Successful economic competition in global free markets requires much more than increased productivity and improved quality standards. It requires vision, consistent political will and persistent efforts in both public and private sectors to undertake the necessary actions to enhance competitive advantages.

In the social transition area, health and education sectors have deteriorated over the past decade. The primary health care system is inefficient and inadequate to respond to the needs of the population.

Education is an essential element for sustained economic growth and democratic transformation. There have been significant drops in primary and secondary education enrollment rates and in public expenditures on education as a percentage of GDP. Recent Government of Albania initiatives to increase spending in education and health are laudable, but much more is needed.

In order to achieve stability, prosperity, Albania must overcome the aforementioned problems. But focusing on economic development alone is not sufficient to achieve that goal. Consistent and concerted efforts are needed to establish:

• Functioning democratic structures;
• a free economic system within a solid “rule of law” context; and
• a social system that provides the basic health, education, pension, and environmental needs for its people.

Within that context, the fight against corruption is critical. That is why in the U.S. Government’s overall assistance program fighting corruption and promoting the rule of law is a recurring, cross-cutting element of virtually every activity we support. We are pleased that the Government of Albania has made anti-corruption one of its priorities and has undertaken policy and regulatory reforms to improve the business and investment environment.

As you know, the U.S. Government, through its Millennium Challenge Account Threshold Program is providing 13.8 million dollars to help reduce corruption, strengthen the rule of law, and improve economic freedom in Albania by seeking to improve tax administration, public procurement, and business registration. We are convinced that the success of this two-year program will improve the business environment, increase Albania’s competitiveness, and power economic growth.

This program is complemented by USAID initiatives on economic development, health, democracy and good governance. While we are committed to supporting the transformation of Albania into an economically and socially viable democracy, we can only facilitate the achievement of that objective. The main thrust should come from the joint efforts of the Albanian people and their government.

Government, civil society, and the private business community acting together can accelerate the transformation of Albania. With this must come the recognition that confronting corruption is essential to unlocking the potential and competitiveness of the Albanian economy. It is critical that the business community and civil society actively participate in the fight against corruption. The Government should demonstrate political will in streamlining administrative and fiscal regulations, ensuring transparent and fair enforcement of business regulations, and maintaining a functioning, transparent judicial system. The private sector, on the other hand, should respect the laws, fulfill its fiscal responsibilities, and apply ethical business practices.

We strongly support Albania’s aspirations to become a full member of the Euro-Atlantic community. To achieve success, citizens and government must work together in support of a national vision founded on democratic values, participatory principles, respect for human rights, investment in people, and good governance.

Finally, I would like to commend the Executive Director and staff of the Albanian Center for International Trade for organizing this important conference. I sincerely hope that this conference will succeed in raising awareness of the challenges and opportunities that the Interim SAA offers to Albania. I am equally hopeful it will enhance the determination and the commitment of the Albanian Government and the business community to meet those challenges.

Thank You!

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