Inequality And Social Protection Policies (The Case of Albania)

Abstract

Social protection schemes are a separate set of rules supported by one or more institutional units
that regulate the provision of social protection benefits and their financing. The paper aims to describe the
current systems of social protection, both contributory and non-contributory, and to evaluate trends and
performances in accordance with the structure and levels of social expenditures. Social protection systems
since the beginning have had a great impact on the improvement of socio-economic conditions in European
countries. The creation of welfare systems has influenced the redistribution of income and, consequently,
the reduction of the level of inequality. An analysis of inequality is made according to the models of social
welfare systems in Albania. The Albanian system of social protection is characterized by a relatively low
level of expenditure. In 2017, Albania spent only 9.2 percent of GDP on social protection (excluding health
insurance), which was less than half the EU average and significantly below neighboring EU aspiring
countries. This reflects low beneficiary coverage (except for old-age pensions) and low benefit levels.