Student ID: ID6067
Course Title: International Business Trade
Course ID: 5205/C
Professor Name: Manfred Brauchle
Submission Date: 29.12.2011

Albanian Business Environment & International Market Integration Constrains
Research Paper

TABLE OF CONTENT

Abstract Introduction 1. Albanian Business Environment Data 2. Albanian Business Law and its Consequences on Domestic /Foreign Business Environment 3. Key Risks Threatening Business in Albania 1. Domestic Political Situation 2. Inflation /Taxes & Price Effects 3. Population and Business Distribution Geography 4. The Immigration and its Impact on the Economy and Business Demand 5. Global crisis – Greek & Italian Crisis 4. Conclusions 5. Literature

Abstract

This paper provides an overall picture of the business environment difficulties of East European Countries, through the concrete case of Albania, towards new political & economic changes in parallel with global changes. It will consider the type of businesses operating within the country, the market environment fragility & volatility, several types of risks present, the impact of Euro versus domestic businesses and joint ventures within Albanian market and the most evident barriers that domestic business has in order to act internationally.

Introduction

Change in Eastern Europe, in early 1990’s, came in with a new set of political and economical problems. In Albania, the collapse of communism and its agricultural closed economy left the place to the free market economy. The passage faced the institutional gaps as well as it found an unprepared society towards the mixed market economy. The old industrial sectors was paralysed, the unemployment rate and the rapid rise of private sector gave way to the informal labour market and at the same time to migration as a very important phenomenon and considerable economic variable for the country.

One of the most significant reforms and legislation undertaken in Albania passing from a State financing enterprises system to a free private market was the privatisation and its legislative reforms. On its two phases of privatisation (1992 – 1994, and 1995) beyond the government willing to pass the State property enterprises (SME, light industry and in 1995 some larger than SMEs’ enterprises) to its own citizens, the privatization failed. The owners of the current companies became individuals which were able to accumulate the vouchers given by the State.[1]

Later on, in 1997 pyramidal collapse showed to internationals that Albania lacked financial institutions which nowadays are operating powerfully within the country. Furthermore it confirmed that the economy of the country was based on remittances. Still the businesses were on their initial phase and not solid. The role of the missing finance system, although the overall macro – growth, was evident & decisive for Albanian economy.
In 2008 the Albanian Parliament replaced the law of 1992 with the new one on “ Enterprises and Commercial Companies” allowing foreign companies to have branches & representative offices conditioning in this way their organizational structure. Furthermore, in July 2011, in order to stimulate foreign investment on extractive industries, that for the moment result to be state -owned enterprises, gave way to the creation of a working group with a balance stakeholders presentation under EITI (Extractive Industries Transparency Initiative) rules (member of which Albania results to be from 2009).[2]

Concretely, by its own old structure the Albanian market is ruled mostly by Small Medium Enterprises(SME) the majority of which are operating as joint ventures or remain at the boarders of family businesses (usually 1-4 persons). In Albania, although the market reality has changed in positive direction, the country faces many difficulties to attract foreign investments as well as to help domestic ones to enter the international market. Causes are internal and external ones. Considering internal factors they are different and have the origin on its fragile political environment, its financial market shock caused by the collapse of pyramidal schemes in 1997 – 1998, LEK (Albanian currency) inflation and gaps in financial institution, and legislation lack although the severe reforms have been taken. Additionally emigration and internal migration are factors to be considered as far as the country leaks almost 7.7% of its population in ten year period.[3]

On the other side global crisis, being dollar crisis or Euro crisis, has reflected its effect on Albanian overall business market. Only in 2011, the unemployment increased by 12.6%[4]. The consumption reflects its decreasing curve direction in some of the most common group of products then the failure of many small and medium enterprises. It is evident that the transition period is not finished yet. Albanian legislation has still a long path ahead in order to improve business climate.

Considering the mentioned economic climate in Albania and its developing-country economy, this paper is divided into four main mini chapters which will consider the actual business data, the facilities/barriers created by the business law on enterprises, Albanian business key difficulties versus a normal integration on international market and conclusions. The offered analysis is generic and does not enter into specific cases. The mentioning of some business identities illustrates the general clime and facts.

