World Bank Report: emphasis on higher education in Albania

The latest World Bank Economic Report for Europe and Central Asia (ECA) has spotlighted the transformative power of higher education in driving economic growth across the region. Presented in Tirana, the report, titled “Better Education for Stronger Economic Growth”, highlights Albania’s progress in expanding access to higher education while emphasizing the need to improve its quality and relevance. This comes at a time when Albania and its Western Balkan neighbors are navigating a critical phase of economic transformation, aiming to shift from consumption-driven growth models to those fueled by innovation and technological advancement.

Why does it matter: Higher education is pivotal for equipping the workforce with skills needed to drive innovation, productivity, and competitiveness in a rapidly evolving global economy. For Albania, where significant strides have been made in expanding access to higher education, the challenge now lies in aligning academic outcomes with labor market demands.

While Albania has seen a dramatic increase in the number of university graduates, only a small proportion—less than 15%—specialize in STEM fields (science, technology, engineering, mathematics). This is notably lower compared to advanced European economies, where STEM graduates comprise over 30% of degree holders. The lack of STEM expertise creates a bottleneck in fostering innovation and addressing the demands of an increasingly technology-driven labor market.

Another challenge lies in the quality and relevance of education. The World Bank emphasizes that educational systems in the Western Balkans, including Albania, lag behind EU countries in human capital outcomes. Albanian graduates often find their skills misaligned with market needs, highlighting the urgency to harmonize academic curricula with employer requirements. Such reform is vital to developing a highly skilled workforce capable of driving technological advancements and economic diversification.

Efforts to close these gaps are underway. Government-backed initiatives aim to incentivize enrollment in STEM programs, while collaborations with the private sector are being explored to provide students with hands-on training and internship opportunities. Additionally, regional partnerships and integration into EU education frameworks are seen as crucial steps in raising education standards and enhancing workforce mobility.

Investing in education is also a pathway to reducing Albania’s reliance on low-value sectors and creating opportunities in high-growth industries such as information technology, renewable energy, and advanced manufacturing. By focusing on the intersection of education and innovation, Albania can position itself as a hub for talent and creativity in the Balkans.