Despite some setbacks, Albania has made great strides in social, economic and democratic progress since the beginning of the nineties. The Mediterranean country is endowed with latent natural resources, such as mineral deposits and hydropower, holds large agricultural potential and its population is young and motivated.

Prospects for the future: soft tourism

Albania’s unique culture, long coast, picturesque mountain scenery and Mediterranean climate afford excellent conditions for soft tourism. By virtue of its geographical situation, though, it is also well suited as a hub for trade in the Balkans and Mediterranean. Thanks to numerous packages of government measures and its motivated and well-trained population, Albania is an attractive destination for investors. At almost six per cent, economic growth is the highest in the region.

European perspective

There are, however, deficits in administration and infrastructure. Unsettled property relations still place constraints on foreign direct investments. Great progress has been made in aligning the Albanian legal system with European standards and norms, but practical implementation has been slow to proceed.
Austrian Development Cooperation (ADC) has been supporting Albania in convergence with the European Union since 1991. ADC attaches priority largely to education, environment and sanitation. Good governance and gender equality are mainstreamed in all ADC programmes and projects. Geographically, ADC concentrates on northern Albania, a region where the rift between rich and poor is particularly wide. A long-term goal of Austrian-Albanian cooperation is promoting tourism. Albania has been a priority country of Austrian Development Cooperation since 1992.