Remarks by U.S. Ambassador Marcie B. Ries at the Millennium Challenge Account Threshold Program for Albania (15 September 2006)

Prime Minister Berisha, Honorable Ministers, Distinguished Ladies and Gentlemen.

Nearly two years ago, Albania and seven other countries were selected to submit a proposal to the Millennium Challenge Corporation under the Threshold Country Program.

The Threshold Program is designed to assist countries on the "threshold" of eligibility for the Millennium Challenge Account Compact – countries committed to reforms aimed at improving democratic governance and the eradication of corruption.

Corruption is one of the most pervasive problems in the world. It not only inhibits foreign investment and economic development; it also affects the daily lives of ordinary people: of students trying to get an education; the sick trying to see a doctor; the victim seeking justice; the property owner trying to build a home.

As a Threshold country, Albania has committed itself to defeating corruption in three areas important for the future development of the country as well as for Albanian citizens: tax policy and administration; government procurement; and combating corruption that hinders new businesses from entering the market, by establishing a national business center.

So, you might ask, what exactly will this program do to reduce the possibilities for corruption?

In the area of taxation:

This program will change the way that taxes are collected so that the system is completely predictable, transparent and fair.

Individual and corporate taxpayers will know exactly what they owe and why, to whom they must pay and when.

Tax officials will have special training to assure they make assessments correctly and there will be strict rules about how the money is collected and accounted for.

The second part of the program will mean big changes in the way the government buys equipment and services.

U.S. Embassy Tirana, Albania Ambasada e Sh.B.A. në Tiranë, Shqipëri

Here again, the rules will be published, the process of bidding open and competitive, and the payments handled according to strict rules.

Sellers will know the process is fair and predictable; officials will get special training and will be held responsible for the money they collect. There will be an ombudsmen to oversee the process, someone to whom people can report if they think that something is happening outside the rules.

Finally, they will have access to a "one-stop shop" and before they go, people who want to start a business will know exactly what documents and payments will be required and to whom they must be given.

I want to emphasize something about this: the United States Government is providing support for this program but it was designed by Albanians for Albanians.

We think the program is an excellent one and I encourage all of those involved to seize this opportunity and to make the most of it. The stakes are very high indeed. So, too, are the rewards for success.

Progress made on combating corruption will benefit ordinary people but it will also bring the country closer to its goals of joining NATO and the EU. And there is another possible benefit as well: if the plan is successful, Albania could become eligible for status as a Millennium Challenge Compact country and the much larger bilateral assistance that comes with it.

But simply participating in this Threshold program will not in itself guarantee that Albania will qualify for the greater benefits of the Compact program. Whether Albania reaches a Compact depends on achieving real, measurable results, which in turn depends on Albania’s maintaining a strong and continuous commitment to the project aim of eradicating corruption.

I wish you the best of luck with this endeavor and look forward to seeing its progress.

And now I would like to introduce a key figure in this project, our new USAID Director for Albania Edward Landau. Ted comes to us with numerous years of experience and expertise.

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