1. Albanian Business Environment Data

Country production, although the high level of GDP (3.4%) statistics published by INSTAT (Albanian Statistic Institute) in the first quarter of 2011, is concentrated on agricultural sector some oil refinery, as ARMO consortium, construction sector, production of cement and other materials for construction, energy sector & infrastructure. The service sector imposes the majority of the private activities evolved in Albania. Most of the enterprises activities consist in trading with an average of employment of 2 – 4 persons. As per the last data by INSTAT, the landscape of actual market in the country divided between producers of goods and services results to be as follows:
[pic]
[pic]
As per “Karakteristikat kryesore te nderrmarrjeve jobujqesore” IINSTAT www.instat.gov.al

The labour force on the 10 year period 2000 – 2010 is diminished. At the same time the unemployment statistics show higher percentages than a year ago.
[pic]
CIA World Factbook www.indexmundi.com

[pic]
CIA World Factbook www.indexmundi.com

The majority of collaborations (joint ventures whose capital is Albanian 99% as per data given by Tirana Chamber of Commerce & Industry), including import- export, for Albanian businesses results to be Italy, Greece, Turkey and China. Italians firms have the main share. They operate in the majority of business sectors and in the main areas of the Albanian territory (Tirana, Durres, Shkoder, Fier, Vlore). Greek enterprises are more present in the south part of Albania as Gjirokaster, Sarande, Delvine. Foreign Direct Investements’ presence comprises sectors as trade, tourism, construction, transport, communication, services, manufacturing etc. In 2009 the FDI s’ flows to Albanian rise to 705 million EUR regardless of global crisis[5] (FDI Albania report 2010, UNDP Albania, http://issuu.com). As a consequence of the crisis effect on their pattern, many countries of these joint ventures risk to be on collapse board. In Gjirokaster (south of Albania) more than 40 businesses have closed their activities because of the fall of demand form Greek enterprises collaboration. (Gjirokaster, Perkeqesohet Gjendja Financiare e Bizneseve. Bota Sot. 21.12.2011 www.botasot.info)

Low manufacturing affects directly the exporting sector, which remains the lowest figure for the country GDP among all the East European Countries (10%). Albanian Export commodities include textiles and footwear; tarmac, metals, crude oil; vegetables, fruits and tobacco. Its main partners are Italy with 55.9%, Greece with 11.6% and China with 7.2% .

[pic] [pic]
Data calculated by sources as Bank of Albania (Banka e Shqiperise), Instat, World Bank. Economic Info (Buletini Ekonomik).

2. Albanian Business Law and its Consequences on Domestic /Foreign Business Environment.
During the privatisation process, Albanian government in November 1994 approved the law 7764 on “Foreign Investment”. It created many facilities for FDIs like no sector limits, no limitations on percentage share, the right to expatriate all funds invested, no need for government authorization. On the other hand, the difficulties versus this attractive offer were legal services, finance system & infrastructure.

The domestic business, not yet consolidated & capital powerless, found itself in the middle of two storms. The first was coming by its government, a failed process of privatization, no incentives given for new initiatives, high loan rates offered only by the Bank of Albania, missing time efficiency on administrative issues, corruption, high inflation (on that time more than 20%). The second storm was coming from the foreign investments,which, under favourable conditions, were keen to enter in this new market and profit from its low costs. Beyond the mentioned factors, the domestic business was shaped by the massive emigration and the technology boom. Under such conditions it was too early for Albanian domestic business to enter in international market as a competitor. Its possibilities were blocked from the very beginning.

On 2008 the Albania overall economic landscape is better situated. The country’s banking and financial sector is well structured, taxation and institution related are more efficient, internet power has increased the quality of services, has created new links for national business as well as it has opened its door as a new market place. On this line, the government approved the new version of the law regarding to the foreign investments, the law no 9901, in which are defined the four different types of commercial companies allowed to operate in Albania: general partnership, limited partnership, limited liabilities companies and joint–stock companies[6]. Accompanied with taxation law adjustments, the creation of the National Centre of Business Registration (QKR) and other facilities to a wide range of business sectors, the climatic wind created couldn’t be but favourable for both, foreign and domestic businesses. Meanwhile, banks and credit institutions have increased their outstanding portfolios.

