IPS Processes

The National Strategy for Development and Integration 2007-2013 represents the fundamental strategic document of the sustainable social and economic development of the country, combined with the agenda of the integration in the EU and NATO structures, and the implementation of the Millennium Development Goals.

The need for a broad national consensus on the definition of the key priorities for development and European integration provided the impetus for the NSDI consultations by an extended audience of stakeholders, starting from different governmental levels, members of parliament, civil society, academics and experts, professional organizations, local governments and donors followed by a series of TV debates.

Such process was carried out for the first time in Albania, led by DSDC, and aimed at gathering the comments of the concerned parties, particularly on the identification of the strategic priorities and the allocation of future financial resources, as well as reaching the broadest consensus possible on the main issues of the document.

Furthermore the Annual Progress Report of NSDI is based on the political, economic and social developments of the country and evaluates the implementation of crucial policies and reforms for the achievement of long term objectives as provided for in the National Strategy for Development and Integration 2007-2013 (NSDI).

The Medium Term Budget Programme is an instrument on managing public investment and a key component of Integrated Planning System. It is the result of two processes: Programme Policy Reviews and Programme Expenditures and Investment Plans. MTBP is used to inform the Parliament of Albania and the public about the expenditures plan of the Government in the three consecutive years. The first Medium Term Budget Programme (MTBP) was completed for 2001-2003. The methodology is now established and is in the process of being implemented. As underscored in the IPS proposal, challenges include: policy decision-making being connected with financial decision-making; avoiding overlaps between MTBP and NSDI; public investment planning occurring inside the MTBP process; and building strong links between MTBP and actual ministry budgets. The Government has drafted a New Organic Budget Law, to institutionalize the MTBP/budget process. The following summarizes the key steps in producing, annually, a 3-year plan that links policy goals, objectives, outputs and budgets for each Ministry’s programmes.

European Integration in particular affects all NSDI components. Both European Integration and the Government Programme contain explicit policy and legislative commitments, whereas public investment and external assistance represent processes through which policy-driven project commitments are developed. The process of membership of the European Union and NATO requires concerted action across government institutions and all the policies outlined in this chapter serve directly or indirectly to achieve this twin strategic goal. The Stabilisation and Association Agreement is the instrument which will enable gradual integration of Albania into the European Union. The agreement created the necessary framework for strengthening the rule of law, increase its effectiveness, and assist institutional and economic reforms with the aim to raise the standards of living for all citizens. NATO integration is one of the main goals of the country's foreign policy, its national security strategy and its long-term plan for the development of the Armed Forces. Albania has made remarkable progress toward since last meeting in Bucharest and is looking forward to receiving the invitation for full membership during the NATO summit in Brussels in April.

In Albania, the Government Programme (GP) covers the entire mandate of the elected government and is approved by Parliament as part of the process of forming a new Government. The current GP is an extensive document identifying policy commitments for most sectors. In the past, a separate Government Action Plan was produced to guide the implementation of these commitments. It is assumed that Ministers will closely adhere to the Programme. In the IPS proposal, the GP was identified as a core policy process and several recommendations were made regarding how it should be incorporated into NSDI and MTBP. NSDI sector strategies look ahead seven years with a view to identifying sector priorities and strategic policy goals within a realistic sector funding envelope. Although the GP does not extend this far into the future, it can have a significant impact on the approach taken to developing a sector strategy.

This refers to the Public Investment Project Management Cycle that will be developed within the MTBP process. Technically, public investment is simply a component of public expenditure and is managed within the MTBP/Annual Budget process. Public investment is an integral part of the MTBP. Best practice universally emphasizes the importance of taking public investment into account as part of policy strategy and of ensuring the recurrent budget implications of public investment projects are considered. In Albania, public investment had already become connected from the MTBP and budget process. By transferring the public investment function to the General Budget Department in the Ministry of Finance, the Government of Albania confirmed its will toward fixing the problem. In the new 2009 IPS calendar the public investment is reflected inside the MTBP.

This component aims to provide effective coordination and high quality technical support throughout all stages of the external assistance management process to ensure that external assistance directly supports the Government's strategic priorities that it is well managed, and that related information is openly shared between donors and government and across government. To do this, the DSDC has developed in 2007 an External Assistance Orientation Document as a main component of the IPS. This strategy covers all aspects of external assistance, including the harmonisation of systems and procedures with development partners, in line with the Paris Declaration. It has a close cooperation with Donor Technical Secretariat a structure which facilitates donor-to-donor and donor-to-Government dialogue

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