment rate Average number Q4,05 Q1,06 Q2, 06 Q3, 06 Q4,06 Unemployment rate (Albania) Durresi Prefecture 8,552 8,576 8,558 8,262 8,182 Source: INSTAT Quarterly Statistical Bulletin Number 4 March 2007 Registered unemployed who receive Unemployment Benefit Average number Q4, 05 Q1, 06 Q2,06 Q3,06 Q4,06 22

23 Durresi Prefecture Source: INSTAT Quarterly Statistical Bulletin Number 4 March 2007 Families on social assistance and kind of social assistance Number Families Total Partial fam. Prot. Full fam. Prot. Total Municipal Commune Total Municipal Commune Durresi 2, ,612 1, Prefecture Source: INSTAT Quarterly Statistical Bulletin Number 4 March 2007 Some Poverty Indicators by districts During the transition period, young people in Albania are most severely hit by poverty, and that poverty dominates amongst households living in villages, households of unemployed, households with a large number of children, as well as in households whose members have a low level of education. Assessments from the same source show that approximately 25% of population in Durres Region is poor (INSTAT Map of Poverty and Inequality 2004), which means that they live with less then $2/day. Poverty in the Region of Durres is characterized by disparity in different geographical areas. A closer view shows that poverty is higher in those areas with small-size privately owned farmland and with inadequate access to markets. In Durres Region poverty is also present in the informal settlements, established mainly in sub-urban part of Durresi (Keneta), Fushe Kruja and Katund i Ri. The social program of economic assistance provides benefits every month to 2,875 families. Consumption per capita (in ALL) Poor in % Durresi 8, Kruja 6, Region 8, Source: INSTAT, LSMS 2002 Poverty Gap Index in % Human development index According to the national report on Human Development in Albania, the HDI for the Region of Durresi is 0,785 and ranks third after Tirana and Fier. High HDI Average HDI Low HDI Tirana Durresi Shkodra Fieri 0,788 Vlora Gjirokastra Source: HDPC Human Development Report, Albania ECONOMIC DEVELOPMENT THE POTENTIALS FOR SOCIO-ECONOMIC DEVELOPMENT: Durresi Region has great potential for economic development. Several factors, such as the positioning in the centre of Albania, the existence of country s largest port, investing potentials through immigrant remittances, and natural resources for the development of tourism, have promoted the development of some sectors of regional economy and the establishment of a large number of currently active enterprises. About 1/4 th of active agricultural enterprises in Albania, is concentrated in Durres region, in addition 13 % of the industrial enterprises, 12% of construction companies, 16% of transport companies, and 11% of trade companies, and 12% of the services are located in Durresi Region. The economic development for Durresi Region is closely linked to the development of transport, including sea, railway, air and road transport, the development of the sea and beach tourism, the development of cultural and historic site tourism, intensive agricultural development through the establishment of medium and large agriculture farms, and the development of human resources improving the social and citizen services infrastructure TRANSPORT: Durresi is the gateway of the Pan-European Corridor VIII, which as identified in the Conference of the Ministers of Transport held in Helsinki in 1997, goes all the way to Varna (Bulgaria). - Maritime Transport: currently in Port of Durres are processed approximately 2.7 million tons of goods, or 78% of total maritime transport of goods, and approximately passengers or 80% of total maritime passengers transport. 23

24 - Railway Transport: the port of Durresi is an intersection of railway transport going north, to connect to Monte Negro railway net through Han i Hotit; south it reaches as far as Ballsh and Vlora; east Pogradec town, 3 km away from Macedonia border. - Road Transport: Durresi Region is ranked as the second region with largest number of vehicles for both passenger s and good s transport. - Air Transport: currently has an international function and Rinas Airport (in Kruja Dstrict) is the only international airport in Albania AGRICULTURE: Development of agriculture is directly linked to welfare of rural population, poverty reduction and reduction of inequality of access to basic services. Actually agriculture plays an important role in regional economy. This sector provides employment to about 75% of the active labour force and supplies about 50% of regional product. Agricultural land in Durresi Region stretches in 41,172 ha area, (about 62%) of total surface, of which 62% is lowland, about 34% consists of hills and about 4% in mountainous. About 70% of agricultural land is classified as very fertile one, and belongs to I-IV category in a scale of I-X. The best land, (most of this about ha is potentially irrigated land), is located in Nikel, Sukth and Xhafzotaj. There are about 19 water collecting reservoirs in the region. Main products cultivated are croups, vegetables, beans, potatoes, forages and tobacco. In thousand ton Durres Kruje Region Crops Vegetables Potato White beans Industrial Plants Fresh Fodder Source: Departments of statistic 2003, Durres and Kruja -Livestock breeding is important for