6 Develop a global partnership for development

Where we are?

city of Tirana
Considerable progress has been made in setting up the policy, legal and institutional frameworks associated with the partnerships goal

Successes, challenges and policy responses

The successful achievement of the third ICT-related target ahead of schedule is a function of government leadership, structural reforms and resources. It is only moderately likely that Albania will achieve its directly related global partnerships target 8.1 by 2015. As noted above, considerable progress has been made in setting up the policy, legal and institutional frameworks associated with the partnerships goal.

 The global financial crisis does not appear to have had a major impact on Albania’s aid flows or its ability to achieve MDG 8. The major risk is external in terms of the potential for sluggish growth in developed economies that may negatively affect their fiscal capacities to fulfill international aid commitments. Another risk is internal in terms of achieving less-than-expected economic growth, which may constrain budgets and government investments in partnership management related capacity development. Since the bulk of assistance over the period 2002–2008 has been in the form of loans, with most commitments yet to be disbursed, there is a risk of this adding to Albania’s debt burden.

 As a middle income country Albania is witnessing the exit of several key bi-lateral donors even though the development agenda is not finished, especially with respect to regional disparities and social inclusion. This is, however, offset by increasing levels of assistance from the EU, which so far exceeds the level of assistance provided by bilateral donors. Other challenges relate to the achievement of access to trade markets of developed countries, and include the following:

  •  Low absorption capacities for external assistance continue to be a main issue, as reported six years ago, in the 2004 MDG progress report (Ibid, p. 56). As noted elsewhere in this report, the question is also not one of insufficient resources, but rather of how they are utilized. This applies not only to the various ministries in absorbing aid and implementing projects and programmes, but also of insufficient capacity of central organizations to coordinate at the various levels.
  •  The unfinished business of developing and implementing the supporting IPS and External Assistance Information Systems (IPSIS and EAMIS). Detailed specifications and plans for these systems were developed in early 2007, and their funding and development was envisaged in a joint government, World Bank IPS Trust Fund project, which has been extended to 2011.
  •   In light of continuing external financial and economic risks, government will make better use of external assistance to help eliminate trade and other economic barriers, and attract foreign investments in support of sustainable economic and social development.
  • The issue of consistency between the MDG 8 and Paris Declaration indicators will be given further attention. NSDI Progress Report 2006–2007 argued that government may shift from the MDG 8 to the Paris indicators.
Targets for MDG8
  1. Develop further an open, rule-based, predictable, non-discriminatory trading and financial system
    • Developing countries gain greater access to the markets of developed countries
    • Least developed countries benefit most from tariff reductions, especially on their agricultural products
  2. Address the special needs of least developed countries
    • Net Official development assistance (ODA), total and to the least developed countries, as percentage of OECD/DAC donors' gross national income
    • Proportion of total bilateral, sector-allocable ODA of OECD/DAC donors to basic social services (basic education, primary health care, nutrition, safe water and sanitation)
    • Proportion of bilateral official development assistance of OECD/DAC donors that is untied
    • Market access
    • Debt sustainability
  3. Address the special needs of landlocked developing countries and small island developing States
    • Official development assistance (ODA) received in landlocked developing countries as a proportion of their gross national income
    • ODA received in small island developing States as a proportion of their gross national incomes
    • Proportion of bilateral official development assistance of OECD/DAC donors that is untied
    • Market access
    • Debt sustainability
  4. Deal comprehensively with the debt problems of developing countries
    • Total number of countries that have reached their HIPC decision points and number that have reached their HIPC completion points (cumulative)
    • Debt relief committed under HIPC and MDRI Initiatives
    • Debt service as a percentage of exports of goods and services
  5. In cooperation with pharmaceutical companies, provide access to affordable essential drugs in developing countries
    • Proportion of population with access to affordable essential drugs on a sustainable basis
  6. In cooperation with the private sector, make available the benefits of new technologies, especially information and communications
    • Telephone lines per 100 population
    • Cellular subscribers per 100 population
    • Internet users per 100 population