The "garbage" economy

2024-08-24 08:25:00, Ekonomi CNA

In the latest news from the economy in the region or Southeast Europe, what caught our attention this week are:

The Stellantis company launched its Fiat Grande Panda electric car in the Serbian city of Kragujevac, where it has invested almost €200 million (including a €48 million subsidy from the Serbian government), in a factory expected to start full production in October. employing 1,000 people; The French group Saint-Gobain has successfully launched its second gypsum board production plant in Turda, Central Romania.

The new line, which represents an investment of over 50 million euros, extends over 14,000 m2 and includes advanced equipment for grinding, calcining, plate forming, drying and stacking of plasterboard;

The Italian company Ariston has started the construction of a new factory in Nis, Serbia, with a planned investment of 75 million euros for the production of household electrical appliances; Sparkasse Bank will grant a loan of up to 2 million euros to the company Makprogres DOO Vinica.

Makprogres is a local family-owned company with 640 employees, producing and selling food products under the brands Vincinni, Donia, Sun Valley, Fantasia and Natura, in more than 60 countries worldwide.

In Albania, the most important news of the last days are two:

First, a new draft law on waste management, where the government brings back to the attention the import of waste that it considers non-hazardous, while a debate has opened in the country about a ship with dangerous slag whose origin and the whole process are not being understood subsequent transportation, without talking about the uncertainty of what will happen when they return to the port of Durrës.

The other news is related to the establishment of the refugee camp - based on an agreement with the Italian government - in Shengjin, which, unlike other projects that drag on for months, has moved very quickly and will be ready to receive the first guests who in September.

The contrast between the news produced by Albania and which are not propaganda news is great with the economic news produced by other countries.

The contrast between the "tasks" that a government is expected to perform in order to promote a sustainable economy, to increase the well-being of its citizens and their quality of life, and what it is actually doing, is just as great.

Its main focus at the moment seems to be on the "processing" of waste and import refugees, at a time when the country has other, much bigger and more urgent problems.

The garbage problem actually exists, but in a completely different dimension. At the height of tourism, their management leaves much to be desired.

In coastal areas, garbage has spread everywhere, leaving a negative impression on tourists, who are complaining like never before on social networks, making the worst possible advertisement for tourism Albania.

Wastewater flows in Vlora, as the government has left it up to businesses to invest in the construction of sewage treatment plants at a cost of up to 100,000 euros. The entities, even though they pay all taxes to the state, are being forced to do the work of the government.

The latter, during the period 2017-2023, has paid from taxpayers' money about 13 billion lek (130 million euros) for the construction of three incinerators, which today practically do not exist, let alone work.

This did not prevent the Ministry of Finance from increasing the payments for the concessions, where one of the increased offices was precisely the incinerator of Tiranws.

The problem of immigration also exists, but in that of the unstoppable flight of Albanian citizens, which has reached such proportions that it is affecting all economic indicators from the labor market to consumption, not to mention the long-term effects on the productivity of the economy of the pension scheme. But the government does not even dare to mention these problems, let alone accept them.

We do not see that this government makes even a propaganda effort to reduce corruption, which remains among the highest in Europe, according to recent polls, despite the justice reform, which was mostly imposed by international institutions.

Nor is there any serious move to unlock EU funding for agriculture or to enter into negotiations with other international institutions that provide funding to agriculture, which has cut off significant investments (in those cases where they were given without a friend). , blocking this vital sector at a time when consumption was increasing due to tourism, leaving large spaces for imports.

What economic stability and quality of life can be promised with these policies?! Instead of Albania entering the stage of sustainable development and investing heavily in the quality of life, the government is turning the wheel in the opposite direction.

Why should the government focus on these sectors of receiving waste, where world experience has shown that they are the typical sectors where the mafia has a long hand even in countries with stronger control and management institutions.

While we are all aware of the pronounced institutional weakness in the country, where even the police force has been accused by the head of SPAK of criminalization.

Or that we risk becoming like the Mexican model with happy resort islands, as the investment in Sazan Island is being advertised, only for a few tourists and outside the limits of the resorts, poverty, crime and corruption rule!

The "garbage" economy cannot be the main branch of the Albanian economy, moreover, the Albanian government that promotes this model has not shown any management skills./ Monitor Magazine