the agricultural production in the area with about cattle, 31,500 sheep and 24,700 goats. During the last years, pig and bird breeding in industrial and semi-industrial areas mainly located in Durresi have experienced a fast development. Durres Kruje Region of Durresi Cattle 32, ,714 Sheep 18,164 13,400 31,565 Goats 7,067 17,600 24,667 Pigs 4,518 3,900 8,418 Poultries 894, ,000 1,033,520 Bees 1,284 1,750 3,034 Source: Poverty and inequality in Albania INSTAT TOURISM is considered as one of the most promising branches of economic development in Durres Region which has natural, historic and cultural potential that could promote the development of sea, cultural and mountain tourism. Durres region is a priority area for developing tourism of special interest and may be considered as an unexplored destination; including the 3,000 year old city of Durres with still uncovered archaeological treasures, Skenderbeg Castle in the Cape of Rodoni, tourist sites of special religious interest such as Sarisalltik (in the mountain of Kruja). The ecological site of the bay of Lalez, north of the district of Durres, with almost 35 km of coast, has attracted many projects aiming at developing sea tourism. Besides the sea and the beach, Durresi has a great historic, archaeological and cultural heritage, which has been very little used for developing cultural tourism. In addition, Kruja offers potentials for development of cultural, mountain and curative tourism. The Castle of Kruja, the museum, and Fusha e Mejdanit are important pieces of national history, related to the resistance against the ottoman invaders in the 15 th century under the lead of national hero Skenderbeg. Inside the fortress there are the historic and ethnographic museums, and nearby the old bazaar of a characteristic architecture offering a market for souvenirs, antiquaries, traditional 24

25 clothes and other handicrafts. The city of Kruja is located about 22 km far from the international airport of Rinas and is linked to Tirana and Durresi through means of transportation. At the same time, the marvellous natural environment of Kruja is suitable for excursions, walks, and mountain climbing. There are two lakes that can hosts swimmers, fishermen, and boat and canoe rowing. The curative centre for pulmonary diseases located in Qafshtama and the thermal waters of Bilaj, are well known for their therapeutic remedies. Durres as well as Kruja are facing several problems: lack of small and medium accommodation units, adequate water and power supply, lack of streets connecting these accommodation units to the national roads, contribute to a decrease of tourist attractiveness THE ROLE OF TAULEDA, LOCAL ECONOMIC DEVELOPMENT AGENCY (See attached TAULEDA doc.) 5.3 SERVICES EDUCATION The transition years have had a negative impact on education and are manifested through a drop of educational indicators. Preschool education : Currently there are 71 public and 5 private kindergartens in Durresi Region. In 2004, 4 out of 10 children of the age group 3-6 attended public preschool education, compared to the 6 out 10 ratio before the transition period. Attendance rate to preschool education is lowest in Kruja district, in rural area, and among poor families, aggravating their disadvantage with regard to compulsory and higher education. Also the decentralization process, applied in the education system is not accompanied by an increase in investments for preschool education, especially in poor communes and municipalities. Pre-university education consists of the following levels: Primary education (elementary schools and 9-years schools), in Durresi Region there are 98 public primary schools, which during the academic year have been attended by some 42,869 children of 6 to 14 age group. Attendance of primary education at region level reaches 95%, (to 88% national average) but there still are differences between urban and rural areas. Around 25% of the students who start the fifth grade are not able to complete primary education. Durresi Kruja Region Enrolled 31,555 11,314 42,869 Girls 15,130 5,541 20,671 Urban areas(in total) 17,815 4,125 21,940 Girls 8,570 2,015 10,585 Rural Areas (in total) 13,740 7,189 20,929 Girls 6,560 3,526 10,086 Source: Ministry of Education and Science 2004 Secondary education: Durresi Region has 23 secondary schools: of which 4 are vocational schools attended by about 30% of total secondary education students. Education experts believe that increasing the weight of vocational education within secondary education should become the challenge of future years. The amount of investments in education for Durresi Region denotes how much consideration is given to this priority. During period, as the Annual Statistical Report of Ministry of Education and Science, it amounts to 1,199 million ALL (equal to 8 million USD) and state budget and foreign donations being the main providers. The average level of investments per each student, in the region amounts to 27,770 lek. University education: student Statistics HEALTH SERVICES A positive development in health services in Durresi Region is the restructuring, modernization of Durresi hospital and implementation of the Health Insurance scheme. One of the most important issues regarding health care services concerns the unequal access to health services for different population groups and specific geographical areas. In addition, inadequate financing of the public health network remains one of the main challenges to which adequate solutions should be provided. 25

