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Albania - Initial reports submitted by states parties under articles 16 and 17 of the Covenant [2005] UNCESCRSPR 8; E/1990/5/Add.67 (11 May 2005)

UNITED NATIONS		E
	Economic and Social Council	Distr. GENERAL E/1990/5/Add.67 11 April 2005 Original: ENGLISH

Substantive session of 2005

IMPLEMENTATION OF THE INTERNATIONAL COVENANT ON
ECONOMIC, SOCIAL AND CULTURAL RIGHTS

Initial reports submitted by States parties under
articles 16 and 17 of the Covenant
Addendum

ALBANIA[*]

[5 January 2005]

CONTENTS

Paragraphs Page

Introduction 1 3 3

Article 1 4 9 3

Article 2 10 34 11

Article 3 35 44 14

Article 6 45 100 16

Article 7 101 154 27

Article 8 155 175 38

Article 9 176 226 40

Article 10 227 268 54

Article 11 269 376 61

Article 12 377 505 94

Article 13 506 565 126

Article 14 566 145

Article 15 567 610 145

Introduction

1. The Republic of Albania adhered to the International Covenant on Economic, Social and Cultural Rights with Law No. 7511 of 8 August 1991, proclaimed by the President of the Republic by Decree No. 18 of 13 August 1991. The Covenant was ratified on 4 October 1991 and entered into force with respect to Albania pursuant to article 27, paragraph 2, of the Covenant on 4 January 1992.

2. This report has been compiled by the Ministry of Foreign Affairs on the basis of contributions from the relevant ministries and NGOs through its permanent group of

experts.

3. With slight exceptions, the report contains information on legislation and practices relevant to the Covenant as of 31 December 2003. The information about the later developments will be given in the next periodic report.

Article 1
Right to selfdetermination

4. The right to selfdetermination has been fully implemented in the Republic of Albania. Albania is an independent State and a parliamentary republic. It is a united and undivided State and governance is based on a system of elections that are free, equal, general and periodic. The independence of the State and the integrity of its territory, dignity of the individual, human rights and freedoms, social justice, constitutional order, pluralism, national identity and inheritance, religious coexistence, as well as coexistence with, and understanding of, minorities are the bases of the State, which has the duty of respecting and protecting them.

5. These principles have been embodied in the provisions of the new Constitution

that was approved by the Parliament (Kuvendi) on 21 October 1998, after people’s

referenda.

6. The Republic of Albania submitted the initial report on the implementation of the International Covenant on Civil and Political Rights (CCPR/C/ALB/2004/1) in February 2004; for further details on the right to selfdetermination provided by this article of the Covenant, reference is made to this report.

Disposal of natural resources

7. Article 59 of the Constitution, under social objectives, defines that the State, within its constitutional powers and the means at its disposal, aims to supplement private initiative and responsibility with a healthy and ecologically adequate environment for the present and future generations and rational exploitation of forests, waters, pastures and other natural resources on the basis of the principle of sustainable development.

8. With the view to implementing the principles enshrined in the Constitution, a number of legal acts have been adopted to protect nature and natural resources. Also, several national projects, some of them supported by foreign donors, have been prepared and implemented in the area of protection of nature and its resources.

9. The legal framework in the field of the environment, despite being newly adopted, mainly in the last two years, presents a full panorama of normative acts, legal or sublegal. However, the process of elaboration, improvement and fulfilment of the abovementioned legal framework is ongoing. The legal framework in the area of environment is the

following:

Legal acts in force

(a) Law No. 8934 (dated 5 September 2002), “On environmental protection”, which constitutes the framework law for environmental protection;

(b) Law No. 8897 (dated 16 May 2002), “On protection of air from pollution”, aims to guarantee the right of citizens to live in uncontaminated air, through protecting human health, fauna, flora and the natural and cultural values of the Albanian environment from air pollution. This should be realized through the identification of sources and pollution classification, indicators of air quality, the limitation of air emissions, general obligations and the responsibilities for operators regarding air protection, supplying environmental certificates as regards activities which pollute the air as well as with the necessary administrative and penal measures;

(c) Law No. 8905 (dated 6 June 2002), “On the protection of the marine environment protection from pollution and damage”, which aims to protect the maritime environment of the Republic of Albania from pollution and damage created by human activities in the coastal areas which affect water quality, maritime resources, fauna and flora, and human health, as well as to make difficult the normal development of the activities in this area.

(d) Law No. 8906 (dated 6 June 2002), “On protected areas”, aiming at the preservation, administration, management and sustainable utilization of protected areas and their natural and biological resources, improvement of conditions as regards the development of environmental tourism, information and public education for the profit, directly or indirectly, of the local population and of the private and public sector;

(e) Law No. 8990 (dated 23 January 2003), “On the environmental impact assessment”, the scope of which is to ensure: The general assessment, integrated and in due time of environmental impact, of projects or activities need to be implemented, through prevention and relieving negative impacts on environment; and an open and impartial assessment process, through the participation of environmental nongovernmental organizations, of the project leader as well as of the legal and natural persons being specialized in this field;

(f) Law No. 8977 (dated 12 December 2002), “On the tax system in the Republic of Albania”, in which, for the first time, national taxes have included the following: A carbon tax for gas, benzene, and gasoline, and a tax for plastic packing of liquids (barrels, plastic bottles and plastic boxes of different measures), filled, produced in Albania and being imported for the following products: water, refreshing drink, fruit and vegetable juice, milk and its derivates, edible and lubricant oils and detergents;

(g) Law No. 9010 (dated 13 February 2003), “On environmental management of solid waste”.

Bylaws decisions of the Council of Ministers

(a) Decision of the Council of Ministers No. 103 (dated 31 March 2002) “On environmental monitoring in the Republic of Albania”;

(b) Decision of the Council of Ministers “On environmental report 19992000”;

(c) Decision of the Council of Ministers “On approval of the environmental national action plan”;

(d) Decision of the Council of Ministers “On air emission norms”;

(e) Decision of the Council of Ministers No. 676 (dated 20 December 2002) “On the declaration of the Albanian monuments of nature”;

(f) Decision of the Council of Ministers No. 531 (dated 31 October 2002) “On the declaration of Butrint as a Ramsar area”;

(g) Decision of the Council of Ministers No. 364 (18 July 2002) “On approval of the coastal zone administration plan”;

(h) Decision of the Council of Ministers “On establishment of the environment Institute”;

(i) Decision of the Council of Ministers No. 266 (dated 24 April 2003) “On administrations of protected areas”;

(j) Decision of the Council of Ministers No. 267 (dated 24 April 2003) “On rules of protected and buffer zones”;

(k) Decision of the Council of Ministers No. 268 (dated 24 April 2003) “On specialists certification for the environmental impact assessment and environmental audit”;

(l) Decision of the Council of Ministers “On environmental license documentations and its elements”;

(m) Decision of the Council of Ministers “On temporary norms of air emission”.

Table 1
Database of projects entirely or partly financed by foreign donors
for the protection of natural wealth and resources

Article 2
Prohibition of discrimination

10. A fundamental element of constitutional democracy in Albania is the establishment of specific limitations of the State’s rights over the individual. The second part of the Constitution, which refers to “Fundamental human rights and freedoms”, lists the rights and guarantees of every individual, either Albanian or foreigner, enjoys towards State intervention in his/her private life.

11. Article 18 of the Constitution guarantees that all are equal before law. No one may be unjustly discriminated against for reasons such as gender, race, religion, ethnicity, language, political, religious or philosophical beliefs, economic condition, education, social status, or ancestry. No one may be discriminated against for the reasons mentioned above if reasonable and objective legal grounds do not exist.

12. The fundamental rights and freedoms, and the duties, contemplated in the Constitution for Albanian citizens are also valid for foreigners and Stateless persons in the territory of the Republic of Albania, except for cases when the Constitution specifically attaches the exercise of particular rights and freedoms with Albanian citizenship. The fundamental rights and freedoms and the duties contemplated in this Constitution are valid also for juridical persons so long as they comport with the general purposes of these persons and with the core of these rights, freedoms and duties (art. 16).

13. Pursuant to article 17, the limitation of the rights and freedoms provided for in this Constitution may be established only by law for the public interest or for the protection of the rights of others. A limitation shall be in proportion to the situation that has dictated it. These limitations may not infringe the essence of the rights and freedoms and in no case may exceed the limitations provided for in the European Convention on Human Rights.

14. According to article 39 of the Constitution, the collective expulsion of foreigners is prohibited. The expulsion of individuals is permitted under the conditions specified by law. According to article 40, the foreigners have the right of shelter in Albania in compliance with the provisions of the law.

15. The definition of discrimination is provided in article 9 of the Labour Code, No. 7961, of 12 July 1995, amended by Law No. 8085, of 13 March 1996, and in 2003.

16. Pursuant to the code, discrimination corresponds to any distinction, exclusion or preference grounded on race, colour, sex, age, religion, political conviction, nationality, social origin, family relations, mental or physical disabilities that violates the right of an individual to be equal in employment and treatment.

17. The law “On Preuniversity Education System” broadly reflects the integrity of the nondiscrimination principle, protection of the individual from discrimination, treating them in the context of respecting the provisions, the principles and the standards of international agreements on basic human rights and freedoms in the field of education.

18. This law guarantees the equal right of the citizens of the Republic of Albania to all levels of preuniversity education, despite social situation, nationality, language, sex, religion, political views, health situation and economic level (art. 3) and the right of national minorities to education in the mother tongue, study of their national history and culture (art. 10).

19. Some other Albanian legal acts contain no legal definition of discrimination or definition of direct and indirect discrimination. However, according to the provisions of the Constitution, Criminal Procedural Code and Civil Servant Law, respectively, discrimination is:

• Inequality before the law;

• Unequal rights during criminal proceedings;

• Different rules and procedures for admission in the civil service.

20. Pursuant to the provisions of the Civil Code, article 608, a person who illegally and by his fault causes damage to another person is obliged to recompense the damage caused. Article 625, the person who suffers damage, different by property damage, has the right to claim compensation if he has suffered injury to his health or harm to his honour.

21. According to the law “On innocence, amnesty and rehabilitation of expolitical convicts and persecuted”, amended by Law No. 7660 of 14 January 1993 and the law of 29 June 1993, persons having been found innocent, amnestied and eligible for rehabilitation, are remunerated for damages suffered for the discrimination because of their political convictions and also recompensed for normal living conditions, according to rules approved by special provisions, in conformity with international criteria. They are entitled to have restored or be compensated for previously confiscated properties. Relatives, or legal inheritors of expersecuted persons who are not alive, as well as relatives of persons executed without court decision, or dead persons not sentenced by court are also entitled for compensation due to damages suffered.

22. Pursuant to the provisions on retirement funds, relatives of executed persons and relatives of sentenced persons without court decision, as well as relatives of dead persons in prison or dead persons in prison without court decision, have the right to enjoy retirement allowances (art. 5/d, dh, e).

23. According to the above-mentioned law, ex-political convicted persons are entitled to recompense and pensions from the moment they are entitled, for the duration of their sentence in prisons or labour camps, pursuant to regulations provided by special provisions in conformity with the international criteria. The children of ex-political convicted persons are also entitled to these rights when they attend school, regardless of their age. Relatives of ex-convict political persons are also entitled to recompense for the entire duration of their sentence in prison or in labour camps. When the ex-convicted persons are dead, their relatives are entitled to receive the rest of the pension. They enjoy the right to be compensated or to restore the confiscated properties, pursuant to the relevant legal or by-law provisions.

24. The text of the Covenant was published in 1994 by Albanian Helsinki Committee. The text of the Covenant is also available in the web page of the Ministry of Foreign Affairs. Most educational institutions, State agencies, private companies and organizations have access to the Internet, enabling easy access to international documents, including the Covenant.

Equal treatment for persons with various disabilities, or families with more children

25. The benefit modalities for disability are provided by Law No. 7710, of 18 May 1993 “On social aid and care”, Law No. 8098 of 28 March 1996, “On the status of blind persons” and Law No. 8626, dated 22 June 2000, on the “Status of paraplegic and tetraplegic invalids”, combined with a set of sub-legal acts.

26. In compliance with the above-mentioned legislation, the social care provided by the State through the State Social Service consists in cash and in kind services. The payment for disability in cash is made in two ways, as payment for disability and care. The social care in kind is provided through social-medical services at public, private and daily residential centres.

27. Families with more children, which meet the criteria defined by the respective legal provisions, are entitled to economic aid in cash, while families facing social difficulties are provided with residential institutional services by the state, even if these families do not meet the legal criteria.

28. In 2003, the State Social Service allocated an annual fund consisting of 330,771 leks for the financial support of 129,958 families, who meet the criteria established by law. There are 39,357 families with more than six members benefiting from the economic aid. During 2003, for this reason 116,608 leks were allocated.

29. During 2003, 43,880 disabled persons were provided with financial assistance from the social aid scheme, covered with a fund of 540,368 leks. Every disabled individual has received approximately 7,009 leks on a monthly basis. The institutional network of social care consists of 24 regional public institutions, offering social services and care for approximately 1,038 clients.

Equal treatment of the elderly

30. The State Social Service administers 5 residential centres for the elderly in Tirana, Kavaja, Fier, Gjirokaster and Shkodra, offering services to 265 elderly individuals with various social problems. In addition there are 2 daily polyvalent centres in Saranda and Kamez, frequented by approximately 70 older persons.

31. In total, there are 102 social workers serving in the above-mentioned residential and daily centres throughout the country. The priorities of the strategy on elderly for the future consist in offering social services within communities for all groups that are in need of it, with the purpose of their integration in the community, organizing entertaining activities, providing specialized services, individual services at home, counselling activities for the community and the establishment of new daily centres.

32. Law No. 7961 of 12 July 1995, “Labour Code of the Republic of Albania”, provides for the non-discrimination against persons on the ground of age and gender. The legal provisions on social affairs do not provide any discrimination in benefiting from social services. Pursuant to the relevant provisions, all persons in social-economic difficulty are entitled to social services.

33. Nowadays, social services for the elderly have been significantly consolidated, due to the growing cooperation between the central and local authorities with the local- and foreign-based NGOs. The role of NGOs in the area of social services for the elderly is considered to be very important, especially on the issue of integration of the elderly in community life.

34. With regard to the above, it can be mentioned that, during recent years, there have been established a number of daily centres for the elderly, such as Balashe Centres in Durres and Elbasan, Joshua Centre offering social and health services, and there are also projects on private social services for elderly. The NGOs offering services for elderly are headed by “ASAG”, with the platform “Towards a society for all ages”. Apart from the above-mentioned centres, there are also two residential centres for the elderly (women and men) administered by the association “Missionaries of Charity”.

Article 3
Equality between men and women

35. The principle of equality between men and women is an integral part of the Albanian legal system, laid down in the Constitution and domestic legislation. Article 18 of the Constitution provides that all are equal before the law. No one may be unjustly discriminated against for reasons such as gender, race, religion, ethnicity, language, political, religious or philosophical beliefs, economic condition, education, social status, or ancestry.

