The Challenges of Higher Education Reform in Albania in the Post-Communist Transition Period

2.1 Political, economic, demographic context, and labor market

In 1990, Albania was undergoing deep political and economic changes, that is, the fall of the communist dictatorship and the beginning of pluralism and democracy. The collapse of communism in Eastern Europe influenced Albania to start its own democratic reforms. The economic situation was challenging, characterized by stagnation and the beginnings of a transition from a centralized economy to a market-oriented one. The demographic landscape was young, with a significant portion of the population under the age of 30, which impacted the labor market by increasing the demand for jobs that the economy was not prepared to offer.

The following charts show the demographic and economic dynamics as per two macro indicators, population (Figure 1) and GDP (Figure 2), depicting a dramatic decrease in the year 1990 in both.

2.2 Structure of the higher education system and its key characteristics

In 1990, the Albanian higher education system was primarily composed of a few institutions, notably the University of Tirana, offering a limited range of programs mainly in the fields of humanities, natural sciences, engineering, and medical sciences. These institutions were state-controlled, with no presence of private or international universities.

Access to higher education was restricted and highly competitive, with admission often contingent on political and ideological conformity as much as on academic merit. The number of students in higher education was relatively low compared to the total population, reflecting the limited capacity of the system and the restrictive policies of the communist regime.

The Gross Enrollment Ratio (Figure 3) and the Gender Parity Index (Figure 4) indicate that while there was some progress in female participation in tertiary education, the period overall saw a reduction in enrollment ratios, especially for males, leading to a decreased overall enrollment ratio. This suggests a complex interplay of factors affecting tertiary education participation in Albania from 1971 to 1990.

The higher education institutions operated under strict state control, with no academic freedom and autonomy. The government determined the curriculum, content, academic standards, and even the research agenda. Governance structures were centralized, with rectors and deans appointed by the government rather than elected by the academic community [3]. The highest governing bodies of the universities were purely political, that is, the communist party committee and the party secretaries of the university, while the rectorate and the rector were subordinate to the above-mentioned political bodies.

Academic offerings were closely aligned with the state’s economic and ideological needs, focusing mainly on engineering, agriculture, medicine, and education. There was a lack of diversity in programs and fields of study, with limited opportunities for study in social sciences, business, or international studies.

Higher education was state-financed, with institutions dependent on government budgets. Almost all students have not paid tuition fees, with the exception of those who have other brothers and sisters studying at the same time and come from families with higher incomes. However, this also meant that institutions had limited financial resources to improve facilities, expand programs, or invest in research and development.

Due to Albania’s isolationist policy during the communist era, there was almost no international co-operation between universities. There were no opportunities for students or faculty to engage with peers abroad, participate in international research projects, or access global academic networks. This began to change as Albania opened up and sought to integrate with the European and global academic community.

This brief overview highlights the critical juncture at which the Albanian higher education system found itself in 1990, amidst broader societal transformation. It reflects a nation at crossroads, grappling with the legacy of its past education system while taking steps toward reform and modernization amidst economic and political upheaval. The subsequent years would see significant reforms aimed at expanding access, diversifying academic offerings, and integrating Albania’s higher education system into the global academic community.

3.1 Brief overview of the economic and demographic background

The change of the regime in the early 1990’s found HEI in Albania ill-prepared for the multitude and magnitude of the rapid shifts in demography, economy, and labor market. The transformation that universities were supposed to undergo was anything but straightforward with halts and setbacks due to major events that shook the entire Albanian society. However, the economy was quick to bounce back and the period that followed was characterized by fast paced growth, also due to the large share of remittances that emigration was injecting into the Albanian economy, estimated at around 14.6% of the GDP for 2005 by the EU progress report [4].

The graph in Figure 1 shows the extent of the massive emigration that immediately followed the political shift. The country witnessed a dramatic drop in population continuing to experience a negative growth since.

Besides emigration, internal migration also spiked, with every region but Tirana and Durres lose population (Figure 5), which together with the changes in the economy brought about a rapidly evolving landscape of the labor market.

3.2 Brain drain

Upon a closer look at the emigration data, what emerges as a concerningly persistent trend is the large share of the emigrating population that pertains to the age corresponding to tertiary education. The phenomenon has consistently been a significant factor that hinders the competitiveness of the Albanian economy.

