Albania's Agriculture Transition and FAO Countribution

Albania become member of the Food and Agriculture Organization of the United Nations since 1973

Reforms and Donors' Support to Albanian Agricultural Transition

Before the advent of democracy, in early 1991, Albania was isolated from the rest of the world to the extend that autarky was practised. The economy was totally centrally planned. In 1991, after a long-standing political repression and economic stagnation, Albania embarked in a process of economic reforms viewed amongst the most serious ones in Eastern Europe for the degree of radicalness and liberalisation these induced. In this framework, the agricultural reform was pivotal because of the significance of agriculture in Albania's economy . The application of a very radical path to reform was, in the early years of transition, accompanied by severe disruptions and extremely challenging economic difficulties to the extend that, at some point, the country was predominantly depending on external food aids.
Under such conditions, the donors' community was immediately active in providing emergency as well as development aid to: (i) help the country cope with the most immediate and very pressing difficulties and (ii) back up the initiated reforms to smooth transition to an open market based economy. Technical as well as financial and commodity assistance was particularly significant to agriculture due to sheer collapse in the sector and a recognition of the guiding role of agriculture in Albania's transition.

The FAO Contribution to Albania's Tranzition Process

FAO was the first donor organisation to provide, from early 1991, technical support to the public sector in redefining its role and functions to face transition in agriculture. Along with the definition of a clear and coherent medium term strategy for the agro-food sector in Albania, the FAO intervention has, basically, focused on:

1. improving the public sector institutional building capabilities;
2. providing specific technical assistance (TA) and subsectoral interventions for fisheries, veterinary, animal husbandry, seeds, food control, forestry, agricultural information and statistics, research and documentation, training, education, irrigation and drainage, mechanisation, greenhouse production, plant protection etc.,
3. promoting private investments in agriculture and food industry.
   

This support has been steadily increasing in terms of funding and quality of TA, through the extensive mobilisation of the FAO's cooperation instruments such as:

1. Technical Cooperation Programmes (TCPs) for over 1,00,000 US$;
   FAO-UNDP Programmes (approx. 112,000 US$);
2. Government Cooperation Programmes (GCPs) mainly funded by the Italian Government (approx. 12 million US$) and
3. Specific FAO Investment Centre support accounting for about 20,000 US$ (Ref. Sergio Giorgi, 1996).

Strengthening Policy Making and Managment Capabilities within Ministry of Agriculture and Food (GCP/ALB/001/ITA)

Amongst the first very important FAO interventions in Albania was the execution of the first GCP as a following up on activities initiated in the Ministry of Agriculture and Food (MAF) since early 1992. The project was funded on Italian Trust Funds and extended over 4 years. 5 million US$ were invested to assist the MAF in restructuring its functioning and focus, away from one of planning and managing agricultural production towards one of (i) formulating, managing, implementing and enforcing the agricultural policy, (ii) creating a conducive environment for private investments to take place as well as (iii) generating and disseminating agricultural knowledge, information and policy analytic know how.

The project contributed to the accomplishment of all the above roles and launched a number of innovative ideas and activities which were, later, embraced and developed by other donors. It supported the: (i) strengthening of the MAF's management capabilities including strategic planning and management, public resource use, policy implementation, coordination of foreign aid and donor interventions, (ii) analysing and formulation of sectoral and subsectoral policies together with the necessary legal framework and (iii) restructuring of public services to better serve the achievement of new policy objectives. Also, the project has directly supported private investments in agriculture by establishing and developing sustainable business advisory services (ASPA - Agrarian Studies and Projects' Association and Business Advisory Unit ltd) for farmers and agro-industrial entrepreneurs. ASPA established under the ayuspices of FAO Project GCP/ALB/001/ITA has assisted with the preparation of business-plans for potential greenhouse entrepreneurs to evaluate the viability of proposed businesses and facilitate their access to a specific credit line funded under German aid arrangements.

Preparation of a Forest Cover Map and Reconnaissance Forest Inventory of Albania (GCP/ALB/002/IDA)

In the context of the "Integrated Forest Management Project" for Albania, a Letter of Agreement (LOA) between FAO and The World Bank was signed on 16 August 1994 for the preparation of a "Forest Cover Map and Reconnaissance Forest Inventory of Albania". This work was carried out by FAO in cooperation with international and national consultants, the University of Goettingen (Germany) and the General Directorate of Forests and Pastures in Albania. The preparation of the Forest and Land Cover Map of Albania was based on the analysis of satellite remote sensing datathrough visual interpretation of geometrically corrected and specifically enhanced satellite imagery. Visual interpretation of Landsat TM images was undertaken to delineate the main features, using as ancillary data only the Forest map at 1:20000 scale. The maps and statistics produced under this LOA are also available to the Albanian beneficiaries (Directorate General of Forests and Pastures and Forest and Pasture Research Institute) in digital form and can thus be used for the development of GIS data base (nowadays this technology is available and operative in Albania).

