IDEAS home Printed from https://ideas.repec.org/a/dug/journl/y2011i29p97-108.html
   My bibliography  Save this article

The Albanian Pension System: The Need for Reform

Author

Listed:
  • Areti Stringa

    (University Tirana, Faculty of Economy)

  • Raimonda Duka

    (University Tirana, Faculty of Economy)

  • Kiti Stringa

    (Bocconi University)

Abstract

This paper focuses on the pensions system in Albania. The economic, political, and social changes that occurred in the nineties put the whole country’s economic development under pressure and especially the pension system. This paper analyzes how the challenges brought by both the demographic transition and the economic transition were faced. It discusses the different reforms undertaken up to now and their impact on the pension system sustainability, equity, and the fiscal burden to the state. The parametric reforms of 2002 had a positive effect on the financial situation of the pension scheme. Yet further reforming of the current scheme is necessary to address ongoing concerns. The high rate of unemployment and the informal labor market reduce the amount of contributions. The “aging” population, which increases the fiscal burden, continues to challenge the pension system.

Suggested Citation

  • Areti Stringa & Raimonda Duka & Kiti Stringa, 2011. "The Albanian Pension System: The Need for Reform," EuroEconomica, Danubius University of Galati, issue 29, pages 97-108, August.
  • Handle: RePEc:dug:journl:y:2011:i:29:p:97-108
    as

    Download full text from publisher

    File URL: http://journals.univ-danubius.ro/index.php/euroeconomica/article/view/985/821
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Landis MacKellar & Robert Holzmann & Jana Repansek, 2009. "Pension Reform in Southeastern Europe : Linking to Labor and Financial Market Reforms," World Bank Publications - Books, The World Bank Group, number 2587.
    2. World Bank, 2009. "Pensions in Crisis : Europe and Central Asia Regional Policy Note," World Bank Publications - Reports 18728, The World Bank Group.
    3. World Bank, 2007. "Albania - Urban Growth, Migration and Poverty Reduction : A Poverty Assessment," World Bank Publications - Reports 7659, The World Bank Group.
    4. Jan Svejnar, 1996. "Pensions in the Former Soviet Bloc: Problems and Solutions," William Davidson Institute Working Papers Series 14, William Davidson Institute at the University of Michigan.
    5. Robert Holzmann & Edward Palmer, 2006. "Pension Reform : Issues and Prospects for Non-Financial Defined Contribution Schemes," World Bank Publications - Books, The World Bank Group, number 6983.
    6. Mr. Volker Treichel, 2001. "Financial Sustainability and Reform Options for the Albanian Pension Fund," IMF Working Papers 2001/047, International Monetary Fund.
    7. Mukesh Chawla & Gordon Betcherman & Arup Banerji, 2007. "From Red to Gray : The "Third Transition" of Aging Populations in Eastern Europe and the Former Soviet Union," World Bank Publications - Books, The World Bank Group, number 6741.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert Holzmann, 2012. "Global Pension Systems and Their Reform : Worldwide Drivers, Trends, and Challenges," World Bank Publications - Reports 13557, The World Bank Group.
    2. Guardiancich, Igor, 2008. "The sustainability of pension reforms in central, eastern and south-eastern Europe," SEER Journal for Labour and Social Affairs in Eastern Europe, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 11(2), pages 185-197.
    3. García Posleman,Francisco & Julian Folgar, 2024. "Procyclical Fiscal Policy in Argentina : Drivers and Channels of a Long-Lasting Marriage," Policy Research Working Paper Series 10942, The World Bank.
    4. Calvo, Esteban & Williamson, John B., 2006. "Old-Age Pension Reform and Modernization Pathways: Lessons for China from Latin America," MPRA Paper 4872, University Library of Munich, Germany, revised 2007.
    5. Svejnar, Jan, 2007. "China in Light of the Performance of Central and East European Economies," CEPR Discussion Papers 6320, C.E.P.R. Discussion Papers.
    6. Erika Pastoráková & Zuzana Brokešová & Jana Péliová, 2017. "Proaktívny prístup k tvorbe súkromných dôchodkových úspor: kľúčové determinanty [Proactive Approach to Private Pension Savings: Key Determinants]," Politická ekonomie, Prague University of Economics and Business, vol. 2017(6), pages 709-727.
    7. Szüle, Borbála, 2013. "Demográfiai hatások és implicit hozamok kapcsolata a nyugdíjrendszerekben [The relationship of demographic effects and implicit returns in pension systems]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 703-721.
    8. Agnieszka Chlon-Dominczak & Agnieszka Kaminska & Iga Magda, 2013. "Women as a Potential of the European Labour Force," IBS Policy Papers 1/2013, Instytut Badan Strukturalnych.
    9. Lucilla Maria Bruni & Jamele Rigolini & Sara Troiano, 2016. "Forever Young?," World Bank Publications - Reports 24996, The World Bank Group.
    10. Nicholas Barr, 2010. "Reforming Pensions: Principles and Policy Choices," ACTA VSFS, University of Finance and Administration, vol. 4(1), pages 47-58.
    11. Pedro Moncarz, 2015. "Implicit redistribution within Argentina’s social security system: a micro-simulation exercise," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 24(1), pages 1-35, December.
    12. repec:cbh:journl:v:14:y:2015:i:2:p:89-127 is not listed on IDEAS
    13. Pierre Devolder & Susanna Levantesi & Massimiliano Menzietti, 2021. "Automatic balance mechanisms for notional defined contribution pension systems guaranteeing social adequacy and financial sustainability: an application to the Italian pension system," Annals of Operations Research, Springer, vol. 299(1), pages 765-795, April.
    14. Carlos Vidal-Meliá & Manuel Ventura-Marco & Juan Manuel Pérez-Salamero González, 2018. "Actuarial accounting for a notional defined contribution scheme combining retirement and longterm care benefits," Documentos de Trabajo del ICAE 2018-16, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    15. Jaromir Cekota & Claudia Trentini, 2012. "Demographic pressures and the sustainability of social security in Emerging Europe and Central Asia," ECE Discussion Papers Series 2012_2, UNECE.
    16. Andras Simonovits, 2018. "Designing pension benefits when longevities increase with wages," CERS-IE WORKING PAPERS 1804, Institute of Economics, Centre for Economic and Regional Studies.
    17. Bingwen Zheng, 2006. "Assessment for Social Security Pilot in Jilin and Hei Longjiang of China1," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 14(5), pages 65-77, September.
    18. András Simonovits, 2014. "Benefit-retirement age schedules and redistribution in public pension systems," CERS-IE WORKING PAPERS 1430, Institute of Economics, Centre for Economic and Regional Studies.
    19. Fabrizio Balassone & Sandro Momigliano & Marzia Romanelli & Pietro Tommasino, 2018. "Just Round the Corner? Pros, Cons, and Implementation Issues of a Fiscal Union for the Euro Area," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2018(1), pages 5-34.
    20. Corduneanu Carmen & Miloş Laura Raisa, 2012. "Impact of Population Aging on the Dynamics of Stock Markets. The Case of Five CEE Countries," Scientific Annals of Economics and Business, Sciendo, vol. 59(1), pages 107-114, July.
    21. Fan Zhang, 2015. "Energy Price Reform and Household Welfare: The Case of Turkey," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dug:journl:y:2011:i:29:p:97-108. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Florian Nuta (email available below). General contact details of provider: https://edirc.repec.org/data/fedanro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.