The positive area that followed very soon was presenting its other face of the coin for many small and medium business which were skipping till that moment the taxation. The big companies (the joint ventures or FDIs) were acquiring their territories. The domestic business found itself twice threatened[7]. Being treated equally as FDIs for domestic business means to be designated to fail from the very early starting step. Differences on starting capital, guaranties, qualifications and many times on quality leave domestic companies aside or force them to be swollen by foreign ones[8]. The international market will still remain a beautiful dream for the far future.

3. Key risks threatening business in Albania

3. 1 Domestic politic situation

Since June 2009, after the last elections, the political conflict between the two major political forces, socialist party and democratic one, has blocked the possibility for major reforms in Albania. The situation deteriorated after local election on 8th May 2011 has totally paralysed the overall economy of country. The short–term political risk rates seems to be not longer short. As a consequence, remembering 1997-1998 events, the fragile trusting sense created internationally to attire investments is broken .[9]

Entering into domestic business environment including medium enterprises or some big ones as Kokedhima SH.P.K. are facing the failure. But, the most attractive fact comes from India, one of the coming big international competitors. Surpassing the above mentioned political problems, Indian companies are the new interested actors entering Albanian market. In spite of political instability, the Indian exporters find Albania as a great opportunity opened door to enter in East European market[10]. Their “carpe diem” theory seems not to fear the political risk. What makes the Indian corporate to run into Albanian market seems to be represented and encouraged by favourable initial prices, exchange market that operates in many currencies, low- cost labouring not comparable to other East European or West European countries, the geographical position and high interest on communication and information technology.
[pic]

The Business Interest Mirror to Albania as Political Environment Derivate.

2. Inflation / Taxes & Prices effects

Despite the positive data published by INSTAT for a growth on GDP by 3.4% for 2011 Albania market experiences the same increase of prices generated by internal and external last economic development. Uncertainty and risk have gone up creating a very disturbed curve on dollar and Euro financial market. Its derivates in not very well empowered markets, as Albania is, are inflation and decelerated goods demand.
Being under two types of pressures, inflation and high prices from the global market, Albanian customers found themselves with less items to buy in their basket. Furthermore, it should be noted that a significant part of these items were food. The future uncertainty is becoming larger although the encouraging figures given by macro or the increase on industry production. As per the declaration, on 27 July 2011, of the Governor of the Bank of Albania Ardian Fullani, the average annual inflation during the first and second quarters of the year was 4.0% and 4.1%, respectively.[11] The facts immediately had reflected their impact on downward figures of foreign investment and the closure of many domestic existent businesses. The number of closed businesses in Albania during 2007 – 2011 is 16937. Considering the number of declared passive businesses the figures are higher[12].

As it is seen, the high level of inflation and prices are increasing the immediate demand for more domestic production and business participation. On the other side, the Albanian competitors, including big investors, are trying to keep their investment under control and slow the process. Meanwhile, the public sector is spending and investing more than expected. As per the Albanian media, the country treasure risks to close the financial year with negative figures. The economists explain that this is the main reason pushing the Albanian Government to give on concession many properties or to sell energy to Greece and other neighbors when the country need more. Considering the later facts, there are new market possibilities for foreigner. Inflation and prices in Albania seem to offer at the same time positive possibilities for big businesses as well as to cut them for small businesses. Is it this the right time for Albania to go towards the new types of business competition? The situation appears very uncertain and the last population statistics are showing that Albanians tend to leave their country and to diminish the labor force inside. (INSTAT declared on the last CENSUS 2011 that more than 200,000 people have lived Albania during 2011). The population has decreased about 7.7%. The major causes are massive emigration and the low number of births. In spite of good financial possibilities offered versus the other countries of East Europe, Albanian political instable situation keeps aside even foreigners who want to invest in.

Annual changes of Consumer Price Index by main groups
Variation of December indices on year n with December of year n-1
2006 2007 2008 2009
Total of goods 2.5 3.1 2.2 3.7 2006, 2007, 2008, 2009, 2010, 11.2011
Food and non-alcoholic beverage 0.2 5.4 3.5 6.8 4.6 5.9 (average)
Alcoholic beverages & tobacco 12.1 4.0 2.3 4.1 6.5 11.8
Clothing and footwear -2.8 0.1 -3.9 -1.1 -2.3 -1.8
Rent, water, fuel and power 7.0 1.0 4.9 0.9 4.7 2.6
Furniture household &maintenance -0.9 -0.1 0.1 0.7 0.3 0.8
Medical care 1.2 0.0 1.1 8.6 6.5 5.2
Transportation 1.1 2.8 1.2 4.3 3.3 5.8
Communication -2.5 0.0 -19.3 0.4 0.6 0.3
Recreation and culture 1.3 -2.6 10.2 1.0 0.1 1.8
Education service 3.8 -0.7 1.1 4.7 -0.5 0.0
Hotels, Bar-coffee & Restaurants 1.8 5.2 2.3 1.3 1.4 1.2
Goods & Different services 1.9 0.5 1.1 0.2 1.0 0.3

