Albania is one of the poorest countries in Europe. The effects of the transition from a centralized economy in a rigid communist state to a free market economy in a democratic republic have weighed heavily on Albania's people, and particularly on its poor people. Despite the economy's robust growth in recent years, almost one quarter of the population lives below the poverty level of US$2 a day. The poorest of the poor, who comprise about 5 per cent of the population, struggle to put adequate food on the table each day.
The income gap in the country is relatively small. Because of low incomes and a low employment rate most people's average incomes hover close to the poverty line. This makes many of them vulnerable to the effects of downturns in the economy. It also means that well-directed pro-poor policies can potentially benefit large numbers of people.
As in many countries, the incidence of poverty is highest in rural areas, where an estimated 57 per cent of Albania's people live and where most of them depend on agriculture for their livelihood. Poverty is 66 per cent higher in rural areas than in Tirana, the capital, and it is 50 per cent higher in rural areas than in other urban centres. The agricultural labour force is heavily underemployed, and about half of all farm labourers work only part time.
For rural Albanians, non-farm employment and the opportunities it offers are a potential means of rising out of poverty.
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