PRESS RELEASE
Governor Sejko: Address at the promotion of the book on: “Facing crisis: the challenges of economic theory and policies”, by Academic Prof. Dr. Anastas Angjeli and Prof. Dr. Adrian Civici

The COVID-19 pandemic posed unprecedented and extraordinary challenges to the entire society. Public health emergency and, at the same time, the economic and financial difficulties caused by this shock and the measures undertaken to curtail the pandemic, dominated the global scene and continue to grasp the attention of the society and policy-makers, while continuing to affect their decision-making. The complexity of problems which we are facing requires quick and robust intervention coordinated with the health, fiscal and monetary authorities. The measures taken by authorities may minimise the negative effects of the pandemic and have established the premises for a fast recovery, hoping that vaccination and other health measures will bring the pandemic to an end.  

 The above narrative is elaborated with professionalism and realism in the book “Facing Crises: the challenges of economic theory and policies” by co-authors, Anastas Angjeli and Ardian Civici. The authors have followed the health issues, economic developments, and have described the decision-making of authorities, in order to analyse and clearly illustrate the mechanism of this crises and the economic and financial policies undertaken in response to it. 

The COVID-19 pandemic has presented authorities with hard and complex choices and has further deepened the issues faced by societies and humanity at the global level. The authorities carry out quick decisions to respond to unexpected developments. The adopted changes have imposed a shift in policies from traditional to non-conventional ones, which have brought significant changes, not solely to the way institutions carry out their activity, but also to mandates and their objectives. 

After a relatively long and vigorous period of policy-making, the authorities are evaluating these policies regarding both their success and potential side-effects on the economy and society at large. 

The idea for this book sprang from these discussions. Through a combination of events, history and doctrines of economic theories, the authors present a clear situation on the most current distinctive issues, and the necessity to review economic thought. Professors Angjeli and Civici bring the analyses down from the theoretical level to the practical one, by giving concrete recommendations on policy-making and elaborating the Albanian case. 

This discussion opens the door to a thorough analysis on the crises of the Albanian economy, where small enterprises were hit the hardest. The analysis presents the response of authorities and assesses the impact of the implemented policies on the economy and its specific sectors. The co-authors summarise and compare the assessments conducted by the Albanian and international institutions; they bring an in-depth evaluation on the effects of the pandemic in the overall macroeconomic and financial framework. They identify the vulnerabilities and the economic and financial issues that should be carefully addressed. Attention was paid especially to structural changes in the financial system, labour market and in the educational field. The current of discussions flows to the direction of the foundations, which will be able to determine growth potentials and developments in the medium and long-term future as well.   

Without becoming repetitive, I would like to point out that the professors correctly concur that this transformation will not stop at the banking system only, but it will extend over the entire Albanian economy. The transformation must respond to the sectorial developments, structural changes and digital trends that will affect the economy. The orientation of educational programmes must keep in mind the economic and commercial developments occurring on the global stage. These are especially important to a small and open economy like ours. 

After a detailed description of the aid package and the financial and economic situation of enterprises, the book presents a correct explanation of the success and effects that the decision-making had on enterprises and the economy. In this regard, the book provides the reader with a possibility to evaluate the effects of policies from an independent and critical standpoint. It offers a chance to optimise and coordinate policy-making in the future.  

The co-authors are right to assess that the digital revolution is a great potential for the development of the banking system and the rapid and safe financial inclusion of corporations. This is also a good opportunity to create flexible instruments that allow for a swift response against negative shocks and guarantee the financial stability of enterprises and the economy. The digitalisation will also enrich the banking and financial system with new stakeholders and services. 

During the crises, the Albanian people and society encountered strong dilemmas and choices. The hard decision to choose between the economy and health is identified by the authors as the fundamental and most difficult dilemma that authorities had to face. However, the ongoing analyses identifies that the  choice between the economy and health, which dominated short-term decision-making is not disconnected from other decisions encountered by our society such as: the command of law, equality before law, and the reduction of economic and financial inequalities. If we were to add environmental issues, such as global warming, we will come to understand that in unison they play an important role in the society’s capabilities to face the negative shocks of the pandemic. 

As I mentioned above, these challenges play a crucial role in the revision of the mandate and objectives of institutions, including central banks. The position that we assume towards them has a direct effect on the economic and financial stability of households, enterprises and the entire economy. 

At last, I would like to say that the authors have wittingly dedicated special attention to the policies and strategies adopted by the USA and the EU regarding the crises. I highlight the word “wittingly” because the philosophy of the developed policies and strategies and the instruments adapted by the two largest economies in the market, are not just an important subject matter from the academic standpoint, but they also serve as a guide to all other economies. Furthermore, advanced economies are key partners of small and opened economies. They issue the two dominant currencies to the world economy and finance. For all the reasons already stated, developments in the USA and the EU have an important and direct role to our economy.  Consequently, they must be taken into account in the context of economic and financial decision-making. 

Concluding, I would like to congratulate Prof. Angjelin and Prof. Civici for their work and dedication to their exceptional analysis on the economic, financial and social effects of the COVID-19-pandemic on both the global and Albanian economy. I am confident that the analyses, comments and the recommendation of the authors will prove valuable to institutions and policy-makers.