Improving Deregulation and Fiscal Efficiency in Albania

The main objective of the project is to improve the overall economic and the doing business environment in the Republic of Albania, in line with the objectives of the Government, towards trade facilitation, deregulation, improvement and easing of procedural and bureaucratic issues.

More specifically, the project aims to improve the delivery of government services towards enterprises, and to increase formality throughout all sectors, and payment of taxes, through the ease and elimination of procedural bottlenecks.

PMCG’s team will contribute to the enhancement of these fields by conducting the following activities:

A. Business Enabling Environment:

• Conduct general assessment of the current situation to identify the regulatory framework and environment creating impediments for economic growth;
• Conduct face-to-face interviews, meetings and discussions with all key stakeholders in the Government of Albania, private and international organizations;
• Conduct workshops and discussions to identify policy priorities;
• Develop recommendations on improving business enabling environment;
• Develop an action plan and roadmap for reforms;
• Support the Government of Albania in drafting terms of references for international development; programs in economic development and business enabling environment.

B. Tax and Customs Administration:

• Conduct assessment of the institutional framework and develop a gap analysis;
• Conduct an evaluation of the present set of business processes, procedures, paperwork, institutional information, and advice on improving institutional performance of tax and customs administration;
• Provide advice and illustrate international experience in tax and customs administration;
• Provide policy advice to the economic development and fiscal departments reform, with a focus on tax and customs reform;
• Provide recommendations and a roadmap of reforms.

C. Service delivery at National Business Center (NBC)

• Conduct assessment of the legal framework;
• Conduct assessment of the institutional framework;
• Conduct direct interviews, meetings and discussions with NBC;
• Develop a gap analysis and identify areas for improvement;
• Develop the general roadmap for the reforms, recommendations to support the formation of a one-stop-shop for public services, in particular for the NBC;
• Together with the Government of Albania, select and agree on the pilot sectors/services to be covered in the analysis and provide recommendations on improving administration (e.g. construction licensing and permitting).

The collaboration is expected to result in improved business enabling and investment environment, reflected in increased FDI and efficiency of fiscal institutions, and improved business enabling regulatory framework for public service delivery and improved World Bank Doing Business Indicators.

Background information:

The Integrated Planning System (IPS) 2 Project will support the Government of Albania in further strengthening the implementation of the system, which links strategic policy planning with budget planning and public financial management more broadly.

In particular, among others objectives, the project aims to maximize the efficiency of PFM reform by strengthening results focusing on public financial management as well as policy planning, monitoring and evaluation.

Furthermore, public service architecture needs to undergo significant institutional reform in both the public and private sectors. As a result, private business expects modern government services to be of the same quality that they experience in the private sector.