This qualitative assessment of povertyin Albania seeks to deepen the understanding of poverty inthe country, first, by involving poor Albanians in a processof exploring the causes, nature, extent of poverty, and howit affects their livelihoods. Second, it is intended tosupport the Growth and Poverty Reduction Strategy Paper(PRSP); third, it supports preparation of the CountryAssistance Strategy (CAS), and the Living StandardsMeasurement Survey (LSMS) process; and, fourth, it supportsongoing research on formal, and informal institutions in thecountry that are relevant to poverty, and it identifies aswell, emerging areas of concern. Findings suggest thatpoverty in the study sites, developed as a result of a weakeconomic base at the beginning of reform (as of 1990),worsened as the reforms continued, and accelerated duringthe 1997 financial crisis. From household interviews, it isperceived that the causes of poverty are a result ofunemployment, insufficient and low quality of land, absenceof formal institutions, and marketing mechanisms to supportindustrial and agricultural development, and, thegovernment's inability to respond to infrastructure,and basic needs. The study further examines the factorsdepressing, and/or precluding (sector wide) the potential tocompete, sustain livelihoods, attain employment, and receiveeconomic, and social assistance. And it rightly identifiesthe contribution from migrant remittances, accounting for asignificant percentage of GDP. Policy implications spell outthe need to improve administration of social security, andservices, by decentralizing legal and regulatory frameworks,and equitably mobilizing fiscal revenues.
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