Social insurances in Albania in critical position

Drita LUZO (KLLAPI), Zamira VEIZI, Irena BOBOLI & Lorenc KOCIU

Abstract The transition process of Albania from the centralized system on the free market system and the adoption of the new system still continue to have great difficulties. Many of these difficulties consist in decision making and implementation of various reforms in the economic, social, political field. Although many reforms have resulted successful, reforms to the pension system have left much to be desired. Experts say that intervention in the pension scheme is necessary not only because of the huge financial deficit, but also for another reason. To avoid a deep social crisis that current system is producing.In this article we intend to define an insight into the old age pension system in Albania. Our goal is to present both past and present solutions employed by the Albania’s pension system, in search for ideas worth considered in international comparisons. At the end of the article it is given an alternative about pension reform in Albania.
Key words Albania, social insurances, old age pensions,
private pensions, priority sectors.
JEL classification G220, G230, H55, J33