The data are referring to INSTAT info. The 2011 data is an average calculated as per INSTAT 2011 monthly info

Turning the eyes on the taxation system, Albania offers very attractive opportunities personal tax income in Albania is 10% versus 12% in Czech Republic, 15% in Croatia, 16% in Romania, 16% in Slovenia & 19% in Poland. Regarding to the corporate taxes the situation is the following:
Corporate Income Tax 10% flat tax from Jan. 08’; Personal Income Tax 10% flat tax from Jan. 08’;
Withholding Taxes 10% Interest, Dividends and Profit; Social Insurance Tax 15% Employer contribution; Value Added Tax 20% (Negotiations to reduce are on-going.( data taken by Tirana Chamber of Commerce). More public services on administration have been improved including taxation online – diminishing the corruption, other facilities on long procedures, more attention to double taxation etc. They have shown positive results on attracting FDIs’ despite other barriers’ presence. But, on the other side, considering and treating in the same manner foreign and domestic investment the government has created a favorable climate to damage and to charge more than their actual incomes the domestic businesses. For all domestic registered businesses, the taxes combined with inflation and a decrease demand are overlooked. The fact becomes more evident for small and medium enterprises whose profit per year is very low and in the majority of cases not sufficient. The necessity to review the taxation system differentiating the investment levels and the respective taxis is definitely decisive, considering the huge number of SME’s closed the last 3 years.
32
3. The population and business distribution geography

For the first time Albanian population have the majority concentrated in urban zones, 53.7 % of the total. It means that even business and the major economic dynamics are developing their activities there. On the other side, the domestic production on agriculture is diminished. The unemployment figures are higher, the cost of life is becoming more and more expensive and the poverty has raised. As said on the above paragraph, the demand for goods including the basic ones (such as food) is under average.

The business concentration has affected the economic life of capital and other big towns as Durres, Shkoder, Vlore. Fier, Kavaje, Gjirokaster, Sarande. Regarding the suburban’s regions it can be said that business does not exist except the small type of it, called familiar business. The majority of income in these regions comes from emigration. There is a need to create agriculture investments on these regions in order to increase the quality of life and to a better distribution of population. Miles of hectares are not elaborated, productions comes from olive plant and other trees are used just for the familiar needs and small part of it pass to the market (consider that the price of domestic production is higher than the one of the imported ones). The land on South of Albania is almost not in use. Such an investment not only represents a good opportunity for domestic business but it will certainly increase the number of employed people (although the trend among young generations in Albania is directed by university studying or emigration), it will help the percentage of GDP , it will increase the demand for domestic production and goods and in the same time will decrease the costs of production itself and as derivate of it the market will offer better prices. The relation cost – effectiveness – demand will have a better balance.

The reasons why domestic business intentions are not directed on agriculture, mostly in south of Albania, is the lack of youth (labour force) given by emigration figures which are very high; taking into account cultural reminiscences that are related with the past period of Albania, the agriculture is seen as a business of communism and with low profits. There is a need for a new marketing strategy and more incentives in order to push the locals toward agriculture.

Referring to the north of Albania, for their geographic position, climatic condition and the lack of infrastructure and public sector services the population tends to leave their houses and move most on capital suburban’s and on this last year it is noticed a kind of internal immigration toward the south of the country. On this way are abandoned the resources as local tourism, (north Albania represents one of the most beautiful still virgin nature on the Balkan region), mineral industry (chrome & nickel), wood industry (the major part of wood for furniture elaboration in Albania comes from north), infrastructure opportunities and the market offered by the public sector government intentions investments.

