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Corruption and the business climate, five Chambers of Commerce in Tirana demand reform

2023-04-11 21:31:41Biznes SHKRUAR NGA REDAKSIA VOX
Corruption and the business climate, five Chambers of Commerce in Tirana demand
Tirana

In Tirana, five Western and local Chambers of Commerce today expressed their concern about the current business climate, describing it as "ineffective, and as one of the main challenges of entrepreneurship".

The American, German, French, Italian Chambers as well as the Albanian Confindustria seek development strategies on investments in Albania to promote employment, fight against corruption, credibility in public procurement and dialogue with interest groups.

The American Chamber of Commerce (AmCham), the German Chamber of Commerce (DIHA), the Italian Chamber of Commerce, the French Chamber of Commerce and Confindustria Albania published a joint statement on Tuesday, emphasizing that the current business environment in Albania needs improvements considerably.

They called on the Assembly, the government and other public agencies to engage with comprehensive reforms in the economy and investments.

The head of the economic magazine Monitor, Ornela Liperi, says that the joint statement is an alarm bell on the real problems of the economy, that the fact that so many chambers of commerce have come together to list the obstacles unanimously shows that the situation is very worrying.

But, according to her, there is a deep contrast between the way foreign investors see the economy - as an economy with unsustainable growth - and the way the government sees it, which is held back by some figures for economic growth that comes from construction and real estate.

"We have an economy that lies on the facade, because it looks like it is growing, but from the inside it is, not to say rotten, it is a primitive, outdated economy, an economy that does not produce well-being. There are growth figures, but it does not bring well-being. As long as we do not see things from A, making structural reforms in the economy, as long as we do not see corruption punished, the situation will continue the same", says Mrs. Liperi.

Chambers of Commerce with business memberships linked to the US, Germany, Italy and France called for "the adoption of an investment strategy to significantly reduce bureaucratic obstacles", a system for issuing permits and promoting projects based on the amount of investment and the creation of new jobs.

They demanded the implementation of an anti-corruption package, with anti-bribery measures according to OECD standards and transparency of public agencies. "This would significantly increase the confidence of the business community in general and especially of foreign companies that invest in Albania", the statement emphasizes.

The head of the Center for Economic Research, Zef Preçi, says that the business climate in the country has deteriorated during the last decade and this is widely accepted by economic experts, especially in the part related to corruption, institutions, laws, and market regulation. and ensuring competition. Corruption remains, according to him, the common denominator of the statement of the five Chambers of Commerce, because it has reached many levels of the state.

"We are no longer talking about the corruption of the police, the doctor, the teacher, which have spread in the recent past, but now we are talking about laws that are drawn up for individuals and companies, for penetration into the public infrastructure of organized crime and capital originating from criminality . We are now talking about dirty money in construction, in gambling and perhaps in the banking system. These actions raise very big questions about the future of the economic and democratic normality of the country", says Mr. Preçi.

Among the demands of the five Chambers of Commerce is the need for a reform to increase the reliability and results of public procurement.

"Open Contracting Data Standards (Open Contracting Data Standards) must be adopted in the procurement processes, eliminating the "special exceptions" from the procurement of public funds", says their joint statement.

In addition to transparency with journalists and civil society on the procurement process, they requested public consultations with citizens and interest groups during the implementation of laws and government decisions.

Experts claim that Albania continues to be the poorest country in Europe, with the lowest average salary in Europe, but the government does not reflect on business difficulties, does not take the situation seriously, and justifies itself after some numbers, which do not bring real well-being , proposing superficial solutions, and downplaying the mass exodus of the workforce, a major concern for everyone.

Mrs. Liperi of the Monitor magazine says that Albania is following the model of random economic development, with high corruption, and this has brought about the current problematic situation.

"The issues raised are known to everyone. It is well known that Albania needs a new economic model for many years. It is known that the competitive advantage can no longer be the low cost of labor. It is known that corruption is very high. It is known that we need to attract foreign value-added investments. They are all known, but they are not done, because there is a lack of will on the part of the government, or there is complacency from those growth figures, which are only a reflection of what is really happening in the Albanian economy", says Mrs. Liperi.

The Chambers of Commerce demanded the attack on informality in the economy, the non-change of tax laws in periods of less than 4 years, as well as the modernization of the tax system according to international standards.

"This reform will create a more predictable and stable taxation regime, to attract foreign and domestic investments", says the joint statement of the Chambers.

Business organizations proposed that a new National Economic Council support foreign direct investment, serving as a platform for dialogue and cooperation between the public and private sectors, to promote economic development and to create a more favorable investment climate.

"These proposed reforms will create a more favorable business environment in Albania, attract foreign direct investment and facilitate Albania's transition to the EU and international markets," said the joint statement of the Chambers of Commerce.

Mr. Preçi says that the concerns of business circles are related to the lack of development strategies, as well as the non-implementation of those strategies that were drawn up with the help of the international community.

The biggest blow, according to him, was the competitiveness, which has fallen to worrying levels. Likewise, the increase in debt focused on PPP contracts, adds Mr. Preçi, has influenced the fact that the country is less attractive for investments, because investors originating from European and Western countries are leaving and they are being replaced by companies from Turkey. China and Arab countries.

"For a number of reasons, mainly internal, the government has swam on the edge between legality and illegality and now on the agenda are the problems related to development strategies, respecting the legal framework regarding property, with the need for a efficient fight against corruption, as well as with a real and not fake dialogue with the business community", says Mr. Preçi.

International reports mention corruption in Albania as a continuous phenomenon in all branches and levels of government, including public procurement and public-private partnerships.

Government representatives claim that the responsibility of officials accused of corruption is individual before the court, and that the fight against corruption is giving the first results after the reform of the justice system, from which citizens and domestic and international institutions have high expectations./ VOA


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