Albania urgently needs to strengthen Early Childhood Education and Care as a form of supporting human capital development and labor market participation.
The World Bank's latest public finance review document in Albania highlights that despite the increase in public spending on this item, it remains low by international standards. The report notes that Albania is experiencing increasing demand for these services despite demographic contraction.
“Accelerating efforts to improve local government financing could improve access and quality of ECEC services. Access to ECEC services is limited and uneven: only 10 percent of children under the age of three are enrolled in public kindergartens, while 18 municipalities do not provide such services at all. Variations in parental fees and the lack of a clear regulatory framework for private provision of services further exacerbate inequalities in access,” the report states.
According to the World Bank, challenges in institutional coordination between ministries and local government units fragment service delivery, while data gaps hinder effective planning and targeting.
The report notes that although reforms to improve transfer formulas and apply performance-based grants are underway, accelerating efforts to strengthen financial management, budgeting practices, and oversight of service delivery at the local level is essential to achieve greater fiscal efficiency.
Another element that this document brings to attention is that of increasing the efficiency of financing and including a broader role in partnership with the private sector in this field.
“Addressing these challenges will require both increased public investment and a more strategic approach to its allocation. Increasing the efficiency of funding – through well-targeted grants, strengthened local financial management systems and clear regulatory frameworks – is essential to maximise the impact of limited resources. Expanding partnerships with private providers, promoting employer-supported childcare and mobilising international funding can also help close infrastructure gaps,” the document states./ N.Maho