The first country report [5] for Albania on Science, Technology and Innovation Systems published in 2005 estimated that, from 1990 to 1999, about 40% of the professors and researchers of the Albanian universities and research institutes had emigrated.

Driven simultaneously by push and pull factors—such as low salaries and limited prospects for high-skilled professionals in the country, contrasted with the higher living standards, professional growth opportunities, and dedicated immigration programs of developed countries—Albania’s ‘brain drain’ shows no signs of slowing down (Figure 6).

3.3 Landscape of the regulatory framework of the higher education sector in this period

Post-1990, amidst economic and political crises, efforts were concentrated on reforming the educational system. This included the adoption of Western educational models and methodologies. Changes were made in teacher training, discipline, and curriculum, introducing modern teaching methods and materials to enhance the learning experience and outcome for students.

During this transition period, Albania also focused on addressing the literacy rates, particularly among the population over the age of 40, who had remained largely illiterate due to deficiencies in the previous system. The extended compulsory education and reforms in adult education aimed to eradicate illiteracy and improve the educational status of the entire population.

The Law of 1994 [6] and later the Law of 1999 [7] outlined the principles of academic freedom and the autonomy of higher education institutions.

However, the autonomy, especially the financial one, remained very limited despite being granted by the Law. As per the review of OECD [8], the universities were entirely dependent on the state budget. While they were free to recruit their personnel, the number of the employees was determined by the Ministry. Malaj et al. [9] also confirm the lack of effective and transparent mechanisms within the universities to ensure appropriate budget allocation and management.

1999 was also the year when the Albanian Public Agency for the Accreditation of Higher Education was established. The agency would later go on to develop the quality assurance standards and criteria to be applied for the accreditation of the institutions and the programs they offered.

The Law of 1999 sanctioned for the first time the establishment of non-public higher education institutions, leading to the opening of the first private university in Albania in 2002, with many others to follow from 2005 to 2006 onward. This was not only a response to the strong increase in the number of high school graduates and the growing demand for qualifications on the developing labor market but also marked a phase of liberalization of the higher education sector, which led not only to an increase in the number of providers but also to a diversification of the education on offer.

3.4 The size and diversity of higher education

Despite the high share of emigration rate, due to the liberalization of the higher education sector, and the increase in both – the number of providers and the range of study programs (explaining the steep slope after 2003 when private universities were introduced) – this period was characterized by a positive trend in the enrollment of students (Figure 7), with female participation consistently prevailing. Regarding the distribution of students according to the study fields (Figure 8), the bars until 2003 show a strong preference for studies in humanities and education.

3.5 Research and international cooperation

The research activity was primarily conducted by the Academy of Sciences, the universities, and some research institutes. Both the role and the share of financing from private actors was marginal.

There were some initial attempts to set up agricultural technology transfer centers, but apart from agriculture, there are no recorded innovation centers during this period.

The GERD (Gross Expenditure on Research and Development) during this period remained around 0.1%, with minimal fluctuation (0.14–0.18% of the GDP) [4].

A number of bilateral agreements and cooperation protocols were signed in early 2000, paving the way for the first joint projects, especially with partners from the neighboring countries mainly Greece and Italy.

Besides the bilateral cooperation (which were later extended further via agreements with Austria, Turkey, Slovenia, etc.), Albania started to participate in multilateral projects such as Tempus. However, by 2005, the number of such projects at the country level was still in single digits, lagging substantially behind the other countries in the region [4].

The transformative steps of this period (1990–2005) laid a crucial foundation for further reforms and the eventual implementation of the Bologna Process, which would further integrate Albania into the European higher education area, standardizing degrees and making cross-border education and employment more feasible.

4.1 Economic and demographic background and the current state of play of the labor market

While the preceding period was characterized by economic growth with an annual GDP increase of over 6% (Figure 2), during the current period, the impact of the global financial crisis in 2008 was reflected in the Albanian economy too. Albeit low, the GDP growth remained positive until 2020 (COVID-19).

The population growth, however, has been highly affected. While negative growth has been the norm since 1990 (Figure 1), the recent years have witnessed a stronger emigration tendency, especially among the youth. This has resulted not only in the decline but also in the aging of the population [10].