4. The emigration its impact on the economy and business demand

The given population data above has underlined the emigration as one of the major causes of the decrease in labour force, customer demand, distribution of the businesses and the contribution curve of the economy. On the other side, the financial figures show that overseas savings entering in Albania via emigrants remittances balance somehow the lack on human resources created. It allows the households to spend or to invest inside the country. In addition the skills acquired abroad from emigrants are used by them upon their return. The phenomenon represents a complicated issue. At the same time in which the remittances enter in Albania, through legal and illegal way (more illegal than legal) investments done are more in non productive sectors as housing and services(more related with tourism). Coming from a family economy the general culture imposes to the emigrant to keep the saved money in the house and not deposit them in bank, creating (in a moderate way of expressing) lack of cash flow in bank and evading financial taxes on transactions. The trend brought by emigration drives the mini economy and certainty affect globally the Albanian market.

Nowadays a recent phenomenon has been indicated, the migrants return. Beyond the human resources back a probable considerable amount of cash flow will enter in the country. The fact has divided the economist in two different positions; a part sees the economic future activities as positive. They hope that the re- accumulation of several resources will move on the demand and develop many new small and medium enterprises within the country. On the contrary the other group of economists see the phenomenon with scepticism. They think that, driven by the trend to invest in no productive assets and sectors, Albanian economy will face a shock period in which the unemployment figures will affect negatively the demand for goods and will paralyse the public sector clinging out the state treasure boxes.

5. Global crisis – Greek & Italian Crisis

Although it escaped recession of 2008-’09, affected by the global crises, (mostly Greek crisis), & domestic political crises created after 2009 elections, the economy figures in Albania started to slow. Country GDP for 2011 is 3.6% instead of 5% in 2010.(“Albanian Business Forecast Report Q4 2011”18.09.2011-Business Monitor International www.marketresearch.com). Placed and integrated poorly with other regional and global markets, the missing bursa system, somehow tends to protect the country economy by the rapid downwards change. This cannot be overestimated by the moment it needed to be considered bilateral relationships with States as Greece and Italy which are living the collapse stage of their economies. Albania and Greece are both partner in FDIs’ stock market and Greece is the largest trade partner. Furthermore, Albanian immigrants remittances to Greece represent the main capital inflow to finance accounts deficits and current debt. The chaos created in Greece has affected directly the Albanian remittances as a consequence the Albanian householders economy, which have as a source of income these remittances, will be affected negatively.
Greek investment in Albania are concentrated in high value-added enterprises and strategic sectors, including the ownership of the second largest telecommunication company (AMC) and a range of infrastructural corporations. (A & S Elbasani, “Albania – Vulnerable or Immune to Potential Risks from the Greek Crisis?”, 2010, www.ssrn.com) Albanian banking system is threatened too. Greek country banking investments are owning three of Albania’s top ten banks. (Greek government has borrowed a considerable sum from its internal banks limiting the possibilities of the later ones to give loans, as a consequence to slow the economy of the countries there are present). In additional of the risks mentioned remains the governments’ similarity in structure and organization. As Greek government pictures has been known, even the Albanian institutions are characterized by high degree of spending and low incomes. On this stage the immunity from Greece result to be not high as pretended.
The other Albanian partner is Italy. It takes the first place for Albanian trade market and exports. And for many years the role of Confindustria has been decisive in many private sectors. The latest (2011) data offered by Italian Institution for the Foreign trade shows that 98 Italian–Albanian businesses are registered and present within Albania, 31 ONG/ONLUS are operating and investing within the country in development projects and education. Including the Albanian immigrants working in Italy and nowadays are losing their jobs. Although not in Greece stage the Italian economic crisis is aggravated. The effects on Albania will be the same as the ones coming from Greek crisis. Which will rise the macro and micro issues to be resolved.

4. Conclusions

As it is seen, many market opportunities still remain unexplored. Caused by concrete country financial situations, political fragile environment, global crises, structural and organizational gaps Albanian market and domestic investor are still far from being international competitors. The urge to invest in productive sectors and to attract the immigration with economic incentive in order to come back is very high. The possibilities for big foreign investors which can be able to undertake risks offered are enormous. The country offers pro government policies, natural and high skilled human resources with low costs, a very favourable geographic position, and its own need to be invested within the country.
On the other side, the country has to review its own domestic economic policies in order to increase its GDP for its natural resources it owns.

