Author: Ina Allkanjari
The lack of political will to determine the living minimum affects the quality of life of thousands of people. This lack hinders the implementation of social policies and adds to the difficulties for a significant category of the population. The experts emphasize the urgent need for the vital minimum in order to guarantee a dignified life for everyone in Albania.
Enver Muça, a 32-year-old from Hasi, the father of 3 minor children, is in a daily battle for survival. As of 2018, he has decided to live in the capital with the daily hope of starting a sustainable work to overcome poverty and provide children with an economically secure future.
" I am married, I have three children. My daughter-in-law and I are the fifth child. My eldest is 6 and a half years old, while my two youngest are twins, they are 2 and a half years old. I live on 5 Maji in a rented apartment. The rent is 250 thousand old lek per month."
While every day of the young man is spent looking for different jobs, the 32-year-old says that he mostly finds jobs in the construction sector, but the income is insufficient because he does not have a stable job.
" I sometimes find work with friends, but it's not like I have a regular or permanent job that I can work all the time, that I have insurance, he declared. My wife works for a tailor, and she also works part-time because of the small children. I can work a maximum of 5-6 hours a day and get 250 thousand old lek at most. During difficult months, we can even get by without any money at all. It depends on how the time goes. We can get by with 300-400 thousand old lek at most ."
While focusing on the social assistance that benefits from the state, Enveri shows that this is insufficient compared to the family's expenses.
" We receive an aid of around 120 thousand old lek, social assistance.. I think it is insufficient first and second if jobs are not created it should be increased. When I need help, I turn only to God above and my arms because I have no one to tell. I tell my father who has a pension of 150 thousand old lek per month, or my mother. Instead of helping them, I have nothing to ask of them ."
The last year has increased difficulties in meeting monthly expenses in Enver's family. According to him, the increase in the prices of consumer products has affected the basic needs of life.
" Children, especially the little ones, have a lot of expenses because they are still young and normally it can go up to around 200 thousand old lek. Food alone goes up to 350-400 thousand lek per month. It's about eating normal, consumable things, not counting meat. Consuming meat as much as the norm is out of the question ," says the 32-year-old, father of 3 children.
The Ombudsman's report , a study conducted in 2021, proves that the lack of a clear definition of the subsistence minimum in Albanian legislation creates double standards in the protection of citizens' fundamental rights. For example, the value of the subsistence minimum for 2019 was estimated to be approximately 17,875 lekë, a figure that is high compared to the minimum pension, but still low compared to the minimum wage and economic assistance.
In addition, the report shows that investments in other policies that can affect poverty alleviation, such as education, health and employment, have not experienced sufficient growth. This affects the ability of low-income individuals and families to benefit from social Services and escape poverty.
In the absence of a clear definition of the living minimum, the most vulnerable groups of society, including children, the elderly, and the disabled, suffer more from the shortcomings of the social protection system.
Enver Mucha's story is not the only one.
"Don't buy as much as you need, but as much as you can." This expression accompanies the daily life of 725.903 citizens in Albania in need of Services, due to their status as beneficiaries/applicants of economic assistance, disability, invalidity, unemployment, housing and pensioner status. Although everyone should be fed as much as they need to be fed, the reflection of poverty is part of the reality for these vulnerable categories.
In Albania, despite the government's efforts to reform the social protection system, one of the most obvious shortcomings is the lack of establishing a minimum living wage in the legislation. This legal vacuum affects the design and implementation of social policies, leaving aside an important part of the population without sufficient protection.
" The state has a responsibility to be responsible for the needy, because you cannot let an individual live on 4000 lek per month. A pension in the village today is 8000 lek.. What can you eat with 8000 lek, or 4000 lek... The standard is that everyone will have to eat as much as they need to eat. Today in Albania, a good part of the people, especially people who come from vulnerable groups, eat as much as they can and never achieve what they need. This is the most meaningful indicator of the lack of a living wage ," says economic expert Pano Soko.
The draft law "On the Budget of 2024" presents the data of social expenditures in Albania, but there is no clear mention of the vital minimum in the context of these expenditures. In the absence of a definition of the living minimum, the difficulty remains in providing a sufficient amount to cover the vital needs of citizens.
