An analysis from the perspective of entrepreneurship
Author Bardhi Sejdarasi
Editor: Lujeta Progni
Albania's integration into the European Union is considered a path of no return. The benefits and losses from this integration always constitute the open debate of the European integration process. Despite the progress of these processes, the country faces the lack of full recognition of the obligations that come from this integration process, especially for Albanian entrepreneurship, with its inability to face the challenges!
16 years from the signing of the Stabilization-Association agreement, where the journey towards the European Union began, 8 years from receiving the status of a candidate country and several years of waiting, sometimes without merit, in 2023 Albania successfully completed the screening process, which marked an important step in the European integration process.
ALBANIAN ENTREPRENEURSHIP AND ECONOMIC INTEGRATION
"We are used to seeing the process of European Integration as a process related to the government, as a process related to the duties of the government, but now that we have opened the negotiations it should become clear to everyone that it is not the government of Albania that will be integrated into the European Union. ..If there is a challenge of challenges for the Albanian system to become part of the European system, thanks to the full membership of Albania, it is the resistance of the private sector and the training of this sector..." 1)
This statement of the Albanian Prime Minister, Edi Rama, made on January 13, 2024, would probably be more valid if made 10 or more years ago.
Albanian business has expressed more than once for this integration. According to the "Barometer 2023" of the Western Balkans, "support for EU membership has increased by 11 points, reaching 71% at the regional level. Respondents from Albania showed the highest support (96%), with another increase of 6 points". 2)
A decade ago, 78% of Albanian businesses expected that EU membership would be a good thing for their company. This was the highest percentage in the region.
In December 2021 (last study), among 188 companies questioned by a study of the Albanian Center for International Trade 3), only 24 percent of them said that they plan to increase the quality of the products and Services they currently offer. Three quarters do not even consider this cost of integration.
Gentian Elezi of "ACIT" - the Albanian Center for International Trade, asked by the Albania Center for Quality Journalism (ACQJ) said that "the business turns out to be very little informed and the risk is that the process will be imposed on them with such speed, that does not allow taking measures in time, to limit possible damages and to benefit as much as possible from the process".
"The Albanian Center for Economic Research" (ACER) has another view. Zef Preçi, Executive Director of ACER told ACQJ that "...Albanian business is on the way of preparing to be part of European business, but not yet ready".
"I am not talking about the ability to import goods from EU countries and to ensure profits on this basis in a poorly regulated market, under the influence of oligarchy interests, or with a public administration immersed in corruption and conflict of interest", specified his idea Mr. Prechi.
"The main obstacles on the path of European integration for business should be seen in the deficient regulatory framework and its weak implementation; in the old and new problems in the legal system and the real estate registration system, in the instability of the tax and customs administration and the widespread corruption in the entire state apparatus of the country, especially in public procurement, etc", - analyzes Zef Preçi, director of ACER.
"The main obstacles, which can be foreseen, are related to the need for information and planning for the adoption and implementation of the standards that this process brings" - says Mr. Elezi.
The well-known researcher insists that "for this purpose, business representatives should be included as much as possible in talks with the negotiating team and experts on approximation to the EU market, making the best use of participation platforms (such as the Integration Partnership Platform European, or others), as well as provide facilities for businesses that advance themselves with the alignment of standards".
Nikolin Jaka, the head of the Chamber of Commerce and Industry of the capital, which represents the business of the metropolis, told ACQJ, during a WhatsApp communication, that "the KEK structure has been activated and is dealing with an agenda focused on the integration of entrepreneurship. I believe they also have an agenda," said Jaka textually.
Mr. Jaka did not have his own opinion regarding the question asked by ACQJ "How prepared is the Albanian business for European integration, who stands in the way and what is the solution you offer?" Leaving this to an existing, "sleeping" structure for many years, but activated at the beginning of 2024, as is the National Economic Council (KEK).
But Arben Shkodra, the new General Secretary of the National Economic Council, told ACQJ that "currently there is no analysis/assessment of the degree of recognition or preparation of the private sector in relation to integration into the common market."
"This remains an internal challenge of the private sector itself and an added challenge of the government to create the necessary mechanisms, how we can face it. The integration of the private sector in the common market, firstly, is about fulfilling the standards and obligations and, then, using the opportunities it presents" - added the General Secretary of KEK.
While Alban Zusi, former Deputy Minister of Agriculture and a well-known entrepreneur adds that "the lack of knowledge on the part of the public authorities and the lack of an analysis on their part on compliance with the standards and a comparative analysis of the basic costs of the Albanian business hinders, compared to that of the EU, especially for the fiscal burden".
Sokol Kraja, CEO of Capital Resources, is more direct in a statement about ACQJ.
