Economic Growth and Inequality in Albania

• Author: Fabian Pjetri
• Position: Luarasi University, Tirana, Albania
• Pages: 148-153

148

Vol. 4 No.1

May, 2018

Balkan Journal of Interdisciplinary Research

IIPCCL Publishing, Graz-Austria

ISSN 2410-759X

Acces online at www.iipccl.org

EconomicGrowthandInequalityinAlbania

PhDCFabianPjetri

Luarasi University, Tirana, Albania

Abstract

Economic growth and inequality are not separate issues Inequality limits and keeps our

economicgrowthbehindWhenincomeforthepoorandthemiddleclassgrowsconsumption

themainfactorforeconomicgrowthisgrowingTaxrevenuesandinvestmentinbusinessand

educationarealsoincreasingThoseindividualsorgroupsofindividualswhohavehadmore

income so far have also had the opportunity for an even greater increase in income, intensifying

fearsomeinequalityinincomedistributionOfcoursesocialstraticationexistsbutthrough

properpolicieswecanassureeachchildofthelowerlayerabeerlifebutconservativesoppose

redistribution programs, emphasizing equality of opportunity, but not equality of results.

Todayithasactuallyresultedthatequalityofopportunityisatrickandthisisaproblemfor

democracyitselfTodaysworldinequalityhasgrownandisgrowingfrighteningInequality

is material and spiritual poverty, is intellectual and social poverty, is a source of tensions that

candegradetoanuncontrollablecrashTo

stoptheinequalityitiscompulsorytoliningit inviewofitasinevitableEqualitycannever

godowntotheleveloftheonewhoseeksitrathertogetititisuptotheseekertoclimb to

thelevelitnds

KeywordsEconomicGrowthInequalitySmallandMediumEnterpriseSMEsPerformance

CompetitiveAdvantageSectorialEmploymentInformalityGDPInationEquality

I Abriefdescriptionofglobalpovertyandinequality

Economicgrowthandinequalityareconnectedtopics

NobelpricewinnerJosephEStiglitzwrote

Politiciansusually speakabout inequality growthandlow economicgrowthas if

theyweretwoseparatedtopicsbutinfacttheyareintertwined

Inequalitylimitsandkeepsoureconomicgrowthbehind

Theargument is directMorejustice means moreeconomicgrowth When income

forthepoorandthemiddleclassgrowsconsumptionthemainfactorforeconomic

growthgrows

Tax revenues and investmentsin business and education are also increased So

policiesaimedatreducinginequalityareseenaspoliciesthatbringeconomicgrowth

Butwhatdoordinarypeoplenowwant

Initiallytheywantaneconomicboomthatisnotcoming

TheWorld Bankhasloweredits forecast for the globaleconomythisyear forthe

secondtimeItisanticipatedthatglobaleconomicgrowthwillcatchguresofabout

percentin

But is such an increase sucient to reduce unemployment to increase

consumptionto increase public service funding and to narrowdown inequality

Reality is complex Before the early s salaries and output grew together

Nowmostoftheproceedsfromtheoutputgototheshareholdersnottotheworkers