The Covid-19 pandemic, which spread its negative effects widely on the economy, exacerbated the poverty trend.
INSTAT reported that the stock of persons registered to receive economic assistance in the first quarter of the current year marked the highest increase since 2018, when the methodology for receiving assistance changed.
During January-March 2021 the stock of persons registered to receive economic assistance reached 29,579 with an increase of 30 percent compared to the first quarter of 2020.
The increase in the number of people seeking financial assistance for economic assistance has increased significantly since the second quarter of 2020, when the effects of the pandemic crisis were reflected in the economy.
Earlier this year the government adopted a decision to double the amount of economic aid by June 2021.
According to the law in force, the amount of economic assistance is determined according to the structure of the family, but in no case can it be more than 150 percent of the social pension, which is 7,675 ALL.
Regardless of the number of members, a family can not benefit more than 11,510 ALL. The decision of the government determines that the maximum of economic aid goes to 23 020 ALL. But this decision is valid until the end of this month.
Economic assistance is provided to families without income or with insufficient income, orphans who are not in institutions. victims of trafficking, victims of domestic violence, etc.
The Covid-19 pandemic had the sharpest negative impact on the poor and those close to the income threshold of ($ 5.5, by purchasing power parity) per day, the relative poverty line measured by Bank standards World.
According to the World Bank, the Covid-19 pandemic has recently put about 112,000 people on the poverty map. The impact of the pandemic in Albania was sharper than in the Region because, in Albania, a large part of the population has incomes very close to the poverty line. Therefore, a small fluctuation in the country’s economy and employment has a very high impact on the level of poverty than in other countries. At the end of the first quarter of 2021, almost 34 percent of employees were paid the minimum wage (30 thousand ALL).
World Bank experts suggest that sustainable poverty reduction is achieved by investing in the skills of young people (through education) and adults (through labor market programs). Other tools are to increase social assistance for children and the elderly in poverty, to facilitate employment generation, especially in small towns and rural areas, and to improve housing and social services, which would create direct improvements in the quality of life for the poor.