"There are two or three factors that affect business integration. The first is the owners and the mindset of the owners, who don't even have structured businesses."
Kraja analyzes today's business situation and is quite harsh at the conclusion of this analysis: "First you need to change the owners of all Albanian companies, to know how prepared they are, how well they speak English, how well they know how to converse at a table with foreigners and, secondly, how competitive are their companies for the world market".
Kraja calls the integration of Albanian businesses in the regional and European market quite difficult: "The great misfortune is that the ten largest businesses in Albania are companies that work with public funds! This is the biggest abnormality, it should not be like this! In the world, the biggest companies are the companies that produce. It's a pity to what degree the local production has been reduced!", concluded Kraja in an audio interview, in response to a written request, sent by ACQJ to his business address.
Gjin Gjoka, of the Chamber of the Albanian Diaspora, sent his answer in writing, emphasizing that "Albanian business is well prepared for integration. Many Albanian businesses have been operating for over 20 years and cooperate with other countries of the European Union for the marketing of products. Businesses are prepared. There are no barriers to integration.” - said for ACQJ Mr. Chest.
Ines Muçostepa, President of the Union of Chambers of Commerce and Industry of Albania (BDHTI) commented during the process, but basically admitted that "BDHTI has been working for several years for the integration of entrepreneurship in the regional and EU market. As a response of the business community to the political developments within the Berlin process, we established the Investment Forum of the 6 Chambers of the Western Balkans (WB6 CIF), representing more than 350,000 enterprises from the region. With this mechanism, we have given a common voice to the regional business community, to facilitate contacts between them and to enable the free movement of goods, people, Services and capital, as well as to integrate business into the European Union market. - assured Muçostepa.
ALBANIA, BUSINESS AND ECONOMY AS A WHOLE
When Bulgaria and Romania joined the EU in 2008, many businesses were permanently or temporarily closed because they did not meet the standards required by the EU.
Alban Zusi, former Deputy Minister of Agriculture, today an entrepreneur in the agro-industry, thinks that the same thing will inevitably happen in Albania. "At the moment Albania will enter the EU, local producers will either block production, or have to make significant investments, which it is not known if they will be able to afford, due to high costs."
A. Zusi, in the capacity of the President of the Albanian Export Center, underlined that "Albanian business has no idea what the consequences may be from integration, the consequences that will come from not meeting the standards, for which there is no tolerance and, consequences of increased costs from the unfavorable fiscal system, which we have, mainly in energy subjects".
Agim Rrapaj, Chairman of the Albanian Agricultural Council (KASH) responded to ACQJ's interest as follows:
"Albanian agribusiness is not prepared to face the challenges of integration! Specifically, it cannot compete in the market for high production costs, as well as for quality and standards."
Ilir Pilku, economist of agroculture and Manager of AFS, (Alternative FACQJncing Studio), responded to ACQJ's request, emphasizing among other things that "the integration/membership process includes not only increased competition in all agro-food chains, but more broadly, improving and adopting different models of agricultural policy, based on the CAP (Common European Policies), which are more demanding in its conceptual, legal, administrative and functional aspects.
Many businesses will realize that they can no longer throw away, manipulating food quality, environmental pollution, hygiene conditions, health and safety at work, market control, offering better products and Services to consumers. .
"The solution should be seen as a time-stretched process, based on local and foreign expertise, in an honest and transparent dialogue of the government with the business community and the academic world, in short in researching and finding solutions to the problems mentioned above. above" - says Zef Preçi.
"The solution? The creation of sectoral analysis groups to provide a ready overview of the above, the creation of the Albanian negotiating group, with the aim of preparing business, but also functional packages for adaptation and fiscal packages for equalization in competitiveness", - underlines Alban Zusi, President of the Albanian Export Center.
In all this confrontation with the challenges of European integration, participation remains the most important. Business is not yet a real and active part in this process. The high number of business organizations, with more than 180 associations, is problematic!
Sometimes highly politicized, sometimes without the right level of leaders, appointed rather than elected, business associations became dysfunctional and never representative.
The government intends to create a public Chamber with mandatory membership and to exclude business associations from the game! The essence of this model involves the reorganization of the current model towards the pure model of public law.
A few years ago, in 2016, the government tried to implement the same scheme, for the compulsory membership of businesses in a Chamber of Commerce, but withdrew after fierce opposition from business associations...
The door to a long road has opened...
EXPLANATION
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2) https://www.rcc.int/balkanbarometer/key_findings/2/
3) https://acit.al/wp-content/uploads/2021/12/ACIT-study.pdf
4) Graphs no. 1-6 from "Readiness of Albanian businesses for the EU accession
Process. A knowledge gap analysis and needs assessment report" - Prepared by: November 2021