36. The Republic of Albania is party to the following international instruments:

• The Convention on the Elimination of All Forms of Discrimination Against Women, ratified with Law No. 7767/1993;

• The Additional Protocol to the Convention, ratified by Law No. 9052 of 17 April 2003 “On the adherence to the Additional Protocol of the Convention on the Elimination of All Forms of Discrimination Against Women”;

• The United Nations Convention Against Transnational Organized Crime, and its Additional Protocol to Prevent, Suppress and Punish Trafficking in Persons, Especially Women and Children;

• The Convention on the Nationality of Married Women, ratified on 27 July 1960;

• The Convention on the Political Rights of Women, ratified on 12 May 1955;

• The Amending Protocol to the Convention on the Prevention of Trafficking of Women and Children, and the Convention on the Prevention of the Traffic in Women of Full Age, ratified on 25 July 1949;

• The International Convention on the Prevention of Trafficking of Women and Children, ratified on 13 October 1924;

• The Convention for the Suppression of the Traffic in Persons and of the Exploitation of the Prostitution of Others, ratified on 6 November 1958, with reservation to article 22, and

• The Final Protocol to the Convention, ratified on 6 November 1958.

Within this framework, the Republic of Albania is also party to a number of ILO conventions.

37. Recently, a number of NGOs in the area of the protection of the rights of women set up a working group, which presented in February 2004 before the Parliament a draft law “On an equal gender society”, also backed by a number of deputies. The purpose of this law is to ensure equal rights for women and men as provided in article 18 of the Constitution of the Republic of Albania, to set out measures to promote equal opportunities among men and women aimed at eliminating direct and indirect discrimination on the grounds of gender in the country’s public life and to set out the responsibilities of the central and local administration for drafting policies aimed at promoting an equal gender society. The law also provides concrete measures towards promoting equal opportunities between sexes, in order to eliminate direct and indirect discrimination. The Albanian Parliament adopted the law on 1 July 2004.

Legal cases

38. The Albanian authorities have no information with regard to judicial cases related to the implementation of articles of the Convention. Regardless of that fact, a short-term study of the Committee on Equal Opportunities will aim at conducting a research on the topic, having taken into consideration the fact that this issue was also one of the recommendations of the CEDAW Committee, after the presentation of the first combined report of Albania on the implementation of CEDAW.

Research on gender issues

39. Currently, research on gender issues is conducted by State agencies or institutions through particular studies or projects on gender issues. The research is mainly focused on specific issues related to women, such as health care, education, labour, etc.

40. At the same time, the Committee on Equal Opportunities carries out different studies on a regular basis with the purpose of gathering information on the real situation, such as two very important studies on rural women, periodical statistical studies, studies on the number of women in leadership, public and political life, analysis of the governmental mechanisms on women, etc.

41. A Gender Institute has been established in the framework of the Social Sciences Faculty of the University of Tirana, and one of the main outputs of the UNDP project “Gender mainstreaming” is the consolidation of this Institute. Apart from the above, some NGOs carry out various projects, which aim at conducting research initiatives on gender issues throughout the country.

National and international cooperation

42. The Committee on Equal Opportunities closely cooperates with central and local governmental institutions, prefectures and municipalities in the implementation of different projects on gender issues. The cooperation tends to raise awareness on the inclusion of sensible gender policies within institutions, the organization of joint activities, common statistical studies based on gender, etc. Due to the lack of sufficient funding from the State budget, the Committee on Equal Opportunities often applies to national and foreign donors for additional funds.

43. During the first three months of 2004 alone, the Committee has organized various activities on women, their rights, problems, etc. Ongoing projects include:

• “Gender mainstreaming in local government”, which foresees four local seminars in Korca, Durrës, Sarandë, Kukës during February-June 2004, with the financial support of the Friedrich Ebert Foundation;

• The UNDP project “Gender mainstreaming”, where the Committee on Equal Opportunities is one of the major partners. The project will last one year, aiming at the establishment of core gender points at the level of central Government.

44. For further details on gender equality in the Republic of Albania and limitation of rights (articles 4 and 5 of the Covenant), see the initial report of Albania (CCPR/C/ALB/2004/1).

Article 6
Right to employment

45. The Republic of Albania became a Member State of the United Nations on 14 December 1955. As a Member State, the Republic of Albania closely observes the provisions of the Universal Declaration of Human Rights that provides, under its article 23, the right of everyone to employment and to freely choose work.

46. The Republic of Albania is party to:

• The ILO Discrimination (Employment and Occupation) Convention, 1958 (No. 111), ratified in 1997;

• The International Convention on the Elimination of All Forms of Racial Discrimination;

• The Convention on the Elimination of All Forms of Discrimination against Women;

• The International Labour Organization Forced Labour Convention, 1930 (No. 29), ratified on 25 June 1957;

• The ILO Abolition of Forced Labour Convention, 1957 (No. 105), ratified on 27 February 1997;

• The ILO Night Work of Young Persons (Industry) Convention, 1919 (No. 6), ratified on 17 March 1932.

47. The Republic of Albania has ratified the European Convention on Human Rights, which prohibits forced labour or mandatory work. On 24 October 2002, the Parliament of the Republic ratified the Revised European Social Charter, articles 1-8, 11, 19-26, 28 and 29.

Levels and tendencies of employment

48. According to statistical data from the Ministry of Labour and Social Affairs (Department on Employment Policies), the employment situation is as follows:

• Total employees in December 2002 - 395,278 persons;

• Total employees in March 2003 - 396,983 persons, of which 189,739 were in the public and 207,199 persons in the private sector. Apart from these, 526,347 persons were employed in the agricultural sector.

49. The highest level of employment has been registered in Tirana (approximately 179,000 persons), whilst in other parts of the country, compared to the capital, the level of employment is relatively low. An example of this can be found in the fact that the number of employees in Durres is approximately 25,000, in Elbasan approximately 20,000, etc.

Analysis of employment pursuant to the “Strategy of employment and vocational formation”

50. Until 1997 the activity of employment offices mainly consisted in showing evidence of new job opportunities created as a result of the economic development of the regions and in genuine interventions in favour of job-seekers. Even though during these periods there are approximately 16,000 new jobs per year, job search and intervention were more spontaneous than part of any planned objective.

51. After 1997, employment offices became implementers of new active programmes in the labour market, such as public work programmes during 1998-1999 and the employment programme starting from 1999. During this period, 47,297 persons were employed part-time through public work programmes, equal to 11,000 annual jobs. During the same period a 30 per cent lower number of new jobs was noted by the Employment Offices. This was due to the fact that the work of these offices was mainly focused in creating new jobs through active programmes, neglecting in a way the evidence of new jobs created by the regional economic development.

52. From an analysis of employment dynamics for 2002, it was shown that 5,700 persons found a job within the given calendar year. Most (60 per cent) consisted of jobs generated as a result of business development, and 35 per cent, or 2,000 vacancies, through the intermediary role carried out by employment offices. The above figures are certainly reflected in the decreasing unemployment rate. This indicator was 13.1 per cent in September 2002, or 0.4 per cent lower than the registered rate at the end of 2001.

Unemployment

53. From the analysis carried out by the Strategy of Employment and Vocational Formation, a very high level of unemployment was noted during 1990-1993, with its peak in 1993, with up to 467,000 unemployed receiving jobless benefits. Fifty per cent of unemployed persons were females. This fact is closely related to the closure, restructuring, and privatization of many enterprises where women were massively employed.

54. After 1993, the rate of unemployment decreases significantly. During 1996 there were 158,000 unemployed registered at the Employment Offices throughout the country. This was mainly the result of the exclusion of the rural population from the unemployment scheme, the adjustment of another part of the unemployed to the newly established reality, etc. From the data from the Employment Offices, every month during this period some 1,900 employed registered, outside the total number of unemployed.

55. The highest rate of unemployment between 1993-1996 was registered in the central part of the country, comprising 14 per cent of the workforce. This was due to the massive internal immigration from rural towards urban areas.

56. These fluctuations were mainly headed towards the cities of Tirana, Durres and their suburbs. As a result of the collapse of several pyramid schemes, in 1997-1998 the level of unemployment increased significantly.

57. To illustrate this fact, it can be mentioned that, in 1998, the number of registered unemployed reached 235,000 persons, or 16.6 per cent of the total workforce. The level of unemployment in 1998 was even higher in comparison with 1997. In order to cope with the situation, during 1998-1999 a set of measures were adopted, mainly legislative and administrative measures, comprising the establishment of the National Employment Service (NES).

58. For the first time, after 1999 active programmes were applied to employment, such as public works and employment programmes. Due to these measures, the unemployment rate started to decrease.

59. During 1999 the number of unemployed persons was reduced by 7,660 job-seekers. Positive results of these programmes were reflected in significant decreases of the number of the unemployed, which in the year 2000 reached 215,000 persons, whilst in 2001 this figure was 180,000, or 13.5 per cent of the overall workforce.

60. Carrying out an analysis of the unemployment rate by comparing this phenomena in various districts, it can be noted that Durres, Fier, Gjirokastra, Tirana and Vlora have lower rates of employment, whilst districts of Kucova, Lac, Kukes, Mirdita, Puka, Tropoja and Shkodra, which are mostly situated in the north-eastern part of the country have higher rates of employment than the country’s average. However, this rate was slightly lower than a year ago (2002).

61. In the north-eastern part of the country, the percentage of unemployment is the highest, 18.4 per cent. This has been due to several factors, among which the most important are the relatively limited possibilities for development, the low level of business development and the structure of overall business, dominated mainly by small and medium enterprises. Other factors that took place in those regions were the tendencies to transfer businesses from that area and social problems after the agrarian reform, which constrained many individuals to be registered as job-seekers.

62. Referring to statistical data, during 2002 the number of job-seekers was 172,000, or 13 per cent of the total active forces. The supply of active services in the labour market, focused mainly on facilitating employment and the implementation of employment programmes, contributed to the decrease of the number of registered job-seekers at the Employment Offices throughout the country.

Table 2
Number of unemployed during 1990-2001

Most affected persons, groups and regions with regard to unemployment

63. Persons and groups most affected by unemployment:

• Women over 35 years old;

• Disabled persons;

• Trafficked women;

• Persons who benefit from social schemes;

• Persons becoming jobless due to privatization, reform and restructuring of State enterprises or institutions;

• Young unemployed mothers;

• Previously trafficked young girls;

• Divorced women facing economic problems;

• Immigrants returning in the country with economic problems;

• Recent graduates not yet familiar with the labour market;

• Ex-prisoners;

• Women with children;

• Persons under 18 years;

• The long-term unemployed;

• Persons from families under the poverty level.

The most problematic regions with regard to unemployment are Kucova, 28.6 per cent; Laci, 45.5 per cent; Kukesi, 28.9 per cent; Mirdita, 26.2 per cent; Puka, 34.1 per cent; Tropoja, 42 per cent; and Shkodra, 28.8 per cent.

Employment offices and their role

64. On the basis of information from the Employment Offices in the country, the number of employed persons in the republic by the end of May 2003 was 398,392, out of which 190,439 were employed in the State sector while 207,953 persons were employed in the private nonagriculture sector.

65. Employment in the State sector is concentrated mainly in education, 20 per cent, in the health-care system, 13 per cent, in the gas and power sector, 10 per cent, hostelry, 10 per cent, etc. At the same time, in the private sector employment is concentred in commerce, 28 per cent, construction, 17 per cent, the processing industry, 16 per cent, hostelry and tourism, 13 per cent, etc.

66. By the end of May 2002, 166,126 job-seekers were registered, 12.54 per cent of the overall workforce. In May 2002 the highest percentage of unemployed was registered in the region of Shkodra, 21 per cent, Kukes, 20 per cent, and Lezha, 22.1 per cent, while the lowest percentage was registered in the regions of Vlora, Tirana, Gjirokastra and Durres. From the above numbers of registered job-seekers, 47 per cent were females while 44 per cent were heads of families and breadwinners.

67. With regard to the age structure, the largest percentage (50 per cent) of job-seekers is older than 45 years. This is due to the fact that the labour market seeks young professionals, trained and qualified. This older group of persons (50-plus) represents the most vulnerable group that needs support through special programmes of employment and formation, in order to facilitate their integration in the labour market.

68. These findings are confirmed by the fact that 52 per cent of the total numbers of jobseekers have completed only an eight-year education, while only 2 per cent of those have graduated from a faculty. These data make more difficult the Employment Office’s efforts towards the integration of job-seekers in the labour market. This has been deemed to be one of the principal reasons for the appearance of so-called long-term job-seekers, persons seeking a job for more than one year. In percentage, they represent 68 per cent of the total. The other part seems to be in continuous movement.

69. From the data of the Local Employment Offices, every month approximately 3,600 jobseekers are registered: 40 per cent of this number is generated from job cuts, 35 per cent from families benefiting economic aid, 3 per cent from newly graduated students and 22 per cent due to other reasons.

70. Meanwhile, approximately 5,000 persons leave Employment Office schemes every month, 15 per cent of them because they have found a job, 40 per cent no longer interested in being assisted by these offices, 3 per cent to take a training course, and the other part are subject to internal or external demographic movements, etc. At the end of April 2003 there were 141,053 unemployed persons benefiting from economic aid and jobless benefits, according to particular decisions of the Council of Ministers.

71. The employment of this category of individuals is very difficult as a result of the limited opportunities the Employment Offices have in offering suitable jobs, and even when found, certain jobs are shunned because of the low salary, unsatisfying working conditions, or unsuitable working status. Due to the above reasons, job-seekers prefer State support, satisfying their needs by working part-time, informally, etc.

Employment of foreigners

72. Foreign workers in Albania, including foreign investors who intend to work in Albania, must apply for a work permit in accordance with Law No. 7939 “On migration” and subsequently obtain a residency permit. The work permit (which is valid for one year and is renewable) must be applied for at least one month before the commencement of employment. There are three main types of work permits:

• One for foreign investors who plan to invest in Albania;

• Self-employed persons who limit their activity to a specific geographical area;

• Work permit for seasonal foreign workers.

73. A work permit application is made with the Emigration Department of the Ministry of Labour and Social Affairs. The following documents must be presented to the above authorities in order to obtain a work permit:

• A written request;

• Where the applicant is an employee, a report from the employer on its activity in Albania; alternatively, where the applicant is a self-employed foreign investor, a notarized copy of the court decision registering the applicant as either a physical person or as a shareholder of an Albanian company;

• A valid passport or a certified copy of the same;

• A valid visa for Albania;

• The professional certification of the applicant;

• Where the applicant is an employee, a signed employment contract;

• A document demonstrating voluntary participation in the social security scheme;

• Certification from the competent authorities of the applicant’s home country on the existence or lack of a criminal record;

• A medical certificate;

• Five passport-sized photographs;

• A non-refundable application fee.

74. Following the approval of the work permit application, the Ministry of Labour and Social Affairs forwards the relevant materials to the Ministry of Public Order for issuance of a residency permit.

Employment promotion

75. The fundamental measures undertaken by the Government of Albania comprise active and passive policies for the promotion of employment.