Demographic changes and migration have led to a decline in the general population, a decrease in the number of young people, and shifts in the geographic distribution of the population. These dynamics are reflected in the decreasing student numbers in basic education and persistent negative net migration. Urbanization and migration patterns have also influenced poverty distribution, with some regions experiencing increased poverty rates while others, like the mountain regions, see decreases due to population movements. Ethnic and linguistic minorities, especially Roma and Balkan Egyptians, face significantly lower socio-economic outcomes compared to the ethnic Albanian majority. Government strategies and action plans aim to enhance the socio-economic inclusion of these marginalized groups.

Educational opportunities and outcomes continue to vary according to ethnic background and geography, impacting individuals’ future employment and life prospects. These disparities pose a risk to national development, emphasizing the need for a more effective evaluation and assessment system that can support improved learning and outcomes for all students.

The demographic shifts and migration patterns present substantial challenges for Albania’s educational system, especially regarding the retention of tertiary-educated individuals, having a direct impact on the labor market.

As per the INSTAT Labor Market Survey, unemployment among young people (aged 15–24) who are neither educated nor employed (NEET) is 27%, higher than the average for the Western Balkans (21%) and for the EU around 10.5% [8]. Bartlett et al. [11], Karafili et al. [12], and other studies attribute the high youth unemployment to the high vertical mismatch in the labor market. According to the last report issued by the American Chamber of Commerce in Albania “Business Index for the Period 2020–2021,” it shows that 63.8% of the company’s representatives interviewed indicated that they found it very difficult to find qualified staff for work [13]. In a study, Tafaj et al. [14] examined the expectations of work-life partners in relation to university graduates, with employers placing a very high value on solid practical and applied knowledge and skills, ICT skills,and generally the ‘new economy skills’, communication skills and foreign languages, as well as interpersonal skills.

4.2 The implementation of the Bologna system

Since 2003, Albania has been committed to the Bologna Process, aligning its higher education system with the European Higher Education Area (EHEA). By adopting the Bologna system, Albania committed to harmonize its higher education system with those of other European countries. This included adopting a three-cycle system of study, implementing the European Credit Transfer and Accumulation System (ECTS), and developing quality assurance mechanisms. The integration into the Bologna Process has been challenging, involving extensive reforms across HEIs. Issues such as aligning domestic qualifications with European standards (in terms of intended learning outcomes, content and teaching methodology) and improving the quality of education have been central to these challenges. Therefore, quality assurance mechanisms (external and internal) were at the core of the reforms that the universities and the higher education system as a whole underwent. The Bologna system impacted not only the curricula but also the governance of higher education, introducing for the first time, the election of the governing bodies, as well as sanctioning the university autonomy.

4.3 Regulatory framework and the impact on autonomy

Both the Law of 2007 [15] and the Law of 2015 [16], currently in effect, grant autonomy to HEIs, the latter also decentralizing the decision-making authority for several aspects to department level. However, it also withdrew a number of rights and competences previously held by the universities themselves, centralizing them on a national level: notably, the introduction of the State Matura as a prerequisite for university admission, the admission of newly enrolled students, and their matriculation.

This law has opened up the possibility of transforming public HEIs into public independent HEIs, but this has not happened in these 10 years.

The European University Association has developed a set of indicators to assess the level of university autonomy that consists of four pillars: (i) organizational; (ii) financial; (iii) academic; and (iv) staffing.

There are a total of 34 indicators to be assessed using a ‘dashboard’ that uses the following taxonomy: (i) autonomy enabler; (ii) constraint to autonomy; and (iii) barrier to autonomy.

The assessment of the Albanian legislative framework in effect shows that a little less than 30% of the indicators are autonomy enablers, while the others consist of constraints or barriers, meaning that there is a lot of room for improvement via policy interventions.

In recent years, while sanctioned in the law, the autonomy of HEIs has been restricted mostly via bylaws, regulations and other normative acts (increased bar for student admissions - higher minimum GPA (grade point average), minimal foreign language proficiency levels, fragmented pathways for transfer of studies, and codification of the study programs, etc.). However, the universities’ behavior has displayed a greater awareness of autonomy rights, such as the reactivation of the Rectors’ Conference, which is now exercising its role after years of hiatus.