26 Some of the health indicators for mother and infant are satisfactory. Durresi has a significant number of beds for this age group: 76 beds for paediatric age, 85 beds for obstetrics-gynaecology and 60 beds for the newborns. In Durresi Region, figures on infant s mortality rate and that for children under 5 years of age, are 8 and 12 per 1,000 live births respectively. Principal causes of infant mortality and mortality of children under 5 years of age are linked to poverty and poor living conditions, lack of or inadequate health care in specific areas, mother s poor knowledge about child upbringing. In general health services in Durres are characterized by an insufficiency of funds for meeting both the needs of the public health network, and training of middle and higher-level personnel. Health establishments in Durres Region Public Hospitals 3 Health centres 66 Ambulances 66 Polyclinics 2 Dental surgeries 54 Children s care centres 122 Wife s care centres 107 Beds 568 Source: INSTAT Indicators by prefectures ,6 health service staff per 1,000 inhabitants. Coverage by health care centres is lowest in the district of Kruja and in rural areas (communes Katund i Ri, Rrashbull, Ishem. Cudhi, Nikel). There is at least one doctor in each of the health care centres in the rural areas, whereas 80% of the villages in the region have an ambulance with at least one middle level personnel. Coverage by lab services Durres Kruja % of population covered by lab services Source: Primary Health Care Departments, Durres, Kruja Demographic movements resulted in uncontrolled urbanization of former industrial areas. These areas, previously used for depositing industrial materials, are left untreated and have turned into toxic waste areas, which threaten public health. Local authorities should identify the map of toxic waste and risks, and envisage consequent measures for respective population. Currently the Ministry of Health in collaboration with the Ministry of Environment, has undertaken an action in screening the population living in the areas of Spitalle and Porto Romano. 26

27 6 PHYSICAL FEATURES OF VLORA PREFECTURE The prefecture of Vlora consists of three districts:vlora, Saranda, Delvina divided into seven cities and 198 villages, grouped into 19 communes. Vlora district has 4 municipalities(vlora municipality, Himara municipality, Orikum municipality, Selenica municipality) and 9 communes,(armen commune, Brataj commune, Horë-Vranisht commune, Kotë commune,novosele commune, Sevaster commune, Qendër-Vlorë commune, Shushicë commune, Vllahinë commune, Saranda district has 2 municipalities ( Saranda municipality, Konispol municipality) and 7 communes,( Aliko commune, Dhivër commune, Ksamil commune, Livadhja commune, Lukovë commune, Markat commune, Xarrë commune) Delvina district has 1 municipality( Delvina municipality) and 3 communes (Vergo commune, Finiq commune, and Mesopotam commune). The region of Vlora was established as a local governmental unit on November It is spread over 2706 km² of which 1609km² belong to the district of Vlora, 749 km² to Saranda and 348 km² to the district of Delvina. The region is mainly mountainous and hilly and it contains meadows and valleys enabling the local population to make their living through the agricultural and livestock production. The region has a coastline of 144 km home to beautiful beaches that together with its natural and historic assets provides real prospects for the development of a multidimensional tourism. Geographically Vlora Region overlooks the south-west coast of Albania and is a terminus of the southern Adriatic Sea serving as a northern connection to the south-easterly Jonian Sea. This geographical area constitutes a mosaic of historical and cultural venues offering a variety of habitats and important environmental values. Climatologically this area is under the effect of a typical Mediterranean climate. This is a result of proximity to the sea and the altitude of the shielding mountains as well as continental winds. The energy level is about 170 kwh / m² and there are about 170 sunny days per year. The district experiences the influence of sea winds. Wind speed runs m/sek in winter. Summer is characterized by low breezes wafting off the Adriatic at an average of 2,2-2,3m/sek the annual average air temperature is 17.1 degrees Celsius. Temperatures normally dip to an average of 9.7 degrees Celsius in January rising to 25.1 degrees in August. The level of rainfall is reasonably high, more that 1.500mm/year but seasonal. The area is characterized by a great number of natural of quasi-natural habitats beginning with the alpine pastures shadowed by pine woodlands. Mediterranean shrubs, oak forests shrouded by pines, babbling rivers, streams and more stagnant brackish wetlands of sweet salty waters augment the firmament landscape. Sand dunes and rocky cliffs resemble a fortress facing the sea. All these habitats offer a microcosm shelter to a variety of flora and fauna species and make the area representative of the bio-diversity of Albania. Recent studies reveal that this area hosts 33 species deserving protection, out of which 14 are estimated as threatened, endangered or on the verge of extinction. These species include mammals, birds, amphibians and reptiles. 27