76. One of the first programmes implemented in this regard by the Employment Offices was the programme of jobless benefits. This programme constitutes part of labour market policies, which provide financial benefits to the recently unemployed. Its main objectives are: (a) to boost the incomes of the unemployed, (b) to support actively the beneficiaries of jobless benefits in order to help them find work as soon as possible.

77. The active policies pursued and implemented by the Employment Offices consist of employment services, employment promotion programmes and vocational training.

78. The employment services aim at serving as a basic source for overall information on the labour market and its situation. The information they accumulate comprises detailed data on available job opportunities and possible candidates. At the same time, it assists various candidates to choose their career and other candidates to refocus their perspectives for their career. These services also offer information on the opportunity of training, and serve as one of the main sources for recruitment on the basis of available vacancies offered by the employers. Furthermore, these services represent an important source of information on labour market development and the formulation and implementation of relevant policies for the labour market.

79. Employment promotion represents one of the most active programmes; it affects employment demand through providing transitory employment that directly reflects unemployment reduction. Through this programme, the Employment Offices can objectively and truly intervene for the promotion and support of the generation of vacancies, through active cooperation with employers, directly financing part of wages and mandatory insurance contributions for the employers and their vocational training and formation. This programme first started to be implemented during 1999, in the framework of governmental policies focused in active measures for the reduction of unemployment, which at that time reached 17.1 per cent. The programme was deemed to be successful, given the fact that during 1999-2001 alone there were 29,000 new jobs, thus contributing to the reduction of the unemployment percentage to 13 per cent at the end of 2000, or 4 per cent lower in comparison with 1999.

80. Vocational training aims at professional training of unemployed persons, making possible the concordance of their profession with labour market requirements. The Employment Offices guide unemployed persons to the appropriate profession with regard to the labour market requirements. The professional training system consists of the public network (eight public centres), the private and NGO network, as well.

81. The Ministry of Labour and Social Affairs, through the National Service of Employment, carries out some principal policies to assist without discrimination everybody in need of a job. These policies are:

• Employment promotion programmes, starting from 1999 and concluded in 2003;

• Employment intervention, on which basis during the first five months of 2003 alone, there were 2,623 genuine interventions, of which 389 were in the public and 2,235 in the private sector. Apart from the figures above, there were also 5,689 other jobs found with the intervention of the Employment Offices, due to the economic development of the country;

• The vocational training programme, on which basis during the first five months of 2003, 3,477 trainees were certified in 9 public vocational training centres, of which 2,180 unemployed persons and 3,416 females. Referring to the subject of the courses it can be noted that 1,896 trainees were awarded certificates in foreign languages, 839 in computer proficiency, 289 in tailoring, and 164 in secretarial courses.

82. The increase of institutional capacities and vocational training levels are carried out through the public and private system and the system itself is influenced by the market requirements.

Technical and vocational training

83. Technical and vocational training is carried out by two separate systems that operate in parallel, public and private training. If the public system until now has appeared basically in the shape of the vocational training centres, the private system is characterized by a much more liberal spirit, due to an open licensing policy in the NGO sector.

84. At present, there are eight centres for vocational training, operating in Shkoder, Tirana, Durres, Elbasan, Korce and Tepelena. On the other hand, with the adoption of the recent law “On vocational education and training in the Republic of Albania”, it intends to reorganize the network of public institutions of vocational formation centres, in order to achieve two basic objectives:

• Satisfaction of labour market requirements by providing qualified individuals;

• Increase of cooperation with private businesses in the area of vocational training and counselling towards meeting business requirements.

85. Public vocational training centres organize short-term courses on various professions and specializations, such as foreign languages, computer and secretarial skills, vehicle maintenance, cosmetics, sewing, electro-domestic adjustments, shoemaking, hydraulics, radio/television repair, soldering, etc.

86. From the statistics, it can be concluded that the number of trainees in these centres have been increasing, even though the budgetary funds allocated for this purpose have not experienced any increase. The same can be said of the number of trainees in the private system of vocational training, a fact that clearly indicates the increasing market requirements for trained individuals in different professions during a short period of time.

87. Furthermore, the vocational training system tends to grow in two ways, first in a horizontal extension, and also in broadening the choice of courses it currently offers. As a nearterm objective, the reconstruction of centres in Vlora, Shkodra, Elbasan, Gjirokastra and Lezha can be mentioned.

88. Regarding the increasing needs of the labour market, the setting up of new courses in priority economic areas such as tourism, agro-business, agro-tourism, construction and handicrafts, is in the planning phase.

89. With regard to vocational training, their funding through the state budget has been carried out in two ways:

• Firstly, through funding the vocational centres of formation, based on the number of trainees (unemployed persons);

• Secondly, through funding the legal entities that offer vocational formation, in cases when after termination of the training it is guaranteed the employment of at least 20 per cent of the participants, or in cases when employers recruit unemployed persons in order to train them through the working process.

90. Regardless of the different legal basis, it is considered that the programmes on vocational training and employment promotion are closely and essentially interrelated.

91. There are mainly two ways of recruiting the participants (trainees) in the public vocational training centres:

• Through Employment Offices, which offer as trainees the unemployed persons registered;

• Independently, other persons from these schemes who might require vocational formation, due to changes in occupation requirements.

92. The intensification of activities within the public institutions of vocational training, the enhancement of their competencies, their decentralization, as well as the opportunity of establishing discretionary relations with private businesses, are considered essential in increasing the need for vocational training, and in increasing the human resources capacity.

Difficulties faced in the fulfilment of employment objectives

93. The following can be considered as the most frequent encountered difficulties in achieving the employment objectives:

• The impossibility of founding the National Employment Fund, as laid down by Law No. 7995 of 20 September 1995 “For the encouragement of employment”. This law provides that the Fund would have had different financial sources, among which the most important would be the State budget, the social insurance fund, donations, etc. It was estimated that the establishing of the Fund would have brought to the fundraising for active employment programmes, consequently reducing the unemployment;

• Another difficulty faced during this period has been the tendency of reducing the State budget assistance intended for the employment encouragement programmes.

94. There are no data on members belonging to national, ethno-linguistic, religious and other minorities trained within the vocational training centres in Albania, due to the fact that the Ministry of Labour and Social Affairs considers that the collection of these statistics would have a discriminatory character.

95. Referring to articles 16 and 18 of the Constitution, which provide equal legal status of Albanian citizens, foreigners and individuals without citizenship, there has not been noted any discrimination in the area of vocational training. The registration of trainees in these centres requires the documents as provided by the law “On the civil status”, thus it never requires data on race, colour, religion or national origin.

International cooperation

96. In the framework of international assistance, there have been some assistance programmes in the area of labour market, as follows:

• A project of the World Bank has been implemented during the recent years and its objective was the short-term assessment of the labour market;

• Another project of the World Bank had as its objective the introduction of a labour market information system;

• Furthermore, enormous assistance to the improvement of labour market assessment has been implemented through the Phare project VET 95. This project made possible the review and compilation of a guideline on the registration of unemployed persons at the Local Employment Offices, thus improving the release of reliable statistics. This technique was implemented primarily in 12 Employment Offices based in prefectures, extending it in the whole territory of the country, with the intention of unifying this technique;

• One of the components of the Phare project VET was the support for vocational education and formation. Thus, the project provided support, assistance, curricula and didactic equipments for the Vocational Formation Centre No. 4 in Tirana;

• A USAID-funded project made possible the establishment of an Albanian network of vocational training centres.

97. Apart from public vocational training, this service is offered also by national and foreign NGOs, and non-public institutions. Although the public institutions offer dignitary services, it cannot be assumed that the system can currently satisfy in quality and quantity all the needs for vocational training within the labour market. Their achievements in the labour market are generally a consequence of the enormous need the market generates for knowledge that can be easily identified, such as secretarial and computer skills, cosmetics, foreign languages, etc.

98. Public and private structures and institutions of formation generally encounter a lack of funding for their activities, expressed in the lack of sufficient funds to set up and maintain training capacities, and also in the lack of fee-paying capacities of the population expected to be trained (through private courses).

99. The issues related to the reform of the vocational training system can be divided into issues relating to property matters, dependence, guidance and financing of existing centres of vocational training, as well as the establishment of a funding outline, which will support the vocational training.

100. The solution to the above problems must first of all satisfy the enormous need of the Albanian labour market for vocational training, both in quality and quantity. At the same time the remedy should not require enormous and inert investments, but it has to take advantage of human resources, logistics and existing facility infrastructure. The remedy should be able to attract potential financial sponsors, be they central or local authorities, international programmes or agencies, and must be also flexible and adaptable.

Article 7
Right to just and favourable working conditions

101. The Republic of Albania has ratified the following International Labour Organization (ILO) Conventions:

• The Minimum Wage Convention, No. 138 (1973), ratified on 16 February 1998;

• The Equal Remuneration Convention, No. 100 (1951), ratified on 3 June 3 1957;

• The Labour Inspection (Agriculture) Convention, No. 129 (1969);

• The Occupational Safety and Health Convention, No. 154 (1981).

With Law No. 8185 of 23 January 1997, the Republic of Albania acceded to the ILO Labour Inspection Convention, No. 81 (1947), the Workers’ Representatives Convention No. 135 (1971) and the Rural Workers’ Organizations Convention No. 141 (1975). No report has been so far submitted to the ILO’s respective bodies on the implementation of the above Conventions.

102. Article 55 of the Constitution provides that citizens enjoy in an equal manner the right to health care from the State. The State, within its constitutional powers and the means at its disposal, aims to supplement private initiative and responsibility with employment under suitable conditions for all persons who are able to work (art. 59).

103. The observation on the legal requirements in employment relations and working standards and conditions is carried out by the Labour Inspectorate. The main objectives of Law No. 7986, dated 13 September 1995, “On the Labour Inspectorate”, are to assure the implementation of legal labour provisions by employers and their employees.

Wages

104. The level of wages and their delineation are provided by Law No. 8487, dated 13 May 1999, “On competencies of wage determination”, and amended by Law No. 8935 of 12 September 2002. In compliance with the law, the Parliament, the Council of Ministers, Ministries, central independent institutions, local government bodies, State enterprises, and other juridical or physical entities have competencies in defining the wage levels.

105. Within the budgetary State sector, wage levels are determined by State organs, according to competencies provided by the law, while the Council of Ministers defines the minimal and maximal wages in the non-budgetary sectors. In the case of independent institutions, wages are determined by their managerial bodies.

106. Generally, the wages are fixed by comparing the functions, but currently the Ministry of Labour and Social Affairs is working on some initiatives for the implementation of an evaluation method that would primarily take into account an evaluation of the work position.

Minimum wage

107. Pursuant to Law No. 8487, dated 13 May 1999, “On competencies for work wages classification” and Law No. 8935, dated 12 September 2002, “On some amendments to Law No. 8487”, the Council of Ministers, with the proposal of Minister of Labour and Social Affairs, approved:

• The minimum monthly wage, which is considered obligatory to be implemented by any natural and juridical person, native or foreigner;

• The wage’s structure for employees of the public central administration;

• The number of categories, the wage’s ceiling and its premium based on categories, for the employees of public administration not covered by Law No. 8549, dated 11 November 1999, “On the status of civil servants”;

• The rate of wage indexes, according to the changes expected in the consumer price indexes, by the beginning of any year, and the rules for its implementation.

108. Law No. 7961, of 12 July 1995, amended by Law No. 8085, of 13 March 1996, “Labour Code of the Republic of Albania”, in article 111 provides that the wage cannot be lower than the minimum wage established by the decision of the Council of Ministers. The minimum wage is established based on:

(a) The Economic factors, requirements of economic development, the decrease of unemployment, and production growth;

(b) Needs of the employees and their families, having regard to the overall standard of living, incomes from social insurance and standard of living of different social groups.

109. Decisions of the Council of Ministers related to wages include:

• The decision of the Council of Ministers, No. 424 of 11 June 2002, “On some amendments to Council of Ministers Decision No. 726, dated 21 December 2000, ‘On wages of the budget institution employees’ ”, provided a general increase of wages by the amount of 8 per cent. This decision has extended its retroactive effect since 1 July 2001;

• The decision of the Council of Ministers No. 378, dated 14 July 2000, which amended the decision of Council of Ministers No. 393, dated 3 September 1992, (abolished by the decision of the Council of Ministers No. 726, dated 21 December 2000), provided an average increase of the wages of budget institution’s employees by the amount of 10 per cent;

• The decision of the Council of Ministers No. 214, dated 28 March 1998, “On some amendments to decision of the Council of Ministers No. 345, dated 10 August 1992, ‘On reward of employee’s work’ ”, set out in the point 1, that the minimum base wage become 5,800 lek, and its financial effects start since 1 April 1998. In the same decision, (point 1/b), has been provided that in the State enterprise and in the nonbudget and partly non-budget State institutions, the average wage will increase up to 20 per cent, plus compensations;

• The decision of the Council of Ministers No. 423 dated 11 June 2001, “On the classification of the average monthly wage”, has clearly defined that the minimum base wage for the employees all over the country is 7,580 leks. In addition, the abovementioned decision abolished the decision of Council of Ministers No. 24, dated 14 July 2000, “On the increase of the minimum wage”, which forecast a minimum wage of 7,018 leks;

• The decision of the Council of Ministers No. 382, dated 14 July 2000, “On the increase of the unemployment payment level” forecast, in point 1, that the unemployment payment level in the country become 3,100 leks;

• The decision of the Council of Ministers No. 551, dated 7 November 2002, “On function classifications and grouping of local government units for wage effects as well as for classification of the wage ceiling of local government unit employees”, abolished part of the decision No. 726, with regard to the local government units. The wage for high school graduates is 9,000 lek, the addition for seniority is 2 per cent after every work year up to 25 years and is counted in the group wage. Point 15 of above-mentioned decision provided that the wage level of employees who have functions in the civil service, but don’t have higher education, are classified to a maximum ceiling up to 25,000 leks. Point 16 sets out that the wages of other employees who are not civil servants of local government units are defined by the relevant decision of the Council of Ministers to a maximum ceiling up to 20,000 lek. This decision took effect on 1 January 2003.

110. Law No. 8983 of 20 December 2002, “On the State budget for the year 2003”, provides in article 2 that the minimum wage, for the purposes of the payment of social and health insurance contributions until the increase of these wages, is 9,403 lek per month. After an increase, the Council of Ministers defines new wages. Every year wages increase according to real financial opportunities, pursuant to the estimate of the State budget, and priority is given to the minimum wage. Thus, the increase in minimum wages is proportionally greater than the variation of the index for consumer prices.

111. A study conducted during 2002 ascertained the living minimum wage per capita, the minimum for an employee and the minimum for a family of four members. The study served as a tool for drawing up wage policies in general, and for the determination of the minimum wage countrywide. As an outcome of this study, the living minimum for an employee was calculated to be 13,404 leks per month.