The accompanying report of the draft law states that the expenditures of special funds are planned at a value of 249 billion lek or 33.4% of the total public expenditures foreseen in the 2024 budget. However, the unemployment payment fund is only 800 million lek, while expenditures for economic assistance and disability constitute only 1.1% of GDP with an amount of 26.25 billion lek.
Economic experts, such as Pano Soko and Rezart Prifti, talk about the country's economic challenges. According to them, official poverty is worrying, because many citizens live below the minimum subsistence level.
" Official poverty today, based on World Bank indicators, is calculated at $6.8 per capita per day. So anyone who spends less than $6.8 per capita per day, lives in official poverty today... We must take into account the fact that today we should have about $204 per capita per month and a family of four, where both parents receive a salary of 40.000 lek, the minimum wage today, officially lives in poverty for 4 people, so two parents with two children ," says expert Pano Soko.
"Regarding the last 3 years at least, or the increase that prices have had, it has been so unaffordable that life has gone below the poverty level declared by the World Bank.. For such categories that are affected by the subsistence minimum, there is a problem in Albania, that the state, with all that it takes from you, does not give you back. The simplest is the electricity part. They have a barbaric compensation. Regarding the water part and many others", economy expert Rezart Prifti tells Sinjalizo.
Assessing the need for social care Services has long been considered a critical issue. According to a study conducted this year by UNDP, out of 725.903 citizens in need in Albania, 36.642 are beneficiaries of social care Services.
Individuals in economic and social need make up the largest group, accounting for 31% of the total, while other categories such as "Elderly" with 24%, "AC Adults" with 18%, "Children in conditions" are listed behind them critical" with 10%, "Homeless" with 6%, "Women" with 5%, "Children of AK" with 4%, and "Youth in need" with 1%.
" There are over 15% of the population today that are on the verge, in or below official poverty and these are the weakest layers, it is the weakest link in the chain. This classifies us as a poor country, in all the classifications that are made in the world rankings for the way of development. Albania is considered a poor country also for this fact, because a good part of its population lives in or below official poverty ," says Sako.
However, access to employment remains an essential prerequisite for social inclusion and avoidance of poverty.
According to data from the Institute of Statistics (INSTAT), the unemployment rate in Albania for 2022 was 11.1%, showing a decrease from previous years.
One of the main challenges is the lack of a clear definition of a living minimum level that can provide a suitable standard for a normal life in Albania.
"The vital minimum defined by law would require two things, the first would require a political will, the second would require a significant financial commitment.. Let's overthrow the first one, so show that there is political will. We are not saying to make a financial circus, nor to undertake adventures that could bankrupt the state, but at least let's set the standard, as much as we can, 40%", emphasizes expert Sako.
The report published by the Balkan Barometer highlights that with the increase in the number of citizens living in worse conditions than the average population, concern about the increase in inequality within society has also increased. 88% of respondents stated that in the Albanian economy the gap between the poor and the rich is increasing. According to the report, Albania, with an increase of 5 points since 2020, is the region's biggest concern for the wealth gap.
"For the sake of truth, this is also a reflection of world trends, the gap between the rich and the poor. But in Albania it is a certain extreme because compared to developed countries we do not have what is called safety nets ," says expert Prifti.
The vital minimum, a promise not kept for decades
The Living Minimum is a long unfulfilled promise by all governments over these 32 years. Among the political forces, there have been mutual accusations for not implementing this policy, which defines the basic criterion of living. However, until now, none of them has managed to materialize this promise.
In December 2022, the Joint Movement submitted 21 signatures to the Central Election Commission for the approval of the Vital Minimum. Although these signatures were verified, the draft law has not yet been included in the parliamentary agenda.
Economy expert Rezart Prifti emphasizes that it is impossible for Albania to establish a vital minimum through legislation, as such a decision would lead to a collapse of the financial system.
" "Albania finds it impossible to legally establish a living wage, because this would lead to the collapse of the entire financial system, but above all the social security system, the pension system. Because the moment you establish a living wage by law, the consequences are unmanageable in terms of the insurance system, the financial system that we have with the allocated budgets."
On the other hand, expert Sako says that the political will to approve the minimum living wage has been absent in Albania all along. He emphasizes that this lack of will appears in the rhetoric of political parties, especially when they are in opposition.
"All political parties when they are in opposition, be it DP or SP, have had the vital minimum as a whip in their hand to hit the government and the poor. But as soon as they came to power, the only thing they did not do is this".
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