28 The Mediterranean seal (Monachus Monachus), the Wolf (Canis Lupus), the bat of Goeffrey (Myotis marginatus), the bat of Capaccini (Myotis arborea) the crested Triton bird (Triturus Cristatus), the tortoise, the stork, pelican and eagle (Aquila Clanga) are now rare viewing. Vlora region offers a habitat for 70% of indigenousness amphibians and reptiles plus 80% of birds. The area is rich in mammals. Approximately 60% of the exiting species roam here. The presence of two endemic kinds and 11 sub-endemics gives Vlora region a special role in preserving the flora in Albania. Hydrology and Geo-Morphology: An impressive hydro graphic network characterized the coast of Albania. These are sprawling rivers such as Vjosa, Kalasa, Bistrica and Pavlloja drain though Vlora region. Vlora River flows into the Adriatic Sea while other rivers divert to the Jonian Sea. Ten remains are transported by the rivers and create formations of wide wetland zones at Narta and Butrinti. The coastline is very rugged. From a morphological point of view it is divided in two groups: -dredged shores -shores with low sediments. The dredging process has been intensive and created many layers. The sedimentation process is minimal but occurs mostly at Narta and the Butrint flats. Demography Great demographic changes have taken place in Albania after the 90 s. All the regions have been affected, albeit to different degrees. The main characteristics of this period have been large-scale emigration, increased internal migration, and a decline of the fertility rate. Population and density by districts: Districts Population/in Area/in km² Density Households Members/households numbers Vlora 148, , Saranda 41, , Delvina 11, , Source: INSTAT Statistical Yearbook Population by districts, group ages, 1 January 2004 Group Ages Districts Vlora 35, ,408 14,564 Saranda 9,787 27,504 3,989 Delvina 2,785 7,825 1,135 Source: INSTAT Statistical Yearbook The majority of population of the region resides in Vlora. The share of urban population in the region is 54% whereas for the district of Vlora this share is 58%. The most common household model in Vlora is a family of four members. According to data from the local records, the average age in the region is 28,6. Regarding emigration in the region, according to data from the region s authorities, 27% of the families have at least one emigrant member. The total number of emigrants thus amounts to 135,000. The number of seasonal emigrants runs up to According to data from the LSMS (Living Standards Measurement Survey, World Bank), remittances from emigration are an important source of income for a large number of families in all districts of the region. According to data from the regional authority, the district of Saranda has the largest scale of emigration. In Delvina district the scale of emigration is more limited than in Saranda and Vlora. 6.1 MAIN ECONOMIC AND SOCIAL ISSUES In Albania poverty is particularly spread over the rural and mountainous areas, 68% of the poor live in the rural areas and the remaining 32% in the urban ones. A great number of poor people 55% are young and under the age of 25. Extreme poverty is related to the low level of education and the lack of skills from the head of the household. Regional Poverty and disparity indexes Region Shkodra Durresi Vlora Gjirokastra Tirana Head count % Gini % Percapita expenditure(lek/month) 7, , , , , Source: Map of Poverty and Inequality in Albania, INSTAT, 2004 The Region of Vlora is the least poor one in Albania with only 18% of the population living below the poverty line. Two out of this region districts Saranda and Delvina, are the least poor towns in the country with 14 % of the population being poor with Vlora ranking fifth among the less poor districts. The Region of 28

29 Vlora has the highest level of per capita expenditure and the lowest percentage of the poor population. At the same time, Vlora is the region with the greatest disparities according to the distribution of expenditure with the Gini coefficient reaching 33.5% such inequality is better presented in the poverty headcount distribution map at commune level. The Region displays visible contrasts, but poverty is more present in the rural areas especially in the mountainous areas of the district of Vlora such as Hore-Vranisht, Brataj, Sevaster, Kote and Shushica that have the highest share of poor population, bad infrastructure and difficult access to markets. The analysis of poverty level in communes and municipalities clearly shows that Emigration, Tourism and Access to markets are the main factors that shape the distribution of poverty in this region. Sector based employment Agricultural 34%; Industry 8%; Trade, hostelry, restaurants 25%; Transport & Communic. 7%; Other financial activities 1%; Public admin. 