112. The minimum wages in different branches of the economy are defined by collective agreements between social partners. A special role for the definition of the minimum wage has been assigned to the National Labour Council (NLC), established pursuant to article 200 of the Labour Code of the Republic of Albania, due to the fact that one of the most important commissions within the NLC structure is the Wage Commission. The National Labour Council is composed of 25 members (office-holders) and 25 candidates, of whom 10 office-holders and 10 candidates are representatives of employers, 10 office-holders and 10 candidates are representatives of employees, and 10 are representatives of the Government, both as officeholders and candidates.

113. The provisions on the minimum wage are binding. Thus, article 111/1 of the Labour Code provides that, when the employer applies wages lower than those stipulated, he is subject to fines equal to 30 monthly minimum wages. The lawsuits against persons residing in the territory of the Republic are brought before the court of the place where the defendant has its domicile or residence. The Labour Inspectorate is the competent authority, which supervises the implementation of rules provided by the Labour Code with regard to the protection of employees.

Classification and trend of the wage levels

114. Classification of wages is based on Law No. 8487, dated 13 May 1999, amended by Law No. 8935, dated 12 September 2002, “On competencies in classification of work wages”. According to this law, the competencies for classification of work wages are given to the Assembly, Council of Ministers, ministries, central institutions, local governments units, State enterprise and the other juridical and physical persons, domestic and foreigner.

115. In the State budget sector, the wages are classified by the State’s structures in compliance with the competencies stipulated by law, whereas in the non-State budget sector, the minimum and maximum wage is classified by the Council of Ministers. For the other institutions, it is under the competencies of their managerial structures.

116. The main means of wage classification is comparison of functions. The wage level is closely related to the possibilities of the State budget and the consumer price’s index increase.

117. The minimum wage scale is classified by a decision of the Council of Ministers, grounded in article 5 of Law No. 8487, dated 13 May 1999. This is obligatory for every juridical and physical person, native and foreigner. The minimum wage is being defined by collective bargaining through the partners, and is not lower than the minimum wage scale in the country.

118. The wage is a very important element of the labour market and, as such, in the course of the last 10 years continuing changes have occurred. Until the end of 1989, the wage was considered the only source of population’s income. Until 1990 the wage system was unique, unchangeable and defined by the State. This system was based on compensation according to the quantity and quality of work.

119. The implementation of a very complex programme for restructuring and reform of the Albanian economy started at the moment when the country inherited a very high budget deficit and, on the other hand, domestic production was going down. In these conditions, the wage was a very important element of monetary policy and a very important factor with high social sensitivity that should be adapted to the new conditions.

120. The first increase of wages occurred in the course of 1991, when the competencies for defining and controlling them in enterprises were liberalized. This was accompanied with negative consequences, because it did not increase production. The new wage system marked the beginning of a differentiated system among the wages for qualified and non-qualified work.

121. By the end of 1993, the ratio between the lowest wage and the highest was 1 to 4. Based on the development programmes of the economy, during the period 1992-1994, it was determined that the wages of State sector employees should be reviewed twice a year according to the consumer price index. For the first time, apart from quantitative improvement of the wage’s level, a new element was added, namely, compensation for food costs and later for fuel and electric power, which was conditioned on the full liberalization of their prices. All these changes achieved by the end of 1994 brought about certain outcomes in the labour market. The average monthly wage of an employee in the State sector by the end of 1994 had increased eight times in comparison with the year 1990. The official minimum wage by the end of 1994 increased approximately 3.5 times in comparison with the year 1990. The average wage of a manager was approximately twice as high as that of his subordinate.

122. The average monthly wage (1994) of an employee in the budgetary sector increased by 60 per cent in comparison with the previous year. The average wage for the period 19901994 increased 8 times, while prices of consumer goods have increased approximately 10 times.

123. During 1997, there was no change in the level of wages. By the end of 1997 the average salary appeared to be 17 times higher than in 1990, while prices were 19 times higher, the real wage in 1997 decreased approximately 17 per cent. This decrease had a direct influence in lowering the standard of living of the population.

124. During 1998 there was an increase of approximately 20 per cent in the average salary in the State sector. By the end of 1998, wages and prices had increased approximately 20 times compared with those in 1990.

125. In 1999, average prices increased approximately 10 per cent, in 2000, 17.7 per cent, in 2001, 15.1 per cent and in 2002, 10.5 per cent. Consumer prices from 1999 until 2003 have almost been stabilized with a 1 to 4.3 per cent increase. Thus, by the end of 1999, the real wage showed a 10 per cent increase; in 2000 increased by 17.7 per cent while in 2001 it rose 11.6 per cent.

126. In addition to the measures to liberalize wages, the Government has been attentive to the minimum wage by increasing it continuously and by influencing the reduction of the number of employees receiving the minimum wage. In comparison with the situation in 1999, the minimum wage has been increased approximately 24 times, while the number of those who are paid with a minimum wage has been reduced rapidly. At present (2003), only 3 per cent of the State sector is paid the minimum wage. In 2002, the minimum wage at the national level has been increased 25 per cent, while wages in general increased approximately 10.5 per cent.

127. Apart from increasing the minimum wage, priority was given to increasing wages for preuniversity-education employees by about 12 per cent and by differentiating those of middle education, which were increased with 13-17 per cent. Health system employees have benefited as well. Following the overall growth of wages of 12 per cent, 3,269 employees with higher education working in the University Hospital Centre, district hospitals and paediatric service benefited an increase of wages by 26 per cent.

128. In the area of wage policy, especially in the non-budgetary and private sectors, there has been marked a good cooperation between employees and employers, aiming at reaching a social understanding, in order to make wages a crucial element to foster economic activities and reduce poverty. This is realized through the mediation offered by the Ministry of Labour and Social Affairs to employees and employers and through the functioning of the Wage Commission in the National Labour Council.

Equal remuneration for work of equal value

129. The legal basis for the wage system in Albania consists mainly of the following legal acts:

• The Labour Code of the Republic of Albania;

• The law “On competencies of wage determination”;

• The law “On the civil servant’s status”, as well as other by-laws adopted for the implementation of the above acts.

130. The entire legislation given above basically is grounded on the ILO Conventions Nos. 26, 52, 95 and Convention No. 100 (1951) concerning equal remuneration.

131. Moreover, article 115 of the Labour Code expressly imposes an “equal pay for equal work” obligation. Nevertheless, wage differences based on unprejudiced criteria, such as the quality and quantity of work, vocational qualifications and years of work are not considered as discriminatory, regardless of gender.

132. The wages of employees in budgetary institutions are determined by a decision of the Council of Ministers. The most important sub-legal acts in this framework are the following decisions of the Council of Ministers:

• Decision No. 726 of 21 December 2000 “On the structure and wage levels in the institutions of central administration of the Presidency, the Parliament and the Council of Ministers”;

• Decision of the Council of Ministers “On wages of the employees in budgetary institutions”, and other decisions on particular structures, such as the Armed Forces, the State Police, etc.

133. With regard to joint stock companies, commercial companies and privately owned companies, wages are determined by collective or individual agreement, fully in compliance with the minimum and maximum limits provided by the decision of the Council of Ministers “On the minimum wage countrywide” and the decision “On the employee’s remuneration”.

134. Based on the above, the decisions of the Council of Ministers determine the wage levels considering mainly the working positions, job descriptions, the requirements for a particular vacancy, and never gender differences.

135. The State supervises the wages in non-budgetary State companies (where the State has possession of up to 100 per cent of the capital) and in other privately owned companies through the constant supervision carried out by the State Labour Inspectorate. During the supervision of the individual employment contracts, there has not been noted any case of discrimination related to the minimum wage, or different remuneration for work of equal value. The inspectorate has not so far recorded any complaint related to discrimination either toward women or men. Pursuant to the law on the State Labour Inspectorate, the Inspectorate is entitled to take administrative measures on each entity, be it a State owned or private entity.

136. The State is actively cooperating with employers and employees, especially in the nonbudgetary and private sector, in order to achieve social understanding in formulating the wage policies, and to really evaluate the role of wages as an important element in economic development and poverty reduction. This cooperation has been implemented through the intermediation between employers and employees carried out by the Ministry of Labour and Social Affairs, and also through the measures taken by the Wage Commission within the National Labour Council.

Table 3
Statistics on wages for the reporting period
Average monthly wage in public sector and official
minimum wage 1990-2001 (in leks)

Source: Statistical Yearbook, 1993-2001.

Table 4
Wage increases in the public sector (percentage)

Source: Statistical Yearbook, 1993-2001.

Table 5
Average monthly wage for an employee, according to main
groups of professions in the public sector (in leks)

Source: Statistical Yearbook, 1993-2001.

Table 6
Average monthly wage and salary per employee
(Public and private sector 1997, 1998) (in leks)

Source: Annual Business Structural Survey 1997, 1998, INSTAT.

Safe and healthy working conditions

137. Chapter VIII of the Labour Code of the Republic of Albania on “Health safety and protection”, articles 39-75, provides very clearly the conditions of work that should be guaranteed, in order to protect the employee’s health.

138. This chapter also contains provisions on the responsibility of the employer, the qualification level of the employee, the workplace, the work environment, the level of noise and vibrations, dangerous engines, the risk of fires, protection from atmospheric conditions, personal equipment, sanitary installation, first aid, etc.

139. Protection in the workplace excludes positions related to the work of an adviser, and also cases where work is done voluntarily, on a neighbourly basis or within the family.

Labour accidents

140. During the previous five years (1998-2003) there have been approximately 68 to 73 accidents in the workplace per year, and a total of 57 cases followed by fatal consequences (death). Generally these accidents have occurred due to the non-observance of the codes on technical safety by employees and the negligence of employers in providing their employees with the necessary collective and individual safety facilities.

141. Statistics show that every year there are 400-450 employees hospitalized, mostly diagnosed with work-related lung and blood illnesses. However, it has to be mentioned that these statistics comprise also chronic cases from the previous years, due to the fact that, starting in 1991, the Ministry of Health did not distinguish between the new and previous cases.

142. From an analysis of the accidents, it appears that most of them take place during the summer, when temperatures within the working premises are significantly higher. From the analysis, it also appears that accidents are significantly more frequent among untrained and unqualified personnel, reasons that sometimes have brought very grave consequences. Labour inspectors have an important role in raising awareness of the necessity of health safety and protection through constant inspections at the workplace. The negligence of these measures by the employer and the employee increases the possibility of accidents in the workplace. From the statistics it can be concluded that the greatest number of serious accidents have occurred on construction sites, with as principal cause a fall.

143. The production sector can be considered another “risky” sector. Typical among the accidents are fingers cut, various fractures and eyes being poked out. During the previous five years alone, there were 392 cases of grave accidents, resulting in temporary loss of working capability. There have repeatedly been occupation diseases related to work at shoe-production enterprises. Due to the fact that most of them represent previous cases and frequent change of job positions, within or outside the enterprise, there is not any precise number related to this category.

Working time, rest time and leave

144. Articles 76 to 97 of the Labour Code provide for the daily working hours, working time and daily breaks, leave, night work, weekly working hours, weekly leave and holidays, annual leave and other leaves.

Holidays

145. Employees are entitled to the following local Albanian holidays each calendar year:

• New Year’s Day;

• Lesser Bairam/Id Al Fitr (end of Ramadan);

• Greater Bajram (Feast of the Sacrifice);

• Easter (Catholic and Orthodox);

• Summer day (14 March);

• Nevruz (Religious (bektashi) holiday);

• May Day;

• Mother Teresa Day;

• Independence Day;

• Liberation Day;

• Christmas.

146. When a holiday falls on a weekend (Friday or Saturday), the holiday will be observed, as is the custom in Albania. Should a holiday occur during an employee’s vacation, the day will be charged as a holiday. No holiday will be paid while the employee is on unpaid leave. In the event that the employee works on a holiday, the employee will be entitled to take another day of the week as a rest period, or be entitled to additional compensation at the rate of 1.25 times the regular rate for the hours worked on the holiday.

147. Regular part-time employees are eligible for a portion of the holiday, based on the ratio of hours per week worked to the standard workweek in Albania. For example, an employee working halftime would be entitled to half pay for the holiday.

Annual leave and vacation

148. Workers shall be entitled to an annual paid leave of a minimum of 28 days. Any unused leave remaining at the end of the calendar year shall be paid out, through payroll, no later than three months after the close of the calendar year. Employee’s supervisor must approve leave in advance.

Other leave

149. The employee shall be entitled to take exceptional paid leave of five days on marriage or in the event of the death of a family member. The employee shall be entitled to take unpaid exceptional leave of 10 days in the event of sickness of a family member, verified by a medical report.

150. Pregnant women are excluded from work 35 days before the predicted date of delivery, and 42 days after delivery; the first period shall be of 60 days when the women is pregnant with the second child. In case the pregnant woman already has at least one child, the period before the birth becomes 60 days. Pregnant women, during their pregnancy leave, benefit from social security payments only if they have paid at least 12 months of contributions.

151. The Albanian Parliament has recently passed some amendments to the Labour Code. Law No. 9125, dated 29 July 2003, “On some amendments to the Labour Code”, is effective as of 3 September 2003.

152. The following articles of the code, concerning the issues above have been amended as follows:

• Article 78 stipulates that daily working hours may not exceed eight hours. It is determined by a decision of the Council of Ministers in the collective or individual employment contract, within the limits of the maximum weekly working hours;

• Article 83 stipulates that weekly working hours may not exceed 40 hours. It is determined by a decision of the Council of Ministers in the collective or individual employment contract;

• Article 86 stipulates that when the official holiday falls on the weekend (Saturday and Sunday), the holiday is postponed to the next working day;

• Article 87 stipulates that work performed on the weekend or during official holidays is compensated by an additional payment of not less than 25 per cent or by a holiday equal to the duration of the work accomplished plus an additional holiday not less than 25 per cent of the duration of his working hours. This holiday is taken a week before or after the work is performed;

• Article 92 stipulates that the duration of annual leave is not less than four calendar weeks;

• Article 93 stipulates that annual leave should be given within the working year or within the first quarter of the successive year, but in any case should not be less than one calendar week without interruption;

• Articles 104 and 105 stipulate that pregnant women must not work 35 days before, and 42 days after, giving birth. When the woman is pregnant with more than one baby, the first period becomes 60 days. After the 42-day period after giving birth, the woman decides whether to work or to benefit from the social security scheme.

153. Besides the above, there also exist some factors influencing the thorough implementation of the rights provided by article 7 of the present Covenant, such as uncontrolled migration from rural areas, the low level of awareness of social partners, low economic levels, etc.

International cooperation

154. For the implementation of the rights provided by this article, in the framework of international cooperation, the Ministry of Labour and Social Affairs is currently cooperating with ILO on the “Elimination of child labour” project.

Article 8
Right to organize in trade unions

155. The Republic of Albania is a party to:

• The International Covenant on Civil and Political Rights;

• The ILO Convention on the Freedom of Association and Protection of the Right to Organize, No. 87 (1948), ratified in 1957;

• The ILO Convention on the Right to Organise and Collective Bargaining, No. 98 (1949), ratified in 1957;

• The ILO Convention on Labour Relations (Public Service), No. 151 (1978);

In 2003 the Ministry of Labour and Social Affairs presented reports on the implementation of ILO Conventions 87, 98 and 131.

