Albania is among the countries with the highest percentage of population at risk of poverty in Europe, but there are also significant inequalities between the population at risk of poverty based on rural-urban residence.
Data shows that nearly 60% of the population living in rural areas was at risk of poverty in 2021 (data for Albania 2020), which was the highest level in Europe.
The rural population in the country has a high risk of poverty compared to the rural population of other countries. Romania ranks second in terms of high rural poverty levels, with around 50% of the rural population, 10 percentage points higher than Albania.
Eurostat highlights that Albania has a high level of population at risk of poverty in major cities, including the capital city. In Albania, nearly 45% of the population in these areas is at risk of poverty, the highest level in Europe. North Macedonia, Bulgaria, and Romania follow Albania, where the urban population at risk of poverty is 30%.
The same situation applies to smaller towns. In smaller Albanian towns, poverty is milder compared to large cities and rural areas. Eurostat calculates that the risk of poverty in smaller towns includes 29% of the population.
This indicator is lower than in rural areas and large cities but still higher than in other European towns. Additionally, the urban-rural poverty gap is higher in Albania compared to other European countries.
Earlier this year, the World Bank analyzed that Territorial Reform significantly worsened the management of rural areas and posed new challenges to their development.
The lack of service provision in rural areas by the newly established local units resulting from territorial reform has contributed to the creation of inequalities. While urban areas benefit from relatively higher coverage of public services, the quality is poor, leading to further social and environmental costs.
Pollution, overpopulation, and poor planning further deteriorate the quality of life in urban areas. Deficiencies in solid waste and wastewater management limit access to proper waste management services and good-quality water for the population.
