Albania allocates 50% less money than the EU average for education and misuses them: OECD

Students in a secondary class in Tirana and the teacher waiting for their response to a question 

 Albania offers one of the lowest funding rates for education in relation to Gross Domestic Product (GDP), just over 3% of its GDP.

Funding for education is 40% lower than in developed European countries and 15-20% lower than in the Balkans.

But an analysis by the Organization for Economic Co-operation and Development (OECD) on the country's education system, published recently, points out that Albania fails to make good use of the limited funds available, according to Monitor.

Of all the levels of education, the secondary one is the least funded in relation to the other levels. Albania provides only 0.4% of its GDP for secondary education, a level much lower than in developed countries where about 2% of GDP is provided. Secondary education is an important link in education systems because here are cultivated the skills for the professions in the labor market.

Data from PISA show that funding for education is directly related to the quality of students. When comparing the expenditures for students in high schools in Albania with those of other countries, the data suggest that Albania has low funding and consequently, low scores on PISA tests. OECD experts note that Albania will find it difficult to improve the quality of knowledge without higher investment.

Funds are distributed without funding formulas

Albania is not implementing the law in force, to make the distribution of funds in pre-university education. The law requires that the budget be distributed with a formula that is based on the allocation of funding for students, but that is not yet being implemented, OECD experts note.

Currently, there is no funding formula used to allocate funds from the Ministry to regional directorates and local education offices. Furthermore, regional directorates choose their own way of allocating funds.

For example, the ministry determines the number of employees for a given education directorate, without giving instructions on the number of teachers to be employed per school.

A portion of the funds, known as unconditional transfers, allocated to LGUs are calculated based on a formula established in 2002, which is already obsolete and does not respond to economic, social, and demographic developments.

Funding is not intended to address inequalities

While decentralization has provided some budgetary flexibility for regional directorates, Education Offices and Local Government Units (LGUs) do not have clear policies to fund students from poor families.

Although Albania has a poverty map, according to the prefectures it does not allocate funds for education based on this indicator.

Capital expenditures, not enough

Capital investment expenditures in and around schools are insufficient. OECD experts suggest that more funds are needed to improve school facilities and infrastructure around schools in line with modern standards.

Due to emigration from the villages to cities, some schools are overcrowded and do not have adequate laboratory equipment, communication technology infrastructure, to support high-quality learning.

In Albania, 47% of computers in rural schools are connected to the Internet, compared to 70% in North Macedonia and 94% on average in OECD countries. Poor infrastructure around schools, namely the road and transport system, make it difficult for students to access education, especially in rural areas.