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Discussion with the Albanian Diaspora in Italy: Remittances – A Footprint for Development
Date: 12/03/2021
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GERMIN in cooperation with the World Bank Albania organized the virtual meeting: Remittances – a footprint for development. This event brought together 56 participants in ZOOM and over 30 on Facebook Live from the Albanian members of the diaspora in Italy and the main stakeholders related to remittances to Albania.

Edlira Dashi: As it is known, 1.2 million Albanians live outside the Republic of Albania and every year they send $ 1.4 billion in remittances, or 10% of the country’s GDP. Despite the economic problems due to the pandemic, remittances do not seem to have decreased during this year and continue to be at a very high and significant level for Albania. This large influx is oftentimes higher than foreign direct investment and often exceeds official assistance coming from various partner countries. Thus, remittances are a safe and stable source for financing Albanian families. On average, remittances make up about ⅓ of the budget of Albanian households that benefit from them. An important part of these families have remittances as a key source of their livelihood. But no matter how important remittances are, they still remain a costly source of funding. To send a sum of $ 200 to Albania, a diaspora Albanian spends about $ 16. Italy is one of the main sources of remittances for Albania and is one of the countries with the lowest cost. It should also be borne in mind that a significant part of these remittances is channeled to unofficial sources. Electronic remittances are not usable in Albania and remittances are mainly made through banks and money transfer companies, at a high cost.

Ilir Gëdeshi: Almost 57% of the population of the Republic of Albania is abroad. This population is mainly concentrated in Greece and Italy, but in the last 10 years this movement is being channeled more towards Germany, England, USA, and Canada. So, we have a shift of Albanian emigration flows, moving from countries with lower incomes, to countries with higher incomes. Consequently, this will be reflected in the perspective of remittances as well. Studies on remittances date back to the late 1990s, reflecting different patterns of migration. In the 90’s mostly men emigrated who settled in the host country illegally. After a few years when they were provided with the relevant documents they had the opportunity to withdraw the family as well. So an immigrant in the 90’s sent remittances to the whole family. In the early 2000s meanwhile this pattern changed as those immigrants withdrew their family, i.e. wife and children with family reunification, and thus they sent fewer remittances because they were already sending only to parents. With the onset of the economic crisis, remittances began to fall due to the crisis and due to declining emigration flows. This trend began to change when the world, mainly Greece and Italy began to emerge from the crisis.However now some new trends are noticed. Emigration has begun to flow to Germany and other Western European countries and consequently having higher incomes can send more remittances. Specifically, a study conducted in the years 2010-2011 found that remittances sent to Albania were lower compared to Kosovo, as Albanian Albanians were settled mainly in Greece and Italy, while Kosovo Albanians were settled in places such as Germany, Nordic countries or England. What is worth mentioning is that it is noticed that both the Albanians of Albania and the Albanians of Kosovo have their savings income in the place where they live. So if they send a remittance unit, they save 5.5 units in the country of emigration. So this is a potential amount which in favorable economic and social conditions in Albania can be sent in the form of remittances. It is also important to mention how remittances are used. All surveys conducted since the 1990s show that remittances are little used for investment and most of them are used for consumption. Even today this thesis prevails, and most remittances are used for consumption. Emigration today in Albania continues to be quite high and mainly educated young people are leaving for more western countries. This can be translated as an opportunity for remittances to be even higher in the future if there are suitable conditions for their investment in Albania. This would be a qualitative increase in remittances as a good part of them would be invested in the country’s economy. The main ways of sending remittances, in the 90’s informal routes prevailed, in the 2000s formal routes began to take precedence, through money transfer agencies and banks, but the cost of money transfer through these agencies continues to be high and this negative influence.

Vat Marashi: What is important is to create a climate of cooperation on how to conceive an increase in the amount of immigration investments. This is because as long as remittances will go only for consumption, of course this does not create any major increase for the Albanian market. Investments give another impact, but here we must take into account some other elements such as trust, laws, facilities that are created. We have to be confident but we still have to work hard. Interestingly, despite the situations that have affected the economy, remittances have not had any significant decline this crisis year. It would be important to strengthen and regulate these visions or laws of communication, investment security. Immigrant groups have visions for the future and are committed to working for them.

Fatos Cocoli, an expert on economic issues at the Ministry of Diaspora, stated three main needs. First, encourage and increase the transfer of money from the diaspora through official channels. Second, the orientation regarding spending this money more effectively and finally, to be able to attract new diaspora savings through banking channels or domestic investments.

The discussion was then focused on the audience which was engaged throughout the meeting on the chat. Questions from the audience were answered from the panelists  and a well rounded discussion occurred. 

GERMIN in collaboration with the World Bank is organizing a series of events with the Albanian Diaspora around the world and financial sector experts in Albania to discuss challenges and opportunities related to remittances, as an important catalyst of economic development.

The series is developed in the context of Project Greenback, the financial education component of the Remittances and Payments Program (RPP), funded by the Swiss Secretariat of Economic Affairs (SECO) and implemented by the World Bank in partnership with the Bank of Albania.

