Education, as a lack of priority, has hindered the transformation of the economic model

Small countries like Albania can prosper by increasing the skills of their population through development and educational reforms.

Countries such as Estonia and Slovenia show that investments in human capital, combined with the development of technology, scientific research and innovation, can become one of the main engines of economic transformation.

Estonia has been implementing education reforms since the 1990s, incorporating technology into schools, and they have gone hand in hand with the development of digital administration and the information technology industry. These reforms have created an important foundation for the development of the digital economy.

According to the OECD, the information and communication technology sector generates about 8.5% of the value added in the Estonian economy, one of the highest weights among the organization's countries.

Estonia has also become an important hub for technology startups, showing that a small domestic market is not necessarily an obstacle to the development of internationally competitive industries.

Another example comes from Slovenia, which has built an economy with a strong industrial base, supported by professional qualifications, scientific research and innovation.

In 2024, research and development spending alone in Slovenia amounted to around 2.1% of GDP, or 1.44 billion euros. Around 69% of research activity was carried out by the business sector, which shows the importance of innovation in the activities of enterprises and its connection to the productive economy.

The experiences of Estonia and Slovenia show that small economies can create competitive advantages by investing in knowledge, technical skills and technology. In Albania, by contrast, education has remained underfunded for a long period, while learning outcomes have lagged behind.

In 2015, public spending on education represented 3.1% of Gross Domestic Product, while ten years later this indicator remains almost unchanged, at around 3.2%. The problem lies not only in the level of funding, but also in the lack of a strong connection between the education system, the needs of the labor market and economic development policies.

In the last ten years, the structure of the Albanian economy has undergone significant changes, with a gradual shift from manufacturing sectors towards services, tourism and construction. Agriculture has lost weight in the economy, while industry, after a period of expansion, has entered a downward cycle.

According to INSTAT data, the share of industry in GDP fell to 10.07% in 2025, the lowest level since 2009. Agriculture also continued to contract, marking the fifth consecutive year of production decline. In contrast, construction and tourism-related activities have become important drivers of the economy.

Compared to 2015, the economic model has shifted more towards activities that rely on consumption, real estate and tourist flows, while the manufacturing base remains weak. This shift raises questions about the long-term sustainability and competitiveness of the Albanian economy.

The wage differentials also show the potential of sectors that require more qualified labor. According to INSTAT, in the first quarter of 2026, the average gross wage in the economy reached 90,119 lekë, with the largest increase coming from elementary occupations.

Insufficient funding for education limits the development of these skills, while the current structure of the economy does not create sufficient demand for highly qualified workers.

For decades, a vicious circle has been created, where low investments in education limit the development of human capital, while the lack of high-productivity sectors reduces the opportunities to utilize this capital within the country./ Monitor