156. According to articles 50 and 51 of the Constitution, employees have the right to join trade unions for the protection of their labour interests. The right to labour-related strikes is guaranteed. Limitations for special categories of employees may be determined by law for the guarantee of the necessary public utilities.

157. Activities of trade unions in Albania are regulated by the Labour Code adopted in 1995 (amended in 1996 and 2003). The requirements for the establishment of trade unions are provided in articles 177 to 179 of the Labour Code. Albania has very liberal principles for setting up trade unions and the required number of members is very low - only 20 persons.

158. There are some restrictions on setting up trade unions, in particular in the defence forces and the police. There are no restrictions on the membership and formation of trade unions on grounds of race, nationality, citizenship or language.

159. For setting up a trade union, the statute of each trade union organization must be signed by at least 20 persons. The statute must define the name of the organization, the place of its residence, its goals, conditions of acceptance and exclusion of its members, rights and obligations of the members, composition and functioning of the executive bodies, duration of its mandate, participation in federations or confederations and the measures to be taken with its dissolution.

160. The trade unions, federations and confederations shall submit their statutes to the Tirana Court of First Instance for their recognition as a legal entity. The organization becomes a legal entity 60 days after the submission of the documentation to the Tirana Court of First Instance, with exception for the cases when the court decides on the contrary (art. 178).

161. The court may not add other requirements, and especially may not impose conditions not in compliance with the fundamental human rights guaranteed by the Constitution and article 181 of the Labour Code.

162. Trade unions are social organizations, constituted as voluntary associations of employees, aiming at the protection and representation of the economic, social and professional rights and interests of the members. The organizations of employers or employees have the right to constitute federations and confederations and to be part of them. Any organization, federation or confederation has the right to be a member of international organizations of employers or employees. Pensioners and the unemployed may be registered in employee organizations (art. 176).

163. With Law No. 9125, dated 29 July 2003, the above article changes as follows:

• Trade unions and employers’ associations are professional organizations. The professional organizations of employers and employees are social, independent organizations established as voluntary unions, whose objective is the protection and representation of the rights and economic, social and professional interests of their members.

164. Organizations of employers or employees have the right to constitute federations, confederations and be part of them. The voluntary association of two or more professional associations constitutes a federation. The voluntary association of two or more federations constitutes a confederation. Any organization, federation or confederation has the right to be a member of international organizations of employers or employees.

165. A trade union is freely organized and administered and drafts its own programme. Every trade union shall act in compliance with the law. Discrimination towards trade union representatives is forbidden (art. 181). Any employees’ organization recognized as a legal entity may address the court for the protection of the interests of its members and the fulfilment of the collective contracts (art. 182).

166. The intervention of State authorities during the establishment, activity or administration of the trade union is forbidden as is the intervention of the employers’ association (art. 184).

167. The State authority does not interfere in cases of limitations of rights provided by article 182 of this Code, except for violations of law. The trade union may direct the court to prevent any interference or threat (art. 185).

168. The closing of a trade union can be done in accordance with the provisions of the statute. On request of the Minister of Labour or any other authority determined by the law, the Tirana District Court can decide the closing of a trade union in the event of evident violations of the law (art. 187).

169. At present in Albania there are two main confederations of trade unions, the Union of Independent Trade Unions of Albania (BSPSH) and the Confederation of the Trade Unions of Albania (KSSH), with approximately 90,000 members each.

170. Both KSSH and BSPSH, as well as their member organizations, have established extensive international relations with trade union organizations in Europe and in other countries. KSSH is a member of the International Confederation of Free Trade Unions (ICFTU).

171. Further details on the right to organize collectively and the statistics on trade unions in Albania can be found in the initial report (CCPR/C/ALB/2004/1) on the implementation of the International Covenant on Civil and Political Rights that Albania submitted in February 2004.

Right to collective bargaining

172. The Ministry of Labour and Social Affairs promotes collective bargaining. To this end, the Ministry has prepared drafts for various collective agreements, and specialists in labour relations of the Ministry of Labour and Social Affairs attend negotiations on a regular basis and sign collective agreements between interested parties.

Right to strike

173. According to the Constitution and the Labour Code, the right to strike is guaranteed. Trade unions have the right to strike for the solution of their social and economic requests in compliance with the provisions of the Labour Code. Participation in strikes is voluntary. No one can be obliged to participate in a strike against his will.

174. The right to strike may be exercised only after the conclusion of intermediation and conciliation efforts, with the purpose of concluding labour agreements.

175. Further details, information and statistics on the right to join and establish trade unions, trade unions in Albania and right to strike can be found in the initial report cited above.

Article 9
Right to social insurance

176. Albania is not a party to ILO Conventions No. 102, 121, 128, 130 or 168. As a result, no report on the implementation of the above conventions has been submitted to the ILO structures.

177. In Albania, the following social insurance schemes have been implemented:

• Sickness insurance;

• Maternity insurance;

• Occupational-disease and workplace accident insurance;

• Pensions and disability insurance, and insurance of pensions for dependent persons of the insured party who dies;

• Unemployment insurance.

Social insurance

178. The overall social insurance system consists of:

• Mandatory insurance;

• Voluntary insurance;

• Supplementary insurance; and

• Special State pensions.

179. The Albanian system of social insurance provides coverage only to employed persons. The scheme is funded by contributions by employed persons, employers and the self-employed, representing as such a “pay-as-you-go” approach, which guarantees the perennity of the scheme. It guarantees benefits for persons whose incomes are interrupted because of disease, old age, invalidity, unemployment, an accident at work, pregnancy, or the death of the family breadwinner.

Social security benefits awarded because of disease

180. The objectives are coverage of the temporary loss of working capability, as a consequence of a disease in general, and not a consequence due to work accident or vocational disease. All insured persons whose temporary loss of working capability can be proved by a sick leave, are entitled to benefits under this security scheme. Social security benefits paid because of disease start 15 days after the inability to work has occurred. The benefits under this branch are received in cash.

Unemployment benefits

181. Unemployment benefits comprise a base amount sufficient to ensure a minimum living standard, which is annually established by a decision of the Council of Ministers, taking into account the annual index of prices. All persons insured for at least 12 months are entitled to receive these benefits, if they can prove their unemployment. They have no other benefits from the social security services, except partial disability benefit.

Maternity benefits

182. The period of benefits for maternity leave is 365 days, including a minimum of 35 days before delivery and 42 days after delivery (art. 104, Labour Code). These benefits are in cash. Apart from pregnancy, one of the preconditions to be entitled to receive it is having contributed to the social insurance scheme for at least 12 months. An employed woman receives during maternity leave 80 per cent of the average daily payment for the period before birth and 50 per cent of the average daily payment for 150 days after birth, based on the average of her previous year’s salary. Maternity-leave benefits for employed women are equal to her pension benefits. For each child born, the benefits comprise 50 per cent of the minimum monthly wage.

Social insurance benefits due to accidents at work

183. Persons eligible for benefits under this insurance scheme are those who have accidents at work and vocational sicknesses. The benefits under this scheme comprise:

• Medical care and supplements for rehabilitation;

• Benefits in the case of disability;

• Compensation for reasonable damages; and

• Benefits in the case of death.

184. In the case of permanent disability, the amount comprises 100 per cent coverage for 12 months, calculated on the average daily payment for the last 3 years, and 80 per cent of the average daily payment for the last 3 years, in case of partial disability.

Old-age pension, disability and family benefits

185. Pursuant to Albanian legal provisions, women are entitled to their full pension at the age of 60 and men at 65, provided they have been insured for 35 years and do not perform any economic activity. Those who have been insured for more than 20 years and are older than 35 are eligible to receive a partial pension.

186. All persons who become disabled because of serious mutilations or bodily harm (attested by the Medical Commission Responsible for the Determination of the Incapacity for Work) during the insurance period are entitled to a disability pension, except for cases of accidents at work and vocational sickness.

187. The provisions on social insurance provide also for a partial disability pension, assuming that the disabled person can work in special working conditions. This pension amounts to half of the full disability pension.

188. A person is eligible for a family pension after it is proved that he was maintained by the person who died, within the calendar year after the insurance termination, provided that the deceased was receiving a retirement pension or had fulfilled the requirements for a disability or oldage pension.

Mandatory insurance

189. Mandatory insurance in Albania is based on contributions paid by the employer, the selfemployed worker or an employee. The employee has to be insured for temporary disability due to sickness, pregnancy, old age or invalidity, loss of a family carer, workplace accidents, workrelated diseases and unemployment.

190. The employer and the self-employed worker have to be insured for maternity leave, old age, invalidity and loss of family carer. Mandatory social insurance is provided by the amended Law No. 7703, dated 11 May 1993.

191. Due to objective reasons, voluntary payment of contributions for benefits from the mandatory social insurance scheme is permitted. This is done based on article 3 of the Law No. 7703, dated 11 May 1993, and Regulation No. 9, dated 21 October 1994, “On voluntary insurance in ISI (Institution of Social Insurance)”. For the management of the mandatory social insurance scheme in June 1992, a decision of the Council of Ministers established the Institution of Social Insurance.

Percentage and types of contributions

Employers’ and employees’ contributions

192. The social insurance contribution of 38.5 per cent is divided between the employer and employee pursuant to the type of insurance, as follows: in case of insurance for sickness, maternity leave, invalidity, family and old-age pensions, the employer pays 23.5 per cent of the gross amount listed in the payroll, whilst the employee pays 9.5 per cent of his gross salary. The above percentages are applied to the following salaries, minimum salary 10,343 lek and maximum salary 51,000 lek. (The above salaries are in force since 1 July 2003. The Council of Ministers, every year for social insurance contribution reasons, defines by decision the minimum and maximum salary.)

193. The employer is liable to pay contributions of 0.5 per cent of the payroll for employment accidents and occupational diseases and 5 per cent of payroll in case of unemployment.

Sickness insurance branch

194. Pursuant to the Albanian law on social insurance, the sickness benefit shall be awarded to the insured persons provided they are temporarily incapable to work due to general sickness and not an employment accident or occupational disease. The main condition for being awarded a sickness benefit is that the person to be insured must be medically certified as being temporarily incapable of work due to general sickness. The waiting period is 15 days. The benefits are in cash.

195. The benefit period lasts not more than six months from the date of the payment. The benefit period may be exceptionally extended for another three months, provided that a medical experts’ committee certifies that the insured person concerned shall recover in that period and not be declared as disabled. The benefit period for seasonal and temporary workers, who have been employed at least 3 months in the last 12 months, shall be up to 75 days. Another benefit is income compensation in the case of job place changing. Only employed persons are entitled to the above benefit.

196. According to the Albanian legislation, the waiting period is 14 days. Thus, within the first 14 days (as provided in the Labour Code as well) the employer is liable to pay the benefit to the employee and, after that period, the employee regularly receives benefits from social security.

Unemployment benefits

197. The Albanian legislation provides the following conditions for the unemployment benefit branch:

• The interested person must have contributed to social insurance for at least 12 months;

• The person must be certified by the competent office as being unemployed and willing to undergo training and retraining; and

• Has no other benefit by the social insurance, except the partial disability pension.

198. The unemployment benefit shall be a flat rate, of an amount to provide at least for a minimum living standard, annually indexed by the decision of the Council of Ministers with regard to the price index of selected commodities. The flat-rate-base benefit shall be decided by the Council of Ministers.

199. The beneficiary with dependent children of up to 15 years of age shall receive a flat-rate family supplement, payable in respect of each dependent child, at the level of 5 per cent of the unemployment benefit, subject to a maximum of 20 per cent. If one of the parents is employed or entitled to a full pension, such a supplement should be reduced by 50 per cent. The unemployment benefit shall be payable up to 12 months.

200. According to our legal provisions, the protected person is the employed one. Pursuant to the Albanian legislation, the person is eligible to receive the benefit from the first day of unemployment for up to 12 months.

Maternity

201. According to the Albanian law on social insurance, maternity benefits shall be payable to a woman provided that she has acquired 12 months of social insurance. The law provides income compensation in case of her changing her job.

Employment accidents

202. Insured persons who suffer an employment accident or workplace disease are entitled to benefits, regardless of work level. The benefit includes: (a) additional medical care and rehabilitation; (b) benefits in case of incapacity; (c) compensation for reasonable damages; and (d) benefits in case of death.

203. In case of temporary incapacity, the employee shall be awarded a benefit equal to 100 per cent of average daily wage for the last three years, payable for a benefit period of up to 12 months. The benefit in respect of permanent working disability, incurring at least 67 per cent of working capacity lost, shall be equal to 80 per cent of the average wage for the last three years. The benefit in respect of partial permanent disability to work, incurring at least a 33 per cent loss of working capacity, shall equal 80 per cent of the average wage of the last

three years. This depends upon the degree of the working capacity lost, but not less than 50 per cent. The benefit in respect of minor permanent incapacity, of less than 33 per cent but more than 10 per cent, shall be a lump sum paid at once.

204. The person who supplies the funeral expenses for an insured person who died due to an employment accident or occupational disease shall be fully reimbursed. When an insured person dies, his dependants shall be entitled to a survivor’s pension.

Old-age, disability and family pensions

205. Oldage pension: According to the Albanian law, insured persons shall be eligible for a full basic pension, provided they have reached the age of 65 for men and 60 for women, paid 35 years of insurance, and retired from economic activity. A person who has acquired less than 35, but more than 20, years of insurance shall be awarded a partial pension when reaching 65 for men and 60 for women.

206. Disability pension: The disabled person being insured (as per the decision of medical experts’ committee) shall receive a disability pension, provided he has acquired a minimum insurance period and becomes disabled for reasons other than employment accidents or occupational diseases. He is eligible for the above pension if he becomes disabled for economic activity, or has suffered severe physical harm (including the blind). The minimum insurance period to qualify for a disability pension shall be equal to half the period that the disability age of the insured person exceeds 20 years of age.

207. Partial disability pension shall be granted when the person has acquired the minimum insurance period as defined above, but the difference with the full disability pension consists in the fact that the person becomes disabled to perform last employment, but may work under special working conditions. The partial disability pension shall be 50 per cent of the full disability pension, and shall be calculated in the same manner as a full disability pension.

208. When the beneficiary of an invalidity pension becomes physically or mentally helpless and needs constant care of another person (as decided by the medical experts’ committee), he shall be awarded an allowance of 15 per cent of his assessment basis. If the disabled person has dependent children up to 15 years of age, he shall receive a family supplement payable at 5 per cent of the basic pension rate, in respect of each dependent child, subject to a maximum of 20 per cent. On reaching pensionable age, the disability pensioner shall have the right to opt for an old-age pension, if that shall be more favourable for him.