4.4 The financing of higher education

The state budget for the HEIs consists of three categories of grants, such as the teaching grant (comprising 85%), the institutional development grant (up to 10%), and the research grant (5–10%). The first two are exclusive for the public institutions, while the third is a competitive grant. But, the share of the budget dedicated to education remains low, compared not only to the EU or OECD countries but also in the Western Balkans, not exceeding 3% of the GDP [17] and under 0.5% of GDP for higher education.

There is a strong correlation among government expenditure and enrollment ratios in tertiary education, as shown in the dual-line graph in Figure 9, which allows for a nuanced understanding of the relationship between financial investment in education and enrollment outcomes. It illustrates how increased government spending on tertiary education is closely associated with higher enrollment rates, emphasizing the importance of investment in tertiary education for improving access and participation.

4.5 Landscape of the Albanian higher education system

There are currently 40 higher education institutions operating in the country: 14 public and 26 private [18], out of which a total of 33 have received institutional accreditation. The number of providers as well as that of study programs has been increasing with the introduction of the private sector, explaining the steady growth of enrollments from 2005 to 2014 (Figure 10). Afterward, a number of intertwined factors such as population decline, preference to study abroad, and restrictions imposed by the new legislation could explain the decrease of the ratio until 2019 to be followed by oscillations up to date.

Changes were also observed in the student distribution across fields of study, showing a shift in preferences from education, humanities, and social sciences toward business, health, and STEM fields.

4.6 Brain drain and the impact on human capital

Since the early 90s, Albania has experienced a massive brain drain, throughout various periods and in varying intensity. In addition to the massive exodus of the 90s that has had long-lasting impacts in the country’s resource capacities, a second wave of migration has affected a series of sectors ranging from medicine to engineering to economics, causing a significant number of highly educated Albanians to relocate to Western EU countries, predominantly Germany. According to a survey conducted by INSTAT and the International Organization for Migration (IOM), around 350,000 people have moved abroad between 2011 and 2019. Forty seven percent of the people who have received higher education currently live outside of the country [19].

Attempts undertaken by the government to offset this trend included the Brain Gain program (a program that aimed to activate the Albanian Diaspora and foster their ties with the Albanian universities; the program ran from 2006 to 2010), or the Excellence Fund that supports Albanian PhD students who conduct their studies in top-ranked universities, with the condition to return to work in Albania for at least 3 years after graduation.

However, despite these efforts, a significant ratio of Albanians who have pursued or are pursuing postgraduate studies live in OECD countries, around 2500 in total, which amounts to 40% of the country’s postgraduate degree holders and 25% of the overall pool of researchers nationally [20]. Another important indicator includes the outlook of current youth on their future. A report published by Friedrich Ebert Foundation in 2019 [21] presents the results of a survey undertaken in the Western Balkans in 2018 addressing the aspirations of young people (aged 14–29) regarding education and employment among others. Forty three percent of the respondents from Albania indicated a desire to leave their country to pursue their higher education or their first professional experiences elsewhere.

4.7 Quality assurance system

The organ responsible for the accreditation processes of tertiary education in Albania is the National Agency for Quality Assurance of Higher Education (ASCAL). ASCAL is an independent body which ensures that institutions and programs adhere to state and international quality standards. It conducts external assessments for accreditation purposes to evaluate the quality of institutions, their departments, and study programs. The assessment adopts a prescriptive approach and is based on the level of fulfillment of a set of standards and criteria defined in the Albanian Quality Code. Additionally, ASCAL conducts the National Students Survey (each 4 years) in order to obtain an understanding of the level of satisfaction of the students with the quality of the tertiary education in general and also the standing of each individual university. The decision-making body for the accreditation of HEIs and study programs is the Accreditation Board.

4.8 Research and internationalization

Even though the main policy documents of this period – both Laws (the one of 2007 and 2015) and the National Strategies for Research and Innovation (2017–2022 and 2023–2030) – have elaborated a number of measures to foster the research performance of Albanian HEIs, research projects and research itself are lagging behind [4].

Research capacities themselves are limited, the pipeline of basic research to applied research is not developed, and specialized research centers are few and in their early stages. Insufficient public funding invested in education is a well-known challenge, and even more so when it comes to R&D. According to the 2019 report Education and Research in the Western Balkans by the European Movement in Albania [22], Albania had among the lowest values in the region in gross domestic investment in R&D (GERD), less than 0.2% of the GDP. Given difficulties to secure public funding from various levels of governing agencies, HEIs and/or researchers turn to European programs to support their research.