5%; Educ. Health, social activities 9%; Collective services 1%; Construction 10%. Sector based employment Agricultural Industry Trade, hostelry, restaurants Transport & Communic. Other financial activities Public admin. Educ. Health, social activities Collective services Construction 9% 5% 1% 10% 34% 1% 7% 25% 8% Agriculture is the most important employment sector in the Region of Vlora. Prior to the 90s, large state enterprises employed large numbers of people. Vlora was an important centre of agro-processing industry as well as the mining and chemical sectors. Several agro-processing enterprises exercised their activities in Vlora(fishery, fruits and vegetables, oil and others) accompanied by chemical industrial units such as the Factory of Caustic Sodium, mining plants(extraction of marble, petroleum, salt and bitumen).furthermore, construction and transporting units together with the seaports of Saranda and Vlora as well as local hydropower plants, cement factory, a sub-marine repair factory and the Park of Transports were functional in both Vlora and Saranda. System changes in the 90s created a new employment system with the majority of people self-employed or working in small-scale family activities in agriculture, services and tourism. Active enterprises according to their activity and size Economic activity 1-5 employees 6-20 employees employees Over 80 employees Total number enterprises Total number employees Agriculture 60/ 5% Industry 396/38% ,081 Construction 164/11% ,147 Transport 370/9% Trade 1,995/26% ,024 2,820 Services 568/12% ,354 Total 3,553/100% 113 Source: Registry of Economic Enterprises 2003 INSTAT ,730 10,881 Registered unemployment, unempoyment rate Average number Q4,05 Q1,06 Q2, 06 Q3, 06 Q4,06 Unemployment rate (Albania) Vlora Prefecture 7,905 7,283 6,703 6,747 7,092 Source: INSTAT Quarterly Statistical Bulletin Number 4 March

30 Registered unempoyed who receive Unemployment Benefit Average number Q4, 05 Q1, 06 Q2,06 Q3,06 Q4,06 Vlora Prefecture Source: INSTAT Quarterly Statistical Bulletin Number 4 March 2007 Families on social assistance and kind of social assistance Number Families Total Partial fam. Prot. Full fam. Prot. Total Municipal Commune Total Municipal Commune VloraPrefecture 2, ,001 1, Source: INSTAT Quarterly Statistical Bulletin Number 4 March ECONOMIC DEVELOPMENT THE POTENTIALS FOR SOCIO-ECONOMIC DEVELOPMENT: AGRICULTURE Vlora Region has in total an area of 270,604 hectares, of which 23,3%/63,282 has agricultural land; 48,4% /130,972ha are forests, pastures and meadows and the rest is urban area. About 42,642ha/67,4% of the agricultural land is arable land and 20,642ha/32,6% is planted with trees. Total land areas Arable land Planted with Forests, Urban or trees pastures and unusable land meadows Vlora 160,921 25,916 11,894 78,703 44,408 Delvina 32,016 4,921 3,131 12,240 11,724 Saranda 77,667 11,805 5,617 39,984 20,261 Region 270,604 42,642 20, ,927 76,393 Source: Annual Statistical Report 2003, Ministry of Agriculture and Food The prevailing fruits are olives, citruses, and grapes, whereas the prevailing type of livestock is sheep and to some extent cows. In the production structures of arable land the prevailing components are fodder and vegetables. Wheat, maize, tobacco and legumes are also cultivated in small quantities and by a small number of farms. Olive is a widespread variety and has found optimal climatic and land conditions in the areas of Vlora, Saranda and Delvina. The region has a total of 1,020,050 olive trees, of which 944,450 are in production. Olive production Districts Vlora Saranda Delvina Olive trees 500, , ,450 Production in tonnes 4,097 2,392 1,163 Source: Regional statistics Vlora 2004 From the point of view of productivity in the cultivation of plants, trees and livestock Vlora region is placed above the country average. The average productivity in vegetable performance in the region is more than 210 KV/ha, compared with a country average of 208,7 KV/ha. For fodder productivity is over 340 KV/ha whereas the country average is 273 KV/ha, for sheep milk is 56,5 kg/animal. Vlora has best results in the production of olives, sheep and cow milk, bovine and sheep meat, fruit and grape production, and many branches of the agro-industry. Agriculture development The main challenges of poverty reduction in the rural areas consist of: Increasing productivity Organising the offer and adding value to agriculture products Increasing crediting opportunities for agriculture products Developing human capital Expansion and modernisation of collection and agro-processing units A functional network of rural roads Agro industry development Agro industry is one of the sectors that can be considered still un-developed but which is showing clear tendencies of progress during the last years. There are big opportunities for processing of olives, tomatoes, cucumbers and fruits. In 2003 there were 163 agro-processing units in Vlora Region, or 8,4% of total number 30