209. Persons dependent upon an insured person who dies shall be eligible for a family pension, provided that the deceased insured person, within the calendar year after the insurance period has been finished, was or would have been entitled to an old-age or disability pension. The eligible survivors shall include the widow, provided she is caring for a dependent child up to 8 years old of the deceased person, is disabled, or is 50 years of age. A widower, provided he is caring for a dependent child of a deceased person of up to 8 years old, must be disabled or 60 years of age. The orphan, when shown to be dependent upon the deceased, must be under 18 years of age; or under 25, if studying; or disabled before these ages. Parents are eligible when they have reached the age of 65, or when they are disabled. Grandparents and

stepfathers or stepmothers are eligible when they do not have other persons liable to take care of them, if it can be proved they shared the same household with the deceased for at least one year before the death, have reached the age of 65, or are disabled.

210. Grandchildren are eligible if they were dependent upon the deceased and shared a household with him. In such a case, they shall be treated as orphans. The widow and widower shall lose their right to a survivor’s pension on marriage. The family pension shall be a portion of the pension the deceased person had or would have had and shall be:

(a) 50 per cent for a widow or widower; and

(b) 25 per cent for an orphan and other eligible dependants.

211. The pension for orphans is 50 per cent, when the pension established by item (a) of this article is not received. If there is more then one orphan eligible for a family pension, the pension for each of them shall not exceed 25 per cent.

212. The amount of a family pension should not exceed the amount of the pension that the deceased had or would have received. The orphan shall have the right to family pension even if the surviving parent is employed or otherwise economically active, or receives a pension as of his own right.

213. In such a case, the total pension awarded to orphans or other eligible persons shall be 25 per cent of the pension the deceased was entitled to, but shall not exceed 50 per cent of the pension. The orphan who lost both parents shall receive an orphan’s pension in respect of each of them.

214. A grant shall be awarded to the insured person or pensioner in case of death of a dependent member of his family, or to the person who took care of the deceased insured person and paid the funeral expenses.

215. The death grant shall be equal to one month’s basic old-age pension. The payment of the benefit shall be made through the Albanian Post Office S.A. The payment of contributions shall be made through second-tier banks.

216. The employer, through the Social Securities Fund, shall pay the short-term benefits either for sickness or maternity. Since 1 July 2003 the monthly flat-rate base benefit has been 6,728 leks in urban areas and 2,590 leks in rural areas. The remuneration for giving birth to a child is 50 per cent of the minimum monthly salary. Since 1 July 2003 the monthly salary of 10,343 leks is applicable, thus the remuneration is one half of the above salary. The monthly payment for unemployment is 3,300 leks.

Reforms carried out under various schemes

217. The Social Insurance Institute is currently implementing the social security strategy that is intended to last until 2020. The institute has already started with the implementation of the strategy, consisting mainly in implementing various reforms on the reduction of the retirement age, reduction of contribution period, gradual equalization of rural and urban contributions and the increase of minimum/maximum contribution rates from one third to one fifth.

218. In compliance with the National Strategy on Social and Economic Development (NSSED), during 2003 the activities of the Ministry of Labour and Social Affairs with regard to social security were mainly focused on strengthening the managerial capacities with the objective of achieving the sustainability of the system, aiming not only at the functionality of the scheme on the basis of the contributions, but also at the implementation of comprehensive social policies.

219. Accordingly, the following are considered as major challenges for the future:

• Improvement of the dependency rate, mainly through intensifying efforts to increase the number of contributors in the scheme;

• Reduction of possible evasion of contributions and minimization of budgetary subventions;

• Implementation of the third phase of the reform with the intention of further tightening differences between rural and urban pensions;

• Improvement of the system by reforming the legal basis of social insurance, at the same time promoting research.

220. There have been significant results in implementing the reform in this area, as follows:

• The number of urban contributors in the scheme during 2003 increased to 16,815 persons (5.5 per cent). During the first six months of 2003 alone, the number of urban contributors increased to approximately 11,000 persons;

• On 1 July 2002 urban pensions increased by 10 per cent, invalidity pensions by 20 per cent and rural pensions by 25 per cent. During 2004 another increase of pensions is foreseen, 10 per cent for urban and 20 per cent for rural pensions;

• During 2002, 22,000 persons benefited from the reform tightening the amount of rural and urban pensions. During 2004 it is foreseen that 95,000 persons will benefit, costing the State budget approximately 172 million leks;

• In the framework of this reform, several decisions, regulations and also law amendments have been adopted, or are about to be adopted;

• There have been 16 seminars organized and a number of international activities in the framework of the reform during 2003. Some of the above activities have encouraged international cooperation, bringing to negotiation and signature several protocols of understanding with foreign counterparts;

• During the reform, several research projects on the insurance system in the country and possible approaches for its improvement were carried out;

• There have been also some efforts to encourage the establishment of Private Insurance Institutes;

• During 2003 the deficit of the urban pensions scheme as a percentage of GDP was reduced to 0.25 from 0.32 per cent, while the coefficient of the dependence of the system significantly improved. In this context, the proportion of the number of contributors to the working population has improved. This ratio was estimated to be 0.26 in 2000, 0.31 in 2001 and 0.38 in 2002. The reform has until now included also the establishment and opening of new insurance agencies, in order to improve the service.

Table 7
Percentages of the national budget spent for
social insurance purposes

221. The Social Insurance budget for 2003 consisted of 37.56 billion leks under the mandatory social insurance and 2.91 billion leks under the supplementary insurance scheme. During the same year the health insurance budget consisted of 4.55 billion leks.

222. The possible imbalance in the social and health insurance funds is covered by the warranty fund of the Social Insurance Institute and the reserve fund of the Health Care Insurance Institute (HCII). Statistics of the Ministry of Labour and Social Affairs for 2003 indicate that:

• Expenditures for the social fund corresponded to 6 per cent of GDP, in comparison with 4.7 per cent of GDP during 2002;

• The funds allocated for social protection and insurance during 2003 consisted of 27 per cent of the State budget;

• Transfers from the State budget intended for social insurance correspond to 1.7 per cent of GDP;

• The income from social insurance contributions comprises up to 4.3 per cent

of GDP.

223. Legislation on private social insurance was enacted in 1995, however, no private insurance company operates in the market. With regard to beneficiaries, it can cover every insured person, regardless of membership in any social group.

224. In the framework of systematic measures taken by the Government, pensions have been increased every year, or even twice a year since 1992. The amount of pension increases has varied from year to year, being applied more to small pensions, invalidity or family pensions. During the reporting period, rural pensions have been increasing more than urban pensions.

Statistics on State pensions

Table 8
Contributors to the social insurance scheme
(average number, 1994-1999)

Table 9
Contributory wages (1994-1999)
(leks per month)

Table 10
Urban pensions in the social insurance scheme (1994-1999)

Table 11
Rural pensions in the social insurance scheme (1994-1999)

Table 12
Old-age pension amount (1994-1999)
(leks per month)

Table 13
Disabled that benefit from social protection and total fund
of disability benefit (1995-1999)

Table 14
Unemployment benefits (1992-1999)
(in leks)

Table 15
Contribution rate by social insurance (1994-1999)
(in percentage rate)

Table 16
Average monthly pension during 2002
(in leks)

Source: Social Insurance Institute.

Table 17
Minimum and maximum monthly retirement pension, 2002

Source: Social Insurance Institute.

Table 18
Invalidity and survivor State pensions due to accidents at work
and occupational diseases (year 2002-end of period)

Source: Social Insurance Institute.

International cooperation

225. Albanian insurance legislation is relatively recent and, as such, its structure has been subject to the most noted insurance principles, being constantly assisted during its compilation and implementation by international organizations in the area. Bringing Albanian insurance legislation closer to the European standards represents a constant obligation of the Government of Albania. The frequent amendments and improvements of the law on social insurance aim at including more persons in the scheme, to increase the level and variety of benefits and bring legal conditions within present standards.

226. Assistance from foreign donors has been always present in the area of social insurance. Some of these projects are shown below:

• The “Social Insurance Component” project was implemented during 1993-1998, under the megaproject “Development of the Social Protection Network” of the World Bank, with funding of US$ 4.1 million;

• A donation from the Government of Italy assisted in formulating a 30-year strategy on the development of the social insurance system in Albania. The cooperation has been considered particularly successful, bringing visible progress in training capacities in the area of pensions and legislative reform of the social insurance system in the country. Within the framework of the project some issues have been discussed related to the delays in paying contributions, organization and restructuring of the Social Insurance Institute and raising public awareness with regard to the pension system;

• The Council of Europe funded in recent years a regional project on the approximation of the social insurance legislation with that of the European Union.

Article 10
Right to marriage and family

227. The Republic of Albania is a party to:

• The International Covenant on Civil and Political Rights;

• The Convention on the Rights of the Child;

• The Convention on the Elimination of All Forms of Discrimination against Women;

• The ILO Minimum Age Convention No. 138 (1973), ratified in 1998.

The Republic of Albania has submitted reports on the implementation of the above international instruments, with exception of the ILO Minimum Age Convention.

228. According to the Constitution, article 53, everyone has the right to get married and have a family, and marriage and the family enjoy special protection from the State. The entering into and dissolution of marriage are regulated by the provisions of the Family Code (Law No. 9062, 8 May 2003) and by the provisions of the Civil Code.

229. According to article 1 of the Family Code, marriage as legal cohabitation is founded on the moral and juridical equality of spouses, love, reciprocal respect and understanding, as grounds of family unity. Marriage and the family enjoy special protection from the State.

Rights of the child

230. Under Albanian legislation, a child means any human being, born alive, who is below the age of 18, when he acquires the full juridical capacity to act. After birth, the child automatically enjoys this legal capacity, which accompanies him for the rest of his life. With regard to the protection of children’s rights before they are born, the Civil Code (art. 2) stipulates that legal capacity starts with the birth of the person, and ends with his death. The child, when born alive, enjoys legal capacity from the moment of conception.

231. Article 320 of the Civil Code likewise provides for the protection of the rights of a child to inherit, with rights to inheritance being acquired as of the moment he has been conceived. This provision states in concrete terms that a person has the capacity to inherit who, at the time of the inheritance, is alive, or who has been conceived before the death of the person leaving the inheritance, and is born alive.

232. From the moment of his birth until the age of 14, the child has only legal capacity. From the age of 14 to the age of 18, a child has partial legal capacity to act. The minor who has attained the age of 14 may perform legal transactions only with the prior approval of his legal representative. Nevertheless, he may participate in social organizations, dispose of the earnings from his work, deposit his savings, and make these deposits himself. Under the provisions of the Civil Code, the procedure for the creation of associations is not made conditional on age. This means that children are also entitled to being organized into associations fitting their interests.

233. A minor who has not attained the age of 14 does not have the capacity to act. He may perform legal transactions that fit his age, as well as legal transactions that bring benefits without compensation. The legal representative performs all the other legal transactions on his behalf. Under family law, any female and male who have attained the age of 18 are entitled to marry. The district court may permit their marriage before 18 only for important reasons. A child finishes obligatory education at the age of 14 or 15, depending on the age when he started school.

234. Under articles 98 and 99 of the Labour Code, children are admitted for employment at the minimum age of 16. Children aged 14 to 18 may be employed to do light work during school vacations. The Council of Ministers defines light work and establishes the working hours.

235. Under article 100 of the Labour Code, only adults may be employed in difficult work or work that is potentially hazardous to one’s health and personality. The Council of Ministers defines difficult or hazardous work.

236. Under Law No. 7527, dated 2 November 1991, “On military service”, male citizens may enlist for military service as soon as they attain the age of 18.

237. Under the Civil Procedure Code (art. 356), children may give testimony to court after they attain the age of 16. According to article 6 of the Family Code, in every proceeding with respect to children, they have the right to be heard, commensurate with their age and ability to understand things.

238. A minor’s request to be heard during various proceedings cannot be rejected, unless there are important reasons. In every procedure with respect to minors, the presence of a psychologist is obligatory, in order to evaluate the child’s claims in accordance with his mental development and social situation.

239. A child faces criminal responsibility for criminal offences after he attains the age of 14, and for criminal transgressions after he reaches the age of 16. For minors who, at the time they committed the criminal offence, were below the age of 18, imprisonment sentence cannot exceed half of the term of punishment that the law provides for adults (art. 51 of the Criminal Code).

Right to enter into marriage and limitation of this right

240. According to the Constitution, article 53, everyone has the right to get married and to have a family, and marriage and family enjoy the special protection of the State.

241. In compliance with articles 8 and 9 of the Family Code, marriages are established in front of a civil status official, with the free acceptance of both future spouses. A person who is already married cannot establish another marriage, until the previous one has been declared as null and void.

242. A marriage cannot be established between parents and their children, sisters and brothers, an uncle and his niece, an aunt and her nephew, or between the children of brothers and sisters. For important reasons the court may permit the marriage between children of brothers and

sisters (art. 10). In addition, pursuant to articles 11 and 12 of the Code, a marriage cannot be established between a father-in-law and his daughter-in-law, a mother-in-law and her soninlaw, a stepfather and a stepchild.

243. Persons suffering from a heavy psychological disability cannot enter into marriage, nor can those who are mentally retarded to the point they cannot understand the purpose of marriage. The marriage between a tutor and the person under tutorship is prohibited, while marriage between foster parents and foster children is prohibited also, among foster children and between the foster child and the children of the foster parents. Regardless of adoption, a foster child cannot enter into marriage with biological relatives, as provided by article 10 of the Code.

244. Ownership in marriage is regulated by the provisions of the Civil Code, 1994 (arts. 86 and 87). According to article 86, “Movables, bank deposits and everything acquired by spouses during marriage, excluding personal belongings, are common property.” Common property presumes that each spouse’s part is equal, unless the contrary is proved on the basis of appropriate criteria. Spouses are entitled to equal rights to common property, even when one of them has been performing housework. Such legal provision was not recognized before the entering into force of the 1982 Code. However, since in most cases the wife moves upon marriage into the house of the husband (which is not, as a consequence, acquired during marriage), very often the wife has no claim to the house.

Number of marriages and divorces

245. Details on the number of marriages and divorces can be found in the initial report (CCPR/C/ALB/2004/1, p. 24). In addition, during 2000 there were 2,168 divorces, or 8.4 divorces for every 100 marriages and in 2001 there were in total 2,462 divorces, or 10.4 divorces per 100 marriages.

Table 19
Divorces by number of children

Table 20
Divorces by years of conjugal life

Table 21
Divorces by educational level

Source: INSTAT - Women and Men in Albania (October 2002).

Assistance to families

246. All poor families or individuals are entitled to this assistance, provided they fulfil the legal requirements. The benefits under this scheme are provided without any distinction based on ethnicity, belief, gender, etc. In any case, it has to be mentioned that some poor families are not entitled to this benefit, because they do not meet the legal requirements. The highest percentage within this group consists of families who migrated by choice. These families, however, have received short-term and partial benefits after being identified by social service

regional offices. They have also given priority during the assistance provided by various NGO programmes and international organizations, such as the World Food Programme, Catholic Relief Services, Mercy International, and Care International.

247. One of the most challenging problems faced with regard to insurance is the incompatibility of the current law (Law No. 7710, of 18 May 1993) with the new challenges that emerged during its implementation. For that reason, the Social Insurance Institute is currently working on a new draft law, whose adoption would respond to the actual developments in the country, the decentralization reform of social services and other social problems.