Literature
“How to Create, Win and Dominate Markets” – Philip Kotler , The Free Press edition 2000.
IBT course material – 2011. Swiss Management Center University.
Doing Business in SEE .What Albanian Offers – Tirana Chamber of Commerce and Industry

Online literature www.instat.gov.al www.qkr.gov.al www.worldbank.org www.economist.com
“Inflation in Albania” Philip C. Rother International Monetary Fund 2000 www.ssrn.com
“Foreign Direct Investment Report Albania 2010” http://issuu.com
“ Overview of recent economic developments in Albania” Speech by Mr Ardian Fullani, Governor of the Bank of Albania, at the press conference on the “Monetary Policy Decision of the Bank of Albania Supervisory Council”, Tirana, 27 July 2011.
“Presenza Italiana in Albania” ICE Istituto nazionale per il Commercio Estero www.ice.gov.it
“The Problems of The Albanian and Italian Businesses in The Focus of the lates Developments between Our Countries” Ing. Hajredin Fratari, President of Confindustria Albania
“Investing Back Home” Talip Kilic, Gero Carletto, Benjamin Davis, Alberto Zezza, The World Bank Development Research Group, Poverty Team , September 2007. www.ssrn.com
“Acquis application in Albanian Company Law in comparison with other EU states in relation to Corporate Management” – Adi Hima , June 2011 , www.ssrn.com
“When the Manna Comes from Abroad. Remittances and Youth Labor Market Behavior in Albania” Michela Braga May 2009, www.ssrn.com

Additional info

Some of FDI members as per sector in Albania

|Banking |Travel Agency |Financial Markets |
|ProCredit Bank Albania S.A. |Austrian Airlines |Albanian American Enterprise Fund |
|Tirana Bank S.A./Sh.A. |Malev Airlines |Tirana Leasing |
|International Commercial Bank |Onufri Voyage |Telecommunication & Information Services |
|Intesa Sanpaolo Bank |Trade & Exhibition |Vodafone Albania Sh.A |
|Alpha Bank Sh.A. |Porsche Albania sh.p.k |Primo Communications |
|Banka Kombetare Tregtare |Tobacco Holding Group |Albanian Mobile Communications Sh.a |
|Raiffeisen Bank |Elida Co 94 |Printec Albania Ltd |
|First Investment Bank |Philip Morris Albania |Konsort Albania |
|Banka Societe Generale Albania |Praktiker Albanien |“Teleperformance Albania - CC Albania Shpk” |
|Emporiki Bank Albania s.a |British American Tobacco Albania |Eagle Mobile |
|Construction & Infrastructure |JTI Albania |Intracom Telecom Albania S.A |
|Rofix Albania Sh.p.k |Dua Gaz |ALEAT shpk |
|TEQJA International |MPAY |Albacall Sh.a/ Abramo |
|Colliers International |Mining and Oil & Gas Industry |ALBTELECOM |
|Vista Group |Global Hellenic Petroleum, Albania |Teoalb |
|LF Construction shpk |VIL OIL sha & ALPET |Nokia Siemens |
|Cosedil Spa |Bankers Petroleum Albania |Education |
|Becker Albania Sha |Eurotech Cement |Business Link, British School |
|Hellas Services & Constructions |ALBITOIL shpk |European University for Tourism |
|Piraeus Real Estate |Selenice Bitumi Sh.A |Advertising & Communications Agency |
|Porr Technobau |JAB Resources shpk |Comport |
|La Petrolifera Italo Albanese sh.a |Antea Cement Sh.a |Iceberg Communication |
|Consulting & Auditing |Albanian Chrome |Le Spot Productions |
|Boga & Associates |Tirex Resources shpk |Albania Reklama |
|Deloitte Albania |Fushe-Kruja Cement Factory |Ogilvy Albania |
|Tonucci & Partners, law firm |Stream Oil & Gas |Radio Link Shpk |
|Wolf & Theiss |Mamidoil Albanian |DDB Albania |
|KPMG Albania Sh.p.k. |Taci Oil International sh.a |Insurance |
|Kalo & Associates |Colacem Albania Shpk |SIGAL UNIQA Group AUSTRIA S.A. |
|Ernst & Young |RA KROM TIRANA (SBM GROUP Construction and |Interalbanian, Vienna Insurance Group |
|Rina Albania shpk |Mining) |MAI sh.a Insurance and Reinsurance Brokers |
|Business Concern |BERALB sh.a |Beverage |
|SCHONHERR |SKY Petroleum |Coca - Cola Bottler Shqiperia |
|VEVE Group Consulting |Dedeman Albania Mining |Agna Group |
|PricewaterhouseCoopers Audit sh.p.k. |Trans Adriatic Pipeline (TAP) |Hotel & Restaurant |
| |Empire Mining Albania |Sheraton Tirana Hotel |
|Postal Service |Human Resources |Rogner Hotel Europapark |
|DHL International Albania Ltd. |Pedersen & Partners |Far East Restaurant |
| |Dr.Pendl & Dr.Piswanger PeoPle shpk | |
| |Energy | |
| |Schneider Electric Sas | |
| |Amadeus Group | |
| |Terna Energy | |
| |CEZ Albania sh.a | |
| |Statkraft | |
| |EVN Albania | |
| |CNR (Compagnie Nationale du Rhone) | |
| |Medical Care | |
| |Hygeia Hospital Tirana Sh.A | |