31 of agro-industrial units in the country and there was an increase of investments in this sector during The largest investments have been in the processing industries of meat, olive oil and milk as well as the production of refreshment drinks. About 6% of the flour, 2.1% of the milk, 14.6% of yogurt, 10.2% of the cheese, 8% of sausages, 6.5% of the beer and 5.3% of the wine, 2.2% of cooking oil including olive oil, is processed in Vlora Region TOURISM Tourism is considered as key sector for development of Vlora Region with opportunities for further growth. According to the data from the region tourism actually generates 23% of its total incomes but it has not been well administered and suffers from inadequate hotel infrastructure, problematic urban management, a lack of continuous environmental monitoring as well as from the absence of promotion activities from tourist operators within the country and abroad.the Region possesses a variety of favourable natural, cultural, historic and human resources to support a multidimensional tourism. The region s geographical position features a considerable seaside stretch with a coastline of 144 km which has created beautiful and attractive beaches, many of them yet to be explored due to the lack of entry communication points from and to Vlora, Saranda and Himara. The balnear tourism is the main category of tourism in Vlora region, the Adriatic seaside areas of Novosela, Zverneci as well as the Jonian coastline, Vlora harbour, Karaburun, Palasa, Dhermi, Jale, Himara and the green citrus beaches of Saranda (Cape of Stilos). The entire Jonian coastline features mountains and sharp steeps that are the country s least harmed natural resorts. Caves that could be ideal settings for sport activities are situated in the seaside area from the isle of Sazan to Dhërmi. Whereas the area of Borsh from Qeparo to Lukova offers unique beaches with considerable lengths accompanied by a citrus cultivated area. The area of Butrinti is the only compound of wetlands in Vlora Region and southern Albania as well as one of the most important archaeological sites of the country. Lakes and surrounding wetlands constitute an important habitat for the development of aquaculture and fishing. The lagoon of Orikum features a particular biodiversity and it is a well preserved and clean area Kakomea s clean beaches, the bay s water springs, the landscape at large and the remnants of two monasteries ensure the attraction of international and domestic tourists. Porto Palermo too represents an attractive bay that is also home to the ruins of the ancient settlement of Panorma. There are real development opportunities in Vlora Region for green tourism. National Park of Llogara while the historic and cultural inheritance is an added value to its marvellous and colourful nature. Ancient towns of Butrint, Amantia, Orikum, Himara, citadels of Porto Palermo, Kanina and Borsh, many old churches along the coast s villages, the Monastery of Saranda and the caves along the Jonian coast are particularly remarkable. The development of tourism in the region of Vlora is based on several main directions that aim to attract different kinds of tourists linking the region s specifics with people that actually have a preference for the area THE ROLE OF AULEDA, LOCAL ECONOMIC DEVELOPMENT AGENCY (See attached AULEDA doc.) 6.3 SERVICES THE EDUCATION SYSTEM IN VLORA REGION: Pre-school education. There are 117 kindergartens in Vlora Region (Vlora 76, Saranda 21, Delvina 20) catering for 6042 children between 3-6 years old. A total of 330 teachers work in these kindergartens, with a ratio of 18 children per teacher Pre-university education consists of the following levels: 1. Primary education (elementary schools and 9-years schools), at regional level there are 151 (9-years school), of which 145 public schools and 6 private ones. Overall these schools accommodate 28,801 students (academic year ), of whom only 3% study in private school. In Vlora district the share of children enrolled in primary school is very high. As a result of increased investments in the last few years, about 90% of students sit in renovated or entirely newly built classrooms and schools. In some communes like Vranisht, Brataj, Armen and Vergo the students yet have to walk for up 3 km to reach the nearest school. 31

32 2. Secondary education (general and professional high school) in Vlora Region includes 35 schools, out of which 29 offer general education and 6 offer professional education. There are 6 private middle schools that cater for 12% of all students. Currently, there are 9367 students enrolled in the secondary education system, of whom 1751, or 18% are in the professional system. The majority of students are enrolled in middle schools in the cities of Vlora, Saranda and Delvina, only 17% of them study in rural schools. The situation in the secondary education is more problematic, mainly because middle schools are concentrated in the cities of Vlora and Saranda. The situation is even worse in some rural and mountainous areas where infrastructure becomes a serious impediment, especially in the winter season. 3. University Education Ismail Qemali University was founded in 1994 in the city of Vlora. In the academic year were enrolled 3700 full-time and 1000 part-time students in Vlora university which has 8 departments and offers 15 types of diplomas in areas as diverse as Law, Commerce, English Language Naval studies. There are 93 full-time instructors and 200 part-time lectures.the level of illiteracy in Vlora region is lower than the country average (1.5%).The main causes of illiteracy are: The chaotic movement of population The extreme poverty of families and the practice of sending kids to work Population structure as per education level Illiterate 2622 or 1.50 % Not certified but can read and write or 4.70 % Primary education or 20 % 9-year education or 36 % Secondary education or 23.20% University and post university education 8758 or 5% Source: INSTAT 2004 Local target