Protection of mothers before and after childbirth

248. Law No. 7703, of 11 May 1993, “On social insurance in the Republic of Albania” (amended), provides that mandatory insurance is a non-profit scheme, protecting employed persons and other economically active persons (employers and self-employed people) in respect of maternity (art. 2).

249. The maternity benefit shall be payable to a woman with regard to pregnancy and childbirth, provided she has acquired 12 months of social insurance. The benefit period shall be 365 calendar days, including a minimum of 35 days before and 42 days after childbirth. For pregnant women who have more than one child, the benefit period shall be 390 calendar days, including a minimum of 60 days before and 42 days after childbirth.

250. The rate of maternity benefits for an insured woman shall be:

• 80 per cent of the daily average of the assessment basis of the last calendar year for the period prior to birth, and for 150 calendar days after the birth;

• 50 per cent of the daily average of the assessment basis of the last calendar year for the rest of period.

251. Maternity benefits are paid at the workplace by the employer, with the social insurance funds designated for this purpose in conformity with the respective documentation. For the purpose of social protection, the maternity period is considered as the insurance period.

252. The amount of maternity benefit for an economically active woman shall be equal to the base flat-rate old-age pension. When a child of up to 1 year of age is adopted, the adoptive mother, having not less than 12 months of insurance, shall have a maternity benefit beginning from the day the adoption occurred. This shall not begin before the 42nd day of childbirth, subject to a maximum of 330 days from delivery of the baby. The minimum period of benefits for the adoptive mother shall be 28 days. When a child is adopted during the maternity leave, the real mother shall have a benefit period until the day the adoption occurred, but not less than 42 days after childbirth (art. 27).

253. The maternity allowance benefit shall be awarded to reimburse the loss of wages of an insured person who has to change employment for reasons of pregnancy, in conformity with a decision of a medical experts’ committee, provided one year’s contributions has been paid,

prior to being eligible to benefits. The amount of such a benefit shall be equal to the difference between the previous and present wages, subject to a maximum of 50 per cent of the daily average of annual assessment basis for the last calendar year (art. 28).

254. A birth grant shall be awarded to an insured person who is the mother or father of a newborn child, provided that one of them has contributed for one year prior to the childbirth. The grant shall be payable only once and the mother shall have priority in eligibility, if insured. The birth grant shall be a lump sum equal to 50 per cent of the minimum monthly wage (art. 29).

Equal right of children to protection

255. The work of the Labour Inspectorate in general and above-mentioned cooperation with the ILO-OPEC programme in particular, aims to maximize the prevention of children’s labour and especially the prevention of their employment in jobs that are harmful for their health and dangerous for their life. Awareness of all social structures, either governmental or nongovernmental, and associations would reduce this negative phenomenon of our society.

256. Chapter X of the Labour Code defines the minimum age under which a child should not be employed, that is, 16 years old. There are exceptional cases of school-age children from 14 to 16 years old, who are allowed to do easy jobs during summer school vacations.

257. According to statistical data drawn from the Labour Inspectorate, there are approximately 600 children mostly between 16 and 18 years of age, who are employed mostly in social catering, tailoring, at shoe factories, etc.

258. Children are employed in different branches or economic sectors. It is understandable that such social groups or individuals do not, or only partially, enjoy their rights to education or leisure.

259. According to the Albanian legislation, social services do not differentiate by age, gender or race. Consequently there are not any categories of children to whom the protection measures are not provided. Social services offered to orphans, abandoned children, or to children deprived of family, aim firstly at providing them with good upbringing and education, and secondly at finding a permanent family for them (by adoptions). The problem of accommodating mentally handicapped children in development centres, whether residential or diurnal, remains unsolved because of the insufficient capacities of such centres.

260. Elements for informing children about their rights are included in syllabuses or curricula of the second level of elementary-school (middle) school. In addition, various associations like the above-mentioned, yield useful contributions in this regard.

261. Although Albanian legislation pertaining to the social area has been published and disseminated, State social services organize frequent trainings and workshops aimed at making this generation aware of their rights. A lot of work in this regard is done by social inspectors of the Aid and Social Care Service, regional offices placed in all of 12 prefectures. Thus, in cooperation with various NGOs, a folder for State social services was drawn up as well as a number of posters.

262. Difficulties faced in the promotion of children’s rights have been caused by uncontrolled movements of people, low economic standards, particularly in rural zones, and insufficient work of social partners in making children conscious of their rights.

263. More detailed information on children and their rights in the context of article 10 can be found in the initial periodic report of the Republic of Albania on implementation of CRC (CRC/C/11/Add.27), and in the initial report on the implementation of the International Covenant on Civil and Political Rights (CCPR/C/ALB/2004/1).

International cooperation

Projects implemented in the Ministry of Labour and Social Affairs

264. A project of the Ministry of Labour and Social Affairs and ILO-IPEC aims at enhancing the capacity of the Ministry of Labour and Social Affairs in the framework of its fight against child labour in Albania. This project shall contribute in the progressive elimination of child labour through enhancing the institutional capacity of the Ministry of Labour and Social Affairs and the Labour Inspectorate, establishing an institutional structure to implement a national programme on elimination of child labour. The project will also contribute to the elimination of child labour in Albania through prevention and protection of employed children, their retirement and rehabilitation, ensuring professional advisory services, concrete actions, gathering and dissemination of information, etc. The project lasted 18 months (February 2002-August 2003) and a donation from IPEC of US$ 18,285, and a contribution from MPCS of US$ 14,000 (inkind) have facilitated it.

265. Through a project for enhancing the capacity of labour inspectors to combat the worst forms of child labour, training of labour inspectors and representatives of institutions concerned with child labour will be carried out so that they have the necessary knowledge and skills for the identification and monitoring of the child labour issue, and assistance by trained inspectors of all country districts, including a foreign expert.

266. This project gives priority to the enhancement of labour inspectors’ capacities in order to challenge systematically and comprehensively the worst forms of child labour, not only within formal sectors, but also in the informal sectors. This project addresses the needs and contributes to the enhancement of general awareness of both national and regional conditions. The project lasted 12 months (May 2003-May 2004), with an IPEC donation of US$ 22,700, and a donation from MPCS of US$ 17,000 (in-kind).

267. A project on revising domestic legislation concerning child labour and harmonizing it with international standards will produce recommendations for the improvement of the institutional legal framework with regard to child labour, increasing their legal protection, and ensuring a comprehensive analysis of the actual situation. This project will be the first step towards bringing our domestic legislation concerning child labour into line with respective international regulations. This project lasted four months (October 2003-January 2004) and was funded by a donation from IPEC of US$ 3,500, and one from UNICEF of US$ 2,000.

268. A project on national policies to fight against child labour and elimination of the worst forms of it aims to draw up national policies on child labour, recommendations and an action plan, which would facilitate the process of implementing the above policies through a wide range of actors and institutions active in child labour issues, both at the central and local level. Through implementation of this project, the necessary information will be obtained, and a national report and a well-defined strategy on the fight against child labour and especially its worst forms.

Article 11
Living standards

Living standards of the population, socio-economic and cultural discrepancies, and other groups of the society

269. Research on poverty was conducted in 1998 (LSC), in 2000 (MISC) and in 2001 (qualified research on poverty). For research purposes, an absolute line of poverty was established, grounded on the cost for basic necessities (CBN). The country was divided into four areas: Seacoast, Central, Mountainous and Tirana. The poverty coefficient, with respect to the areas, is as follows:

• Seacoast Area 20.6

• Central Area 25.6

• Mountainous Area 44.5

• Tirana 17.8

Table 22
The indicators of unfulfilled basic necessities (UBN)

270. The Living Standards Measurement Survey of INSTAT (LSMS 2002), succeeded in profiling poverty by pointing out the main characteristics as follows:

• Poor persons living in big and new families. Approximately 40 per cent of poor people belong to families with seven or more members. About 50 per cent of the poor people in Albania are under the age of 21. Old people living in Tirana have a lower level of poverty, 12 per cent;

• The poorest areas are those in the north and north-east of the country. Approximately 50 per cent of the inhabitants in these areas live in poverty and more then one fifth of those live in extreme poverty;

• The poorest people do not benefit much from health services. The poor children under the age of 5 are poorly fed;

• The main incomes are generated by agricultural activity and wage-based employment;

• Poor people spend more then half of their incomes on food (67 per cent) and less for nonfood products (17 per cent).

271. State social services, in the framework of the improvement of social protection programmes and the achievement of the middle-term goals of National Strategy on Social and Economic Development and the Poverty Reduction Strategy, have carried out a survey which presents an analysis of the criteria and social economic indicators on which the current allocation of economic aid is based. According to this survey, it is noticed that the extent of poverty is generally affected by marked distinctions North zone-South zone, village-city, mountainous and coastal areas. The level of poverty is higher in the northern and north-eastern area of the country. Factors which have influenced the accumulation of poverty in those areas have been complex, either historical or geographical, and either social or economic.

272. In cooperation with non-governmental agencies and organizations, partial studies have been conducted and the first steps have been taken in the determination of the relationship between economic poverty and social exclusion. On the basis of some integrated indicators (dropping out of school, economic poverty and infant mortality) a map of social indicators has been made up.

273. On the basis of a point system, the selected indicators are listed by values resulting from their indexation, indicating the rate of social exclusion at the district level (36 districts of our country). Based on the integrated indicators, the 36 districts are classified into 4 groups:

• First group: included the districts of the north-eastern area with higher indicators of social exclusion (such as Kukesi, Dibra, Bulqiza);

• Second group: 19 districts are included;

• Third group: 7 districts are included;

• Fourth group: 4 districts are included with the lowest of social exclusion (such as Devolli, Delvina, Gjirokastra, Saranda).

274. By analysing the indicators used in the above classification, it results that in some cases there is a discrepancy between the economic and social situation, but in general by taking into account the indicators, they show the close relationship between poverty levels and social

exclusion. One of the findings of observation was that where the highest indicators of poverty exist, the indicators of basic social services are generally low, so the poorest districts have the highest indicators of social exclusion.

Table 23
Gross domestic product (GDP) per capita (in US$)

275. GDP per capita is an average indicator that is calculated by taking into account the entire population and it cannot be distinguished with regard to differentiated strata of the population.

Level of poverty in Albania

276. According to all the indicators of poverty, one quarter of the Albanian population is poor. Extreme poverty (below US$ 1 per capita per day) is present at less than 5 per cent of the population. Non-monetary dimensions of poverty are sharp. Rural access to infrastructure and services is very low, but also in urban areas the quality of these services decreases significantly the access level.

277. Poverty is higher in rural areas, with 66 per cent more poor people than in Tirana and 50 per cent more than in other urban areas. Poverty is more prevalent in new households. It relates to unemployment, where gender differences appear in the labour market, disfavouring women. A low education level also represents a significant factor of being poor.

278. According to the State social services the vital minimum is not established, even though a study on this subject has been completed, and this study is being used as a reference in the process of gradual growth of economic aid.

279. Assessment of the official level of poverty is done in an administrative way by maintaining the ratio between the minimum wage, minimum pension and economic aid.

280. Through findings of the study “Living Standards Measurement Survey 2002 - INSTAT”, a more accurate and substantial evaluation of poverty has become possible. There emerged the finding that a quarter of the Albanian population is poor. Destitution, determined by nourishment criteria, is low, less than 5 per cent of the population. The legal basis for providing economic aid is Law 7710, dated 18 May 1993, and Council of Ministers decision No. 113, dated 31 March 2002, “On economic aid”, by which 129,958 families are eligible to it.

Socio-economic indicators

Table 24
Annual household consumption expenditures by groups for 1993, 1994, 2000
Budgetary coefficients

Table 25
Household budget by region or urban area, 2000

Source: Household budget survey in urban areas, 1999-2000.

.

Table 26
Household expenditure patterns according to main
groups (1993, 1994, 2000) in percentage

Source: Household budget survey in urban areas, 1999-2000,

Statistical Yearbook, 1993-2000.

Right to healthy food

281. The fulfilment and respect of the right to healthy and appropriate food represents one of the main objectives of the functioning of the Ministry of Health, and especially of the Primary Health Care Department. According to the Ministry of Health, the fulfilment of this right can be realized only in close collaboration with other ministries, such as the Ministry of Agriculture and Food, the Ministry of Economy, etc.

282. For this reason, the above organs worked on the preparation of a National Plan of Action for Nutrition and Nourishment which is in the final phase of adoption. The sources of information on the above come from the Ministry of Health and the Ministry of Agriculture and Food.

283. Food is of extraordinary importance. National food supply data are mainly provided through the Ministry of Agriculture and Food.

284. The first study concerning nourishment at the household level after the fall of the Communist regime was conducted during the August-October 1993 period in 3,179 families randomly selected in Tirana. The study was conducted taking into consideration the number of households and houses from the 1989 registration. Based on the social-economic changes (demography, housing, employment, migration and incomes), a second questionnaire was administered through the stratification method in 807 households.

285. The results indicate that the annual expenses were 35,244 leks per person, per month. Of the above, 72 per cent was spent for food.

286. The study, conducted by the Ministry of Agriculture and Food (SARA Program 19961997), indicated that the nutrient rations of Albanians contain sufficient calories and it mainly consisted of corns. The annual bread consumption of a person was nearly 200 kg. Whereas in the rural areas food is produced, in urban areas the population is dependent on imported foods. The monthly food expenditures for food in urban areas is nearly of US$ 150 per household, divided in four categories such as grains, meat, fruits and vegetables; 7072 per cent of household incomes were spent on food. The indicators below meet the WHO recommendations.

Table 27
Daily nutrients for a person in 1996

Source: Ministry of Agriculture and Food.

287. From the beginning of the transition towards a market economy, Albania had a deficient structure of its main agriculture products, especially in cereals, oleaginous seeds and sugar. During 1980-1993, the overall nutritive energy needed increased by 1.3 per cent per year. As result of the population growth and changes in the population structure, needs are foreseen to increase with 1.6 per cent for the time period 1993-2010. This increase is foreseen to be greater in urban areas, approximately 3 per cent during 1993-2010.

288. With regard to nutrient security, which is directly related to safe food, maximum efforts have been undertaken in accordance with the respective provisions of EU legislation, WHO and FAO recommendations, respecting as much as possible in this case the Codex Alimentarius. Simultaneously, the Ministry of Agriculture and Food is working on concrete recommendations for the Albanian population for healthy dietary and nutritional balance.

Poverty and inequality in Albania

Table 28
Extent of poverty in Albania

Note: A household is considered poor if two or more basic needs are not satisfied.

Table 29
Unsatisfied basic needs

* Insufficient water and hygiene: flowing water and WC with water pipes, both

insufficient.

** Subjective estimation (inappropriate conditions for living, or house under

construction).

*** Insufficient power: more than six hours daily interruption of power supply.

Table 30
Moderate and extreme malnutrition of children less than five years old

Table 31
Poverty, living conditions and access to services (percentage)

Table 32
Family budget expenditure by areas (percentage)

Table 33
Poverty by age groups and areas

Table 34
Main characteristics of poor persons

Table 35
Ownership and size of agricultural land

Table 36
Education of poor persons by gender

289. There are no adequate statistics or research studies for the period 1991-2003 with respect to national policies, laws or practices influencing negatively the supply of adequate food for various disadvantaged groups.

