Regional Competitiveness in Albania under the Focus of Labor Management Relations

The paper analyzes main aspects of public administration reform in Albania during the last decade, focusing especially on last three years. At the beginning, the role of Public Administration Department has been highlighted and discussed. Later, the author identifies three important ingredients of reforming efforts: functional and structural reform, extension of scope of legislation related to civil service and wage system reform. The latest has been discussed in details for different public sectors like education, health service etc. The contribution of Training Institute of Public Administration to reform process has been also briefly identified. Albania is open to foreign investment and increasing FDI is a top priority for the Albanian government. Albania has put in place a liberal foreign investment regime, including a 10 percent flat corporate and income tax and has taken measures to improve the business climate by streamlining business procedures through e-government reforms. These improvements along with NATO membership and progress toward EU integration have contributed to the increase in investor interest during the last couple of years. Promising sectors for foreign investors and include: energy (including alternative energies), mining, transportation, telecommunications, and tourism. The country’s geographic position places it at the crossroads of Western and Eastern Europe. A stable U.S. ally, Albania is a member of NATO, the WTO and is in the process of applying for candidate status in the European Union.