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National and Cultural Identity of the Albanian Diaspora
Dr Klement R. Camaj December 24, 2024   The Albanian community living in various regions of the world has an important role in the preservation, advancement, and promotion of their national and cultural identity. In addition to ensuring that the culture and customs are maintained and preserved, this identity is crucial for the community’s cohesion and sense of belonging. Cultural continuity of the Albanian cultural identity in the diaspora faces several challenges including the influence of the host country, language and cultural assimilation, and the limited access to traditional cultural resources. However, despite challenges, there are significant opportunities of preserving and upholding the Albanian cultural identity in the diaspora. Cultural centers and community organisations can serve as vital hubs for preserving language, fostering social interaction, and celebrating shared heritage. The rise of online platforms and social media networks has created new avenues for connecting, sharing cultural experiences, and accessing information about their homeland. Educational initiatives, both formal and informal, can play a crucial role in transmitting cultural knowledge to younger generations, ensuring the continuity of traditions for years to come. These challenges and opportunities highlight key themes that were discussed in an online conversation with the Albanian diaspora. This online conversation was hosted and organised by GERMIN on the 23rd of December.    The preservation of the Albanian language in the diaspora, one of the fundamental means of preserving cultural heritage, further strengthens this identity. According to academic literature (Camaj, 2024; Gogonas, 2009; Clifford, 1994; Portes and Schauffler, 1994) language is an essential instrument for passing on culture, customs, and legacy to the next generation (cultural continuity). Language growth in diaspora groups is greatly aided by Albanian language schools, cultural gatherings, and community gatherings. The question of how to ensure that the younger generation, who are frequently entrenched in the host country’s culture, can still speak Albanian effectively is a significant concern, nevertheless.   The apparent political inaction of the Albanian and the Kosovan governments is a common concern among the Albanian diaspora. Many feel that the governments have not sufficiently recognised or appreciated the diaspora’s mission and influence. It is necessary to strengthen diplomatic ties, cultural exchanges, and inclusive policies in order to achieve this goal and enhance the diaspora’s bond with their homelands. Furthermore, the lack of government initiatives to actively involve the diaspora in the development of their home countries fuels this sense of disconnect. Many diaspora members possess valuable skills, expertise, and resources that could significantly contribute to economic growth, social progress, and political stability in Albania and Kosova. However, the governments often fail to establish effective mechanisms for harnessing this potential, such as creating diaspora engagement programs, facilitating investment opportunities, or recognising the contributions of diaspora members through formal channels. These sentiments are a common concern among the Albanian diaspora, as evidenced by the online discussion with diaspora participants.    The Albanian diaspora has faced both opportunities and challenges as a result of globalisation and technological advancements. On the one hand, they enable real-time contact and cultural exchange by fostering ties with the homeland via social media and virtual platforms. However, they also expose young generations to a variety of influences that could weaken their sense of belonging and cultural identity. According to J.W. Berry (2008), globalization may lead towards assimilation as non-dominant societies converge towards dominant ones, hence, there is a real risk of possible assimilation and the loss of distinctive cultural characteristics (Castles, 2006). Therefore, it is crucial to find a balance between reducing the pressures of assimilation and using technology to preserve culture.    Based on the discussion, several actions can be taken to strengthen the Albanian Diaspora’s cultural identity. First and foremost, it is imperative that diaspora communities have strong Albanian language programs in place. Local governments in the countries of residence and diaspora organisations can support these initiatives. Second, encouraging and supporting cultural exchange programs that provide diaspora members a firsthand look at the Albanian customs, might help them connect more to their roots. Finally, it is critical that to governments of Albania and Kosova actively interact with their diaspora by implementing policies and initiatives that are specifically designed to meet their needs and contributions.    Potential Solutions and Recommendations   Educational Programs: In diaspora communities, comprehensive Albanian language programs should be established in partnership with nearby educational establishments. To make language learning easier and more attractive, especially for children, mobile applications and online courses can be created.  Cultural Exchange Programs: Setting up virtual cultural events and cultural exchange tours that let diaspora individuals take part in traditional Albanian celebrations and traditions.  Government Support: While both Kosova and Albania have designated officials to address diaspora concerns, their authority and impact often appear limited. There is a need to empower the officials with greater authority and resources to effectively address the needs and demands of the Albanian diaspora.  Intergovernmental Cooperation: Enhanced coordination between the Kosova and Albanian governments on diaspora engagement is essential. A joint approach would allow for the sharing of best practices, pooling of resources, and the development of unified strategies and policies for diaspora outreach and engagement.  Technology Integration: Creating social media communities and online platforms devoted to advancing the Albanian language, culture, and history. Establishing digital repositories of Albanian music, literature, and folklore.    Avenues for Further Research   Impact of Technology: Researching how social media and digital communication tools affect the cultural identity of the Albanian diaspora. Investigating the potential use of these technologies for cultural preservation. Intergenerational Transmission: Examining the techniques and approaches diaspora communities employ to pass on cultural norms and values to future generations. This can be achieved through various means, such as language classes, cultural festivals, storytelling, and family-based learning. The success of these efforts depends on several factors, including parental involvement, community support, access to cultural resources, and government support. By fostering strong intergenerational communication and utilizing technology to connect with the homeland, diaspora communities can effectively transmit their rich cultural heritage to future generations, ensuring cultural continuity.  Government-Diaspora Relations: An analysis of the Albanian and Kosovan government’s connection with its diaspora. Locating good examples and best practices from other neighbouring nations with sizable diaspora communities.    In summary, maintaining cultural identity and a sense of belonging within the Albanian diaspora is a group endeavour that calls for coordinated efforts from the country and the diaspora group. By tackling the obstacles and capitalising on the advantages of globalisation and technology, the Albanian diaspora can sustain its prosperity while preserving its distinctive cultural legacy. To guarantee the survival of their rich cultural heritage, the government of Albania and Kosova, as well as the diaspora organisation and the people themselves, must cooperate and create deeper links of communication. 
Date: 31/01/2025
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