Measures of the Ministry of Health in guaranteeing appropriate and healthy food for various disadvantaged groups, in the most affected regions

290. The National Draft Plan of Action for Food and Nourishment has provided and defined concrete objectives on measures that have to be undertaken by the Ministry of Health in collaboration with other economic sectors, for meeting the need for an appropriate and healthy food for the population. These objectives are included in a strategy, which clearly defines the deadline for the realization of this right (2008).

An overview of food security in Albania

291. There is not yet a clear definition either of the household or of national food security in Albania. However, household food security means the ability of the household to produce or buy goods and safe foodstuffs to meet the needs of its members.

292. At the national level, the best definitions correspond to achieving, at reasonable prices, a satisfactory equilibrium between offer and demand. Obviously, the national food security (or insecurity) situation is in close relation with all households’ food security and it is satisfactory only when all the people achieve food security to a reasonable degree.

293. However, even if food security has been achieved at one level, it does not make it immediately possible at all other levels. A country with a national food security situation may also count households or groups of population who live in deep food insecurity. Lack of food security is, in most cases, a consequence of poverty and increase in food security means in other words a quantitative and qualitative increase of food availability for the poor.

294. Food security and poverty in Albania vary according to the: geographical location; demographics and households; education and employment; consumption patterns; and possession of assets.

295. Under the former regime, Albania was strongly oriented towards production selfsufficiency in staple foods. This involved heavy customer subsidies and rationing. Since the start of the transition, when major changes overcame the agricultural sector, Albania had a structural deficit in major agricultural commodities, in particular, in cereal, oilseeds and sugar.

296. The level of selfsufficiency, however, varies to a large extent across the population. While the rural areas are largely selfsufficient, the urban population is more dependent upon imported food supplies. Income is relatively low; the proportion of income spent on food is high (about 75 per cent of households’ income).

297. Today, the national balance of cereal and other staple food products is met by imports. Wheat and wheat flour are the main food commodities imported, and in recent years, imports have ranged between about 200,000 to 400,000 tonnes per year, to which food aid has contributed insignificantly.

298. According to the estimates of the Ministry of Agriculture and Food, the cereal import requirement for the marketing year July 1999/June 2000 was about 480,000 tonnes, comprising 373,000 tonnes of wheat, 81,000 tonnes of maize, 17 tonnes of rice and 10,000 tonnes of other cereals.

299. On average, household food security has improved considerably since the early 1990s and a greater variety of foods are now available throughout the country at relatively stable and uniform prices.

300. Nevertheless, household food security continues to be a problem for destitute households, and particularly for those living in the North and northeastern mountainous regions. Many of the foodstuffs needed for a diversified and healthy diet, while available on the markets, are beyond the financial means of households living mostly in rural but also in some suburban areas.

301. Among those households, food insecurity is more a problem of inadequate access to food due to extremely low incomes, rather than a problem of food shortages or inadequate food supply.

302. The population of Albania amounted to 3.35 million people in 1998 and has been increasing at a low average rate in recent years. According to the FAO food balance sheet data, food available in Albania in 1997 (recently released figures) was 2,961 Kcal per person and per day, half of which was provided by wheat, and only a very small proportion of which is provided by meat and other animal products.

303. The typical Albanian diet is based heavily on wheat, in the form of bread. Potatoes, white beans, cabbage, eggplant, tomatoes and onions are commonly consumed and, more rarely, green leafy vegetables and citrus fruits. As a result of the erratic and seasonal availability of food supply, as well as high prices (relative to income), the diet tends to be monotonous, with only a few items being consumed in any given period of time.

304. According to World Bank data on the poverty, about 83 per cent of the poor dwell in rural areas and about 58 per cent of them live mainly in northern, northeastern and southeastern mountainous areas. Most of those rural poor people (60 per cent of the poor) live off farming.

305. Over 80 per cent of the poor heads of family have a low education level (8year elementary school or less) and one third of poor families have more than five children and young heads of family (younger than 36 years old).

306. Farm production is now carried out by approximately 460,000 very small family farms (on average 1.1 ha per farm) and very fragmented (on average four parcels per farm, but the allotments may include plots too far from the homestead) and the productivity remains very low. Small farm sizes are especially prevalent in the northern parts of the country.

307. Food insecurity is more a problem of low income rather than a lack of access to food supply. Average farm income is 350,000 leks (about US$ 2,500 or about US$ 1.3 per day and per capita for a family with five members).

308. Large discrepancies in income level exist between farmers located on the plains and in hilly and mountainous areas. The main factors causing such discrepancies between the zones are: agricultural potential, offfarm employment opportunities, proximity to urban areas (especially in big towns), status of rural and agricultural infrastructure, etc. In the northern and northeastern mountain areas, almost one third of the population lives under the level of poverty and one quarter live in very smallsized farms (with less than 0.5 ha per family and very fragmented), incapable of achieving subsistence levels from farming activities alone. Lacking offfarm employment opportunities, the annual income of a typical farm family of five persons in mountainous areas (of about US$ 2,000) is less than half of the typical income on the plains.

309. Twothirds of the average income of a rural family (US$ 2,500) are derived from farming. The remaining third is derived from offfarm activities, which provide about 70 per cent of households’ cash income. Sales of livestock products, vegetables, fruit and grapes, and processed products are, however, beginning to contribute to an increasing degree to farm household income.

310. The annual remittances (on average US$ 500 per rural household per year) represent about half of the offfarm income for households with relatives working abroad and rise to about 80 per cent for households with smallholdings in the mountain areas. Generally, in most rural areas, the offfarm employment opportunities are very limited and a considerable part of the poor household income is spent on foodstuffs, taking up to about 75 per cent of total households’ income.

311. About 18 per cent of the population in urban areas live below the poverty line of one United States dollar per day and per adult equivalent. The incidence of poverty in urban areas varies considerably among towns. This poverty is closely associated with the level of unemployment, education, remittances, and other socioeconomic opportunities.

312. Urban households spend about 70 per cent of their income on food and about 12 per cent on electricity. While home and land ownership does rise with income, access to urban services does not differ significantly for the poor compared to the nonpoor.

313. At the national level, 1520 per cent of the households overall depend on a social assistance programme, which provides cash payments to families whose incomes are insufficient to meet minimum subsistence requirements. In the North and the Northeast, more than 30 per cent of families depend on these benefits, which range from US$ 2540 per month, depending on household size.

314. The specific weight for group consumption patterns of food for rural populations for 1998 is given as follows in figure 1.

315. Albania remains a predominantly agricultural country, agriculture being the engine of economic growth since transition started in 1991, with a contribution ranging from 50 to 53 per cent of GDP over recent years. Agriculture employs the majority of Albanians who live in rural areas, who represent about 54 per cent of the total population.

316. Employment in agriculture’s private sector represents about 71 per cent (in 1999) of total employment. Food crops and fruit trees lead agricultural production with close to 40 per cent of gross agriculture output (GAO). Livestock accounts for 30 per cent and horticulture 6 per cent of GAO. Forage and forestry products account for the remainder.

317. It has been recently estimated that, at the current level of productivity achieved in the agriculture and food sector, local production satisfies up to 70 per cent of domestic demand. Nevertheless, the agricultural trade balance is a major component of the country’s trade deficit that reached US$ 198.2 million in 1998.

318. Agricultural exports represent now about 16 per cent of total exports, while agricultural imports range from 25 to 30 per cent of total imports.

319. Albanian agricultural and rural life remains to a large extent at a subsistence level. Farmers continue subsistence farming on very diversified and extensive farms, faced with the collapse of basic State services and poor maintenance of basic infrastructure. Priority is given to satisfying basic requirements with very little marketable agricultural surplus. The principal food crops are cereals (mainly wheat), vegetables, potatoes and white beans. In terms of area, wheat is the most important crop (approximately 40 per cent of farm area is destined to wheat for consumption) but it contributes little as a source of farm income. Fodder crops (fodder maize and alfalfa) occupy around 16 per cent of farm area and are expanding as cropping patterns shift from grain to fodder crops.

Prior to the transition, some 70 per cent of the arable lands were irrigated, affording the opportunity to produce two to three crops of vegetable produce per year. Following the destruction of irrigation systems during the last decade, irrigated area has been reduced by more than 50 per cent. Irrigation and drainage rehabilitation projects are under way to bring them back to fulltime and proper irrigation practices.

321. During 1998 and 1999, the area planted increased by about 20,000 ha, mainly with grains, potatoes, white beans and fodder crops. The area planted with fruit trees, vineyards and citrus doubled as compared to the previous years of transition. Cash earnings from farming are rather small, whereas livestock, fruit and vegetable production is the most attractive to farmers in terms of cashincome activities.

322. The agriculture sector has experienced drastic changes since 1991. The important progress has been made in terms of land reform, the privatization of former collective farms and agroprocessing enterprises and in establishing a largely free incentive framework. However, since 1995, output growth has stagnated and early high growth rates have slowed, dropping from 13 per cent in 1995 to 8 per cent in 1996, and 1 per cent in 1997. A certain recovery started in 1998 when the agricultural output grew by 4 per cent and in 1999 by around 6 per cent.

323. After the initial disruption in the first two years of transition (1991 and 1992), cereal production has generally remained stable around 600,000 to 650,000 tonnes per year but largely below the pretransition level of around 1 million tonnes. Before 1990, substantial amounts of oilseed, sugarbeets and tobacco were produced for both domestic consumption and export.

324. Although tobacco is still an important cash crop, vegetables and fruit crops are favoured as the best cash crops suited to prevailing smallscale farming. The recognition of higher returns from vegetable and fruit production has caused a rapid expansion of plasticsheet greenhouses (plastic tunnels) as well as an increased sowing of summer vegetables where irrigation services are guaranteed.

325. Given the profound changes that took place in Albanian agriculture, and the situation the country was going through, the new Government of Albania that assumed office after the elections of 29 June 1997 set as one of the objectives of its programme the formulation of a strategy for agricultural development.

326. This objective is in the framework of commitments of the Government of Albania to face the formidable task of establishing an economic order that would reflect the will and the aspirations of the population. In this context, the Government, recognizing the importance of the agricultural sector in the national economy, the Ministry of Agriculture and Food formulated a Strategy for Agricultural Development (the “green strategy”).

327. Relying mainly on private family farms, this strategy aims at: setting up relatively sustainable and efficient structures and increasing the agricultural production; stabilizing the internal market of agricultural products and their marketing; increasing agricultural exports and reducing imports of food products; improving the welfare of farmers and strengthening the Albanian economy as a whole; protecting the environment and managing the natural resources of the country, easing the integration of Albania into the European Union.

328. The work for the formulation of the green strategy was started in September 1997 by a group of specialists from the Ministry of Agriculture and Food, the Agricultural University of Tirana and other institutions, initially with the elaboration of basic ideas about strategy. As a result, a draft outline document of the strategy was produced.

329. On the basis of this outline, 7 working groups, divided into 33 subgroups, which elaborated respective policies and subpolicies, were set up. Various papers, prepared over the last four to five years with the assistance of the World Bank, the European Union and other international institutions as well as models of strategies of other eastern European countries, in the area of agricultural policies, potentials, the prospective and issues related to crop and livestock production, agroindustry, fisheries, environment and the like, were made available to the working groups.

330. During this period, wide consultations were held with scientists from all fields of the agricultural system, the Agricultural University, research institutes of the agricultural system, the agrofood industry, forestry, fisheries and representatives of associations and trade unions that operate in these fields. The draft strategy paper was at first presented in and subject to discussion at an ad hoc conference held in April 1998.

331. Meanwhile, systematic consultations with the World Bank, the International Monetary Fund (IMF), the Food and Agriculture Organization of the United Nations (FAO), Centre International de Hautes Etudes Agronomiques Méditerranéenes (CIHEAM) and other international agencies whose suggestions have been taken into account in finalizing the paper.

332. The “Strategy for agricultural development” is a document to be used in a medium/longterm perspective, but at the same time it foresees actions to be undertaken in the short term. The Interagency Economic Policy Committee has also discussed the draft Strategy Paper.

Main objectives (related to food)

333. The main objectives of the strategy for agriculture development are the following:

• Acquisition of a satisfactory level of living for the rural population, especially through an increase of the individual incomes of those working directly in agriculture;

• Guaranteeing food security in the country with relation to both the quality and quantity of food.

Food industry

334. There are 1,900 factories and processing lines, organized mainly in small and mediumscale enterprises, in the food industry. The general production of the food industry is low. The domestic consumption of foodstuffs increases from year to year. Albania is a big importer and a small exporter of foodstuffs. Almost all branches of this industry have a negative trade balance.

335. The transition period in our country was associated with a significant decline of production and destruction of part of production units. The decline of production was affected by:

• Competition from imports;

• Marketing a considerable part of agricultural products directly by the farmer to the consumer as well as partial processing by family farms themselves;

• Interruption of the activity of enterprises due to the obsolescence of their technology;

• Insufficient financial means for the necessary technological renovations, as well as lack of capital for opening up new activities.

336. However, the agroprocessing industry was one of the first branches of the economy of the country to undergo the privatization process. The private sector made up 90 per cent of production as of 1998. But not all enterprises have been restored to their former level of activity.

337. Investments in the food industry are mainly by Albanian investors, whereas foreign investments are deemed to be small. Presently, there exists a processing industry composed of small, scattered processing lines. Its production does not yet meet the quality and quantity level of market supply and competition.

338. The general trend is a gradual increase, depending on financial possibilities, in securing raw materials. The flour milling industry, the pasta and bread industry, the industry of oils and fats (particularly the olive oil industry); the milk processing and the postharvest industry have been identified as priority sectors. On the other hand, more profitable results come from tobacco production, beer, wine and alcoholic drinks.

Objectives

339. The main objectives are: the restoration of industry, aiming at enhancing new investments; the continuation of the work to establish an appropriate legal framework, as well as the enhancement of a transparent and sustainable regulatory environment in the marketplace, and, an increase in the efficiency of food control.

Processing foodstuffs

340. An immediate enhancement of investments is the principal means of raising living standards and aims to:

(a) Define development priorities and support reactivation of important branches of the food industry. In this context, work will be done to study certain production networks, the possible development of this industry in certain areas or all of the country, gradual completion of the legal framework as well as creation of programmes for the development of certain branches of this industry in certain regions or all over the country;

(b) Support investment with credit lines. With the improvement of the banking system and the relaunch of normal activity of agrarian credit lines and, in some cases, via favourable provision of credit to sectors of agriculture and livestock, conditions will be created for securing raw materials domestically in order to supply the processing industry. These investments will be oriented mainly towards priority sectors such as milk processing and its byproducts, grains, conservation, oil, etc.

Control of foodstuffs

341. Organization of strong, rigorous and efficient State food control through:

• Gradual completion of the legal framework;

• Improvement of food quality control when products are being produced and at customs;