Support to Albanian Agriculture Production (GCP/ALB/003/ITA and GCP/ALB/005/ITA)

In view of the actual needs, innovative initiatives were launched to help the private entrepreneurship in agriculture take off and develop. These consisted in, firstly, filling in the gap for qualified advisory services to farmers, entrepreneurs and potential agro-food investors. This was made possible by establishing and consolidating private consultancy for agriculture in business planning and management, investment appraisal, access to credit, marketing, access to technical progress and technological know how, procurement, public relations, market research, product studies etc. On the other hand, to meet the needs for the quality inputs supplied in a professional and cost-effective way, the FAO came in with an important 1.8 million US$ project which, ultimately, aimed at improving the market supply for agricultural inputs in Albania by providing, through sustainable commercial channels, farm implements, machines, small equipment and other inputs for agriculture, livestock production and primary processing. A functioning network of dealers for agro-mechanical equipments is being established to allow for an efficient and sustainable supply and distribution of agro-inputs. On normal commercial basis, the project supplied the existing dealers with farm implements, equipments and agro-processing machineries. Technical expertise was provided to allow them grow and develop their private activities as well as upgrade their skills and professional capability which will, in turn, be conveyed to final input users. At the same time, farmers and agro-business entrepreneurs are assisted in finding access to available credit lines for the purchase of machinery and implements procured through the project.

Technical Assistance to the Forestry Project (GCP/ALB/004/ITA)

In line with government policy priorities, the FAO has been sensitive to issues related to the management of natural resources and environment in the country. The objective was to enhance better management and sustainable use of natural resources by improving public sector's capabilities in developing appropriate policies as well as to restructure and strengthen the control, enforcement and advisory services. Along these lines, a programme for an integrated and environmentally sound management of forest resources was identified and formulated with TA support from the FAO Investment Centre. The project is being cofinanced by the World Bank, Italy, Switzerland, Japan and the Albanian government.

Scientific Cooperation to Support Responsible Fisheries in the Adriatik Sea (Adriamed) (GCP/RER/010/ITA)

This is a regional project involving Albania, Croatia, Italy and Slovenia) in line with the Code of Conduct for Responsible Fisheries adopted by FAO-UN. this project is intdned to strengthen the institutional capacity of the General Directorate of Fisheries in the Ministry of Agriculture and Food and to assist it on specific aspects of reorganising the fisheries and aquaculture sector during transition to a market economy. This involved revising the present situation and elaborating proposals for the rehabilitation of some critical areas of the subsector including an assessment of the most essential needs for carrying out such rehabilitation. Particular attentio is given to the encouraging and sustaining a smooth process of international collaboration between Adriatic Sea coastal countries in fishery management planing and implementation. Consideration is also given to strengthening technical coordination betwen the national fishery research institutions adn administrations as well as betwen them, the fishery oganizations and the other stakeholders of the Adriatic countries
Under the on-going government programme for fisheries development, additional the FAO TA has been used for formulating the basic fisheries legislation and providing technical support on specific areas including fisheries management, statistics, information, research, credit to fishermen, stock assessment, establishment of an effective Monitoring, Control and Surveillance (MCS) system etc.

Greenhouse Vegetable Production in Albania (TCP/ALB/4551 T)

This TCP project, amountuing for 221,000 US$ started in NOvember 19995 and it has been implemented by the Ministry of Agriculture and Food. The objective of the project was to provide technical and operative assistance and guidance aiming strengthening of the national capacity in promoting greenhouse crop production in support of the recently established small scale private farming in Albania. In achiving this, the project has provided the service of three international consultans specilaised in i) vegetable crop management, ii) greenhouse design and construction and iii) post-harvesting and marketing of vegetables for a duration of 8 persons/weeks. In addition to this, seven national consultans have also been engaged for a total duration of 10.5 man/months who produced seven status report on the following topics:

1. vegetable crop management practices:
2. production economics of greenhouse vegetable production;
3. climate controll in greenhouse;
4. integerated pest management;
5. statistics of current greenhosue production;
6. marketing and post-harvesting handling practices and
7. equipments and supplies for gereenhosue industry

As result of the social and political unrest of Albanian in ealry 1997, some of foreseen activioties were delayed and as result it was considered the need to have another phase of the same project.

This TCP project, amonting for 170,000 US$, was considered as the phase II of the pervious project and it was implemented by the Ministry of Agriculture and Food and FAO who entrusted ASPA with the implementation of local activities. allowed the finalisation of the contributions whihc were expected to be implemented by the MOAF and FAO. The project, through demonstration schemes, produced a suitable model for the development of greenhouse industry in Albania. The project provided techncial and economic guidance to the small and medium entrepreneurs and professional association who wish to specialise in intensive production of high-quality greenhosue vegetables in Albania. Recommendations on a strategy for an integrated national plan of action aiming at the establishment of a viable and sustainable greenhouse vegetable industry are being elaborated. The actual assignment is expected to come up with proposals for the formulation of a follow up intervention as to the implementation of the national plan of action. Recommendations on a strategy for an integrated national plan of action aiming at the establishment of a viable and sustainable greenhouse vegetable industry have been elaborated. The project came up with a project proposal on follow-up interventions as to the implementation of the national plan of action for greenhosue industry in Albania.