-----------------------
[1] Voucher system was the same used in Czech Republic. In the contrary of its good results in Czech R, the system failed in Albania because of lack of stock exchange and capital market institution. (“Does Albania Have a Development Financial Market?!” Artan Gjergji, 2006, p.5. www.usab-al.it )
[2] “Overview on Extracting Industries” 14.11.2011 http://eiti.org/albania
[3] The data given by INSTAT in the CENSUS 2011,on October 2011, the country population has decreased in 7.7% in ten years. “Census Albania 2011” October 2011. www.instat.gov.al
[4] Ibidem
[5] The data given from FDI report 2010 forecasts a decrease in the 2010 and 2011 justified by the same factors of the global crisis. The given fact that the FDIs’ increased on 2009 is due to Albanian legislation changes. Referring to the same report for the biggest FDI joint ventures operating in Albania . [6] “Albania Invest Climate 2009” Ina Dimireva , 2 February 2010. www.eubusiness.com. [7] As per the data given by “Albania Invest Climate 2009” Ina Dimireva , 2 February 2010. www.eubusiness.com, in Albania on that period the privatization process were in its final step with the participation in majority of many foreign companies. The most important sectors of the economy were about to conclude (and they have conclude) their joint ventures as follows: • 85 percent of state-owned oil refiner ARMO was purchased by an Albanian-Swiss-U.S. consortium. • 61 percent of insurance company INSIG was purchased by American Reserve Life Insurance • Negotiations with the winner of the tender for the privatization of 76 percent of the shares of the Distribution Arm of the Albanian Power Corporation are expected to conclude in January 2009. • The privatization of 12.5 percent of the shares of the mobile operator AMC is scheduled to finalize early 2009
As it is seen the domestic business even after about 2 decades of new economy system era has not achieved to increase its organizational structure in order to operate and to be leader of its country main keys of economy.
[8] Referring to the info given by General Taxes Directory (Drejtoria e Pergjithshme e Tatimeve) in Albania the crisis is reflected in many illegal forms including big companies. On 15 December 2011 by the inspections done on 80 big business have resulted that many of them were offering false balance sheets, no declaration of inventory and many were involved in other non declared activities. 30 SME were not registered on National Centre of Business Registration (QKR) and many other illegalities among the registered ones. www.tatime.gov.al
[9] Referring to the article of The Economist on 18 may 2011 “Albania on the Brink , Trouble in Tirana” signed T.J the overall perception breathed by internationals was the start of the new cycle of long political conflicts characterized Albania during last decades. The situation was described as “ What a tragedy for Albanians”. www.economist.com
[10] 4- 6 November 2011 in Tirana has taken place the first India –Albania Trade Expo intentions of which was to promote the new collaboration between countries’ businesses and trade.
[11]“ Overview of recent economic developments in Albania” Ardian Fullani, 27 july 2011, www.bis.org . on this article the Governor of Bank of Albania explain that the inflation will decrease its figures during the coming quarters of the year (2011) because of the expected domestic production on agriculture and a low increase in industry.
[12] Data given by National Center of Business Registration (QKR) ww.qkr.gov.al

-----------------------
ALB politic envronment

ALB – Indias’ interest environment

ALB general FDIs’ situation

ALB – Domestic Business situation

-----------------------
17