to reach qualitative and inclusive education Improvement of pre-school education and increase children s attendance Qualitative and inclusive education Support for vocational education focusing on new courses that reflect market needs and increased enrolment rate in secondary professional education HEALTH SERVICES The health system in Vlora Region comprises three components: the primary health service, the hospital and the pharmaceutical service. Health establishments Vlora Region Public Hospitals 6 No. of beds 862 Private clinics 19 Health centres 49 Ambulances 139 Policlinics 3 Children s care centres 183 Wife s care centres 168 Total doctors 310 Inhabitants / 1 doctor 1,106 Total nurses 910 Priorities Increasing the access of mothers and children to medical services Reducing child and maternal deaths Mothers education in breastfeeding and child care practices Increasing the capacity and professional skills of all categories of medical personnel Campaign on child and maternal care issues Increase the number of Dental Care centres especially in areas with inadequate coverage Local Targets to improve maternal and child care 1. The reduction of child and maternal deaths 2. Improvement of health care infrastructure especially in rural areas in Vlora Region 32

33 3. Meeting the standard for Family Doctor and nurses based on the number of inhabitants and distribution in all the areas. Poverty and basic needs According to the national level data from LSMS, urban areas have better access to basic services compared to the rural areas where the % of the households not having access to such services is much higher than in urban ones. In Vlora Region: 11% of households do not have access to drinking water 57% of households have in-house access water 13% of households have access water outside the house 19% of households have access to well or deposited water 7 PHYSICAL FEATURES OF GJIROKASTRA PREFECTURE Gjirokastra region is located at the southeastern point of Albania. It borders the Albanian regions of Fier, Korça, and Vlora, with Greece sitting to the east and southeast. The total surface area of the region is 2,880 square kilometers, whereby the Vjosa River and the Drini River pass through its entirety. The region has a typically Mediterranean climate where the winters are generally marked by rainfall and the summers are often plagued by drought. The region is organized in 3 districts, composed of 6 municipalities and 26 communes, where the majority of residents live rurally: the district of Gjirokastra has 2 municipalities (Gjirokastër municipality, Libohovë municipality) and 11 communes (Antigone commune, Cepo commune, Dropull i Poshtëm commune, Dropull i sipërm commune, Lazarat commune, Lunxhëri commune, Odrie commune, Picar commune, Pogon commune, Qendër Libohovë commune, Zagorie commune), the district of Tepelena has 2 municipalities ( Tepelena municipality, Memaliaj municipality) and 8 communes (Buz commune, Fshat Memaliaj commune, Krahës commune, Kurvelesh commune, Lopës commune, Luftinjë commune, Qesarat commune, Qendër Tepelenë commune); and the district of Përmet has 2 municipality ( Përmet municipality, Këlcyrë municipality) and 7 communes ( Qendër Piskovë commune, Frashër commune, Dishnicë commune, Sukë commune, Ballaban commune, Petran commune, Çarçovë commune). The administrative center of the region is the city of Gjirokastra There are nearly 120 varieties of medicinal and traditional herbs found in the region, such as laurel leaves, mountain tea, common sage, wild marjoram and rockweed. Increasing revenues can be accomplished through the planting and harvesting of traditional plants for the purposes of medicinal herbs. If a strategic planning would be able to be prepared to get the necessary investments, along with storage space, packaging facilities for the products and research-based marketing, a harvesters cooperative could potentially create a niche in the domestic market and significantly raise personal revenues. Varieties of fauna in Gjirokastra are as numerous as they are exotic. Nearly half of the country s mammals can be found in the region (31 of 65), in addition to a number of cave-dwelling bat species. The Drinos River valley and the Vjosa River act as an important migratory route, especially for the globally threatened species called Lesser Kestrel. The region also hosts 18 of the 37 species of reptiles in Albania and an estimated 10 of the 15 species of the country s amphibians. The region also has abundant natural resources by way of stone, rivers and thermal waters. These reserves contain potential for hydroelectric power generation, but they too remain untapped because of obsolete technology and a lack of investment. Attracting domestic and foreign direct investment to exploit these resources is priority such that concession contracts should be entered into an attempt to attract new 33

