6 Eradicate extreme hunger and poverty

Where are we?

Green house in Lushnje, Albania

An important reason for the achievements that have been noted is that poverty reduction was a strategic priority of government, as set out in National Strategy for Development and Integration (NSDI) 2007–2013. The government’s policies are also reflected in the Strategy for Social inclusion 2007–2013, the Strategy of Social Protection 2007–2013 and the Strategy on Employment and Vocational Training 2007–2013, which aim at building an inclusive society.

Rapid economic growth, structural reforms and implementation of policies aimed at addressing the needs of the most disadvantaged areas and social groups also explain the continuous reduction in poverty level since 2002. Economic growth has been primarily demand-driven (private and public) within a stable macro-economic framework, and a liberal, though not distorting, economic policy. Government focus on, especially, road infrastructure development in rural and mountainous areas and institutional building, combined with continuous wage, salary and pension increases, have had a positive effect on aggregate demand. Measures have been taken to ensure Roma community inclusion in employment and poverty alleviation programmes, facilitation of their participation in vocational training initiatives and support to other disadvantaged groups, including disabled people, and people with limited abilities.

 One of the key challenges that lie ahead is maintaining regionally balanced economic growth and business formation as these are seen as the prime contributors to poverty reduction and increased employment. System-wide capacity constraints across government at both the central and local levels and at the human and institutional levels are seen as obstacles to development and to the sustainable delivery of results. Weak systems for monitoring, collecting data and undertaking surveys continue to impede policy analysis, planning, programming and government accountability.

In terms of major policy responses considered by government, the main emphasis is on developing a long-term and sustainable enabling environment for employment and social inclusion. The Bank of Albania and the government are exploring a new growth model that does not rely much on production and consumption but rather on strategic economic positioning in terms of what kinds of skills, trades and professions Albania will need in the years to come. Poverty reduction and employment generation in rural areas and among disadvantaged groups will continue to be a priority. This includes systems and procedures for better targeting of social and employment assistance and reduction of abuse. Increasing local government capacities and coordination between central and local government is crucial for the success of economic assistance reform.

Since poverty is found predominantly in rural and mountainous areas, the Mountainous Areas Development Agency and the Mountainous Areas Financing Fund are designed to support investment in farming and rural infrastructure, and extending small loans to poor farmers.


UNDP's work in Albania

  • Roma Symbol Installation by a Roma Artist in Albania. Photo credit: Roland Tasho

    Empowering Marginalized Communities in Albania
    A symbol of roma communitiy

    With the right vocational training, Hatixhe Sula has become a tailor. Now, she can help to support her family. Not long ago, as a member ofmore

Targets for MDG1
  1. Reduce by half the proportion of people living on less than a dollar a day
    • Proportion of population below $1 (PPP) per day
    • Poverty gap ratio
    • Share of poorest quintile in national consumption
  2. Achieve full and productive employment and decent work for all, including women and young people
    • Growth rate of GDP per person employed
    • Employment-to-population ratio
    • Proportion of employed people living below $1 (PPP) per day
    • Proportion of own-account and contributing family workers in total employment
  3. Reduce by half the proportion of people who suffer from hunger
    • Prevalence of underweight children under-five years of age
    • Proportion of population below minimum level of dietary energy consumption