The 2nd week assignment is drafted for in the purposes of the international peer-to-peer review and EMDE emerging market in developing economy course offered by the WBG World Bank

1. Albanian in the EMDE-s in Europe
Assignment of the week #2
Hello peers, in a peer-to-peer review,
I am writing two brief paragraphs describing retrieve investment in my country Albania
through the ODA and finance data for my country in the EMDE list for Europe as such.
My country Albania is involved in the list of countries which apply for official
development assistance through the WBIF Western Balkan investment framework,
WBG World bank group, IPA precession assistance program of the EU, multinational
development banks, IFIs international financial institutions, EBRD, and EIB and
technical assistance grants; FDI especially from Germany in foreign direct investments,
and Italy, Greece, and Turkey through loans commercial banks and other funds for
connecting EU like CEF etc
Completion in the assignment, shall, among others, include the following:
1. EMDE country: <ALBANIA>
Resource to use: List of Emerging Markets and Developing Economies
Albania is in the Emerging markets and developing economies list in Europe.
2. Use the link provided to retrieve the most recent year of data for the country you
have selected.
a. Official Development Assistance (ODA): <157,300,000$> (net) <271,900,000$> (gross)
Totaling net receipts Amount at USD <464,300,000$>
Resource to use: Interactive summary charts by aid (ODA) recipients
b. Other International Sources: <90%>
Personal remittances 44%; FDI 34%; Others 12%
Resource to use: Beyond ODA

2. c. Public Finance: <67.3%>
Resource to use: Central government debt, total (% of GDP)
This figure’s reduce public debts against the WBG in 2016 data 80.7 % of
GDP. Supported by the appreciation of the Alb Lek, the gross-public-debt-
to-GDP ratio declined to 67.3% at the end of 2018. The government
successfully placed a EUR 500 million seven-year Eurobond in October
2018. This helped to reduce the still-high annual rollover needs, and
reduce the pressure by government financing on the domestic local-
currency debt market.
d. Tax Revenue: <18.9%> (2017) and <22.2> (2019)
Net revenue gain from new tax measures: 0.28pps of GDP (2019 vs 2018)
Resource to use: Tax revenue (% of GDP)
e. Imports, Exports: <45.5%> (2018) , <31.7%> (2018)
Resource to use: Imports of goods and services (%of GDP), Exports of goods and
services (%of GDP)
f. Foreign Direct Investment: < 1,207,061,764 $> (2018)
Resource to use: Foreign direct investment, net inflows (BoP, current US$)
g. Remittances: <1,458,272.00> at roughly 1.5 mln USD
Resource to use: Personal remittances, received (current US$)
h. Capital Markets: <default> still, HSH (Albanian Railways) incumbent operator 90%
Resource to use: Market capitalization of listed domestic companies (% of GDP)
3. Using the data retrieved above:
a. Description of Albania the country’s main sources of financing in one paragraph.
Adding a chart to support our description.

3. The Country Albania has got its main and substantial source of funds by the EU
institutions through grants, loans and blended portfolio with co-financing the
state budget mainly in VAT and local contribution for LAP etc.
The EU provides the official development assistance in 2016 and 2017 at 86.02%
of total ODA for Albania the EMDE, who seeks for financial contribution from a
variety of donors and IFIs, likewise the EBRD, EIB, WBIF, KfW, etc out of which
German development banks and IFI at 60.2 %; and Sweden 10.89%; Italy 8.97%;
Austria 8.85%; and other countries such as: Switzerland in 22%; USA 20%; Japan
19%; UAE 15%; and Turkey roughly 9%.
b. Identified for Albania the country’s most promising sources of investment and
finance in one paragraph. In the one hand, this may be international private finance,
such as foreign direct investment and remittances. In the other hand, it might be
expanded to tax collection or expanded government borrowing and development
spending.
For Albania the FDI is aiming to increase and tax collection and tax revenue is up
in 2019 the development spending is increased and the size of capital market, but
GoA has continued to borrow from lending instruments and development banks.
4. Since completed, form for peer review is uploaded.
The case of Albania:
Albania is the emerging market country in the developing economy EMDE in Europe as
per official data in publication. Public debt percentage assessed in the GDP is 67.6% in
2019, assessed in the EU COM 2019, Brussels, 11.4.2019 SWD (2019) 166 final, vice
80.7% in 2016 according to the WBG data the last publication.
Tax revenue assessed as % of GDP is 22.2 % according to Economic Reform program
2019, Albania’s economic reform program (ERP) projects economic growth to
accelerate to 4.5% by 2021 based on strong private domestic demand. GDP growth in
2018 was assessed robust at 4.2%. Private demand is assessed and expected to
continue driving economic growth in 2019- 2021, based on greater employment, rising
wages and favorable lending conditions assessed for households.
Private investment activity is assessed as it is projected to pick up significantly in this
period, driven by emerging capacity constraints and favorable financing conditions. Net
exports are assessed and expected to make only a marginal contribution to the
economic expansion. The growth outlook assessed appears optimistic in light of a
worsening external environment, continued low levels of lending to businesses, and
enduring weaknesses in the business environment.

4. The main countries of origin for FDI stock assessed for Albania were Greece,
Switzerland, the Netherlands, Canada and Italy, with the EU accounting for 56% of the
total stock by the end of 2017. Most foreign direct investments are concentrated in the
energy sector and transport infrastructure. Market capitalization of listed domestic
companies (% of GDP) is not shown in the WBG report. However, the implementation of
the main energy projects assessed, namely the hydropower plants on the river Devoll
and the Trans Adriatic Gas Pipeline, slowed further following a peak of activity in the
first half of 2017. HSH the incumbent operator 90% shares of the rail domestic market.
Albania has been assessed for a great potential to attract more FDI notably in the
tourism sector, energy and agriculture, which would contribute to job creation and
economic growth. The exports of goods and services amounted to around 78% of GDP
in 2018 and the overall trade volume has been continuously increasing during the last
years. Foreign direct investment, net inflows (BoP, current US$) Is 1.2 billion $ in 2018.
During 2018 the exports of goods assessed and grew by 13.7% and imports of goods
grew by 2.4% as in the EC assessment of ERP 2019- 2021 and published online and
Personal remittances, received (current US$) are accountable at 1.5 mln $ for the year
2018. Exports of goods and services (The % of GDP) 31.7% in 2018. Imports of goods
and services (% of GDP) Is 45.5% in y. 2018. The ERP program is in line with the
medium Term budgetary framework and the Budget Law of Albania. The Albanian
Railway reform no. 3 is also assessed where I have given my contribution for reporting
monitoring.
Thank you!