The Social Safety Net in Albania

Natasha Koliadina

No 1996/096, IMF Working Papers from International Monetary Fund

Abstract: This paper reviews the developments in the social safety net system of Albania since the beginning of its economic adjustment program in mid-1992 through the third quarter of 1995. It shows that the social safety net system was quickly reformed, and that this allowed Albanian authorities to support the most needy groups of the population with income transfers. Notwithstanding the low administrative costs, the social safety net system is not financially sustainable. Expenditures are not balanced with revenues, and the gap cannot be closed in the short-run. Poor targeting of the benefits and administrative loopholes spur expenditures. Revenue growth is hindered by low compliance with the social security contributions. The paper concludes with some suggestions for addressing this issues.

Keywords: WP; public enterprise; unemployment insurance; private sector; injury benefit; replacement ratio; state enterprise; severance pay; base wage; flat rate; Social security contributions; Pension spending; Unemployment benefits; Social assistance spending; Unemployment; Eastern Europe (search for similar items in EconPapers)
Pages: 60
Date: 1996-08-01
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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1996/096

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