However, even though the number of research proposal applications has been on the rise slightly, the success rate has not been high compared to the region. Considering Horizon funding for the Western Balkans between 2014 and 2017, Albania has been beneficiary of 4% of available funding, vis-a-vis 2%, 6%, 12%, and 64% for Kosovo, Montenegro, Bosnia and Herzegovina, and Serbia, respectively [23].

According to recent Scopus data, the number of scientific publications per capita in Albania has been slightly on the rise since 2014; however it remains competitively low. Another analysis conducted with data retrieved from Web of Sciences databases for journal articles published between 2010 and 2021 reveals the same trend, with a yearly number of publications going from 262 in 2010 to 514 in 2021 in Albania, amounting to a total number of 5621 during the last decade [24]. The most prevalent disciplines (occupying the majority of the publications) included Medicine, Environmental Science, Health Sciences, Electrical Engineering, and Computer Science, in that order (ibid). Current Country Rankings published by the Scimago Journal Rankings (SJR) list [25] Albania as 118th, with just under 6500 citable documents published between 1995 and 2021. The data pertain to all subject areas and all regions. When observed vis-a-vis other countries at a regional level (Eastern Europe), Albania is ranked 22 out of 23 in terms of overall number of articles published, followed by Montenegro.

In addition to limited infrastructure and funding schemes, these outcomes can also be linked to a lower concentration of researchers and the percentage of labor working in R&D. For both categories combined, staff engaged in research and innovation in Albania amount to a little over 0.01% of the population, compared to other countries in the region where the same ratio results at least five times higher [26].

Ever since the Bologna Process (2005–till date), Albania has undergone substantial transformation into a competitive upper-middle-income economy, marked by the development of a multi-party democracy and open market. Amid these changes, the country has embarked on notable education reforms, including the decentralization of school governance and the introduction of a competency-based curriculum. These reforms have helped to expand access to compulsory education and improve performance in international surveys. Yet, many Albanian students still graduate without basic competencies, indicating systemic issues and a disconnect between the policy and practice.

5.1 Recommendations for higher education reform in Albania

To effectively address the systemic issues within Albania’s higher education system, a series of targeted reforms are recommended for universities. These reforms should encompass a comprehensive reorganization of academic curricula and management systems, focusing on several critical areas:

1. Curricular distinction: universities should implement a clear distinction between professional practice-related studies and science-oriented studies. This separation will better align educational outcomes with industry needs and academic rigor. Additionally, the universities should enhance the accessibility of tertiary education by providing Flexible Learning Pathways: part-time studies, online courses, and lifelong learning opportunities to accommodate diverse student needs.

2. Practical training enhancement: it is crucial to significantly increase the availability of practical training and internships, especially in professional practice-related courses, in close collaboration with work life partners. This approach will bridge the gap between theoretical knowledge and practical skills, enhancing graduate employability.

3. Interdisciplinary and research-oriented programs: develop and expand interdisciplinary, research-oriented master’s and PhD programs. These programs should be designed to foster innovation, critical thinking, and advanced research skills among students.

4. Digitalization and internationalization: addressing the gaps in the digitalization of teaching, research, and university management is critical. Prioritizing investment in these areas and enhancing cooperation with international institutions, particularly by engaging the Albanian academic diaspora in Europe and the USA, is essential for raising the global profile of Albanian higher education. By aligning with European educational strategies and global trends, particularly in embracing AI and digital transformation, Albania can enhance its higher education system to better prepare students for the future workforce, thereby reversing trends in brain drain and boosting economic development.

5. University management transformation: transitioning from a state-centric model of university management to one focused on service quality, societal impact, and adherence to international standards in education, research, and innovation is essential. This shift involves moving away from a model of ‘democracy without accountability’ to one that emphasizes performance-based governance. This new management approach should prioritize quality, transparency, and accountability, focusing on delivering high-quality services to students and enhancing the public impact of universities on Albania’s economic and social development.

The evolution of Albania’s higher education system is pivotal not just to meet internal standards but also to enhance Albania’s position on the international stage. Addressing these outlined challenges and enacting these strategic recommendations will necessitate comprehensive reforms and substantial investment. The aim is to align the higher education system with Albania’s broader socio-economic transformations and its aspirations for EU integration, ultimately elevating the nation’s educational standards and international competitiveness.