34 investment. A partnership between local government, central government and parliament is necessary for taking advantage of regional resources that should be managed at the national level. Demography Population and density by districts: Districts Population/in Area/in km² Density Households Members/households numbers Gjirokastër 56, , Përmet 22, , Tepelenë 28, , Source: INSTAT Statistical Yearbook Population by districts, group ages, 1 January 2004 Group Ages Districts Gjirokastër 13,538 38,045 5,518 Përmet 5,484 15,412 2,235 Tepelenë 7,035 19,770 2,868 Source: INSTAT Statistical Yearbook MAIN ECONOMIC AND SOCIAL ISSUES The Gjirokastra region falls under the Central geographic category. As such, the region s HDI is ranks a low 3 rd overall. At the commune level the majority of the districts of Tepelene and Gjirokastra have an HDI of This is below the national HDI average (0.771) but above the HDI average for the central geographic area (0.725). Within these two districts there are also pockets of communes where the HDI reaches between The majority of the districts of Përmet has an HDI between , which is approximately equal to the national HDI average and above the HDI average for the central category. To the far north and to the far south of the district of Permet, there are communes where the HDI is lower ( ). The lowest HDI ( ) can be found in several communes of the Gjirokastra district and on the periphery of Gjirokastra city. This particular average is far below the national HDI average and approximately equal to the HDI average of the Central category. This status clearly demonstrates that the region is not sheltered from the deepening divisions that exist between the rich and the poor, and the rich and extremely poor. Based on the revenues, 25% of households, or 41,697 people out of a total of 166,788 in Gjirokastra region, are very poor and can not even meet their basic food needs. Even more alarming, though, is the fact that 58% of households, or 96,737 people, alternate between: 1. being able to meet their food needs, but are incapable of covering other necessary expenses; and, 2. being able to meet their basic household needs, such as food and clothing, but are incapable of covering any other expenses. The remaining 17% (28,354 people), on the other hand, are able to meet both their household needs as well as any extraneous expenses. Top put this into context; residents that live on less that US$ 3 per day are primarily those that comprise the 58% category. As such, the ability of these inhabitants to meet their living needs is contingent upon secure employment, since the loss of a job immediately places them among the 25% who are incapable of meeting their basic food needs. Measuring the proportion of the population that is dependent on social assistance is a broad indicator of poverty. Although it fails to consider the underlying causation of deprivation in the region, it serves to demonstrate how many inhabitants rely on this source of income to sustain their lives. There are a striking number of residents in the three districts that rely on social assistance in Gjirokastra region. Families on social assistance and kind of social assistance Total Patial family prot Full family prot. Gjirokaster Total Municipality Communes Total Municipality Communes (Quaterly Statistical Bulletin -INSTAT December 2006) 34

35 Total Municipality Communes Total Municipality Communes Patial family prot Full family prot. In Tepelena, nearly 15% of the district s population relies on social assistance, whereby the phenomenon is most prominent in the communes of Buz, Kurvelesh, Krahes, Lopes and Luftinje. In the district of Permet, dependence on social aid is most marked in the communes of Frasher, Ballaban and Suke (approximately 11% of the district s population). As for the district of Gjirokastra, reliance on social assistance is the highest in the communes of Lazarat, Picar and Cepo (approximately 3.7% of the district s population) (data taken from Regional Development Strategy, Gjirokastra region pg.19) Unemployment It is obvious that poverty and employment are inextricably linked to one another. Unemployment is common to urban areas, as reflected in unemployment indices. Underemployment, however, is a typically rural occurrence, as suggested by the high number of farming house holds (71,887) that receive partial economic assistance. As such, the connection between poverty and employment is most compelling in the remote and rural areas because the typical definition of unemployment fails to take into account the underutilization or underemployment of human capital. Registered unemployment, unemployment rate Gjirokaster Q3, 2005 Q4, 2005 Q1, 2006 Q2, 2006 Q3, , (Quaterly Statistical Bulletin -INSTAT December 2006) Registered unemployed who receive Unemployment Benefit Gjirokaster Q3, 2005 Q4, 2005 Q1, 2006 Q2, 2006 Q3, (Quaterly Statistical Bulletin -INSTAT December 2006) Unemployment has historically been higher for the women than men, and this gender gap tends to increase when a more relaxed definition of unemployment is applied. Women face many obstacles in attempting to integrate into the labour market, especially when they move to a new location. Forty-one percent of migrant women, compared to 23% of migrant men, are unemployed. In addition, issues of social security and social care institutions, such as lack of daycare and kindergartens also contribute to the low representation of women in the labour force. Upon examination of the unemployed population by gender, the district of Tepelena has a somewhat higher ratio of male unemployment versus female unemployment. However, the districts of Gjirokastra and Permet have a higher ratio of female unemployment than male unemployment. 35